[Congressional Record Volume 145, Number 28 (Tuesday, February 23, 1999)]
[Extensions of Remarks]
[Pages E245-E246]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF H.R. 768, THE COPYRIGHT COMPULSORY LICENSE IMPROVEMENT 
                                  ACT

                                 ______
                                 

                           HON. HOWARD COBLE

                           of north carolina

                    in the house of representatives

                       Tuesday, February 23, 1999

  Mr. COBLE. Mr. Speaker, I am pleased to introduce the Copyright 
Compulsory License Improvement Act. This bill will improve the 
copyright compulsory license for satellite carriers of copyrighted 
programming contained on television broadcast signals by applying to 
such carriers the same opportunities and rules as their cable 
competitors. This competitive parity will lead to increased exposure of 
copyrighted programming to consumers who will pay lower prices for 
cable and satellite services which deliver programming to their homes. 
These lower prices will result from the choices consumers will have in 
choosing how they want their television programming delivered. Mr. 
Speaker, I know I speak for many of the Members in this House when I 
assert that creating competition in the video delivery market is the 
key to more choice and lower prices for our constituents.
  This is a very dynamic time for the multi-channel video marketplace, 
particularly for the satellite industry. These satellite compulsory 
license is set to expire at the end of this year at a time when the 
industry enjoys a record number of subscribers. In the meantime, a 
federal court decision threatens to disconnect hundreds of thousands of 
satellite customers from their distant network signals. Additionally, 
several other legislative restrictions still prevent the satellite 
industry from competing with the cable television industry on an even 
playing field.
  The Copyright Act of 1976 bestowed on cable television a permanent 
compulsory license which enables that industry to rebroadcast network 
and superstation signals to cable television viewers without requiring 
cable operators to receive the authorization of thousands of copyright 
owners who have an exclusive right to authorize the exploitation of 
their programs. The cable operators pay a set fee for the right to 
retransmit and the monies collected are paid to the copyright owners 
through a distribution proceeding conducted under the auspices of the 
United States Copyright Office.
  In 1988, Congress granted a compulsory license to the satellite 
industry. Although the cable and satellite compulsory licenses have 
similarities, there are important differences which I believe prevent 
satellite from becoming a true competitor to cable. Technology has 
changed significantly since the cable and satellite compulsory licenses 
were created. In a very short time, satellite carriers will be able to 
bring local programming through their services to viewers of that local 
market. The time has come to take a comprehensive look at the satellite 
compulsory license as it relates to the long-term viability and 
competitiveness of the satellite television industry. The satellite 
compulsory license is set to sunset in December of this year, and the 
Federal Communications Commission has reported time and again that in 
areas where there is no competition to cable, consumers are paying 
higher cable rates. We must act for our constituents to level the 
playing field in a manner that will allow both industries to flourish 
to the benefit of consumers.
  To that end, the Copyright Compulsory License Improvement Act makes 
the following changes to the Satellite Home Viewer Act:
  It reauthorizes the satellite compulsory license for five years.
  It allows new satellite customers who have received a network signal 
from a cable system within the past three months to sign up for 
satellite service for those signals. This is not allowed today.
  It provides a discount for the copyright fees paid by the satellite 
carriers.
  It allows satellite carriers to retransmit a local television station 
to households within that station's local market, just like cable does.
  It allows satellite carriers to rebroadcast a national signal of the 
Public Broadcasting Service.
  In order to create parity for the above new opportunities for 
satellite carriers by reforming the license, there must be additional 
legislation to create corresponding regulatory parity between the 
satellite and cable industries, including must-carry rules, 
retransmission consent requirements, network non-duplication 
protection, syndicated exclusitivity protection, and sports blackout 
protection. I am committed to working with Representative Billy Tauzin, 
Chairman of the Commerce Subcommittee on Telecommunications, Trade and 
Consumer Protection, and with Representative Tom Bliley, Chairman of 
the full Commerce Committee, on legislation complementary to the 
provisions contained in this bill. Their leadership and partnership has 
been and will continue to be invaluable and necessary in guaranteeing 
true competition between the satellite and cable industries.
  I also want to recognize the leadership and care that Senator Orrin 
Hatch, Chairman of the Senate Committee on the Judiciary, has paid to 
the development of this important bill. We have worked together closely 
on its provisions and I know he is committed, as I am, to assuring fair 
competition through this legislation. I look forward to continuing our 
work together as our bills move through both bodies of the Congress.
  Let me make clear that this bill is a compromise, carefully balanced 
to ensure competition. I believe it contains the balance necessary to 
allow this bill to become law this session and I urge all interested 
parties to join us in a constructive discussion of this very important 
legislation.

                           Section-by-Section


                            SECTION 1. TITLE

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


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

       Section 2 of the bill creates a new copyright compulsory 
     license, found at Section 122 of Title 17 of the United 
     States Code, for the retransmission of television broadcast 
     programming by satellite carriers to subscribers located 
     within the local markets of those stations. In order to be 
     eligible for this compulsory license, a satellite carrier 
     must be in full compliance with all applicable rules and 
     regulations of the FCC, including any must-carry obligations 
     imposed upon the satellite carrier by the Commission or by 
     law.
       Because the copyrighted programming contained on local 
     broadcast programming is already licensed with the 
     expectation that all viewers in the local market will be able 
     to view the programming, the new Section 122 license is a 
     royalty-free license. Satellite carriers must, however, 
     provide local broadcasters with lists of their subscribers 
     receiving local stations so that broadcasters may verify that 
     satellite carriers are making proper use of the license. The 
     subscriber information supplied to broadcasters is for 
     verification purposes only, and may not be used by 
     broadcasters for other reasons.
       Satellite carriers are liable for copyright infringement 
     and subject to the full remedies of the Copyright Act if they 
     violate one or more of the following requirements of the 
     Section 122 license.
       First, satellite carriers may not in any way willfully 
     alter the programming contained on a local broadcast station. 
     Second, satellite carriers may not use the Section 122 
     license to retransmit a television broadcast station to a 
     subscriber located outside the local market of the station. 
     If a carrier willfully or repeatedly violates this limitation 
     on a nationwide basis, then the carrier may be enjoined from 
     retransmitting that signal. If the broadcast station involved 
     is a network station, then the carrier could lose the right 
     to retransmit any network stations. If the willful or 
     repeated violation of the restriction is performed on a local 
     or regional basis, then the right to retransmit the station 
     (or, if a network station, then all networks) can be enjoined 
     on a local or regional basis, depending upon the 
     circumstances. In addition to termination of service on a 
     nationwide or local or regional basis, statutory damages are 
     available up to $250,000 for each six-month period during 
     which the pattern or practice of violations was carried out. 
     Satellite carriers have the burden of proving that they are 
     not improperly making use of the Section 122 license to serve 
     subscribers outside the local markets of the television 
     broadcast stations they are providing.
       The Section 122 license is not limited to private home 
     viewing, as is the Section 119 compulsory license, so that 
     satellite carriers may use it to serve commercial 
     establishments as well as homes. The local market of a 
     television broadcast station for purposes of the Section 122 
     license will be defined by the FCC as part of its broadcast 
     carriage rules for satellite carriers.


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

       Section 3 of the bill extends the expiration date of the 
     current Section 119 satellite compulsory license from 
     December 31, 1999 to December 31, 2004.


     SECTION 4. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS

       Section 4 of the bill reduces the 27-cent royalty fee 
     adopted last year by the Librarian of Congress for the 
     retransmission of network and superstation signals by 
     satellite

[[Page E246]]

     carriers under the Section 119 license. The 27-cent rate for 
     superstations is reduced by 30 percent per subscriber per 
     month, and the 27-cent rate for network stations is reduced 
     by 45 percent per subscriber per month.
       In addition, Section 119(c) of Title 17 is amended to 
     clarify that in royalty distribution proceedings conducted 
     under section 802 of the Copyright Act, the Public 
     Broadcasting Service (PBS) may act as agent for all public 
     television copyright claimants and all PBS.


                         SECTION 5. DEFINITIONS

       Section 5 of the bill adds a new definition to the current 
     Section 119 satellite license. The ``unserved household'' 
     definition is modified to eliminate the 90 day waiting period 
     for satellite subscribers who were previous cable 
     subscribers. In other words, Section 5 would not require an 
     individual who dropped cable to wait 90 days before receiving 
     their network signals via satellite.


         SECTION 6. PUBLIC BROADCASTING SERVICE SATELLITE FEED

       Section 6 of the bill extends the Section 119 license to 
     cover the copyrighted programming carried upon the PBS 
     national satellite feed. The national satellite feed is 
     treated as a superstation for compulsory license purposes. 
     Also, the bill requires PBS to certify to the Copyright 
     Office on an annual basis that the PBS membership continues 
     to support retransmission of the national satellite feed 
     under the Section 119 license.


                    SECTION 7. NOTICE TO SUBSCRIBERS

       Section 7 of the bill requires a satellite carrier to 
     ensure that each subscriber has been provided a written 
     statement describing and quoting the network territorial 
     restrictions of the Act. The statement should detail the 
     circumstances under which a subscriber may not be eligible 
     for satellite service of a particular network signal. Current 
     subscribers should receive this statement within 60 days of 
     enactment.
       The purpose of this provision is to clarify for the 
     customer exactly what the law means pertaining to the 
     eligibility for distant network signals. Time and again 
     customers complain that they were not made aware that there 
     was any prohibition on the reception of distant network 
     signals, or that they were not made aware of restrictions 
     upon receiving notice that their distant network signals were 
     being terminated.


SECTION 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS

       Section 8 of the bill amends the current Section 119 
     license to make it contingent upon full compliance with all 
     rules and regulations of the FCC. This provision mirrors the 
     requirement imposed upon cable operators under the cable 
     compulsory license.


                       SECTION 9. EFFECTIVE DATE

       The amendments made by this bill become effective on 
     January 1, 1999, with the exception of Section 4 which 
     becomes effective on July 1, 1999.

     

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