[Congressional Record Volume 144, Number 21 (Thursday, March 5, 1998)]
[Senate]
[Pages S1448-S1461]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself, Mr. Leahy, and Mr. Kohl):
  S. 1720. A bill to amend title 17, United States Code, to reform the 
copyright law with respect to satellite retransmissions of broadcast 
signals, and for other purposes; to the Committee on the Judiciary.


        THE COPYRIGHT COMPULSORY LICENSE IMPROVEMENT ACT OF 1998

  Mr. HATCH. Mr. President, I rise to introduce a bill that will help 
provide for greater consumer choice and competition in television 
services, the Copyright Compulsory License Improvement Act of 1998. 
Joining me in introducing this bill are my colleagues Senators Leahy 
and Kohl.
  The options consumers have for viewing television entertainment have 
vastly increased since that fateful day in September 1927 when 
television inventor and Utah native Philo T. Farnsworth, together with 
his wife and colleagues, viewed the first television transmission in 
the Farnsworth's home workshop: a single black line rotated from 
vertical to horizontal. Both the forms of entertainment and the 
technologies for delivering that entertainment have proliferated over 
the 70 years since that day. In the 1940s and 50s, televisions began 
arriving in an increasing number of homes to pick up entertainment 
being broadcast into a growing number of cities and towns.
  In the late 60s and early 70s, cable television began offering 
communities more television choices by initially providing community 
antenna system of receiving broadcast television signals, and later by 
offering new created-for-cable entertainment. The development of cable 
television made dramatic strides with the enactment of the cable 
compulsory license in 1976, providing an efficient way of clearing 
copyright rights for the retransmission of broadcast signals over cable 
systems.

[[Page S1450]]

  In the 1980s, television viewers began to be able to receive 
television entertainment with their own home satellite equipment, and 
the enactment of the Satellite Home Viewer Act in 1988 helped develop a 
system of providing options for television service to Americans who 
lived in areas too remote to receive television signals over the air or 
via cable.
  Much has changed since the original Satellite Home Viewer Act was 
adopted in 1988. The Satellite Home Viewer Act was originally intended 
to ensure that households that could not get television in any other 
way, traditionally provided through broadcast or cable, would be able 
to get television signals via satellite. The market and the satellite 
industry has changed substantially since 1988. Many of the difficulties 
and controversies associated with the satellite license have been at 
least partly a product of the satellite business attempting to move 
from a predominately need-based rural niche service to a full service 
video delivery competitor in all markets, urban and rural.
  Now, many market advocates both in and out of Congress are looking to 
satellite carriers to compete directly with cable companies for 
viewership, because we believe that an increasingly competitive market 
is better for consumers both in terms of cost and the diversity of 
programming available. The bill I introduce today will move us toward 
that kind of robust competition.
  The bill I introduce today is focused on changes that we can make 
this year to move the satellite television industry to the next level, 
making it a full competitor in the multi-channel video delivery market. 
It has been said time and again that a major, and perhaps the biggest, 
impediment to satellite's ability to be a strong competitor to cable is 
its current inability to provide local broadcast signals. (See, e.g., 
Business Week (22 Dec. 1997) p. 84.) This problem has been partly 
technological and partly legal. Today, with this bill, we hope to begin 
removing the legal impediments to use of the emerging technology that 
will make local retransmission of broadcast signals a reality.
  This is a forward-looking bill which will create an incentive for 
companies to develop the means by which to provide local programming to 
local markets over satellite systems. In the next few years, if we make 
these legal changes, the satellite industry should be able to offer 
television viewers their own local programming of news, weather, 
sports, and entertainment, with digital quality picture and sound. This 
will mean that viewers in the remoter areas of my large home state of 
Utah will be able to watch television programming originating in Salt 
Lake City, rather than New York or California. Utahns in remote areas 
will have access to local weather and other locally and regionally 
relevant information. And, most important to all the constituents of my 
colleagues is that they will finally have a choice for full service 
multi-channel video programming: They will be able to choose cable or 
one of a number of satellite carriers. This should foster an 
environment of proliferating choice and lowered prices, all to the 
benefit of consumers, our constituents.
  To that end, the ``Copyright Compulsory License Improvement Act'' 
makes the following changes to the Satellite Home Viewers Act:
  It makes the satellite compulsory license permanent, just like the 
cable compulsory license. Under the current law the satellite license 
will sunset next year.
  It allows satellite carriers to retransmit a local television station 
to households within that station's local market, just like cable does, 
and sets a zero copyright rate for providing this service.
  It allows consumers to switch from cable to satellite service for 
network signals without the waiting period now required in the law.
  It reforms the current structure of the administrative body which 
determines rates and distributions applicable to all copyright 
compulsory licenses to make it more efficient and less expensive for 
the parties, as well as more technically expert.
  It creates substantial regulatory parity between the industries, 
including must-carry rules, retransmission consent requirements, 
network non-duplication, syndicated exclusivity, and sports blackout 
restrictions. These regulations will be phased in over a period of time 
in which the Federal Communications Commission can carefully consider 
and tailor their implementation. During that time, the portions of the 
satellite compulsory license which determine who is eligible to receive 
network and superstation signals from satellite carriers will continue 
to apply as they do now.
  Mr. President, this is a forward-looking bill that establishes the 
environment in which there can be more vigorous and fair competition in 
the video delivery market. But it is constructed to be practical in the 
realm of achievable legislation. Let me make clear that this bill is 
carefully balanced to ensure competition. It will do much to put the 
satellite industry on a more equal footing with its competitors and 
other market actors, both in terms of its benefits and 
responsibilities.
  Mr. President, let me briefly mention an issue that I think is 
important to touch on briefly at introduction. I am aware that there is 
currently controversy and even litigation over some issues relating to 
compliance with restrictions in the law as it is now written regarding 
satellite carriers providing network service. Let me make it clear that 
the introduction of this bill is but the beginning of a process. I 
would hope that this beginning is not interpreted by anyone as a 
license to disregard the law as it is now constituted in hopes of any 
future changes in the law. Our debates and discussions need to be fair 
and frank, and that process is not helped by abuse or disregard for 
current law. I would expect full compliance with and application of 
current law regarding the restrictions on eligibility for distant 
network signals or any other provisions in current law until such time 
as changes in the law are actually made.
  Having said that, I welcome and urge my colleagues and all interested 
parties to join in a constructive discussion of this very important 
legislation. I recognize that we may be able improve this bill before 
final passage, but I believe the essential balance of this bill is 
necessary to making it achievable now. I commend it to my colleagues 
for their consideration and look forward to working with them to help 
hasten more vigorous competition in the television delivery market and 
the ever-widening consumer choice that will follow it.
  I ask unanimous consent that the bill and an explanatory section-by-
section analysis be printed in the Record.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                                S. 1720

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.

       Section 119 of title 17, United States Code, is amended--
       (1) by amending the section heading to read as follows:

     ``Sec. 119. Limitations on exclusive rights: Secondary 
       transmissions by satellite carriers'';

     and
       (2) by striking subsection (a) and inserting the following:
       ``(a) Secondary Transmissions by Satellite Carriers for 
     Private Home Viewing.--
       ``(1) Secondary transmissions of distant and local 
     broadcast signals subject to statutory licensing.--Subject to 
     the provisions of subsections (b) and (c) of this section and 
     section 114(d), a secondary transmission of a primary 
     transmission made by a television broadcast station licensed 
     by the Federal Communications Commission or by the Public 
     Broadcasting Service satellite feed and embodying a 
     performance or display of a work shall be subject to 
     statutory licensing under this section if--
       ``(A) the secondary transmission is permissible under the 
     rules, regulations, and authorizations of the Federal 
     Communications Commission and is made by a satellite carrier 
     to the public for private home viewing; and
       ``(B) the carrier makes a direct or indirect charge for 
     each retransmission service to each household receiving the 
     secondary transmission or to a distributor that has 
     contracted with the carrier for direct or indirect delivery 
     of the secondary transmission to the public for private home 
     viewing.
       ``(2) Submission of subscriber lists to television 
     broadcast stations.--
       ``(A) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary

[[Page S1451]]

     transmission of a television broadcast station pursuant to 
     paragraph (1) shall, within 90 days after commencing such 
     secondary transmissions, submit to that television broadcast 
     station--
       ``(i) a list identifying all subscribers within the 
     designated market area of that television broadcast station 
     to whom the satellite carrier has made such secondary 
     transmissions; and
       ``(ii) a list of all television broadcast stations whose 
     primary transmissions have been transmitted by the satellite 
     carrier to those subscribers during that 90-day period.
       ``(B) Subsequent lists.--After the submission of the lists 
     under subparagraph (A), the satellite carrier shall, on the 
     15th day of each month, submit to each television broadcast 
     station--
       ``(i) a list, which shall be dated, that identifies the 
     name of any subscriber described in subparagraph (A) who has 
     been added or dropped since the last submission under this 
     paragraph; and
       ``(ii) a list of all television broadcast stations whose 
     primary transmissions have been added or dropped by the 
     satellite carrier since the last submission under this 
     paragraph
       ``(C) Identifying information.--(i) Each list of 
     subscribers under this paragraph shall include the name of 
     each subscriber, together with the subscriber's home address, 
     which shall include the street address or rural route as the 
     case may be, city, county, State, and zip code and, if 
     different from the subscriber's home address, the location of 
     the subscriber's satellite receiving dish to which the 
     secondary transmissions are made, identified by street 
     address or rural route as the case may be, city, county, 
     State, and zip code.
       ``(ii) Each list of television broadcast stations under 
     this paragraph shall include the station's call letters and 
     community of license.
       ``(iii) Subscriber information submitted under this 
     paragraph may be used only for purposes of monitoring 
     compliance by the satellite carrier with this section.
       ``(3) Penalties for noncompliance with accounting and 
     royalty requirements.--Notwithstanding the provisions of 
     paragraph (1), the willful or repeated secondary transmission 
     to the public by a satellite carrier of a primary 
     transmission made by a television broadcast station licensed 
     by the Federal Communications Commission or by the Public 
     Broadcasting Service satellite feed and embodying a 
     performance or display of a work is actionable as an act of 
     infringement under section 501, and is fully subject to the 
     remedies provided by sections 502 through 506 and 509, if the 
     satellite carrier has not deposited the statement of account 
     and royalties fees required by subsection (b), or has failed 
     to make the submissions to networks required by paragraph 
     (2).
       ``(4) Penalties for willful alterations of programming.--
     Notwithstanding the provisions of paragraph (1), the 
     secondary transmission to the public by a satellite carrier 
     of a primary transmission made by a television broadcast 
     station licensed by the Federal Communications Commission or 
     by the Public Broadcasting Service satellite feed and 
     embodying a performance or display of a work is actionable as 
     an act of infringement under section 501, and is fully 
     subject to the remedies provided by section 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.
       ``(5) Penalties for discrimination against distributor.--
     Notwithstanding the provisions of paragraph (1), the willful 
     or repeated secondary transmission to the public by a 
     satellite carrier of a primary transmission made by a 
     television broadcast station licensed by the Federal 
     Communications Commission or by the Public Broadcasting 
     Service satellite feed and embodying the performance or 
     display of a work is actionable as an act of infringement 
     under section 501, and is fully subject to the remedies 
     provided by sections 502 through 506 and 509, if the 
     satellite carrier unlawfully discriminates against a 
     distributor.
       ``(6) License limited to secondary transmissions to 
     households in the United States.--The statutory license 
     created by this section shall apply only to secondary 
     transmissions to households located in the United States.''.

     SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.

       Section 119 of title 17, United States Code, is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Statutory License for Secondary Transmissions for 
     Private Home Viewing.--
       ``(1) Deposit of accounts and fees with register of 
     copyrights.--A satellite carrier whose secondary 
     transmissions are subject to statutory licensing under 
     subsection (a) shall, on a semiannual basis, deposit with the 
     Register of Copyrights, in accordance with requirements that 
     the Register shall prescribe by regulation--
       ``(A) a statement of account, covering the preceding 6-
     month period, specifying the names and locations of all 
     television broadcast stations whose signals were 
     retransmitted, and listing the Public Broadcasting Service 
     satellite feed, if carried, at any time during that period, 
     to subscribers for private home viewing, the total number of 
     subscribers that received such retransmissions, and other 
     such data as the Register of Copyrights may from time to time 
     prescribe by regulation; and
       ``(B) a royalty fee for that 6-month period for each 
     television broadcast station whose primary transmission was 
     retransmitted beyond the local market of the station, and for 
     the Public Broadcasting Service satellite feed, if carried, 
     computed by multiplying the total number of subscribers 
     receiving the secondary transmission, and the number of 
     subscribers receiving a secondary transmission of the Public 
     Broadcasting Service satellite feed, during each calendar 
     month by the rate in effect for television broadcast stations 
     as determined under chapter 8 of this title and section 8(c) 
     of the Copyright Compulsory License Improvement Act.
       ``(2) Investment of fees.--The Register of Copyrights shall 
     receive all fees deposited under this section and, after 
     deducting the reasonable costs incurred by the Copyright 
     Office under this section (other than the costs deducted 
     under paragraph (4)), shall deposit the balance in the 
     Treasury of the United States, in such manner as the 
     Secretary of the Treasury directs. All funds held by the 
     Secretary of the Treasury shall be invested in interest-
     bearing securities of the United States for later 
     distribution with interest by the Copyright Royalty 
     Adjudication Board as provided in this title. The Register 
     may, four or more years after the close of any calendar year, 
     close out the account for royalty payments made under this 
     section for that calendar year (including payments made under 
     this section as in effect before the effective date of the 
     Copyright Compulsory License Improvement Act), and may treat 
     any funds remaining in such account and any subsequent 
     deposits that would otherwise be attributable to that 
     calendar year as attributable to the calendar year in which 
     the account is closed.
       ``(3) Persons to whom fees are distributed.--The royalty 
     fees deposited under paragraph (2) shall, in accordance with 
     the procedures provided in paragraph (4), be distributed to 
     those copyright owners whose works were included in a 
     secondary transmission for private home viewing made by a 
     satellite carrier during the applicable 6-month accounting 
     period and who file a claim with the Board under paragraph 
     (4).
       ``(4) Procedures for distribution.--The royalty fees 
     deposited under paragraph (2) shall be distributed in 
     accordance with the following procedures:
       ``(A) Filing of claims for fees.--During the month of July 
     in each year, each person claiming to be entitled to 
     statutory license fees for secondary transmissions for 
     private home viewing shall file a claim with the Copyright 
     Royalty Adjudication Board, in accordance with requirements 
     that the Board shall prescribe by regulation. For purposes of 
     this paragraph, any claimants may agree among themselves as 
     to the proportionate division of statutory license fees among 
     them, may lump their claims together and file them jointly or 
     as a single claim, or may designate a common agent to receive 
     payment on their behalf.
       ``(B) Determination of controversy; distributions.--After 
     the first day of August of each year, the Copyright Royalty 
     Adjudication Board shall determine whether there exists a 
     controversy concerning the distribution of royalty fees. If 
     the Board determines that no such controversy exists, the 
     Board shall, after deducting reasonable administrative costs 
     under this paragraph, distribute such fees to the copyright 
     owners entitled to receive them, or to their designated 
     agents. If the Board finds the existence of a controversy, 
     the Board shall, pursuant to chapter 8 of this title, conduct 
     a proceeding to determine the distribution of royalty fees.
       ``(C) Withholding of fees during controversy.--During the 
     pendency of any proceeding under this subsection, the 
     Copyright Royalty Adjudication Board shall withhold from 
     distribution an amount sufficient to satisfy all claims with 
     respect to which a controversy exists, but shall have 
     discretion to proceed to distribute any amounts that are not 
     in controversy. The action of the Board to distribute royalty 
     fees may precede the declaration of a controversy if all 
     parties to the proceeding file a petition with the Board 
     requesting such distribution, except that such amount may not 
     exceed 50 percent of the amounts on hand at the time of the 
     request.''.

     SEC. 4. DEFINITIONS.

       Section 119 of title 17, United States Code, is amended by 
     striking subsection (d) and inserting the following:
       ``(d) Definitions.--As used in this section--
       ``(1) Designated market area.--The term `designated market 
     area' has the meaning given that term in section 337(g) of 
     the Communications Act of 1934.
       ``(2) Distributor.--The term `distributor' means an entity 
     which contracts to distribute secondary transmissions from a 
     satellite carrier and, either as a single channel or in a 
     package with other programming, provides the secondary 
     transmission either directly to individual subscribers for 
     private home viewing or indirectly through other program 
     distribution entities.
       ``(3) Local market.--The `local market' for a television 
     broadcast station has the meaning given that term in section 
     337(g) of the Communications Act of 1934.

[[Page S1452]]

       ``(4) Primary transmission.--The term `primary 
     transmission' has the meaning given that term in section 
     111(f) of this title.
       ``(5) Private home viewing.--The term `private home 
     viewing' means the viewing, for private use in a household by 
     means of satellite reception equipment which is operated by 
     an individual in that household and which serves only such 
     household, of a secondary transmission delivered by a 
     satellite carrier of a primary transmission of a television 
     station licensed by the Federal Communications Commission or 
     of the Public Broadcasting Service satellite feed.
       ``(6) Public broadcasting service satellite feed.--The term 
     `Public Broadcasting Service satellite feed' means the 
     national satellite feed distributed by the Public 
     Broadcasting Service (other than the transmissions that may 
     not be encrypted under section 705(c) of the Communications 
     Act of 1934), consisting of educational and informational 
     programming intended for private home viewing, to which the 
     Public Broadcasting Service holds national terrestrial 
     broadcast rights.
       ``(7) Satellite carrier.--The term `satellite carrier' 
     means an entity that uses the facilities of a satellite or 
     satellite service licensed by the Federal Communications 
     Commission, and operates in the Fixed-Satellite Service under 
     part 25 of title 47, Code of Federal Regulations (as in 
     effect on February 1, 1998), or the Direct Broadcast 
     Satellite Service under part 100 of title 47, Code of Federal 
     Regulations (as in effect on February 1, 1998), to establish 
     and operate a channel of communications for point-to-
     multipoint distribution of television station signals, and 
     that owns or leases a capacity or service on a satellite in 
     order to provide such point-to-multipoint distribution, 
     except to the extent that such entity provides such 
     distribution pursuant to tariff under the Communications Act 
     of 1934, other than for private home viewing.
       ``(8) Secondary transmission.--The term `secondary 
     transmission' means the further transmitting of a primary 
     transmission simultaneously with the primary transmission.
       ``(9) Subscriber.--The term `subscriber' means an 
     individual who receives a secondary transmission service for 
     private home viewing by means of a secondary transmission 
     from a satellite carrier and pays a fee for the service, 
     directly or indirectly, to the satellite carrier or to a 
     distributor.
       ``(10) Television broadcast station.--The term `television 
     broadcast station' means an over-the-air, commercial or 
     noncommercial television broadcast station licensed by the 
     Federal Communications Commission under subpart E of part 73 
     of title 47, Code of Federal Regulations.''.

     SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES 
                   CODE.

       Section 119 of title 17, United States Code, is amended by 
     adding at the end the following:
       ``(e) Exclusivity for This Section With Respect to 
     Secondary Transmissions of Television Stations by Satellite 
     to Members of the Public.--No provision of section 111 of 
     this title or any other law (other than this section) shall 
     be construed to contain any authorization, exemption, or 
     license through which secondary transmissions by satellite 
     carriers for private home viewing of programming contained in 
     a primary transmission may be made without obtaining the 
     consent of the copyright owner.''.

     SEC. 6. CONFORMING AMENDMENT.

       The table of contents for chapter 1 of title 17, United 
     States Code, is amended by striking the item relating to 
     section 119 and inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions by 
              satellite carriers.''.

     SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.

       (a) Establishment and Functions.--Chapter 8 of title 17, 
     United States Code, is amended to read as follows:

           ``CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD

``Sec.
``801. Copyright Royalty Adjudication Board: establishment.
``802. Membership and qualifications of the Board.
``803. Selection of administrative copyright judges.
``804. Independence of the Board.
``805. Removal and sanction of administrative copyright judges.
``806. Functions.
``807. Factors for determining royalty fees.
``808. Institution of proceedings.
``809. Conduct of proceedings.
``810. Judicial review.
``811. Administrative matters.
``812. Rule of construction.

     ``Sec. 801. Copyright Royalty Adjudication Board: 
       establishment

       ``There is hereby established within the Copyright Office 
     the Copyright Royalty Adjudication Board (hereinafter 
     referred to in this chapter as the `Board').

     ``Sec. 802. Membership and qualifications of the Board

       ``(a) Membership.--
       ``(1) In general.--The Board shall consist of 1 full-time 
     chief administrative copyright judge, and such part-time 
     administrative copyright judges as the Librarian of Congress, 
     upon the recommendation of the Register of Copyrights, finds 
     necessary to conduct the business of the Board in a timely 
     manner. At no time shall the number of authorized 
     administrative copyright judges be less than 3 or more than 
     5.
       ``(2) Part-time administrative copyright judges.--Chapter 
     34 of title 5 shall not apply to a part-time administrative 
     copyright judge. For purposes of this subsection the 
     Librarian of Congress shall promulgate regulations relating 
     to part-time employment of administrative copyright judges.
       ``(b) Qualifications.--
       ``(1) Chief administrative copyright judge.--The chief 
     administrative copyright judge shall be an attorney with 10 
     or more years of legal practice with demonstrated experience 
     in administrative hearings or court trials and demonstrated 
     knowledge of copyright law.
       ``(2) Other administrative copyright judges.--Each 
     administrative copyright judge, other than the chief 
     administrative copyright judge, shall be an individual with 
     expertise in the business and economics of industries 
     affected by the actions taken by the Board to carry out its 
     functions.
       ``(c) Terms.--(1) The term of each administrative copyright 
     judge (including the chief administrative copyright judge) 
     shall be 5 years, except that, of the first administrative 
     copyright judges appointed, the Librarian of Congress, upon 
     the recommendation of the Register of Copyrights, shall 
     appoint all but one of them to lesser terms to establish a 
     staggering of terms such that in any calendar year no more 
     than one term is due to expire.
       ``(2) The term of each administrative copyright judge 
     (including the chief administrative copyright judge) shall 
     begin when the term of the predecessor of that member ends. 
     An individual appointed to fill the vacancy occurring before 
     the expiration of the term for which the predecessor of that 
     individual was appointed shall be appointed for the remainder 
     of that term. When the term of office of a member ends, the 
     member may continue to serve until a successor is selected.
       ``(d) Compensation.--The compensation of the administrative 
     copyright judges shall be governed solely by the provisions 
     of section 5376 of title 5 and such regulations as the 
     Librarian of Congress may adopt that are not inconsistent 
     with that section. The compensation of the administrative 
     copyright judges shall not be subject to any regulations 
     adopted by the Office of Personnel Management pursuant to its 
     authority under section 5376(b)(1) of title 5.

     ``Sec. 803. Selection of administrative copyright judges

       ``(a) Selection.--(1) The Librarian of Congress, upon the 
     recommendation of the Register of Copyrights, shall select 
     the administrative copyright judges (including the chief 
     administrative copyright judge) among individuals found 
     qualified under section 802(b) who meet the financial 
     conflict of interest under section 805(a). Notwithstanding 
     any other provision of law and at the discretion of the 
     Librarian, the Librarian shall determine the method of 
     selecting the members.
       ``(2) Administrative copyright judges previously selected 
     by the Librarian of Congress may be selected to serve 
     additional terms. There shall be no limit on the number of 
     terms any individual may serve.
       ``(b) Effect of Vacancy.--In no event shall a vacancy in 
     the Board impair the right of the remaining administrative 
     copyright judges to exercise all of the powers of the Board.

     ``Sec. 804. Independence of the Board

       ``(a) In General.--The Board shall have independence in 
     reaching its determinations concerning the adjustment of 
     copyright royalty rates, the distribution of copyright 
     royalties, the acceptance or rejection of royalty claims and 
     rate adjustment petitions, and such rulemaking functions as 
     are delegated to it under this title.
       ``(b) Performance Appraisals.--Notwithstanding any other 
     provision of law or any regulation of the Library of 
     Congress, no administrative copyright judge shall receive an 
     annual performance appraisal.
       ``(c) Inconsistent Duties Barred.--No administrative 
     copyright judge may be assigned duties inconsistent with his 
     or her duties and responsibilities as a administrative 
     copyright judge.

     ``Sec. 805. Removal and sanction of administrative copyright 
       judges

       ``(a) Standards of Conduct.--The Librarian of Congress, 
     upon the recommendation of the Register of Copyrights, shall 
     adopt regulations regarding the standards of conduct, 
     including financial conflict of interest and restrictions 
     against ex parte communications, which shall govern the 
     administrative copyright judges and the proceedings under 
     this chapter.
       ``(b) Removal or Sanction.--The Librarian of Congress, upon 
     the recommendation of the Register of Copyrights, may remove 
     or sanction an administrative copyright judge for violation 
     of the standards of conduct adopted under subsection (a), 
     misconduct, neglect of duty, or any disqualifying physical or 
     mental disability. Any such removal or sanction may be made 
     only after notice and opportunity for hearing, but the 
     Librarian of Congress, upon the recommendation of the 
     Register of Copyrights, may suspend the administrative 
     copyright judge during the pendency of such hearing.

     ``Sec. 806. Functions

       ``Subject to the provisions of this chapter, the functions 
     of the Board shall be--
       ``(1) to make determinations concerning the adjustment of 
     reasonable copyright royalty rates for--

[[Page S1453]]

       ``(A) secondary transmissions to the public by a cable 
     system of a primary transmission as provided in section 111;
       ``(B) the making and distributing of phonorecords by means 
     other than digital phonorecord delivery, as provided in 
     section 115;
       ``(C) secondary transmissions to the public by a satellite 
     carrier of a primary transmission made by a television 
     broadcast station and the Public Broadcasting Service 
     satellite feed as provided in section 119; and
       ``(D) each digital audio recording device imported into and 
     distributed in the United States or manufactured and 
     distributed into the United States as provided in section 
     1004;
       ``(2) to make determinations as to reasonable rates and 
     terms of royalty payments for--
       ``(A) the public performance of a sound recording by means 
     of a digital audio transmission as provided in section 114;
       ``(B) the making and distribution of phonorecords by means 
     of a digital phonorecord delivery as provided in section 115;
       ``(C) the public performance of nondramatic musical works 
     by means of coin-operated phonorecord players as provided in 
     section 116; and
       ``(D) the use of nondramatic musical works and pictorial, 
     graphic, and sculptural works by public broadcasting entities 
     as provided in section 118;
       ``(3) to accept or reject royalty claims filed under 
     sections 111, 119, and 1007, on the basis of timeliness or 
     the failure to establish the basis for a claim;
       ``(4) to determine, in cases where controversy exists, the 
     distribution of royalty fees deposited with the Register of 
     Copyrights under sections 111, 119, and 1003;
       ``(5) to determine the status of a digital audio recording 
     device or a digital audio interface device under sections 
     1002 and 1003, as provided in section 1010; and
       ``(6) to engage in such rulemaking as is expressly provided 
     in sections 111, 114, 115, 118, and 119.

     ``Sec. 807. Factors for determining royalty fees

       ``(a) For Cable Rates.--The rates applicable under section 
     111 shall be calculated solely in accordance with the 
     following provisions:
       ``(1) The rates established by section 111(d)(1)(B) may be 
     adjusted to reflect--
       ``(A) national monetary inflation or deflation, or
       ``(B) changes in the average rates charged cable 
     subscribers for the basic service of providing secondary 
     transmissions to maintain the real constant dollar level of 
     the royalty fee per subscriber which existed as of October 
     19, 1976, except that--
       ``(i) if the average rates charged cable system subscribers 
     for the basic service of providing secondary transmissions 
     are changed so that the average rates exceed national 
     monetary inflation, no change in the rates established by 
     section 111(d)(1)(B) shall be permitted; and

       ``(ii) no increase in the royalty fee shall be permitted 
     based on any reduction in the average number of distant 
     signal equivalents per subscriber.

     The Board may consider all factors relating to the 
     maintenance of such level of payments including, as an 
     extenuating factor, whether the cable industry has been 
     restrained by subscriber rate regulating authorities from 
     increasing the rates for the basic service of providing 
     secondary transmissions.
       ``(2) In the event that the rules and regulations of the 
     Federal Communications Commission are amended at any time 
     after April 15, 1976, to permit the carriage by cable systems 
     of additional television broadcasting signals beyond the 
     local service area of the primary transmitters of such 
     signals, the royalty rates established by section 
     111(d)(1)(B) may be adjusted to insure that the rates for the 
     additional distant signal equivalents resulting from such 
     carriage are reasonable in light of the changes effected by 
     the amendment to such rules and regulations. In determining 
     the reasonableness of rates proposed following an amendment 
     of Federal Communications Commission rules and regulations, 
     the Board shall consider, among other factors, the economic 
     impact on copyright owners and users, except that no 
     adjustment in royalty rates shall be made under this 
     paragraph with respect to any distant signal equivalent or 
     fraction thereof represented by--
       ``(A) carriage of any signal permitted under the rules and 
     regulations of the Federal Communications Commission in 
     effect on April 15, 1976, or the carriage of a signal of the 
     same type (that is, independent, network, or noncommercial 
     educational) substituted for such permitted signal, or
       ``(B) a television broadcast signal first carried after 
     April 15 1976, pursuant to an individual waiver of the rules 
     and regulations of the Federal Communications Commission, as 
     such rules and regulations were in effect on April 15, 1976.
       ``(3) In the event of any change in the rules and 
     regulations of the Federal Communications Commission with 
     respect to syndicated and sport program exclusivity after 
     April 15, 1976, the rates established by section 111(d)(1)(B) 
     may be adjusted to assure that such rates are reasonable in 
     light of the changes to such rules and regulations, but any 
     such adjustment shall apply only to the affected television 
     broadcast signals carried on those systems affected by the 
     change.
       ``(4) The gross receipts limitations established by section 
     111(d)(1)(C) and (D) shall be adjusted to reflect national 
     monetary inflation or deflation or changes in the average 
     rates charged cable system subscribers for the basic service 
     of providing secondary transmissions to maintain the real 
     constant dollar value of the exemption provided by such 
     section, and the royalty rate specified therein shall not be 
     subject to adjustment.
       ``(b) For Rates Other Than Cable or Satellite Carriers.--
     The rates applicable under sections 114, 115, and 116 shall 
     be calculated to achieve the following objectives:
       ``(1) To maximize the availability of creative works to the 
     public.
       ``(2) To afford the copyright owner a fair return for his 
     or her creative work and the copyright user a fair income 
     under existing economic conditions.
       ``(3) To reflect the relative roles of the copyright owner 
     and the copyright user in the product made available to the 
     public with respect to relative creative contribution, 
     technological contribution, capital investment, cost, risk, 
     and contribution to the opening of new markets for creative 
     expression and media for their communications.
       ``(4) To minimize any disruptive impact on the structure of 
     the industries involved and on generally prevailing industry 
     practices.
       ``(c) For Rates for Noncommercial Broadcasting.--The rates 
     applicable under section 118 shall be calculated to achieve 
     reasonable rates. In determining reasonable rates, the Board 
     shall base its decision so as to--
       ``(1) assure a fair return to copyright owners;
       ``(2) encourage the growth and development of public 
     broadcasting; and
       ``(3) encourage musical and artistic creation.
       ``(d) Rates for Satellite Carriers.--The rates applicable 
     under section 119 shall be calculated to represent most 
     clearly the fair market value of secondary transmissions. In 
     determining the fair market value, the Board shall base its 
     decision on economic, competitive, and programming 
     information presented by the parties, including--
       ``(1) the competitive environment in which such programming 
     is distributed, the cost for similar signals in similar 
     private and compulsory license marketplaces, and any special 
     features and conditions of the retransmission marketplace;
       ``(2) the economic impact of such fees on copyright owners 
     and satellite carriers; and
       ``(3) the impact on the continued availability of secondary 
     transmissions to the public.

     ``Sec. 808. Institution of proceedings

       ``(a) Petition Required To Institute Proceedings.--With 
     respect to proceedings concerning the adjustment of royalty 
     rates as provided in sections 111, 114, 115, 116, and 119, 
     during the calendar years or under the circumstances 
     specified in the schedule set forth in subsection (c), any 
     owner or user of a copyrighted work whose royalty rates are 
     to be established or adjusted by the Board may file a 
     petition with the Board declaring that the petitioner 
     requests an adjustment of the rate. The Board shall make a 
     determination as to whether the petitioner has a significant 
     interest in the royalty rate in which an adjustment is 
     requested. If the Board determines that the petitioner has a 
     significant interest, the Board shall cause notice of this 
     determination, with the reasons therefor, to be published in 
     the Federal Register, together with the notice of 
     commencement of proceedings under this chapter. With respect 
     to proceedings concerning the adjustment of royalty rates 
     under section 1004, any interested copyright party may 
     petition the Board as provided in that section.
       ``(b) Petition Not Required To Institute Proceedings.--With 
     respect to proceedings concerning the adjustment of royalty 
     rates as provided in section 118 and the distribution of 
     royalties as provided in section 111, 119, and 1007, no 
     petition is required to institute proceedings. All 
     proceedings concerning the adjustment of rates under section 
     118 shall commence as provided in section 118(c) of this 
     title. All proceedings concerning the distribution of 
     royalties under section 111, 119, or 1007 shall commence as 
     provided in such sections and in subsection (c)(8) of this 
     section.
       ``(c) Schedule of Proceedings.--
       ``(1) Section 111 proceedings.--In proceedings concerning 
     the adjustment of royalty rates as provided in section 111, a 
     petition described in subsection (a) may be filed during the 
     year 2000 and in each subsequent fifth calendar year, except 
     that in the event that the rules and regulations of the 
     Federal Communications Commission are amended with respect to 
     distant signal importation, or to syndicated and sports 
     program exclusivity, any owner or user of a copyrighted work 
     subject to the royalty rates established or adjusted pursuant 
     to section 111 may, within 12 months after such amendments 
     take effect, file a petition with the Board to institute 
     proceedings to insure that the rates are reasonable in light 
     of the changes to such rules and regulations. Any such 
     adjustments shall apply only to the affected television 
     broadcast signals carried on those systems affected by the 
     change. Any change in royalty rates made pursuant to this 
     subsection may be reconsidered in the year 2000, and each 
     fifth calendar year thereafter, as the case may be.
       ``(2) Section 114 proceedings.--In proceedings concerning 
     the adjustment of royalty rates and terms as provided in 
     section 114, the Board shall proceed when and as provided by 
     that section.

[[Page S1454]]

       ``(3) Section 115 proceedings.--In proceedings concerning 
     the adjustment of royalty rates and terms as provided in 
     section 115, a petition described in subsection (a) may be 
     filed in the year 2007 and in each subsequent tenth calendar 
     year or as prescribed in section 115(c)(3).
       ``(4) Section 116 proceedings.--(A) In proceedings 
     concerning the adjustment of royalty rates as provided in 
     section 116, a petition described in subsection (a) may be 
     filed at any time within 1 year after negotiated licenses 
     authorized by section 116 are terminated or expire or are not 
     replaced by subsequent agreements.
       ``(B) If a negotiated license authorized by section 116 is 
     terminated or expires and is not replaced by another such 
     license agreement which provides permission to use a quantity 
     of musical works not substantially smaller than the quantity 
     of such works performed on coin-operated phonorecord players 
     during the 1-year period ending March 1, 1989, the Board, 
     upon petition filed under subsection (a) within 1 year after 
     such termination or expiration, shall promptly establish an 
     interim royalty rate or rates for the public performance by 
     means of a coin-operated phonorecord player of nondramatic 
     musical works embodied in phonorecords which had been subject 
     to the terminated or expired negotiated license agreement. 
     Such rate or rates shall be the same as the last such rate or 
     rates and shall remain in force until the conclusion of the 
     proceedings to adjust the royalty rates applicable to such 
     works, or until superseded by a new negotiated license 
     agreement, as provided in section 116(b).
       ``(5) Section 118 proceedings.--In proceedings concerning 
     the adjustment of royalty rates and terms as provided in 
     section 118, the Board shall proceed when and as provided by 
     that section.
       ``(6) Section 119 proceedings.--In proceedings concerning 
     the adjustment of royalty rates governing secondary 
     transmissions of as provided in section 119, a petition 
     described in subsection (a) may be filed during the year 2001 
     and in each subsequent fifth calendar year.
       ``(7) Proceedings concerning distribution of royalty 
     fees.--In proceedings concerning the distribution of royalty 
     fees under section 111, 119, or 1007, the Board shall, upon a 
     determination that a controversy exists concerning such 
     distribution, cause to be published in the Federal Register 
     notice of commencement of proceedings under this chapter.

     ``Sec. 809. Conduct of proceedings

       ``(a) Board Proceedings.--The Board shall, for the purposes 
     of making its determinations in carrying out the functions 
     set forth in section 806, conduct proceedings subject to 
     subchapter II of chapter 5 of title 5.
       ``(b) Procedures.--Subject to the approval of the Register 
     of Copyrights, the Board, shall adopt regulations to govern 
     the conduct of the proceedings of the Board. The regulations 
     shall include, but not be limited to, provisions for--
       ``(1) public access to and inspection of the records of the 
     Board pursuant to section 706;
       ``(2) the right of the public to attend the proceedings of 
     the Board;
       ``(3) the procedures to apply when formal hearings are 
     conducted; and
       ``(4) the procedures to apply and the basis upon which 
     distribution or royalty controversies may be decided on the 
     basis of written pleadings.
       ``(c) Participation of Copyright Office.--During the 
     conduct of proceedings, the Register of Copyrights may file 
     formally with the Board the position of the Copyright Office 
     on any matter before the Board. Such filings shall be served 
     on all parties to the proceeding. The Board may accept or 
     reject the position of the Copyright Office.
       ``(d) Majority Rule.--The Board shall act in all procedural 
     and substantive matters on the basis of majority rule.
       ``(e) Number of Presiding Judges.--The Board shall decide, 
     in its discretion, whether 1 or 3 administrative copyright 
     judges shall preside in a royalty distribution or rate 
     adjustment proceeding. In no event shall the number of 
     presiding administrative copyright judges be more than 3.
       ``(f) Participation of Parties.--Any copyright owner who 
     has filed an acceptable claim claiming entitlement to the 
     distribution of royalties, or any copyright owner or user who 
     would be affected by a royalty rate to be established or 
     adjusted by the Board, may submit relevant information and 
     proposals to the Board in proceedings applicable to the 
     interest of the copyright owner or user.
       ``(g) Time Limits for Initial Decision.--Proceedings under 
     section 118 operate under the time limits established in that 
     section. For all other proceedings, if 1 administrative 
     copyright judge is presiding in a proceeding, the Board shall 
     issue its initial decision to the parties to the proceeding 
     and the Register of Copyrights within 6 months after the 
     declaration of a controversy in the proceeding. If more than 
     1 administrative copyright judge is presiding in a 
     proceeding, the Board shall issue its initial decision to the 
     parties to the proceeding and the Register of Copyrights 
     within 1 year after the declaration of a controversy in the 
     proceeding.
       ``(h) Requirements for Initial Decisions.--The initial 
     decision under subsection (g) shall include a statement of 
     findings and conclusions and the reasons or basis therefor, 
     on all the material issues of fact, law, or discretion 
     presented on the record. The initial decision shall take into 
     account prior decisions of the Copyright Royalty Tribunal, 
     prior decisions of copyright arbitration royalty panels, as 
     adopted or modified by the Librarian of Congress, and the 
     procedural and evidentiary rulings the Librarian of Congress 
     made that were applicable to the proceedings of the copyright 
     arbitration royalty panels. Notwithstanding any provision of 
     section 603 or 604 of title 5, neither the initial decision 
     nor the final decision is required to include a regulatory 
     flexibility analysis.
       ``(i) Petitions for Reconsideration and Final Agency 
     Action.--Any party to the proceeding concerned or the 
     Register of Copyrights may petition the Board to reconsider 
     its initial decision in the proceeding. If there are no 
     petitions for reconsideration, the initial decision becomes 
     the final decision of the Board without further proceedings. 
     If there are petitions for reconsideration, the Board shall 
     issue a final decision to the parties to the proceeding and 
     the Register of Copyrights which shall constitute final 
     agency action. The time period by which parties to the 
     proceeding or the Register of Copyrights may file a petition 
     for reconsideration and the time period by which the Board 
     shall render its final decision shall be established by 
     regulation by the Board, subject to the approval of the 
     Register of Copyrights.

     ``Sec. 810. Judicial review

       ``(a) Appeals.--Within 1 week after the Board issues a 
     final decision under section 809, or, if there are no 
     petitions for reconsideration, within 1 week after the time 
     the initial decision of the Board under section 809 becomes 
     the final decision, the Board shall cause to be published in 
     the Federal Register the decision of the rate adjustment or 
     the royalty distribution, as the case may be. Any aggrieved 
     party who would be bound by the final decision may appeal the 
     decision to the United States Court of Appeals for the 
     Federal Circuit within 30 days after the publication of the 
     decision in the Federal Register. In any appeal to which the 
     Board is a party, the chief administrative copyright judge 
     shall refer the conduct of the litigation in defense of the 
     Board's decision to the Department of Justice which shall 
     have the authority to represent the Board under section 516 
     of title 28. If no appeal is brought within such 30-day 
     period, the decision of the Board is final, and the royalty 
     fee or determination with respect to the distribution of 
     fees, as the case may be, shall take effect as set forth in 
     the decision. The pendency of an appeal under this subsection 
     shall not relieve persons who would be affected by the 
     determinations on appeal under section 111, 114, 115, 116, 
     118, 119, or 1003, of the obligation to deposit the statement 
     of account or to pay royalty fees specified in those 
     sections.
       ``(b) Review Subject to Chapter 7 of Title 5.--The judicial 
     review of the Board's final decision shall be had, in 
     accordance with chapter 7 of title 5, on the basis of the 
     record before the Board.

     ``Sec. 811. Administrative matters

       ``(a) Administrative Support.--The Library of Congress, 
     upon the recommendation of the Register of Copyrights, shall 
     provide the Board with the necessary administrative services 
     and personnel related to proceedings under this title.
       ``(b) Authority To Publish in Federal Register.--The 
     actions of the Board which may be published in the Federal 
     Register by and under the authority of the Board include--
       ``(1) actions of the Board required to be published in the 
     Federal Register under this title;
       ``(2) actions of the Board required to be published in the 
     Federal Register under regulations adopted by the Board upon 
     the approval of the Register of Copyrights; and
       ``(3) regulations of the Board required to be published in 
     the Federal Register to which the Board has been delegated 
     the exclusive right to adopt.
       ``(c) Collection and Use of Fees.--
       ``(1) Deduction of costs from fees.--The Librarian of 
     Congress and the Register of Copyrights may, to the extent 
     not otherwise provided under this title, deduct from the 
     royalty fees deposited or fees collected under this title the 
     reasonable costs incurred by the Library of Congress and the 
     Copyright Office under this chapter. Such deduction may be 
     made before the fees are distributed to any copyright owner.
       ``(2) Collection of fees.--The Register of Copyrights may 
     impose and collect fees in advance to carry out the 
     ratemaking proceedings. All fees received under this section 
     shall be deposited by the Register of Copyrights in the 
     Treasury of the United States and shall be credited to the 
     appropriations for necessary expenses of the Copyright 
     Office. Such fees that are collected shall remain available 
     until expended. The Register may refund any sum paid by 
     mistake or in excess of the fee required under this section.
       ``(d) Positions Required for Administration of Compulsory 
     Licensing.--Section 307 of the Legislative Branch 
     Appropriations Act of 1994 shall not apply to the members of 
     the Board, employee positions in the Board, or employee 
     positions in the Library of Congress that are required to be 
     filled in order to carry out section 111, 114, 115, 116, 118, 
     or 119 or chapter 10.
       ``(e) Budget.--In each annual request for appropriations, 
     the Register of Copyrights shall identify the portion thereof 
     intended for the support of the Board and a statement

[[Page S1455]]

     which shall include an assessment of the budgetary needs of 
     the Board.
       ``(f) Annual Report.--The Board shall prepare an annual 
     report of its work and accomplishments during each fiscal 
     year, which the Register of Copyrights shall include in the 
     annual report required under section 701(c).

     ``Sec. 812. Rule of construction

       ``Nothing in this chapter shall be construed to affect the 
     authority of the Register of Copyrights to establish 
     regulations under sections 701 and 702.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of chapters.--The item relating to chapter 8 in 
     the table of chapters for title 17, United States Code, is 
     amended to read as follows:

``8. Copyright Royalty Adjudication Board....................801''.....

       (2) Jurisdiction of federal circuit.--Section 1295(a) of 
     title 28, United States Code, is amended--
       (A) in paragraph (13) by striking ``and'' after the 
     semicolon;
       (B) in paragraph (14) by striking the period and inserting 
     a semicolon and ``and ''; and
       (C) by adding at the end the following new paragraph:
       ``(15) of an appeal from a final decision of the Copyright 
     Royalty Adjudication Board under sections 809(i) and 810 of 
     title 17.''.

     SEC. 8. TRANSITION PROVISIONS.

       (a) Transitional Procedures.--During the period beginning 
     on the date of the enactment of this Act and ending on the 
     effective date of this Act, the Register of Copyrights shall 
     adopt regulations to govern proceedings under chapter 8 of 
     title 17, United States Code, as amended by section 7 of this 
     Act. Such regulations shall remain in effect unless and until 
     the Copyright Royalty Adjudication Board, upon the approval 
     of the Register of Copyrights, adopts supplemental or 
     superseding regulations pursuant to section 809(b) of title 
     17, United States Code.
       (b) Proceedings in Progress.--
       (1) Copyright arbitration royalty panel proceedings.--
     Unless the Register of Copyrights, for good cause, finds 
     otherwise, proceedings in which a copyright arbitration 
     royalty panel has been convened by the Librarian of Congress 
     under chapter 8 of title 17, United States Code, as in effect 
     before the effective date of this Act, shall continue in 
     effect and shall be governed under chapter 8 of such title, 
     and applicable regulations, as in effect prior to such 
     effective date, and proceedings in which a copyright 
     arbitration royalty panel has not been convened by the 
     Librarian of Congress under chapter 8 of title 17, United 
     States Code, before the effective date of this Act shall be 
     suspended and recommenced under the amendments made by 
     section 7.
       (2) Continued proceedings.--For those proceedings continued 
     under paragraph (1), the functions of the Librarian of 
     Congress and the Register of Copyrights relating to the 
     report of the copyright arbitration royalty panel under title 
     17, United States Code, as in effect before the effective 
     date of this Act, may, in the Librarian's discretion, upon 
     the recommendation of the Register of Copyrights, be 
     delegated to the Copyright Royalty Adjudication Board, when 
     constituted.
       (3) Appeals.--In any appeal of a decision of the Librarian 
     of Congress adopting or rejecting a determination of a 
     copyright arbitration royalty panel which is pending in the 
     United States Court of Appeals for the District of Columbia 
     Circuit on or after the effective date of this Act, if such 
     case is remanded by the court, the Librarian of Congress 
     shall not reconvene the copyright arbitration royalty panel 
     which rendered the determination, but shall direct the 
     Copyright Royalty Adjudication Board, when constituted, to 
     conduct proceedings in accordance with the directions of the 
     court. If the case is remanded by the court after the 
     enactment date of this Act but before the effective date of 
     this Act, the Librarian of Congress shall have the discretion 
     to reconvene the copyright arbitration royalty panel which 
     rendered the determination, or direct the Copyright Royalty 
     Adjudication Board when constituted, to conduct proceedings 
     in accordance with the directions of the court.
       (c) Effectiveness of Existing Rates and Distributions.--All 
     royalty rates and all determinations with respect to the 
     proportionate division of compulsory license fees among 
     copyright claimants, whether made by the Copyright Royalty 
     Tribunal, copyright arbitration royalty panels, or by 
     voluntary agreement, before the effective date of this Act, 
     shall remain in effect until modified by voluntary agreement 
     or pursuant to the amendments made by this Act.
       (d) Transfer of Appropriations.--All unexpended balances of 
     appropriations made by the Copyright Office for the support 
     of the copyright arbitration royalty panels, as of the 
     effective date of this Act, are transferred on such effective 
     date to the support of the Copyright Royalty Arbitration 
     Board for the purposes for which such appropriations were 
     made except that, in the event that any copyright arbitration 
     royalty panels continue to operate after the effective date 
     of this Act, the Register of Copyrights shall retain such 
     portions of the unexpended balances of appropriations as are 
     necessary to support the continuing copyright arbitration 
     royalty panels.

     SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED 
                   STATES CODE.

       (a) Secondary Transmissions by Cable Systems.--Section 
     111(d) of title 17, United States Code, is amended--
       (1) in paragraph (2) in the last sentence by striking 
     ``Librarian of Congress'' and all that follows through the 
     end of the sentence and inserting the following: ``Copyright 
     Royalty Adjudication Board as provided in this title. The 
     Register of Copyrights may, 4 or more years after the close 
     of any calendar year, close out the account for royalty 
     payments made for that calendar year, and may treat any funds 
     remaining the such account and any subsequent deposits that 
     would otherwise be attributable to that calendar year as 
     attributable to the succeeding calendar year.''; and
       (2) in paragraph (4)--
       (A) in subparagraph (A)--
       (i) by striking ``Librarian of Congress'' the first place 
     it appears and inserting ``Copyright Royalty Adjudication 
     Board''; and
       (ii) by striking ``Librarian of Congress'' the second place 
     it appears and inserting ``Board'';
       (B) in subparagraph (B)--
       (i) by striking ``Librarian of Congress shall, upon the 
     recommendation of the Register of Copyrights'' and inserting 
     ``Copyright Royalty Adjudication Board shall'';
       (ii) by striking ``Librarian'' each subsequent place it 
     appears and inserting ``Board''; and
       (iii) in the last sentence by striking ``convene a 
     copyright royalty arbitration panel'' and inserting ``conduct 
     a proceeding''; and
       (C) in subparagraph (C)--
       (i) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Adjudication Board''; and
       (ii) by adding at the end the following: ``The action of 
     the Board to distribute royalty fees may precede the 
     declaration of a controversy if all parties to the proceeding 
     file a petition with the Board requesting such distribution, 
     except that such amount may not exceed 50 percent of the 
     amounts on hand at the time of the request.''.
       (b) Scope of Exclusive Rights in Sound Recordings.--Section 
     114(f) of title 17, United States Code, is amended--
       (1) in paragraph (1)--
       (A) by amending the first sentence to read as follows: 
     ``During the first week of January, 2000, the Copyright 
     Royalty Adjudication Board shall cause notice to be published 
     in the Federal Register of the initiation of voluntary 
     negotiation proceedings for the purpose of determining or 
     adjusting reasonable terms and rates of royalty payments for 
     the activities specified in subsection (d)(2) of this 
     section.''; and
       (B) in the third sentence by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Adjudication 
     Board'';
       (2) by striking paragraphs (2), (3), and (4) and inserting 
     the following:
       ``(2) In the absence of license agreements negotiated under 
     paragraph (1), during the 60-day period beginning 6 months 
     after publication of the notice specified in paragraph (1), 
     and upon the filing of a petition in accordance with section 
     808(a), the Copyright Royalty Adjudication Board shall, 
     pursuant to chapter 8, conduct a proceeding to determine and 
     publish in the Federal Register a schedule of rates and 
     terms. In addition to the objectives set forth in section 
     807(a) in establishing or adjusting such rates and terms, the 
     Board may consider the rates and terms for comparable types 
     of digital audio transmission services and comparable 
     circumstances under voluntary license agreements negotiated 
     as provided in paragraph (1). The Copyright Royalty 
     Adjudication Board, upon the approval of the Register of 
     Copyrights, shall also establish requirements by which 
     copyright owners may receive reasonable notice of the use of 
     their sound recordings under this section, and under which 
     records of such use shall be kept and made available by 
     entities performing sound recordings.
       ``(3) License agreements voluntarily negotiated at any time 
     between 1 or more copyright owners of sound recordings and 1 
     or more entities performing sound recordings shall be given 
     effect in lieu of any determination by the Copyright Royalty 
     Adjudication Board.
       ``(4) Publication of a notice of the initiation of 
     voluntary negotiation proceedings as specified in paragraph 
     (1) and the procedures specified in paragraph (2) shall be 
     repeated, in accordance with regulations that the Copyright 
     Royalty Adjudication Board, upon the approval of the Register 
     of Copyrights, shall prescribe--
       ``(A) no later than 30 days after a petition is filed by 
     any copyright owners of sound recordings or any entities 
     performing sound recordings affected by this section 
     indicating that a new type of digital audio transmission 
     service on which sound recordings are performed is or is 
     about to become operational; and
       ``(B) during the first week of January 2005 and at 5-year 
     intervals thereafter.''; and
       (3) in paragraph (5)(A)(i) by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Adjudication 
     Board, upon the approval of the Register of Copyrights,''.
       (c) Compulsory License for Making and Distributing 
     Phonorecords.--Section 115(c)(3) of title 17, United States 
     Code, is amended--
       (1) in subparagraph (C)--
       (A) by amending the first sentence to read as follows: ``At 
     the times established in subparagraph (F), the Copyright 
     Royalty Adjudication Board shall cause notice to be published 
     in the Federal Register of the initiation of voluntary 
     negotiation proceedings

[[Page S1456]]

     for the purpose of determining reasonable terms and rates of 
     royalty payments for the activities specified in subparagraph 
     (A) until the effective date of any new terms and rates 
     established pursuant to this subparagraph or subparagraph (D) 
     or (F), or such other date (regarding digital phonorecord 
     deliveries) as the parties may agree.'';
       (B) in the third sentence by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Adjudication 
     Board'';
       (2) by amending subparagraph (D) to read as follows:
       ``(D) In the absence of license agreements negotiated under 
     subparagraphs (B) and (C), upon the filing of a petition in 
     accordance with section 808(a), the Copyright Royalty 
     Adjudication Board shall, pursuant to chapter 8, conduct a 
     proceeding to determine and publish in the Federal Register a 
     schedule of rates and terms. Such rates and terms shall 
     distinguish between--
       ``(i) digital phonorecord deliveries where the reproduction 
     or distribution of a phonorecord is incidental to the 
     transmission which constitute the digital phonorecord 
     delivery, and
       ``(ii) digital phonorecord deliveries in general.

      In addition to the objectives set forth in section 807(a), 
     in establishing or adjusting rates and terms, the Board may 
     consider rates and terms under voluntary license agreements 
     negotiated as provided in subparagraphs (B) and (C). The 
     Board, upon the approval of the Register of Copyrights, shall 
     also establish requirements by which copyright owners may 
     receive reasonable notice of the use of their works under 
     this section, and under which records of such use shall be 
     kept and made available by persons making digital phonorecord 
     deliveries.'';
       (3) in subparagraph (E)(i) in the first sentence by 
     striking ``Librarian of Congress'' and inserting ``Copyright 
     Royalty Adjudication Board''; and
       (4) in subparagraph (F) by striking ``Librarian of 
     Congress'' and inserting `` Copyright Royalty Adjudication 
     Board, upon the approval of the Register of Copyrights,''.
       (d) Negotiated Licenses for Public Performances by Means of 
     Coin-Operated Phonorecord Players.--Section 116 of title 17, 
     United States Code, is amended--
       (1) by amending subsection (b)(2) to read as follows:
       ``(2) Rate adjustment proceeding.--Parties not subject to 
     such a negotiation may determine, by a rate adjustment 
     proceeding in accordance with the provisions of chapter 8, 
     the terms and rates and the division of fees described in 
     paragraph (1).''; and
       (2) in subsection (c)--
       (A) in the subsection heading by striking ``Copyright 
     Royalty Arbitration Panel'' and inserting ``Copyright Royalty 
     Adjudication Board''; and
       (B) by striking ``a copyright arbitration royalty panel and 
     inserting ``the Copyright Royalty Adjudication Board''.
       (e) Use of Certain Works in Connection With Noncommercial 
     Broadcasting.--Section 118 of title 17, United States Code, 
     is amended--
       (1) in subsection (b)--
       (A) by striking paragraph (1) and redesignating paragraphs 
     (2) and (3) as paragraphs (1) and (2), respectively;
       (B) in paragraph (1), as so redesignated, by striking 
     ``Librarian of Congress'' and inserting ``Copyright Royalty 
     Adjudication Board'';
       (C) in paragraph (2), as so redesignated--
       (i) by striking ``paragraph (2)'' each place it appears and 
     inserting ``paragraph (1)'';
       (ii) by striking ``Librarian of Congress'' the first place 
     it appears and inserting ``Copyright Royalty Adjudication 
     Board'';
       (iii) by striking ``Librarian of Congress'' the second and 
     third places it appears and inserting ``Board''; and
       (iv) by striking ``Librarian of Congress'' the last place 
     it appears and inserting ``Board, upon the approval of the 
     Register of Copyrights,'';
       (2) in subsection (c)--
       (A) by striking ``1997'' and inserting ``2002''; and
       (B) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Adjudication Board, upon the approval of 
     the Register of Copyrights,'';
       (3) in subsection (d)--
       (A) by striking ``(b)(2)'' and inserting ``(b)(1)''; and
       (B) by striking ``a copyright arbitration royalty panel 
     under subsection (b)(3)'' and inserting ``the Copyright 
     Royalty Adjudication Board under subsection (b)(2)''; and
       (4) in subsection (e), by striking paragraphs (1) and (2).
       (f) Digital Audio Recording Devices and Media.--
       (1) Royalty payments.--Section 1004(a)(3) of title 17, 
     United States Code, is amended in the third sentence--
       (A) by striking ``the 6th year after the effective date of 
     this chapter'' and inserting ``1998'';
       (B) by striking ``Librarian of Congress'' the first place 
     it appears and inserting ``Copyright Royalty Adjudication 
     Board''; and
       (C) by striking ``Librarian of Congress'' the second place 
     it appears and inserting ``Board''.
       (2) Entitlement to royalty payments.--Section 1006(c) of 
     title 17, United States Code, is amended by striking 
     ``Librarian of Congress shall convene a copyright arbitration 
     royalty panel which'' and inserting ``Copyright Royalty 
     Adjudication Board''.
       (3) Procedures for distributing royalty payments.--Section 
     1007 of title 17, United States Code, is amended--
       (A) in subsection (a)(1)--
       (i) by striking ``after the calendar year in which this 
     chapter takes effect'';
       (ii) by striking ``Librarian of Congress'' the first place 
     it appears and inserting ``Copyright Royalty Adjudication 
     Board''; and
       (iii) by striking ``Librarian of Congress'' the second 
     place it appears and inserting ``Board'';
       (B) in subsection (b)--
       (i) by amending the first sentence to read as follows: 
     ``After the first day of March of each year, the Copyright 
     Royalty Adjudication Board shall determine whether there 
     exists a controversy concerning the distribution of royalty 
     payments under section 1006(c).''; and
       (ii) by striking ``Librarian of Congress'' each place it 
     appears and inserting ``Board''; and
       (C) in subsection (c)--
       (i) by amending the first sentence to read as follows: ``If 
     the Copyright Royalty Adjudication Board finds the existence 
     of a controversy, the Board shall, pursuant to chapter 8 of 
     this title, conduct a proceeding to determine the 
     distribution of royalty payments.'';
       (ii) by striking ``Librarian of Congress'' each place it 
     appears and inserting ``Board''; and
       (iii) by striking ``Librarian under this section'' and 
     inserting ``Board under this section. The action of the Board 
     to distribute royalty fees may precede the declaration of a 
     controversy if all parties to the proceeding file a petition 
     with the Board requesting such distribution, except that such 
     amount may not exceed 50 percent of the amounts on hand at 
     the time of the request.''.
       (4) Adjudication of certain disputes.--Section 1010 of 
     title 17, United States Code, is amended--
       (A) by amending the section heading to read as follows:

     ``Sec. 1010. Adjudication of certain disputes'';

       (B) in subsection (a)--

       (i) in the subsection heading by striking ``Arbitration'' 
     and inserting ``Adjudication''; and
       (ii) by striking ``mutually agree to binding arbitration 
     for the purpose of determining'' and inserting ``petition the 
     Copyright Royalty Adjudication Board to determine'';

       (C) by striking subsection (b) and redesignating 
     subsections (c) and (d) as subsections (b) and (c), 
     respectively;
       (D) in subsection (b), as so redesignated, by striking 
     ``arbitration'' each place it appears and inserting 
     ``adjudication'';
       (E) by amending subsection (c), as so redesignated, to read 
     as follows:
       ``(c) Adjudication Proceeding.--The Copyright Royalty 
     Adjudication Board shall conduct an adjudication proceeding 
     with respect to the matter concerned, pursuant to chapter 8 
     of this title. The parties to the proceeding shall bear the 
     entire costs thereof in such manner and proportion as the 
     Board shall direct.''; and
       (F) by striking subsections (e), (f), and (g).

     SEC. 10. TECHNICAL AMENDMENTS.

       (a) Clerical Amendment to Chapter 10 of Title 17, United 
     States Code.--The item relating to section 1010 in the table 
     of contents for chapter 10 of title 17, United States Code, 
     is amended to read as follows:

``1010. Adjudication of certain disputes.''.

       (b) Clerical Amendment to Chapter 9 of Title 17, United 
     States Code.--The item relating to section 903 in the table 
     of contents for chapter 9 of title 17, United States Code, is 
     amended to read as follows:

``903. Ownership, transfer, licensing, and recordation.''.

       (c) Clerical Amendment to Table of Chapters.--The item 
     relating to chapter 6 in the table of chapters for title 17, 
     United States Code, is amended to read as follows:

``6. Manufacturing Requirements and Importation..............601''.....

     SEC. 11. RETRANSMISSION CONSENT.

       Section 325(b) of the Communications Act of 1934 (47 U.S.C. 
     325(b)) is amended--
       (1) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(b)(1) No cable system or other multichannel video 
     programming distributor shall retransmit the signal of a 
     broadcasting station, or any part thereof, except--
       ``(A) with the express authority of the station;
       ``(B) pursuant to section 614, in the case of a station 
     electing, in accordance with this subsection, to assert the 
     right to carriage under such section; or
       ``(C) pursuant to section 337, in the case of a station 
     electing, in accordance with this subsection, to assert the 
     right to carriage under such section.
       ``(2) The provisions of this subsection shall not apply 
     to--
       ``(A) retransmission of the signal of a noncommercial 
     broadcasting station;
       ``(B) retransmission of the signal of a superstation by a 
     satellite carrier to subscribers for private home viewing if 
     the originating station was a superstation on January 1, 
     1998;
       ``(C) retransmission of the signal of a broadcasting 
     station that is owned or operated by, or affiliated with, a 
     broadcasting network directly to a home satellite antenna, if 
     the household receiving the signal is located in an area in 
     which such station

[[Page S1457]]

     may not assert its rights not to have its signal duplicated 
     under the Commission's network nonduplication regulations; or
       ``(D) retransmission by a cable operator or other 
     multichannel video programming distributor of the signal of a 
     superstation if such signal was obtained from a satellite 
     carrier and the originating station was a superstation on 
     January 1, 1998.'';
       (2) by adding at the end of paragraph (3) the following new 
     subparagraph:
       ``(C) Within 45 days after the effective date of the 
     Copyright Compulsory License Improvement Act, the Commission 
     shall commence a rulemaking proceeding to revise the 
     regulations governing the exercise by television broadcast 
     stations of the right to grant retransmission consent under 
     this subsection, and such other regulations as are necessary 
     to administer the limitation contained in paragraph (2). Such 
     regulations shall establish election time periods that 
     correspond with those regulations adopted under subparagraph 
     (B). The rulemaking shall be completed within 180 days after 
     the effective date of the Copyright Compulsory License 
     Improvement Act.''; and
       (3) by adding at the end the following new paragraph:
       ``(7) For purposes of this subsection:
       ``(A) The term `superstation' means a television broadcast 
     station, other than a network station, licensed by the 
     Commission that is secondarily transmitted by a satellite 
     carrier.
       ``(B) The term `satellite carrier' has the meaning given 
     that term in section 119(d) of title 17, United States 
     Code.''.

     SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING 
                   TELEVISION BROADCAST SIGNALS.

       Title III of the Communications Act of 1934 is amended by 
     inserting after section 336 the following new section:

     ``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE 
                   CARRIERS.

       ``(a) Carriage Obligations.--Each satellite carrier 
     providing direct to home service of a network station to 
     subscribers located within the local market of such station 
     shall offer to carry all television broadcast stations 
     located within that local market, subject to section 325(b). 
     Carriage of additional television broadcast stations within 
     the local market shall be at the discretion of the satellite 
     carrier, subject to section 325(b).
       ``(b) Duplication Not Required.--Notwithstanding subsection 
     (a), a satellite carrier shall not be required to offer to 
     carry the signal of any local television broadcast station 
     that substantially duplicates the signal of another local 
     television broadcast station which is secondarily transmitted 
     by the satellite carrier, or to offer to carry the signals of 
     more that one local television broadcast station affiliated 
     with a particular broadcast network (as the term is defined 
     by regulation).
       ``(c) Channel Positioning.--Each signal carried in 
     fulfillment of the carriage obligations of a satellite 
     carrier under this section shall be carried on the satellite 
     carrier channel number on which the local television 
     broadcast station is broadcast over the air, or on the 
     channel on which it was broadcast on January 1, 1985, or on 
     the channel it was broadcast on January 1, 1998, at the 
     election of the station, or on such other channel number as 
     is mutually agreed upon by the station and the satellite 
     carrier. Any dispute regarding the positioning of local 
     television broadcast stations shall be resolved by the 
     Commission.
       ``(d) 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 
     principal headend of the satellite carrier.
       ``(e) Remedies.--
       ``(1) Complaints by broadcast stations.--Whenever a local 
     television broadcast station believes that a satellite 
     carrier has failed to meet its obligations under this 
     section, such station shall notify the carrier, in writing, 
     of the alleged failure and identify its reasons for believing 
     that the satellite carrier is obligated to offer to carry the 
     signal of such station or has otherwise failed to comply with 
     the channel positioning or repositioning or other 
     requirements of this section. The satellite carrier shall, 
     within 30 days of such written notification, respond in 
     writing to such notification and either commence to carry the 
     signal of such station in accordance with the terms requested 
     or state its reasons for believing that it is not obligated 
     to carry such signal or is in compliance with the channel 
     positioning and repositioning or other requirements of this 
     section. A local television broadcast station that is denied 
     carriage or channel positioning or repositioning in 
     accordance with this section by a satellite carrier may 
     obtain review of such denial by filing a complaint with the 
     Commission. Such complaint shall allege the manner in which 
     such satellite carrier has failed to meet its obligations and 
     the basis for such allegations.
       ``(2) Opportunity to respond.--The Commission shall afford 
     such satellite carrier and opportunity to present data and 
     arguments to establish that there has been no failure to meet 
     its obligations under this section.
       ``(3) Remedial actions; dismissal.--Within 120 days after 
     the date a complaint is filed, the Commission shall determine 
     whether the satellite carrier has met its obligations under 
     this section. If the Commission determines that the satellite 
     carrier has failed to meet such obligations, the Commission 
     shall order the satellite carrier to reposition the 
     complaining station or, in the case of an obligation to carry 
     a station, to commence carriage of the station and to 
     continue such carriage for at least 12 months. If the 
     Commission determines that the satellite carrier has fully 
     met the requirements of this section, it shall dismiss the 
     complaint.
       ``(f) Regulations by Commission.--Within 180 days after the 
     effective of this section, the Commission shall, following a 
     rulemaking proceeding, issue regulations implementing the 
     requirements imposed by this section.
       ``(g) Definitions.--As used in this section:
       ``(1) Television broadcast station.--The term `television 
     broadcast station' means a full-power television broadcast 
     station, and does not include a low-power or translator 
     television broadcast station.
       ``(2) Local market.--The term `local market' means the 
     designated market area in which a station is located and--
       ``(A) for a commercial television broadcast station located 
     in any of the 150 largest designated market areas, all 
     commercial television broadcast stations licensed to a 
     community within the same designated market area are within 
     the same local market;
       ``(B) for a commercial television broadcast station that is 
     located in a designated market area that is not one of the 
     150 largest, the local market includes, in addition to all 
     commercial television broadcast stations licensed to a 
     community within the same designated market area, any station 
     that is significantly viewed, as such term is defined in 
     section 76.54 of the Commission's regulations (47 C.F.R. 
     76.54); and
       ``(C) for a noncommercial educational television broadcast 
     station, the local market includes any station that is 
     licensed to a community within the same designated market 
     area as the noncommercial educational television broadcast 
     station.
       ``(3) Designated market area.--The term `designated market 
     area' means a designated market area, as determined by the 
     Nielsen Media Research and published in the DMA Market and 
     Demographic Report.''.

     SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND 
                   SPORTS BLACKOUT.

       (a) Regulations.--
       (1) In general.--Within 45 days after the effective date of 
     this Act, the Federal Communications Commission shall 
     commence a rulemaking to establish regulations that apply 
     network nonduplication protection, syndicated exclusivity 
     protection, and sports blackout protection to the 
     retransmission of broadcast signals by satellite carriers to 
     subscribers for private home viewing. To the extent possible, 
     such regulations shall, subject to paragraph (2), include the 
     same level of protection accorded retransmissions of 
     television broadcast signals by cable systems for network 
     nonduplication (47 C.F.R. 76.92), syndicated exclusivity (47 
     C.F.R. 151), and sports blackout (47 C.F.R. 76.67).
       (2) Network nonduplication.--The network nonduplication 
     regulations required under paragraph (1) shall allow a 
     television broadcast station in any local market to assert 
     nonduplication rights--
       (A) against a satellite carrier throughout such local 
     market if that satellite carrier retransmits to subscribers 
     for private home viewing in such local market the signal of 
     another television broadcast station located within such 
     local market; or
       (B) against all satellite carriers within the zone in which 
     the television broadcast station may be received over-the-
     air, using conventional consumer television receiving 
     equipment, as determined under regulations prescribed by the 
     Federal Communications Commission, but such zone shall not 
     extend beyond such local market of such station.
       (3) Local market defined.--The term ``local market'' has 
     the meaning provided in section 337(g) of the Communications 
     Act of 1934, as added by section 12 of this Act.
       (b) Deferred Applicability of Amendments to Section 119 of 
     Title 17, United States Code.--Notwithstanding the amendments 
     to section 119 of title 17, United States Code, made by this 
     Act, until the regulations regarding network nonduplication 
     protection are established under subsection (a), the 
     statutory license under subsection (a) of such section 119 
     for secondary transmissions of primary transmissions of 
     programming contained in a primary transmission made by a 
     network station (as defined in section 119(d) of title 17, 
     United States Code, as in effect on the day before the 
     effective date of this Act) shall be limited to secondary 
     transmissions to persons who reside in unserved households 
     (as defined in section 119(d) of title 17, United States 
     Code, as in effect on the day before the effective date of 
     this Act).

     SEC. 14. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on January 1, 1999.
                                                                    ____


    Section by Section Analysis of the Copyright Compulsory License 
                            Improvement Act


                               section 1

       The title of the bill is the ``Copyright Compulsory License 
     Improvement Act.''


                               section 2

       Section 2 of the bill amends the section 119 satellite 
     carrier compulsory license of the

[[Page S1458]]

     Copyright Act to create a statutory licensing scheme that 
     permits satellite carriers to provide their subscribers with 
     local and distant television broadcast signals, as well as 
     the national satellite feed of the Public Broadcasting 
     Service. Satellite carriers may retransmit any television 
     broadcast signals to subscribers for private home viewing, 
     provided that such retransmissions are in compliance with the 
     rules and regulations of the Federal Communications 
     Commission. Such compliance would include syndicated 
     exclusivity, sports blackout and network nonduplication 
     protection for broadcasters, as required by section 13 of the 
     bill.
       Section 2 requires satellite carriers to provide initial 
     and updated lists to local television stations identifying 
     subscribers in the local television station's area who 
     receive satellite service and the names of the network 
     stations provided to those subscribers. This will allow 
     television stations to preserve their network nonduplication 
     rights provided in section 13 of the bill.
       Section 2 prohibits satellite carriers from willfully 
     altering the programming contained on television broadcast 
     signals and the PBS national satellite feed that the carriers 
     retransmit. In addition, satellite carriers are prohibited 
     from unlawfully discriminating against a distributor of 
     satellite retransmitted broadcast programming, and any such 
     unlawful discrimination constitutes an act of copyright 
     infringement subject to the penalties of chapter 5 of the 
     Copyright Act. It is also copyright infringement for a 
     satellite carrier to fail to submit a statement of account 
     and royalty fee necessary to obtain the satellite compulsory 
     license.


                               section 3

       Section 3 of the bill creates the terms and conditions of 
     the satellite compulsory license. Carriers must submit a 
     statement of account and royalty fee to the Copyright Office 
     on a semiannual basis for subsequent distribution to 
     copyright owners. The royalty fee for retransmission of 
     distant television broadcast stations, and the PBS national 
     feed, is the royalty fee in effect on date of enactment of 
     the bill for retransmission of distant television broadcast 
     signals. There is no royalty fee for television broadcast 
     signals that are retransmitted to subscribers who reside 
     within the local markets of such signals.
       The remainder of section 3 continues the provisions of the 
     existing law by prescribing how the royalty fees are 
     collected and maintained for distribution, and how copyright 
     owners of works contained on retransmitted television 
     broadcast signals and the PBS national feed may claim 
     royalties.


                               section 4

       Section 4 of the bill contains definitions of terms used in 
     the section 119 compulsory license. Most of the definitions 
     in the existing law are carried forward. New provisions 
     include a definition of ``designated market area'' and 
     ``local market'' for determining royalty-free local 
     retransmissions of broadcast signals, and a definition of the 
     new PBS national feed.


                               section 5

       Section 5 of the bill carries forward the provision of 
     existing law maintaining exclusivity of the satellite license 
     with the cable compulsory license of the Copyright Act, found 
     at 16 U.S.C. 111. That is, a satellite carrier making 
     secondary transmissions of television broadcast signals, and 
     the PBS national feed, for private home viewing may only do 
     so under the terms of the section 119 license, and may not 
     invoke the terms of the section 111 cable license.


                               section 6

       Section 6 of the bill contains a conforming amendment 
     amending the table of contents of chapter 1 of the Copyright 
     Act.


                               section 7

       Section 7 of the bill completely revises chapter 8 of the 
     Copyright Act, replacing the current Copyright Arbitration 
     Royalty Panels with a Copyright Royalty Adjudication Board.
       New section 801 of the Copyright Act establishes the 
     Copyright Royalty Adjudication Board within the U.S. 
     Copyright Office.
       New section 802 of the Copyright Act establishes the 
     membership and qualifications of the Board. New section 
     802(a) establishes that the Board should be comprised of one 
     full-time Chief Administrative Copyright Judge and at least 
     two part-time Administrative Copyright Judges. It is left up 
     to the discretion of the Librarian of Congress, upon the 
     recommendation of the Register of Copyrights, to determine 
     how many other part-time Administrative Copyright Judges the 
     Board shall have. The determination should be based on how 
     many judges the Board will need to conduct its business in a 
     timely manner.
       New section 802(b) requires that the Chief Administrative 
     Copyright Judge be an attorney with ten or more years of 
     legal practice and have experience either in administrative 
     hearings or court trials, and a demonstrated knowledge of 
     copyright law. Other Administrative Copyright Judges must 
     possess expertise in the business and economics of industries 
     affected by the actions the Board takes.
       New section 802(c) provides that the term of the Board 
     members shall be five years on a staggered basis so that no 
     more than one term is due to expire in any one year. To 
     achieve this, the Librarian of Congress, upon the 
     recommendation of the Register of Copyrights, shall appoint 
     some of the initial Board members to shorter than five year 
     terms.
       New section 802(d) provides compensation for the members of 
     the Board at the Senior Level in accordance with the 
     provisions of 5 U.S.C. Sec. 5376.
       New Section 803 of the Copyright Act provides for selection 
     of the members of the Board. New section 803(a) provides that 
     the Librarian of Congress, upon the recommendation of the 
     Register of Copyrights, selects the members of the Board. The 
     Librarian may only select those persons found qualified under 
     section 802(b) and found to meet the financial conflict of 
     interest standards adopted under section 805(a). The 
     Librarian may reselect, without limit, members of the Board 
     to additional terms. Section 803(b) provides that actions 
     taken by the Board during those times will be valid, 
     notwithstanding any temporary vacancy.
       New section 804 of the Copyright Act provides for the 
     independence of the Board. New section 804(a) provides that 
     the Board shall have decisional independence on the 
     substantive matters before it. Board members are neither to 
     receive performance appraisals nor are they to be assigned 
     duties inconsistent with their duties and responsibilities as 
     members of the Board.
       New section 805 of the Copyright Act provides for removal 
     and sanction of the members of the Board. New section 805(a) 
     provides that the Register of Copyrights shall adopt 
     regulations regarding the standards of conduct that members 
     of the Board are expected to maintain. The Register is 
     specifically instructed to adopt regulations concerning 
     financial conflict of interest and ex parte communications.
       New section 805(b) provides that the Librarian, upon the 
     recommendation of the Register of Copyrights, may remove or 
     sanction a member of the Board, upon notice and opportunity 
     for hearing, for violation of any of the standards of conduct 
     adopted under section 804(a). In addition, the Librarian may 
     also remove or sanction for misconduct, neglect of duty, or 
     any disqualifying physical or mental disability.
       New section 806 of the Copyright Act provides for the 
     functions of the Board. New section 806(a) enumerates the 
     rate setting, royalty distribution, and rulemaking functions 
     that are delegated to the Board. The Board determines the 
     rates for: cable retransmission of broadcast signals, the 
     making and distributing of phonorecords by means other than 
     digital phonorecord delivery, satellite carrier 
     retransmission of broadcast signals, and the importing and 
     distributing or manufacturing and distributing of digital 
     audio recording devices.
       The Board determines the rate and terms for: the public 
     performance of a sound recording by means of a digital audio 
     transmission; the making and distributing of phonorecords by 
     means of a digital phonorecord delivery; the public 
     performance of music on jukeboxes; the use of music and 
     visual works by public broadcasting entities; and the 
     transmission to the public by a satellite carrier of a 
     primary transmission of a public telecommunications signal.
       The Board accepts or rejects claims filed by copyright 
     owners to royalties deposited with the Copyright Office in 
     the cable fund, the satellite carrier fund, and the digital 
     audio recording fund. Then, for those claims that the Board 
     accepts, the Board determines how much each claimant should 
     receive from those funds.
       The Board has jurisdiction to decide, when petitioned, if a 
     particular digital audio recording device or digital audio 
     recording interface device is subject to the provisions of 
     chapter 10 for paying a royalty on the distribution of such 
     devices.
       The Board also has certain rulemaking authority, some of 
     which is upon the approval of the Register of Copyrights, 
     concerning the filing of claims, the notice and recordkeeping 
     requirements pertaining to some of the compulsory licenses, 
     and the Board's own procedures.
       New section 806(b) provides that the creation of the 
     Copyright Royalty Adjudication Board does not diminish the 
     authority of the Register of Copyrights to establish 
     regulations interpreting the provisions and terms of the 
     Copyright Act.
       New section 807 of the Copyright Act sets out the factors 
     for determining the royalty fees for the section 114, 115, 
     116, 118 and 119 compulsory licenses of the Copyright Act. 
     The section also lists the factors that the Board shall take 
     into account when determining or adjusting royalty rates.
       New section 808 of the Copyright Act provides for the 
     institution of royalty distribution and rate adjustment 
     proceedings under the compulsory licenses. New section 808 
     instructs the Board when proceedings shall occur, and whether 
     the proceedings require a petition to initiate them or 
     whether they commence automatically.
       New section 809 of the Copyright Act describes the conduct 
     of royalty distribution and rate adjustment proceedings. New 
     section 809(a) provides that the Board shall conduct its 
     proceedings in accordance with the Administrative Procedure 
     Act. New section 809(b) provides that the Board shall adopt 
     its own rules of procedures upon the approval of the Register 
     of Copyrights. New section 809(c) authorizes the Copyright 
     Office, in its discretion, to file formal pleadings with the 
     Board on any matter pending before the Board. All Copyright 
     Office pleadings shall be formally filed and served on all 
     the parties to the proceeding. The Board may accept or reject 
     the advice of the Copyright Office.

[[Page S1459]]

       New section 809(d) provides that all actions of the Board 
     are by majority rule. New section 809(e) allows the Board the 
     discretion to determine whether, in a particular proceeding, 
     one or three members should preside. New section 809(f) 
     permits all parties whose claims are accepted or who have an 
     interest in the royalty rate to be set to participate in the 
     proceeding and submit relevant proposals and evidence.
       New section 809(g) provides that, except as provided in 
     sections 118 and 119(c), the time limit for the issuance of 
     initial decisions in proceedings with one presiding member 
     shall be six months from the declaration of the controversy, 
     and the time limit for initial decisions in proceedings with 
     three presiding members shall be one year from the 
     declaration on the controversy.
       New section 809(h) provides that the initial decision shall 
     contain the same level of reasoned decision-making that is 
     required under the Administrative Procedure Act, and take 
     into account the precedent of the decisions of the Copyright 
     Royalty Tribunal, the copyright arbitration royalty/panels 
     and the decisions of the Librarian of Congress made in 
     respect to the copyright arbitration royalty panels.
       New section 809(i) provides the parties to the proceeding 
     and the Register of Copyrights an opportunity to petition the 
     entire Board to reconsider any initial decision issued by its 
     presiding member or members. If there are no petitions for 
     reconsideration, the initial decision becomes the final 
     decision automatically. If there are petitions for 
     reconsideration, the entire Board considers the petition, and 
     issues a final decision. The final decision of the entire 
     Board constitutes final agency action. Section 809(i) 
     provides that the time limits for filing petitions for 
     reconsideration, and for the entire Board to issue the final 
     decision shall be determined by regulation.
       New section 810 of the Copyright Act provides for judicial 
     review of Board determinations. New section 810(a) provides 
     that when the initial decision becomes the final decision, 
     the Board shall have one week to publish the final decision 
     in the Federal Register. Parties aggrieved by the decision of 
     the Board shall have 30 days from the appearance of the final 
     decision in the Federal Register to appeal the decision to 
     the United States Circuit Court of Appeals for the Federal 
     Circuit. In that case, the Board shall be the defending 
     party, and the Chairperson of the Board shall refer the 
     conduct of the Board's defense to the Department of Justice. 
     Notwithstanding the pendency of any appeal, persons who 
     would pay the royalty rates adjusted by the Board's 
     decision are still obligated to pay the adjusted rate and, 
     if applicable, to file a statement of account with the 
     Copyright Office.
       New section 810(b) provides that judicial review of the 
     Board's final decision is in accordance with the 
     Administrative Procedure Act.
       New section 811 delineates various administrative matters 
     related to administration of the compulsory licenses. New 
     section 811(a) instructs the Librarian of Congress, upon the 
     recommendation of the Register of Congress, to provide the 
     Board with the necessary administrative services and 
     personnel support it needs. Personnel support may include the 
     services of experts such as a statistician or an economist, 
     when a particular proceeding requires such expertise.
       New section 811(b) delegates to the Board the authority to 
     publish in the Federal Register notices of the Board's 
     actions in its proceedings, and such regulations as the Board 
     has been delegated the exclusive right to adopt. New section 
     811(c) authorizes the Librarian of Congress to assess fees 
     for the reasonable costs incurred in a rate making proceeding 
     from those parties interested in participating in the 
     proceeding. The section further authorizes the Register of 
     Copyrights to deduct from the ratemaking fees and from the 
     royalty fees deposited with the Copyright Office the 
     reasonable costs incurred by the Copyright Office and the 
     Board.
       New section 811(d) provides that notwithstanding any 
     ceiling imposed on the full-time equivalent positions in the 
     Library of Congress, the members of the Board or employees in 
     support of the Board do not count in the calculation of that 
     ceiling.
       New section 811(e) provides that when the Register of 
     Copyright submits to Congress the budget of the Copyright 
     Office, the Register shall identify the portion intended for 
     the Board with a statement assessing the Board's budgetary 
     needs.
       Section 811(f) provides that the Board shall prepare its 
     own annual report and it shall be included in the Copyright 
     Office's annual report.
       Section 812 provides a rule of construction continuing the 
     general power of the Register of Copyrights to establish 
     regulations governing the Copyright Act, and makes technical 
     and conforming amendments, including providing for appeals 
     from decisions of the Board to the Court of Appeals for the 
     Federal Circuit.


                               section 8

       Section 8 of the bill provides transitional rules for the 
     establishment of the Board. For example, prior to the 
     constituting of the Board, the Register of Copyrights shall 
     adopt the Board's rules of procedure, but that when the Board 
     is constituted, it may adopt supplemental or superseding 
     regulations, upon the approval of the Register of Copyrights.
       The section also provides that copyright arbitration 
     royalty panels that have already been convened at the time of 
     the passage of this act may continue and complete their 
     proceeding, unless the Register of Copyrights, finds for good 
     cause, that the proceeding should be discontinued. For those 
     proceedings that continue, the report of the copyright 
     arbitration royalty panels shall be submitted to the 
     Librarian of Congress, or the Librarian may, in his 
     discretion, direct the panel to submit the report to the 
     Board. If there are any appeals pending of a decision of a 
     copyright arbitration royalty panel that are eventually 
     remanded by the Court, the remanded case shall go to the 
     Board, not to a reconvened copyright arbitration royalty 
     panel.


                               section 9

       Section 9 of the bill contains conforming amendments to 
     substitute the Copyright Royalty Adjudication Board for the 
     copyright arbitration royalty panels and the Librarian of 
     Congress wherever appropriate.


                               section 10

       Section 10 makes technical and conforming amendments.


                               section 11

       Section 11 amends the section 325 of the Communications Act 
     to provide that satellite carriers must in certain 
     circumstances obtain retransmission permission from a 
     broadcaster before they can retransmit the signal of a 
     network broadcast station. Like the regime applicable to the 
     cable industry, network broadcasters are afforded the option 
     of either granting retransmission consent, or they may elect 
     must-carry status as provided in section 12 of the bill. All 
     satellite carriers that provide local service of television 
     network stations must obtain either retransmission consent of 
     the local broadcasters, or carry their signals subject to the 
     must-carry provisions.
       Section 11 does exempt carriage of certain broadcast 
     stations from the retransmission consent requirement. 
     Retransmission consent does not apply to noncommercial 
     broadcasting stations, and superstations that existed as 
     superstations on January 1, 1998. Also exempt from the 
     retransmission consent requirement is retransmission of a 
     network station to a household that is not subject to the 
     network nonduplication protection provided in section 13 of 
     the bill. The purpose of this provision is to allow 
     subscribers who reside in the designated market area of a 
     network affiliate, but do not live in an area where the 
     relevant local stations can request network nonduplication 
     (assuring that a subscriber does not or cannot otherwise 
     receive the signal of the local affiliate) to obtain a 
     distant signal of the same network from their satellite 
     carrier.
       Section 11 also directs the Federal Communications 
     Commission to, within 45 days of enactment of the bill, 
     commence a rulemaking proceeding to adopt regulations 
     governing the exercise of retransmission rights for satellite 
     retransmissions for private home viewing.


                               section 12

       Section 12 of the bill creates must-carry obligations for 
     satellite carriers retransmitting television broadcast 
     signals. The provisions are similar to those applicable to 
     the cable industry. Any satellite carrier that retransmits a 
     network television broadcast signal to subscribers residing 
     within the local market of that signal, must offer to carry 
     all the television stations in the local market to 
     subscribers residing in the local market. This approach of 
     ``carry one, then carry all'' is subject to the 
     retransmission consent election of section 11 of the bill. 
     Thus, a satellite carrier does not have to carry a local 
     television broadcast station if the station elects 
     retransmission consent rather than must-carry. The ``local 
     market'' of a broadcast station is defined as the station's 
     Designated Market Area, as determined by Nielsen Media 
     Research.
       Section 12 tracks the cable must-carry provisions of the 
     1992 Cable Act by relieving satellite carriers from the 
     burden of having to carry more than one affiliate of the same 
     network if both of the affiliates are located in the same 
     local market. Local broadcasters are also afforded channel 
     positioning rights, and are required to provide a good 
     quality signal to the satellite carrier's principal headend 
     in order to assert must-carry rights. Satellite carriers are 
     forbidden from obtaining compensation from local broadcasters 
     in exchange for carriage. Section 12 also provides a means 
     for broadcasters to seek redress from the Federal 
     Communications Commission for violations of the must-carry 
     obligations.


                               section 13

       Section 13 of the bill directs the Federal Communications 
     Commission, within 45 days of enactment of the bill, to 
     commence rulemaking proceedings to impose network 
     nonduplication protection, syndicated exclusivity and sports 
     blackout protection on satellite retransmissions of 
     television broadcast signals for private home viewing. The 
     regulations to be adopted are to be similar to those 
     currently in force for retransmissions of television 
     broadcast signals by cable systems, to the extent possible, 
     recognizing that there are technological and other 
     differences between cable and satellite.
       In adopting network nonduplication protection rules, the 
     Commission is directed to adopt rules that permit satellite 
     carriers to provide distant network signals to subscribers 
     who reside within the designated market area of a network 
     station affiliated with the same network but cannot receive 
     an over-the-air signal of the local affiliate, and further do 
     not receive the local signal from a cable or satellite 
     service. The purpose of this provision is to prevent local 
     affiliates from asserting network nonduplication protection

[[Page S1460]]

     against subscribers who legitimately cannot or do not receive 
     the local network affiliate signal, but allow stations to 
     protect their network exclusivity if they do. Thus, if the 
     satellite carrier serving a subscriber provides him or her 
     with the local affiliate for that designated market area, the 
     satellite carrier may not also provide such subscriber with 
     distant network signals affiliated with the same network. 
     Additionally, if a subscriber can receive the local 
     affiliate's signal over the air, the satellite carrier cannot 
     provide distant network signals affiliated with the same 
     network. This replaces the current ``white area'' system, 
     based on the Grade-B contour of a station enforceable in 
     court, with rules prescribed and overseen by the FCC, once 
     the FCC establishes rules.


                               section 14

       This section provides that the bill shall become effective 
     on January 1, 1999.

  Mr. LEAHY. Mr. President, today I am introducing a bill with Chairman 
Hatch concerning satellite television that I hope will prove to be good 
news for consumers throughout the nation and in Vermont.
  I greatly appreciate this opportunity to work with Chairman Hatch and 
Senator Kohl.
  We intend for this bill to lead to head-to-head competition between 
cable and satellite TV providers. This should open more choices and 
services to Vermonters, at lower prices. The bill also will allow 
householders who want to subscribe to this new satellite TV service to 
receive all local Vermont TV stations by satellite. The goal is to 
offer Vermonters more choices, more TV selections--and especially of 
local programming--but at lower rates.
  In areas of the country where there is this full competition with 
cable providers, rates to customers are considerably lower. I helped 
foster the home satellite industry with passage of the Satellite Home 
Viewer Act in 1988 and the extension of that act in 1994. Now it is 
time for the home satellite industry to offer a competitive alternative 
to cable. It is my hope that we can foster that competition and do so 
in a way that preserves the local perspective and service provided by 
the local network affiliate system.
  This bill is intended to permit satellite TV providers to offer the 
networks through their local TV channels to viewers throughout Vermont 
and a full complement of superstations and movies. This means that 
local Vermont TV stations will be available over satellite to many 
areas of Vermont currently unserved by satellite or by cable.
  I have received scores of letters from Vermonters who have complained 
about the current situation. Under current law, it is illegal for 
satellite TV providers to offer local TV channels over a satellite dish 
when you live in a area where you are likely to get a clear TV signal 
with a regular rooftop antenna.
  This means that thousands of Vermonters living in or near Burlington 
cannot receive local signals over their satellite dishes. I understand 
their frustration. At our farm in Middlesex, we receive signals from 
one and a half stations.
  This bill is intended to adjust the statutory copyright licenses in 
order to allow satellite carriers to offer local TV signals to viewers 
no matter where they live in Vermont. To take advantage of this 
opportunity, satellite carriers will in general have to follow the 
rules that cable providers have to follow. This will mean that they 
must carry all full-power local Vermont TV stations in their TV 
offering.
  Today, Vermonters receive satellite signals with programming from 
stations in other states. In other words, they would get a CBS station 
from another state but not WCAX, the Burlington CBS affiliate. I hope 
that our bill will correct this upside-down situation and make network 
programming available to all, while preserving local programming and 
respecting the affiliate system.
  By allowing satellite providers to offer a larger variety of 
programming, including local stations, the satellite industry would be 
able to compete with cable, and the cable industry will be competing 
with satellite carriers. Cable will continue to be a highly effective 
competitor with its ability to offer extremely high-speed Internet 
connections to homes and businesses.
  A major reason I voted against the Telecommunications Act of 1996--
and I was only one of five who voted against that bill--was my fear 
that cable, satellite and telephone rates would go up significantly in 
rural states. I wish I had been wrong, but the rates, in fact, have 
been climbing since then. When fully implemented this bill should 
reverse that trend as has been the case in cities where there were 
competitors to cable.
  The second major improvement in this bill is that satellite carriers 
that offer local Vermont channels in their mix of programming will be 
able to reach Vermonters throughout our state. The system will be based 
on regions called Designated Market Areas, or DMAs, established through 
marketing surveys done by the Nielsen Corporation ratings organization.
  Vermont has one large DMA covering most of the state and part of the 
Adirondacks in New York--the Burlington-Plattsburg DMA--and parts of 
two smaller ones in Bennington County (the Albany-Schenectady-Troy DMA) 
and in Windham County (the Boston DMA).
  Over time those two counties could be included in the Burlington-
Plattsburg DMA depending on marketing, advertising and other 
demographic factors that Nielsen Corporation examines.
  This new satellite system is not yet available. Companies are 
preparing to launch spot-beam satellites to take advantage of this 
bill. I encourage them to do so. Using current technology, signals 
would be provided by spot-beam satellites using some 150 regional 
uplink sites throughout that nation to beam local signals up to two 
satellites. Those satellites would use 60 spot beams to send those 
local signals, received from the regional uplinks, back to satellite 
dish owners. High-definition TV would be offered under this system at a 
later date.
  Under this bill, and using this spot-beam technology, home owners 
with satellite dishes in downtown Burlington, and in almost every 
county in Vermont, would receive all the full-power TV stations in the 
Burlington-Plattsburg DMA, including Vermont public television. 
Therefore, subscribers to the new satellite technology would be able to 
receive WPTZ, WCAX, WNNE, Vermont public television, and other full-
power broadcast stations, throughout most of Vermont. Bennington 
residents would receive the stations in the Schenectady-Albany-Troy 
DMA. Windham County residents would receive full power stations in the 
Boston DMA.

  As I mentioned earlier, Bennington and Windham Counties could be 
included in the Burlington-Plattsburg DMA at a later date as the 
demographics of the region evolve, or as technology changes.
  Under this bill, Vermonters will have more choices. Those who want 
this new satellite service will be allowed to sign up in the next 
couple of years or keep their present satellite service.
  Those who want to stick with cable, or with regular broadcast TV, are 
able to continue their viewing in those ways. Since technology advances 
so quickly, other systems could be developed before this bill is fully 
implemented that would provide other service but using different 
technologies.
  I share the frustration of so many that laws and regulations in this 
case have tended to frustrate consumer choices and stifle technology. 
That is not the way it should be. It is time to update our satellite 
viewing laws to encourage full and vigorous competition with the cable 
industry and expand viewer options.
  Mr. KOHL. Thank you, Mr. President. Along with my colleagues, 
Senators Hatch and Leahy, I rise in support of the Copyright Compulsory 
License Improvement Act of 1997. This proposal, although clearly not a 
final product, is an important step forward in creating true 
competition between satellite and cable television. And that is an 
important step forward for consumers.
  Mr. President, this bill generally takes the right approach. It gives 
satellite carriers the ability to provide the one thing that consumers 
want most: local television broadcast signals. In return, the satellite 
carriers must comply with FCC regulations governing syndicated 
exclusivity, sports blackout protection, and network nonduplication. 
The measure also creates a retransmission consent process, and 
establishes certain ``must carry'' obligations on satellite carriers 
that rebroadcast local signals. As a

[[Page S1461]]

general premise, it seems only fair that the benefits of carrying local 
signals should be balanced with reasonable regulatory burdens that are 
consistent with cable's obligations. But we should also look at 
reducing at least some of the ``must carry'' burdens--for example, why 
should any provider be required to carry the Home Shopping Network, 
which is predominantly commercial?
  So what does all this mean for businesses and consumers? Hopefully, 
it will create more availability and affordability in television 
programs. And it will help to preserve local television stations, who 
provide all of us with vital information like news, weather, and 
special events--especially sports. We ought to get moving on this 
sooner, rather than later. It would be a mistake to wait until just 
before the license expires in 1999.
  This measure replaces the Copyright Arbitration Royalty Panels with a 
Copyright Royalty Adjudication Board. In addition to its clever new 
acronym (``CRAB''), the Board in the future will hopefully find a 
better way to create parity in the fees that cable and satellite 
providers pay in copyright royalties. This time around, however, it 
would be wise to lower legislatively the recently proposed 27 cent 
rate.
  In any event, we should view the Copyright Compulsory License 
Improvement Act as a point of departure rather than a final product. I 
am hopeful we can work with the Commerce Committee, which clearly has 
an important role to play in many of these matters. This measure is a 
significant step in promoting competition, and Senators Hatch and Leahy 
deserve enormous credit for creating a constructive approach, which can 
only benefit consumers nationwide. I urge my colleagues to join me in 
supporting it.

                          ____________________