[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3570 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3570
To amend title 17, United States Code, to reauthorize the satellite
statutory license, to conform the satellite and cable statutory
licenses to all-digital transmissions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 15, 2009
Mr. Conyers (for himself, Mr. Boucher, Ms. Wasserman Schultz, and Mr.
Johnson of Georgia) introduced the following bill; which was referred
to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 17, United States Code, to reauthorize the satellite
statutory license, to conform the satellite and cable statutory
licenses to all-digital transmissions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Satellite Home Viewer Update and
Reauthorization Act of 2009''.
SEC. 2. REFERENCE.
Except as otherwise provided, whenever in this Act an amendment is
made to a section or other provision, the reference shall be considered
to be made to such section or provision of title 17, United States
Code.
SEC. 3. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS.
(a) Heading Renamed.--
(1) In general.--The heading of section 119 is amended by
striking ``superstations and network stations for private home
viewing'' and inserting ``distant television programming by
satellite''.
(2) Table of contents.--The table of contents for chapter I
is amended by striking the item relating to section 119 and
inserting the following:
``119. Limitations on exclusive rights: Secondary transmissions of
distant television programming by
satellite.''.
(b) Unserved Household Defined.--Section 119(d)(10) is amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) cannot receive, through the use of a
conventional, stationary, outdoor rooftop receiving
antenna, an over-the-air signal containing the primary
video or qualified multicast video of a primary network
station located in that household's local market and
affiliated with that network of--
``(i) if the signal originates as an analog
signal, Grade B intensity as defined by the
Federal Communications Commission under section
73.683(a) of title 47, Code of Federal
Regulations, as in effect on January 1, 1999;
or
``(ii) if the signal originates as a
digital signal, intensity defined in the values
for digital television noise-limited service
contour, as defined in regulations issued by
the Federal Communications Commission under
section 73.622(e) of title 47, Code of Federal
Regulations, as such regulations may be amended
from time to time;'';
(2) in subparagraph (B)--
(A) by striking ``subsection (a)(14)'' and
inserting ``subsection (a)(13),''; and
(B) by striking ``Satellite Home Viewer Extension
and Reauthorization Act of 2004'' and inserting
``Satellite Home Viewer Update and Reauthorization Act
of 2009'';
(3) in subparagraph (D)--
(A) by striking ``(a)(12)'' and inserting
``(a)(11)''; and
(B) by striking ``or'';
(4) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(5) by adding at the end the following new subparagraph:
``(F) is a subscriber who was lawfully receiving,
by reason of subparagraph (A) of this paragraph, as in
effect on the day before the date of the enactment of
the Satellite Home Viewer Update and Reauthorization
Act of 2009, secondary transmissions of the primary
transmission of a network station affiliated with that
network.''.
(c) Filing Fee.--Section 119(b)(1) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(C) a filing fee, as determined by the Register
of Copyrights pursuant to section 708(a).''.
(d) Emergency Monitoring, Planning, or Responding.--Section 119(a)
is amended by adding at the end the following:
``(17) Retransmission for emergency preparation, response,
or recovery.--
``(A) Authority.--The secondary transmission by a
satellite carrier of a performance or display of a work
embodied in a primary transmission of a television
broadcast station is not an infringement of copyright
if such secondary transmission is made--
``(i) to a Federal governmental body
designated by the Secretary of Homeland
Security or an organization established with
the purpose of carrying out a system of
national and international relief efforts and
chartered under section 300101 of title 36;
``(ii) to officers or employees of such
body or such organization as a part of the
official duties or employment of such officers
or employees;
``(iii) at the request of the Secretary of
Homeland Security; and
``(iv) for the sole purpose of preparing
for, responding to, or recovering from an
emergency described under subparagraph (B).
``(B) Emergencies.--An emergency is described under
this subparagraph if the Secretary of Homeland Security
identifies such emergency as a major disaster, a
catastrophe, an act of terrorism, or a transportation
security incident.
``(C) Regulations.--Not later than 6 months after
the date of the enactment of this paragraph, the
Secretary of Homeland Security shall issue regulations
to protect copyright owners by preventing the
unauthorized access to the secondary transmissions
described in subparagraph (A).
``(D) Reports to congressional committees.--Not
later than one year after the date of the enactment of
this paragraph and by September 30 of each year
thereafter, the Secretary of Homeland Security shall
submit a report to the Committee on the Judiciary of
the House of Representatives and the Committee on the
Judiciary of the Senate describing--
``(i) the manner in which the authority
granted under subparagraph (A) is being used;
and
``(ii) any additional legislative
recommendations the Secretary may have.
``(E) Definitions.--As used in this paragraph:
``(i) Terrorism.--The term `terrorism' has
the meaning given that term in section 2(16) of
the Homeland Security Act of 2002 (6 U.S.C.
101(16)).
``(ii) Transportation security incident.--
The term `transportation security incident' has
the meaning given that term in section 70101 of
title 46.
``(F) Effective date.--This paragraph shall take
effect with respect to a secondary transmission
described under subparagraph (A) that is made after the
end of the 30-day period beginning on the effective
date of the regulations issued by the Secretary of
Homeland Security under subparagraph (C).''.
(e) License Provided for Certain Networks of Noncommercial
Educational Broadcast Stations.--Section 119(a)(2)(C) is amended by
adding at the end the following new clause:
``(vi) Networks of noncommercial
educational broadcast stations.--In the case of
a system of three or more noncommercial
educational broadcast stations licensed by a
single State, public agency, or political,
educational, or special purpose subdivision of
a State, the statutory license provided for in
subparagraph (A) shall apply to the secondary
transmission of the primary transmission of
such system to any subscriber in any county
within such State, if such subscriber is
located in a designated market area that is not
otherwise eligible to receive the secondary
transmission of the primary transmission of
such system pursuant to section 122(a).''.
(f) Deposit of Statements and Fees; Verification Procedures.--
Section 119(b) is amended--
(1) by amending the subsection heading to read as follows:
``(b) Deposit of Statements and Fees; Verification
Procedures.--'';
(2) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to permit
interested parties to verify and audit the statements of
account and royalty fees submitted by satellite carriers under
this subsection.'';
(4) in paragraph (3), as redesignated, by striking
``paragraph (4)'' and inserting ``paragraph (5)'';
(5) in paragraph (4), as redesignated--
(A) by striking ``paragraph (2)'' and inserting
``paragraph (3)''; and
(B) by striking ``paragraph (4)'' each place it
appears and inserting ``paragraph (5)''; and
(6) in paragraph (5), as redesignated, by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(g) Adjustment of Royalty Fees.--Section 119(c) is amended as
follows:
(1) Paragraph (1) is amended--
(A) in the heading for such paragraph, by striking
``analog'';
(B) in subparagraph (A)--
(i) by striking ``primary analog
transmissions'' and inserting ``primary
transmissions''; and
(ii) by striking ``July 1, 2004'' and
inserting ``July 1, 2009'';
(C) in subparagraph (B)--
(i) by striking ``January 2, 2005, the
Librarian of Congress'' and inserting ``January
4, 2010, the Copyright Royalty Judges'';
(ii) by striking ``primary analog
transmission'' and inserting ``primary
transmissions''; and
(iii) by adding at the end the following:
``A separate fee shall be established for each
stream of a multicast transmission included in
the secondary transmission to the
subscriber.'';
(D) in subparagraph (C), by striking ``Librarian of
Congress'' and inserting ``Copyright Royalty Judges'';
(E) in subparagraph (D)--
(i) in clause (i)--
(I) by striking ``(i) Voluntary
agreements'' and inserting the
following:
``(i) Voluntary agreements; filing.--
Voluntary agreements''; and
(II) by striking ``that a parties''
and inserting ``that are parties''; and
(ii) in clause (ii)--
(I) by striking ``(ii)(I) Within''
and inserting the following:
``(ii) Procedure for adoption of fees.--
``(I) Publication of notice.--
Within'';
(II) in subclause (I), by striking
``an arbitration proceeding pursuant to
subparagraph (E)'' and inserting ``a
proceeding under subparagraph (F)'';
(III) in subclause (II), by
striking ``(II) Upon receiving a
request under subclause (I), the
Librarian of Congress'' and inserting
the following:
``(II) Public notice of fees.--Upon
receiving a request under subclause
(I), the Copyright Royalty Judges'';
and
(IV) in subclause (III)--
(aa) by striking ``(III)
The Librarian'' and inserting
the following:
``(III) Adoption of fees.--The
Copyright Royalty Judges'';
(bb) by striking ``an
arbitration proceeding'' and
inserting ``the proceeding
under subparagraph (F)''; and
(cc) by striking ``the
arbitration proceeding'' and
inserting ``that proceeding'';
(F) in subparagraph (E)--
(i) by striking ``Copyright Office'' and
inserting ``Copyright Royalty Judges''; and
(ii) by striking ``December 31, 2009'' and
inserting ``December 31, 2014''; and
(G) in subparagraph (F)--
(i) in the heading, by striking
``compulsory arbitration'' and inserting
``Copyright royalty judges proceeding'';
(ii) in clause (i)--
(I) in the heading, by striking
``proceedings'' and inserting ``the
proceeding'';
(II) in the matter preceding
subclause (I)--
(aa) by striking ``May 1,
2005, the Librarian of
Congress'' and inserting ``May
3, 2010, the Copyright Royalty
Judges'';
(bb) by striking
``arbitration proceedings'' and
inserting ``a proceeding'';
(cc) by striking ``fee to
be paid'' and inserting ``fees
to be paid'';
(dd) by striking ``primary
analog transmission'' and
inserting ``the primary
transmissions''; and
(ee) by striking
``distributors'' and inserting
``distributors--'';
(III) in subclause (II)--
(aa) by striking
``Librarian of Congress'' and
inserting ``Copyright Royalty
Judges''; and
(bb) by striking
``arbitration''; and
(IV) by amending the last sentence
to read as follows: ``Such proceeding
shall be conducted under chapter 8.'';
(iii) in clause (ii), by amending the
matter preceding subclause (I) to read as
follows:
``(ii) Establishment of royalty fees.--In
determining royalty fees under this
subparagraph, the Copyright Royalty Judges
shall establish fees for the secondary
transmissions of the primary transmissions of
network stations and non-network stations that
most clearly represent the fair market value of
secondary transmissions, except that the
Copyright Royalty Judges shall adjust royalty
fees to account for the obligations of the
parties under any applicable voluntary
agreement filed with the Copyright Royalty
Judges in accordance with subparagraph (D). In
determining the fair market value, the Judges
shall base their decision on economic,
competitive, and programming information
presented by the parties, including--'';
(iv) by amending clause (iii) to read as
follows:
``(iii) Effective date for decision of
copyright royalty judges.--The obligation to
pay the royalty fees established under a
determination that is made by the Copyright
Royalty Judges in a proceeding under this
paragraph shall be effective as of January 1,
2010.''; and
(v) in clause (iv)--
(I) in the heading, by striking
``fee'' and inserting ``fees''; and
(II) by striking ``fee'' and
inserting ``fees''.
(2) Paragraph (2) is amended to read as follows:
``(2) Annual royalty fee adjustment.--Effective January 1
of each year, the royalty fee payable under subsection
(b)(1)(B) for the secondary transmission of the primary
transmissions of network stations and non-network stations
shall be adjusted by the Copyright Royalty Judges to reflect
any changes occurring in the cost of living as determined by
the most recent Consumer Price Index (for all consumers and for
all items) published by the Secretary of Labor before December
1 of the preceding year. Notification of the adjusted fees
shall be published in the Federal Register at least 25 days
before January 1.''.
(h) Definitions.--
(1) Subscriber.--Section 119(d)(8) is amended to read as
follows:
``(8) Subscriber.--The term `subscriber' means a person or
entity that 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.''.
(2) Low power television station.--Section 119(d)(12) is
amended by striking ``low power television as'' and inserting
``low power TV station as''.
(3) Local market.--Section 119(d)(11) is amended to read as
follows:
``(11) Local market.--The term `local market' has the
meaning given such term under section 122(j).''.
(4) Noncommercial educational broadcast station.--Section
119(d) is amended--
(A) in paragraph (2)(B), by striking ``(as defined
in section 397 of the Communications Act of 1934)'';
and
(B) by adding at the end the following:
``(14) Noncommercial educational broadcast station.--The
term `noncommercial educational broadcast station' means a
television broadcast station that--
``(A) under the rules and regulations of the
Federal Communications Commission in effect on November
2, 1978, is eligible to be licensed by the Federal
Communications Commission as a noncommercial
educational television broadcast station and is owned
and operated by a public agency or nonprofit private
foundation, corporation, or association; or
``(B) is owned and operated by a municipality and
transmits only noncommercial programs for education
purposes.''.
(5) Multicast transmission.--Section 119(d) is amended by
adding at the end the following:
``(15) Multicast transmission.--A `multicast transmission'
is a transmission by a television station that contains more
than one channel or digital stream, each containing its own
distinct programming.''.
(6) Qualified multicast video.--Section 119(d), as amended
by paragraph (5), is further amended by adding at the end the
following new paragraph:
``(16) Qualified multicast video.--A `qualified multicast
video' is a video stream other than the primary video that,
with respect to a particular satellite carrier either--
``(A) was carried by that satellite carrier on July
1, 2009, and remains affiliated with the same network;
or
``(B) exists on January 1, 2013, and remains
affiliated with the same network.''.
(7) Primary video.--Section 119(d), as amended by paragraph
(6), is further amended by adding at the end the following new
paragraph:
``(17) Primary video.--The term `primary video' means the
single programming stream and associated data that received the
highest aggregate viewership ratings of all programming streams
offered by that station as of the date of enactment of the
Satellite Home Viewer Update and Reauthorization Act of 2009,
offered by a television broadcast station.''.
(8) Clerical amendment.--Section 119(d) is amended in
paragraphs (1),(2), and (5) by striking ``which'' each place it
appears and inserting ``that''.
(i) Superstation Redesignated as Non-network Station.--Section 119
is amended--
(1) by striking ``superstation'' each place it appears in a
heading and each place it appears in text and inserting ``non-
network station''; and
(2) by striking ``superstations'' each place it appears in
a heading and each place it appears in text and inserting
``non-network stations''.
(j) Low Power Television Stations.--Section 119(a)(15) is amended
to read as follows:
``(15) Secondary transmissions of low power television
programming.--
``(A) In general.--Notwithstanding paragraph
(2)(B), and subject to subparagraphs (B) through (D) of
this paragraph, the statutory license provided for in
paragraph (1) shall apply to the secondary transmission
by a satellite carrier of the primary transmission of
the programming of a non-network station that is
licensed as a low power television station, to a
subscriber who resides within the same designated
market area as the station that originates the
programming signal.
``(B) No applicability to repeaters and
translators.--Secondary transmissions provided for in
subparagraph (A) shall not apply to any low power
television station that retransmits the programs and
signals of another television station for more than 2
hours each day.
``(C) Royalty fees.--A satellite carrier whose
secondary transmission of the primary transmission of
the programming of a low power television station is
subject to statutory licensing under this section shall
be subject to royalty payments under subsection
(b)(1)(B) for any transmission to a subscriber outside
of the local market of the low power television
station.
``(D) Limitation to subscribers taking local-into-
local service.--Secondary transmissions provided for in
subparagraph (A) may be made by a satellite carrier
only to subscribers who receive secondary transmissions
of primary transmissions from that satellite carrier
pursuant to the statutory license under section 122.''.
(k) Removal of Significantly Viewed Provision.--
(1) Removal of provision.--Section 119(a) is amended by
striking paragraph (3) and redesignating paragraphs (4) through
(17) as paragraphs (3) through (16), respectively.
(2) Conforming amendments.--Section 119 is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(5),
(6), and (8)'' and inserting ``(4), (5), and
(7)'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``paragraphs (5), (6), (7),
and (8)'' and inserting ``paragraphs
(4), (5), (6), and (7)'';
(II) in subparagraph (B)(i), by
striking the second sentence; and
(III) in subparagraph (D), by
striking clauses (i) and (ii) and
inserting the following:
``(i) Initial lists.--A satellite carrier
that makes secondary transmissions of a primary
transmission made by a network station pursuant
to subparagraph (A) shall, not later than 90
days after commencing such secondary
transmissions, submit to the network that owns
or is affiliated with the network station a
list identifying (by name and address,
including street or rural route number, city,
State, and 9-digit zip code) all subscribers to
which the satellite carrier makes secondary
transmissions of that primary transmission to
subscribers in unserved households.
``(ii) Monthly lists.--After the submission
of the initial lists under clause (i), the
satellite carrier shall, not later than the
15th of each month, submit to the network a
list identifying (by name and address,
including street or rural route number, city,
State, and 9-digit zip code) any persons who
have been added or dropped as subscribers under
clause (i) since the last submission under
clause (i).''; and
(iii) in paragraph (3)(E) (as
redesignated)--
(I) by striking ``under paragraph
(3) or''; and
(II) by striking ``paragraph (12)''
and inserting ``paragraph (11)''; and
(B) in subsection (b)(1), by striking the final
sentence.
(l) Modifications to Provisions for Secondary Transmissions by
Satellite Carriers.--
(1) Predictive model.--Section 119(a)(2)(B)(ii) is amended
by adding at the end the following:
``(III) Accurate predictive model
with respect to digital signals.--
Notwithstanding subclause (I), in
determining presumptively whether a
person resides in an unserved household
under subsection (d)(10)(A) with
respect to digital signals, a court
shall rely on a predictive model set
forth by the Federal Communications
Commission pursuant to a rulemaking as
provided in section 339(c)(3) of the
Communications Act of 1934 (47 U.S.C.
339(c)(3)), as that model may be
amended by the Commission over time
under such section to increase the
accuracy of that model. Until such time
as the Commission sets forth such
model, a court shall rely on the
predictive model endorsed by the
Commission in FCC 05-199, released
December 9, 2005.''.
(2) Modifications to statutory license where
retransmissions into local market available.--Section 119(a)(3)
(as redesignated) is amended--
(A) by striking ``analog'' each place it appears in
a heading and text; and
(B) by amending subparagraph (B) to read as
follows:
``(B) Rules for other subscribers.--The statutory
license under paragraph (2) shall not apply to the
secondary transmission by a satellite carrier of a
primary transmission of a network station to a person
who--
``(i) is not a subscriber lawfully
receiving such secondary transmission as of the
date of the enactment of the Satellite Home
Viewer Update and Reauthorization Act of 2009;
or
``(ii) at the time such person seeks to
subscribe to receive such secondary
transmission, resides in a local market where
the satellite carrier makes available to that
person the secondary transmission of the
primary transmission of a local network station
affiliated with the same television network
pursuant to the statutory license under section
122, and such secondary transmission of such
primary transmission can reach such person.'';
(C) by striking subparagraphs (C) and (D);
(D) by redesignating subparagraphs (E), (F), and
(G) as subparagraphs (C), (D), and (E), respectively;
(E) in subparagraph (D) (as redesignated), by
striking ``(C) or (D)'' and inserting ``(B)''; and
(F) in subparagraph (E) (as redesignated), by
inserting ``9-digit'' before ``zip code''.
(3) Statutory damages for territorial restrictions.--
Section 119(a)(6) (as redesignated) is amended--
(A) by striking ``$5'' and inserting ``$250''; and
(B) by striking ``$250,000'' each place it appears
and inserting ``$2,500,000''.
(4) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is
amended by striking ``In this clause'' and inserting ``In this
clause,''.
(m) Moratorium Extension.--Section 119(e) is amended by striking
``2009'' and inserting ``2014''.
(n) Clerical Amendments.--Section 119 is amended--
(1) by striking ``of the Code of Federal Regulations'' each
place it appears and inserting ``, Code of Federal
Regulations''; and
(2) in subsection (d)(6), by striking ``or the Direct'' and
inserting ``, or the Direct''.
SEC. 4. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS IN
LOCAL MARKETS.
(a) Heading Renamed.--
(1) In general.--The heading of section 122 is amended by
striking ``by satellite carriers within local markets'' and
inserting ``of local television programming by satellite''.
(2) Table of contents.--The table of contents for chapter I
is amended by striking the item relating to section 122 and
inserting the following:
``122. Limitations on exclusive rights: Secondary transmissions of
local television programming by
satellite.''.
(b) Statutory License.--Section 122(a) is amended to read as
follows:
``(a) Secondary Transmissions Into Local Markets.--
``(1) Secondary transmissions of television broadcast
stations within a local market.--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--
``(A) the secondary transmission is made by a
satellite carrier to the public;
``(B) 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
``(C) the satellite carrier makes a direct or
indirect charge for the secondary transmission to--
``(i) each subscriber receiving the
secondary transmission; or
``(ii) a distributor that has contracted
with the satellite carrier for direct or
indirect delivery of the secondary transmission
to the public.
``(2) Significantly viewed stations.--
``(A) In general.--The statutory license under
paragraph (1) shall apply to the secondary transmission
of the primary transmission of a network station or a
non-network station to a subscriber who resides outside
the station's local market but within a community in
which the signal has been determined by the Federal
Communications Commission to be significantly viewed in
such community, pursuant to the rules, regulations, and
authorizations of the Federal Communications Commission
in effect on April 15, 1976, applicable to determining
with respect to a cable system whether signals are
significantly viewed in a community.
``(B) Limitation.--Subparagraph (A) shall apply
only to secondary transmissions of the primary
transmissions of network stations or non-network
stations to subscribers who receive secondary
transmissions from a satellite carrier pursuant to the
statutory license under paragraph (1).
``(C) Waiver.--A subscriber who is denied the
secondary transmission of the primary transmission of a
network station or a non-network station under
subparagraph (B) may request a waiver from such denial
by submitting a request, through the subscriber's
satellite carrier, to the network station or non-
network station in the local market affiliated with the
same network or non-network where the subscriber is
located. The network station or non-network station
shall accept or reject the subscriber's request for a
waiver within 30 days after receipt of the request. If
the network station or non-network station fails to
accept or reject the subscriber's request for a waiver
within that 30-day period, that network station or non-
network station shall be deemed to agree to the waiver
request.
``(3) Secondary transmission of low power programming.--
``(A) In general.--Subject to subparagraphs (B)
through (D) of this paragraph, the statutory license
provided under paragraph (1) shall apply to the
secondary transmission by a satellite carrier of the
primary transmission of a network station or a non-
network station that is licensed as a low power
television station, to a subscriber who resides within
the same local market as the station that originates
the transmission.
``(B) No applicability to repeaters and
translators.--Secondary transmissions by a satellite
carrier provided for in subparagraph (A) shall not
apply to any low power television station that
retransmits the programs and signals of another
television station for more than 2 hours each day.
``(C) Limitation to subscribers taking local-into-
local service.--Secondary transmissions by a satellite
carrier provided for in subparagraph (A) may be made
only to subscribers who receive secondary transmissions
of primary transmissions from that satellite carrier
pursuant to the statutory license in paragraph (1), and
only in conformity with the requirements under section
340(b) of the Communications Act of 1934, as in effect
on the date of the enactment of the Satellite Home
Viewer Update and Reauthorization Act of 2009.
``(D) No impact on other secondary transmissions
obligations.--A satellite carrier that makes secondary
transmissions of a primary transmission of a low power
television station under a statutory license provided
under this section is not required, by reason of such
secondary transmissions, to make any other secondary
transmissions.''.
(c) Reporting Requirements.--Section 122(b) is amended--
(1) in paragraph (1), by striking ``station a list'' and
all that follows through the end and inserting the following:
``station--
``(A) a list identifying (by name in alphabetical
order and street address, including county and 9-digit
zip code) all subscribers to which the satellite
carrier makes secondary transmissions of that primary
transmission under subsection (a); and
``(B) a separate list, aggregated by designated
market area (by name and address, including street or
rural route number, city, State, and 9-digit zip code),
which shall indicate those subscribers being served
pursuant to subsection (a)(2), relating to
significantly viewed stations.''; and
(2) in paragraph (2), by striking ``network a list'' and
all that follows through the end and inserting the following:
``network--
``(A) a list identifying (by name in alphabetical
order and street address, including county and 9-digit
zip code) any subscribers who have been added or
dropped as subscribers since the last submission under
this subsection; and
``(B) a separate list, aggregated by designated
market area (by name and street address, including
street or rural route number, city, State, and 9-digit
zip code), identifying those subscribers whose service
pursuant to subsection (a)(2), relating to
significantly viewed stations, has been added or
dropped since the last submission under this
subsection.''.
(d) Violations for Territorial Restrictions.--
(1) Modification to Statutory Damages.--Section 122(f) is amended--
(A) in paragraph (1)(B), by striking ``$5'' and inserting
``$250''; and
(B) in paragraph (2), by striking ``$250,000'' each place
it appears and inserting ``$2,500,000''.
(2) Conforming Amendment for Significantly Viewed Stations.--
Section 122 is amended--
(A) in subsection (f), by striking ``section 119 or'' each
place it appears and inserting the following: ``section 119,
subject to statutory licensing by reason of subsection
(a)(2)(A), or subject to''; and
(B) in subsection (g), by striking ``section 119 or'' and
inserting the following: ``section 119, subsection (a)(2)(A),
or''.
(e) Definitions.--Section 122(j) is amended--
(1) in paragraph (1), by striking ``which contracts'' and inserting
``that contracts'';
(2) by amending paragraph (2)(A) to read as follows:
``(A) In general.--The term `local market' means--
``(i) in the case of a television broadcast
station that is not a low power television
station, the designated market area in which
such 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, any station that is
licensed to a community within the same
designated market area as the
noncommercial educational television
broadcast station; and
``(ii) in the case of a low power
television broadcast station, the area that is
both--
``(I) within the designated market
area in which such station is located;
and
``(II) within the area within 35
miles of the transmitter site of such
station, except that in the case of
such a station located in a standard
metropolitan statistical area that has
1 of the 50 largest populations of all
standard metropolitan statistical areas
(based on the 1980 decennial census of
population taken by the Secretary of
Commerce), the area within 20 miles of
the transmitter site of such
station.'';
(3) in paragraph (3)--
(A) in the heading of such paragraph, by inserting ``non-
network station;'' after ``Network station;''; and
(B) by inserting ```non-network station','' after
```network station','';
(4) by amending paragraph (4) to read as follows:
``(4) Subscriber.--The term `subscriber' means a person or
entity that 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.'';
and
(5) by adding at the end the following:
``(6) Low power television station.--The term ``low power
television station'' means a low power TV station as defined
under section 74.701(f) of title 47, Code of Federal
Regulations, as in effect on June 1, 2004. For purposes of this
paragraph, the term ``low power television station'' includes a
low power television station that has been accorded primary
status as a Class A television licensee under section
73.6001(a) of title 47, Code of Federal Regulations.''.
SEC. 5. MODIFICATIONS TO CABLE SYSTEM SECONDARY TRANSMISSION RIGHTS
UNDER SECTION 111.
(a) Heading Renamed.--
(1) In general.--The heading of section 111 is amended by
inserting at the end the following: ``of television programming
by cable''.
(2) Table of contents.--The table of contents for chapter I
is amended by striking the item relating to section 111 and
inserting the following:
``111. Limitations on exclusive rights: Secondary transmissions of
television programming by cable.''.
(b) National Emergency Monitoring Exemption.--Section 111 is
amended--
(1) in subsection (a)--
(A) in paragraph (4), by striking ``; or'' and
inserting ``or section 122;'';
(B) in paragraph (5), by striking the period and
inserting ``; or''; and
(C) by adding at the end the following new
paragraph:
``(6) the secondary transmission is made by a cable system
for emergency preparation, response, or recovery as described
under subsection (g).''; and
(2) by adding at the end the following new subsection:
``(g) Retransmission for Emergency Preparation, Response, or
Recovery.--
``(1) Authority.--For purposes of subsection (a)(6), a
secondary transmission by a cable system of a performance or
display of a work embodied in a primary transmission by a
television broadcast station is made for emergency preparation,
response, or recovery if such transmission is made--
``(A) by a cable system to a Federal governmental
body designated by the Secretary of Homeland Security
or an organization established with the purpose of
carrying out a system of national and international
relief efforts and chartered under section 300101 of
title 36;
``(B) to officers or employees of such body or such
organization as a part of the official duties or
employment of such officers or employees;
``(C) at the request of the Secretary of Homeland
Security; and
``(D) for the sole purpose of preparing for,
responding to, or recovering from an emergency
described under paragraph (2).
``(2) Emergencies.--An emergency is described under this
paragraph if the Secretary of Homeland Security identifies such
emergency as a major disaster, a catastrophe, an act of
terrorism, or a transportation security incident.
``(3) Regulations.--Not later than 6 months after the date
of the enactment of this subsection, the Secretary of Homeland
Security shall issue regulations to protect copyright owners by
preventing the unauthorized access to the secondary
transmissions described in paragraph (1).
``(4) Reports to congressional committees.--Not later than
one year after the date of the enactment of this subsection and
by September 30 of each year thereafter, the Secretary of
Homeland Security shall submit a report to the Committee on the
Judiciary of the House of Representatives and the Committee on
the Judiciary of the Senate describing--
``(A) the manner in which the authority granted
under paragraph (1) is being used; and
``(B) any additional legislative recommendations
the Secretary may have.
``(5) Definitions.--As used in this subsection:
``(A) Terrorism.--The term `terrorism' has the
meaning given that term in section 2(16) of the
Homeland Security Act of 2002 (6 U.S.C. 101(16)).
``(B) Transportation security incident.--The term
`transportation security incident' has the meaning
given that term in section 70101 of title 46.
``(6) Effective date.--This subsection shall take effect
with respect to a secondary transmission described under
paragraph (1) that is made after the end of the 30-day period
beginning on the effective date of the regulations issued by
the Secretary of Homeland Security under paragraph (3).''.
(c) Statutory License for Secondary Transmissions by Cable
Systems.--Section 111(d) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``A cable system whose
secondary'' and inserting the following:
``Statement of account and royalty fees.--A
cable system whose secondary''; and
(ii) by striking ``by regulation--'' and
inserting ``by regulation the following:'';
(B) in subparagraph (A)--
(i) by striking ``a statement of account''
and inserting ``A statement of account''; and
(ii) by striking ``;and'' and inserting a
period; and
(C) by striking subparagraphs (B), (C), and (D),
and inserting the following:
``(B) A total royalty fee for the period covered by
the statement, computed on the basis of specified
percentages of the gross receipts from subscribers to
the cable service during such period for the basic
service of providing secondary transmissions of primary
broadcast transmitters, as follows:
``(i) 1.064 percent for the privilege of
further transmitting, beyond the local service
area of such primary transmitter, any non-
network programming of a primary transmitter in
whole or in part, such amount to be applied
against the fee, if any, payable pursuant to
clauses (ii) through (iv);
``(ii) 1.064 percent of such gross receipts
for the first distant signal equivalent;
``(iii) 0.701 percent of such gross
receipts for each of the second, third, and
fourth distant signal equivalents; and
``(iv) 0.330 percent of such gross receipts
for the fifth distant signal equivalent and
each distant signal equivalent thereafter.
``(C) In computing amounts under clauses (ii)
through (iv) of subparagraph (B)--
``(i) any fraction of a distant signal
equivalent shall be computed at its fractional
value;
``(ii) in the case of any cable system
located partly within and partly outside of the
local service area of a primary transmitter,
gross receipts shall be limited to those gross
receipts derived from subscribers located
outside of the local service area of such
primary transmitter; and
``(iii) if a cable system provides a
secondary transmission of a primary transmitter
to some but not all communities served by that
cable system--
``(I) the gross receipts and the
distant signal equivalent values for
such secondary transmission shall be
derived solely on the basis of the
subscribers in those communities where
the cable system provides such
secondary transmission; and
``(II) the total royalty fee for
the period paid by such system shall
not be less than the royalty fee
calculated under subparagraph (B)(i)
multiplied by the gross receipts from
all subscribers to the system.
``(D) A cable system that, on a statement submitted
before the date of the enactment of the Satellite Home
Viewer Update and Reauthorization Act of 2009, computed
its royalty fee consistent with the methodology under
this paragraph or that amends a statement filed before
such date of enactment to compute the royalty fee due
using such methodology shall not be subject to an
action for infringement, or eligible for any royalty
refund, arising out of its use of such methodology on
such statement.
``(E) If the actual gross receipts paid by
subscribers to a cable system for the period covered by
the statement for the basic service of providing
secondary transmissions of primary broadcast
transmitters total $263,800 or less--
``(i) gross receipts of the cable system
for the purpose of this paragraph shall be
computed by subtracting from such actual gross
receipts the amount by which $263,800 exceeds
such actual gross receipts, except that in no
case shall a cable system's gross receipts be
reduced to less than $10,400; and
``(ii) the royalty fee payable under this
paragraph shall be 0.5 percent, regardless of
the number of distant signal equivalents, if
any.
``(F) If the actual gross receipts paid by
subscribers to a cable system for the period covered by
the statement for the basic service of providing
secondary transmissions of primary broadcast
transmitters are more than $263,800 but less than
$527,600, the royalty fee payable under this paragraph
shall be--
``(i) 0.5 percent of any gross receipts up
to $263,800, regardless of the number of
distant signal equivalents, if any; and
``(ii) 1 percent of any gross receipts in
excess of $263,800, but less than $527,600,
regardless of the number of distant signal
equivalents, if any.
``(G) A filing fee, as determined by the Register
of Copyrights pursuant to section 708(a).'';
(2) in paragraph (2), by striking ``The Register of
Copyrights'' and inserting the following: ``Handling of fees.--
The Register of Copyrights'';
(3) in paragraph (3)--
(A) by striking ``The royalty fees'' and inserting
the following: ``Distribution of royalty fees to
copyright owners.--The royalty fees'';
(B) in subparagraph (A)--
(i) by striking ``any such'' and inserting
``Any such''; and
(ii) by striking ``; and'' and inserting a
period;
(C) in subparagraph (B)--
(i) by striking ``any such'' and inserting
``Any such''; and
(ii) by striking ``; and'' and inserting a
period; and
(D) in subparagraph (C), by striking ``any such''
and inserting ``Any such'';
(4) in paragraph (4), by striking ``The royalty fees'' and
inserting the following: ``Procedures for royalty fee
distribution.--The royalty fees''; and
(5) by adding at the end the following new paragraphs:
``(5) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to provide for
the confidential verification and audit of the information
reported on the semi-annual statement of account filed after
the date of the enactment of the Satellite Home Viewer Update
and Reauthorization Act of 2009. The regulations shall provide
for a single verification procedure, with respect to the semi-
annual statements of account filed by a cable system, to be
conducted by a qualified independent auditor on behalf of all
copyright owners whose works were the subject of a secondary
transmission to the public by a cable system of a performance
or display of a work embodied in a primary transmission and for
a mechanism to review and cure defects identified by any such
audit.
``(6) Acceptance of additional deposits.--Any royalty fee
payments received by the Copyright Office from cable systems
for the secondary transmission of primary transmissions that
are in addition to the payments calculated and deposited in
accordance with this subsection shall be deemed to have been
deposited for the particular accounting period during which
they are received and shall be distributed as specified under
this subsection.''.
(d) Definitions.--Section 111(f) is amended--
(1) in the first undesignated paragraph, by striking ``A
`primary transmission' is a transmission'' and inserting the
following:
``(1) Primary transmission.--A `primary transmission' is a
transmission, including a multicast transmission,'';
(2) in the second undesignated paragraph--
(A) by striking ``A `secondary transmission''' and
inserting the following:
``(2) Secondary transmission.--A `secondary
transmission'''; and
(B) by striking ```cable system''' and inserting
``cable system'';
(3) in the third undesignated paragraph--
(A) by striking ``A `cable system''' and inserting
the following:
``(3) Cable system.--A `cable system'''; and
(B) by striking ``Territory, Trust Territory, or
Possession'' and inserting ``territory, trust
territory, or possession of the United States'';
(4) in the fourth undesignated paragraph--
(A) in the first sentence, by striking ``The `local
service area of a primary transmitter''' and inserting
the following:
``(4) Local service area of a primary transmitter.--The
`local service area of a primary transmitter''';
(B) by striking ``76.59 of title 47 of the Code of
Federal Regulations'' and inserting the following:
``76.59 of title 47, Code of Federal Regulations, or
within the noise-limited contour as defined in
73.622(e)(1) of title 47, Code of Federal
Regulations''; and
(C) by striking ``as defined by the rules and
regulations of the Federal Communications
Commission,'';
(5) by amending the fifth undesignated paragraph to read as
follows:
``(5) Distant signal equivalent.--
``(A) In general.--Except as provided under
subparagraph (B), a `distant signal equivalent'--
``(i) is the value assigned to the
secondary transmission of any non-network
television programming carried by a cable
system in whole or in part beyond the local
service area of the primary transmitter of such
programming; and
``(ii) is computed by assigning a value of
one to each channel or digital steam carrying
independent television programming, and a value
of one-quarter to each channel or digital
stream carrying network television programming
or noncommercial educational television
programming transmitted by a television
broadcast station pursuant to the rules,
regulations, and authorizations of the Federal
Communications Commission.
``(B) Exceptions.--The values for independent,
network, and noncommercial educational programming
specified in subparagraph (A) are subject to the
following:
``(i) Where the rules and regulations of
the Federal Communications Commission require a
cable system to omit the further transmission
of a particular program and such rules and
regulations also permit the substitution of
another program embodying a performance or
display of a work in place of the omitted
transmission, or where such rules and
regulations in effect on the date of enactment
of the Copyright Act of 1976 permit a cable
system, at its election, to effect such
omission and substitution of a nonlive program
or to carry additional programs not transmitted
by primary transmitters within whose local
service area the cable system is located, no
value shall be assigned for the substituted or
additional program.
``(ii) Where the rules, regulations, or
authorizations of the Federal Communications
Commission in effect on the date of enactment
of the Copyright Act of 1976 permit a cable
system, at its election, to omit the further
transmission of a particular program and such
rules, regulations, or authorizations also
permit the substitution of another program
embodying a performance or display of a work in
place of the omitted transmission, the value
assigned for the substituted or additional
program shall be, in the case of a live
program, the value of one full distant signal
equivalent multiplied by a fraction that has as
its numerator the number of days in the year in
which such substitution occurs and as its
denominator the number of days in the year.
``(iii) In the case of a channel or digital
stream carried pursuant to the late-night or
specialty programming rules of the Federal
Communications Commission, or a channel or
digital stream carried on a part-time basis
where full-time carriage is not possible
because the cable system lacks the activated
channel capacity to retransmit on a full-time
basis all signals that it is authorized to
carry, the values for independent, network, and
noncommercial educational programming set forth
in subparagraph (A), as the case may be, shall
be multiplied by a fraction that is equal to
the ratio of the broadcast hours of such
channel or digital stream carried by the cable
system to the total broadcast hours of the
channel or digital stream.'';
(6) in the sixth undesignated paragraph--
(A) by striking ``A `network station''' and
inserting the following:
``(6) Network station.--
``(A) In general.--A `network station'''; and
(B) by adding at the end the following:
``(B) Network programming.--The term `network
television programming' means programming that is
transmitted by a network station.'';
(7) by striking the seventh undesignated paragraph and
inserting the following:
``(7) Independent station.--
``(A) In general.--An `independent station' is a
commercial television broadcast station other than a
network station.
``(B) Independent programming.--The term
`independent television programming' means all
programming other than `network television programming'
or `noncommercial educational television
programming'.'';
(8) by striking the eighth undesignated paragraph and
inserting the following:
``(8) Noncommercial educational station.--
``(A) In general.--A `noncommercial educational
station' is a television or radio broadcast station
that--
``(i) under the rules and regulations of
the Federal Communications Commission in effect
on November 2, 1978, is eligible to be licensed
by the Federal Communications Commission as a
noncommercial educational radio or television
broadcast station and that is owned and
operated by a public agency or nonprofit
private foundation, corporation, or
association; or
``(ii) is owned and operated by a
municipality and that transmits only
noncommercial programs for education purposes.
``(B) Noncommercial educational programming.--The
term `noncommercial educational television programming'
means programming that is transmitted by a
noncommercial educational station.''; and
(9) by adding at the end the following:
``(9) Multicast transmission.--A `multicast transmission'
is a transmission by a television station that contains more
than one channel or digital stream, each containing its own
distinct programming.
``(10) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
cable system and pays a fee for the service, directly or
indirectly, to the cable system.''.
(e) Timing of Section 111 Proceedings.--Section 804(b)(1) is
amended by striking ``2005'' each place it appears and inserting
``2015''.
(f) Technical and Conforming Amendments.--
(1) Corrections to fix level designations.--Section 111 is
amended--
(A) in subsections (a), (c), and (e), by striking
``clause'' each place it appears and inserting
``paragraph'';
(B) in subsection (c), by striking ``clauses'' and
inserting ``paragraphs''; and
(C) in subsection (e)(1)(F), by striking
``subclause'' each place it appears and inserting
``subparagraph''.
(2) Conforming amendment to hyphenate nonnetwork.--Section
111 is amended by striking ``nonnetwork'' each place it appears
and inserting ``non-network''.
(3) Previously undesignated paragraph.--Section 111(e)(1)
is amended by striking ``second paragraph of subsection (f)''
and inserting ``subsection (f)(2)''.
(4) Removal of superfluous ands.--Section 111(e) is
amended--
(A) in paragraph (1)(A), by striking ``and'' at the
end;
(B) in paragraph (1)(B), by striking ``and'' at the
end;
(C) in paragraph (1)(C), by striking ``and'' at the
end;
(D) in paragraph (1)(D), by striking ``and'' at the
end; and
(E) in paragraph (2)(A), by striking ``and'' at the
end;
(5) Removal of variant forms references.--Section 111 is
amended--
(A) in subsection (e)(4), by striking ``, and each
of its variant forms,''; and
(B) in subsection (f), by striking ``and their
variant forms''.
(6) Correction to territory reference.--Section 111(e)(2)
is amended in the matter preceding subparagraph (A) by striking
``three territories'' and inserting ``five entities''.
SEC. 6. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-LOCAL
SERVICE FOR ALL DMAS.
Section 119 is amended by adding at the end the following new
subsection:
``(g) Certain Waivers Granted to Providers of Local-Into-Local
Service to All DMAs.--
``(1) Injunction waiver.--A court that issued an injunction
pursuant to subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction if the
court recognizes the entity against which the injunction was
issued as a qualified carrier.
``(2) Limited temporary waiver.--
``(A) In general.--Upon a request made by a
satellite carrier, a court that issued an injunction
against such carrier under subsection (a)(7)(B) before
the date of the enactment of this subsection shall
waive such injunction with respect to the statutory
license provided under subsection (a)(2) to the extent
necessary to allow such carrier to retransmit distant
network signals to unserved households located in short
markets in which such carrier was not providing local
service pursuant to the license under section 122 as of
December 31, 2009.
``(B) Expiration of temporary waiver.--A temporary
waiver of an injunction under subparagraph (A) shall
expire after the end of the 120-day period beginning on
the date such temporary waiver is made unless extended
for good cause by the court making the temporary
waiver.
``(C) Failure to make good faith effort to provide
local-into-local service to all dmas.--
``(i) Willful failure.--If the court making
a temporary waiver under subparagraph (A)
determines that the satellite carrier that made
the request for such waiver has failed to make
a good faith effort to provide local-into-local
service to all DMAs and determines that such
failure was willful, such failure--
``(I) is actionable as an act of
infringement under section 501 and the
court may in its discretion impose the
remedies provided for in section 502
through 506 and subsection (a)(6)(B) of
this section; and
``(II) shall result in the
termination of the waiver provided
under subparagraph (A).
``(ii) Nonwillful failure.--If the court
making a temporary waiver under subparagraph
(A) determines that the satellite carrier that
made the request for such waiver has failed to
make a good faith effort to provide local-into-
local service to all DMAs and determines that
such failure was nonwillful, the court may in
its discretion impose financial penalties that
reflect--
``(I) the degree of control the
carrier had over the circumstances that
resulted in the failure;
``(II) the quality of the carrier's
efforts to remedy the failure; and
``(III) the severity and duration
of the service interruption.
``(D) Single temporary waiver available.--An entity
may only receive one temporary waiver under this
paragraph.
``(E) Short market defined.--For purposes of this
paragraph, the term `short market' means a local market
in which programming of one or more of the four most
widely viewed television networks nationwide as
measured on the date of enactment of this subsection is
not offered on the primary signal of any local
television broadcast station.
``(3) Establishment of qualified carrier recognition.--
``(A) Statement of eligibility.--An entity seeking
to be recognized as a qualified carrier under this
subsection shall file a statement of eligibility with
the court that imposed the injunction. A statement of
eligibility must include--
``(i) an affidavit that the entity is
providing local-into-local service to all DMAs;
``(ii) a request for a waiver of the
injunction; and
``(iii) a certification issued pursuant to
section [X] of [E&C Act].
``(B) Grant of recognition as a qualified
carrier.--Upon receipt of a statement of eligibility,
the court shall recognize the entity as a qualified
carrier and issue the waiver under paragraph (1).
``(C) Voluntary termination.--At any time, an
entity recognized as a qualified carrier may file a
statement of voluntary termination with the court
certifying that it no longer wishes to be recognized as
a qualified carrier. Upon receipt of such statement,
the court shall reinstate the injunction waived under
paragraph (1).
``(D) Loss of recognition prevents future
recognition.--No entity may be recognized as a
qualified carrier if such entity had previously been
recognized as a qualified carrier and subsequently lost
such recognition or voluntarily terminated such
recognition under subparagraph (C).
``(4) Qualified carrier obligations and compliance.--
``(A) In general.--An entity recognized as a
qualified carrier shall continue to provide local-into-
local service to all DMAs.
``(B) Compliance determination.--Upon the motion of
an aggrieved television broadcast station, the court
recognizing an entity as a qualified carrier may make a
determination of whether the entity is providing local-
into-local service to all DMAs.
``(C) Pleading requirement.--In any motion brought
under subparagraph (B), the party making such motion
shall specify one or more designated market areas (as
such term is defined in section 122(j)(2)(C)) for which
the failure to provide service is being alleged, and,
for each such designated market area, shall plead with
particularity the circumstances of the alleged failure.
``(D) Burden of proof.--In any proceeding to make a
determination under subparagraph (B), and with respect
to a designated market area for which failure to
provide service is alleged, the entity recognized as a
qualified carrier shall have the burden of proving that
the entity provided local-into-local service with a
good quality satellite signal to 90 percent of the
households in such designated market area at the time
and place alleged.
``(5) Failure to provide service.--
``(A) Penalties.--If the court recognizing an
entity as a qualified carrier finds that such entity
has willfully failed to provide local-into-local
service to all DMAs, such finding shall result in the
loss of recognition of the entity as a qualified
carrier and the termination of the waiver provided
under paragraph (1), and the court may, in its
discretion--
``(i) treat such failure as an act of
infringement under section 501, and subject
such infringement to the remedies provided for
in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(ii) impose a fine of no greater than
$250,000.
``(B) Exception for nonwillful violation.--If the
court determines that the failure to provide local-
into-local service to all DMAs is nonwillful, the court
may in its discretion impose financial penalties for
noncompliance that reflect--
``(i) the degree of control the entity had
over the circumstances that resulted in the
failure;
``(ii) the quality of the entity's efforts
to remedy the failure and restore service; and
``(iii) the severity and duration of the
service interruption.
``(6) Penalties for violations of license.--A court that
finds, under subsection (a)(6)(A), that an entity recognized as
a qualified carrier has willfully made a secondary transmission
of a primary transmission made by a network station and
embodying a performance or display of a work to a subscriber
who is not eligible to receive the transmission under this
section shall reinstate the injunction waived under paragraph
(1), and the court may order statutory damages of not to exceed
$2,500,000.
``(7) Local-into-local service to all dmas defined.--For
purposes of this subsection:
``(A) In general.--An entity provides `local-into-
local service to all DMAs' if the entity provides local
service in all designated market areas (as such term is
defined in section 122(j)(2)(C)) pursuant to the
license under section 122.
``(B) Household coverage.--For purposes of
subparagraph (A), an entity that makes available local-
into-local service with a good quality satellite signal
to 90 percent of the households in a designated market
area based on the most recent census data shall be
considered to be providing local service to such
designated market area.
``(C) Good quality satellite signal defined.--The
term `good quality signal' has the meaning given such
term under section [X] of [E&C Act].''.
SEC. 7. TERMINATION OF LICENSE.
Section 119, as amended by this Act, shall cease to be effective on
December 31, 2014.
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