[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Senate]
[Pages S10610-S10611]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SATELLITE COMPULSORY LICENSE REFORM PROCESS AND S. 1720 CHAIRMAN'S MARK

  The Chairman's mark substitute for S. 1720, not available for 
printing on September 17, 1998, is as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY 
                   TRANSMISSIONS BY SATELLITE CARRIERS WITHIN 
                   LOCAL MARKETS.

       (a) In General.--Chapter 1 of title 17, United States Code, 
     is amended by adding after section 121 the following new 
     section:

     ``Sec. 122. Limitations on exclusive rights; secondary 
       transmissions by satellite carriers within local markets

       ``(a) Secondary Transmissions of Television Broadcast 
     Stations by Satellite Carriers.--A secondary transmission of 
     a primary transmission of a television broadcast station into 
     the station's local market shall be subject to statutory 
     licensing under this section if--
       ``(1) the secondary transmission is made by a satellite 
     carrier to the public;
       ``(2) the secondary transmission is permissible under the 
     rules, regulations, or authorizations of the Federal 
     Communications Commission; and
       ``(3) the satellite carrier makes a direct or indirect 
     charge for the secondary transmission to--
       ``(A) each subscriber receiving the secondary transmission; 
     or
       ``(B) a distributor that has contracted with the satellite 
     carrier for direct or indirect delivery of the secondary 
     transmission to the public.
       ``(b) Reporting Requirements.--
       ``(1) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary transmission made by a 
     network station under subsection (a) shall, within 90 days 
     after commencing such secondary transmissions, submit to that 
     station a list identifying (by name and street address, 
     including county and zip code) all subscribers to which the 
     satellite carrier currently makes secondary transmissions of 
     that primary transmission.
       ``(2) Subsequent lists.--After the list is submitted under 
     paragraph (1), the satellite carrier shall, on the 15th of 
     each month, submit to the station a list identifying (by name 
     and street address, including county and zip code) any 
     subscribers who have been added or dropped as subscribers 
     since the last submission under this subsection.
       ``(3) Use of subscriber information.--Subscriber 
     information submitted by a satellite carrier under this 
     subsection may be used only for the purposes of monitoring 
     compliance by the satellite carrier with this section.
       ``(4) Requirements of stations.--The submission 
     requirements of this subsection shall apply to a satellite 
     carrier only if the station to whom the submissions are to be 
     made places on file with the Register of Copyrights a 
     document identifying the name and address of the person to 
     whom such submissions are to be made. The Register shall 
     maintain for public inspection a file of all such documents.
       ``(c) No Royalty Fee Required.--A satellite carrier whose 
     secondary transmissions are subject to statutory licensing 
     under subsection (a) shall have no royalty obligation for 
     such secondary transmissions.
       ``(d) Noncompliance With Reporting Requirements.--
     Notwithstanding subsection (a), the willful or repeated 
     secondary transmission to the public by a satellite carrier 
     of a television broadcast station and embodying a performance 
     or display of a work is actionable as an act of infringement 
     under section 501, and is fully subject to the remedies 
     provided under sections 502 through 506 and 509, if the 
     satellite carrier has not complied with the reporting 
     requirements of subsection (b).
       ``(e) Willful Alterations.--Notwithstanding subsection (a), 
     the secondary transmission to the public by a satellite 
     carrier into the local market of a television broadcast 
     station of a primary transmission made by that television 
     broadcast station and embodying a performance or display of a 
     work is actionable as an act of infringement under section 
     501, and is fully subject to the remedies provided by 
     sections 502 through 506 and sections 509 and 510, if the 
     content of the particular program in which the performance or 
     display is embodied, or any commercial advertising or station 
     announcement transmitted by the primary transmitter during, 
     or immediately before or after, the transmission of such 
     program, is in any way willfully altered by the satellite 
     carrier through changes, deletions, or additions, or is 
     combined with programming from any other broadcast signal.
       ``(f) Definitions.--In this section--
       ``(1) The term `distributor' means an entity which 
     contracts to distribute secondary transmissions from a 
     satellite carrier and, either as a single channel or in a 
     package with other programming, provides the secondary 
     transmission either directly to individual subscribers or 
     indirectly through other program distribution entities.
       ``(2) The term `local market' for a television broadcast 
     station has the meaning given that term in section 337(h)(2) 
     of the Communications Act of 1934.
       ``(3) The terms `satellite carrier' and `secondary 
     transmission' have the meaning given such terms under section 
     119(d).''.
       ``(4) The term `subscriber' means an entity that receives a 
     secondary transmission service by means of a secondary 
     transmission from a satellite and pays a fee for the service, 
     directly or indirectly, to the satellite carrier or to a 
     distributor.
       ``(5) The term `television broadcast station' means an 
     over-the-air, commercial or noncommercial television 
     broadcast station licensed by the Federal Communications 
     Commission under subpart E of part 73 of title 47, Code of 
     Federal Regulations.
       (b) Technical and Conforming Amendments.--The table of 
     sections for chapter 1 of title 17, United States Code, is 
     amended by adding after the item relating to section 121 the 
     following:

``122. Limitations on exclusive rights; secondary transmissions by 
              satellite carriers within local market.''.

     SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF 
                   TITLE 17, UNITED STATES CODE.

       Section 4(a) of the Satellite Home Viewer Act of 1994 (17 
     U.S.C. 119 note; Public Law 103-369; 108 Stat. 3481) is 
     amended by striking ``December 31, 1999'' and inserting 
     ``December 31, 2003''.

     SEC. 4. TRANSITION.

       Section 119(a)(5) of title 17, United States Code, is 
     amended by adding at the end the following:
       ``(E) Transition.--Notwithstanding subparagraphs (A) and 
     (B), a satellite carrier shall not be required to terminate 
     service of a network station to a subscriber until February 
     28, 1999.''.

     SEC. 5. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

       Section 119(c) of title 17, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4)(A) The rate of the royalty fee payable in each case 
     under subsection (b)(1)(B)(i) as adjusted by a royalty fee 
     established under paragraph (2) or (3) of this subsection 
     shall be reduced by 30 percent.
       ``(B) The rate of the royalty fee payable under subsection 
     (b)(1)(B)(ii) as adjusted by a royalty fee established under 
     paragraph (2) or (3) of this subsection shall be reduced by 
     45 percent.''.

     SEC. 6. DEFINITIONS.

       Section 119(d) of title 17, United States Code, is 
     amended--
       (1) by striking paragraph (10) and inserting the following:

[[Page S10611]]

       ``(10) Unserved household.--The term `unserved household', 
     with respect to a particular television network, means a 
     household that cannot receive, through the use of a 
     conventional outdoor rooftop receiving antenna, an over-the-
     air signal of grade B intensity (as defined by the Federal 
     Communications Commission) of a primary network station 
     affiliated with that network.''; and
       (2) by adding at the end the following:
       ``(12) Local network station.--The term `local network 
     station' means a network station that is secondarily 
     transmitted to subscribers who reside within the local market 
     in which the network station is located.''.

     SEC. 7. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

       (a) Secondary Transmissions.--Section 119(a)(1) of title 
     17, United States Code, is amended--
       (1) by striking the paragraph heading and inserting ``(1) 
     Superstations and pbs satellite feed.--''; and
       (2) by inserting ``or by the Public Broadcasting Service 
     satellite feed'' after ``superstation''.
       (b) Definition.--Section 119(d) of title 17, United States 
     Code, is amended by adding at the end the following:
       ``(12) Public broadcasting service satellite feed.--The 
     term `Public Broadcasting Service satellite feed' means the 
     national satellite feed distributed by the Public 
     Broadcasting Service consisting of educational and 
     informational programming intended for private home viewing, 
     to which the Public Broadcasting Service holds national 
     terrestrial broadcast rights.''.

     SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION 
                   REGULATIONS.

       Section 119(a) of title 17, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting ``is permissible under 
     the rules, regulations, and authorizations of the Federal 
     Communications Commission,'' after ``satellite carrier to the 
     public for private home viewing,''; and
       (2) in paragraph (2), by inserting ``is permissible under 
     the rules, regulations, and authorizations of the Federal 
     Communications Commission,'' after ``satellite carrier to the 
     public for private home viewing,''.

     SEC. 9. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on January 1, 1999, except section 4 shall take effect 
     on the date of enactment of this Act.

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