[Congressional Record Volume 156, Number 68 (Friday, May 7, 2010)]
[Senate]
[Pages S3435-S3446]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SATELLITE TELEVISION EXTENSION AND LOCALISM ACT
The PRESIDING OFFICER. I ask unanimous consent that the Senate
proceed to the immediate consideration of S. 3333, introduced earlier
today.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (S. 3333) to extend the statutory license for
secondary transmissions under title 17, United States Code,
and for other purposes.
There being no objection, the Senate proceeded to consider the bill.
Mr. LEAHY. Mr. President, I am pleased that the Senate will pass the
Satellite Television Extension and Localism Act, STELA, of 2010. This
legislation modernizes and extends important statutory copyright
licenses that allow cable and satellite companies to retransmit the
content transmitted by television broadcasters. STELA also includes
important Communications Act authorizations that allow for the
retransmission of broadcast television signals by satellite and cable
providers.
Ensuring that Americans have access to broadcast television content
is important, and it is particularly relevant for consumers in rural
areas who might not otherwise be able to receive these signals over-
the-air. The legislation that the Senate is passing today will ensure
that nobody will be left in the dark for the foreseeable future.
Broadcast television plays a critical role in cities and towns across
the country, and remains the primary way in which consumers are able to
access local content such as news, weather, and sports.
Cable and satellite providers help to expand the footprint of
broadcast stations by allowing them to reach viewers who are unable to
receive signals over-the-air. Vermont is an example of how cable and
satellite companies can provide service to consumers in rural areas who
might not otherwise receive these signals.
Vermonters will see improved service when this legislation is
enacted. Today, DirecTV is permitted to use the licenses to provide
Windham and Bennington Counties with stations from the Burlington
television market, but DISH Network is not. This legislation will
permit DISH to provide their subscribers in southern Vermont with the
same service. As soon as DISH Network uses this authority, virtually
everyone in the State will be able to access the news and information
that is truly important to Vermonters.
One other important way that STELA will preserve and improve existing
service for consumers is by correcting a flaw in the statutory
copyright license for the cable industry. An unintended result of
current law is that the cable license requires the cable industry to
pay copyright holders for signals that many of their subscribers do not
actually receive. This is often referred to as the phantom signal
problem. The effect of this anomaly in the law is that Comcast is
required to pay copyright royalties based on their subscriber base
across the northeast for the Canadian television content that is only
provided to subscribers in Burlington, VT.
The bill corrects this flaw by giving the cable industry the
flexibility to continue to provide signals that are tailored to local
interests--signals that might otherwise have been pulled from cable
line-ups. This will benefit industry and consumers. For instance,
subscribers in Burlington will still be able to receive programming
such as ``Hockey Night in Canada,'' which has been a tradition, without
fear that Comcast will have to remove the channel or raise prices
because it is being charged royalties based on subscribers in Boston.
In addition, the legislation will expand consumer access to their
States' public television programming and low-power, community-oriented
stations that will promote media diversity.
This is the third time the Senate will have passed substantially the
same reauthorization language. The bill is the product of many hours of
hard work and compromise among four committees in both Houses of
Congress. No single member or committee chairman would have written it
in this exact way, but the final language represents a fair compromise
on important issues. For instance, I would have preferred the approach
included in the Senate Judiciary Committee-approved bill for providing
incentives to DISH Network to launch additional local markets, rather
than lifting a court-ordered injunction. As a matter of policy, lifting
a court-ordered injunction based on copyright infringement is something
I generally do not support, but others insisted upon it and it is part
of the compromise embodied in STELA.
Overall, this is a good bill that will preserve and improve the
service that consumers across the country are accustomed to receiving.
I hope the third time the Senate passes it will be the final time and
that it will be considered promptly by the House and signed into law by
the President.
Mr. CONRAD: This is the Statement of Budgetary Effects of PAYGO
Legislation for S. 3333. This statement has been prepared pursuant to
Section 4 of the Statutory Pay-As-You-Go Act of 2010 (Public Law 111-
139), and is being submitted for printing in the Congressional Record
prior to passage of S. 3333 by the Senate.
Total Budgetary Effects of S. 3333 for the 5-year Statutory
PAYGO Scorecard: $0.
Total Budgetary Effects of S. 3333 for the 10-year Statutory
PAYGO Scorecard: $0.
Also submitted for the Record as part of this statement is a table
prepared by the Congressional Budget Office, which provides additional
information on the budgetary effects of this Act.
CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR A BILL TO EXTEND THE STATUTORY LICENSE FOR SECONDARY TRANSMISSIONS UNDER TITLE 17, UNITED STATES
CODE, AND FOR OTHER PURPOSES AS PROVIDED TO CBO BY THE SENATE COMMITTEE ON THE JUDICIARY ON MAY 6, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
------------------------------------------------------------------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010-2015 2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase or Decrease (-) in the Deficit
Statutory Pay-As-You-Go Impact 0 0 0 0 0 0 0 0 0 0 0 0 0
a.............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
a The bill would authorize the Copyright Office to charge fees to cable and satellite providers to offset a portion of the costs of operating the
copyright licensing program. This provision would increase both revenues and direct spending by $8 million over the 2010-2020 period.
Mr. WHITEHOUSE. I ask unanimous consent that the bill be read a third
time; passed, and the motion to reconsider be laid upon the table, and
that any statements relating to the measure be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 3333) was ordered to be engrossed for a third reading,
was read the third time and passed, as follows:
S. 3333
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Satellite
Television Extension and Localism Act of 2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--STATUTORY LICENSES
Sec. 101. Reference.
Sec. 102. Modifications to statutory license for satellite carriers.
Sec. 103. Modifications to statutory license for satellite carriers in
local markets.
Sec. 104. Modifications to cable system secondary transmission rights
under section 111.
Sec. 105. Certain waivers granted to providers of local-into-local
service for all DMAs.
[[Page S3436]]
Sec. 106. Copyright Office fees.
Sec. 107. Termination of license.
Sec. 108. Construction.
TITLE II--COMMUNICATIONS PROVISIONS
Sec. 201. Reference.
Sec. 202. Extension of authority.
Sec. 203. Significantly viewed stations.
Sec. 204. Digital television transition conforming amendments.
Sec. 205. Application pending completion of rulemakings.
Sec. 206. Process for issuing qualified carrier certification.
Sec. 207. Nondiscrimination in carriage of high definition digital
signals of noncommercial educational television stations.
Sec. 208. Savings clause regarding definitions.
Sec. 209. State public affairs broadcasts.
TITLE III--REPORTS AND SAVINGS PROVISION
Sec. 301. Definition.
Sec. 302. Report on market based alternatives to statutory licensing.
Sec. 303. Report on communications implications of statutory licensing
modifications.
Sec. 304. Report on in-state broadcast programming.
Sec. 305. Local network channel broadcast reports.
Sec. 306. Savings provision regarding use of negotiated licenses.
Sec. 307. Effective date; Noninfringement of copyright.
TITLE IV--SEVERABILITY
Sec. 401. Severability.
TITLE V--DETERMINATION OF BUDGETARY EFFECTS
Sec. 501. Determination of Budgetary Effects.
TITLE I--STATUTORY LICENSES
SEC. 101. REFERENCE.
Except as otherwise provided, whenever in this title an
amendment is made to a section or other provision, the
reference shall be considered to be made to such section or
provision of title 17, United States Code.
SEC. 102. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE
CARRIERS.
(a) Heading Renamed.--
(1) In general.--The heading of section 119 is amended by
striking ``superstations and network stations for private
home viewing'' and inserting ``distant television programming
by satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 119 and
inserting the following:
``119. Limitations on exclusive rights: Secondary transmissions of
distant television programming by satellite.''.
(b) Unserved Household Defined.--
(1) In general.--Section 119(d)(10) is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) cannot receive, through the use of an antenna, an
over-the-air signal containing the primary stream, or, on or
after the qualifying date, the multicast stream, originating
in that household's local market and affiliated with that
network of--
``(i) if the signal originates as an analog signal, Grade B
intensity as defined by the Federal Communications Commission
in section 73.683(a) of title 47, Code of Federal
Regulations, as in effect on January 1, 1999; or
``(ii) if the signal originates as a digital signal,
intensity defined in the values for the digital television
noise-limited service contour, as defined in regulations
issued by the Federal Communications Commission (section
73.622(e) of title 47, Code of Federal Regulations), as such
regulations may be amended from time to time;'';
(B) in subparagraph (B)--
(i) by striking ``subsection (a)(14)'' and inserting
``subsection (a)(13),''; and
(ii) by striking ``Satellite Home Viewer Extension and
Reauthorization Act of 2004'' and inserting ``Satellite
Television Extension and Localism Act of 2010''; and
(C) in subparagraph (D), by striking ``(a)(12)'' and
inserting ``(a)(11)''.
(2) Qualifying date defined.--Section 119(d) is amended by
adding at the end the following:
``(14) Qualifying date.--The term `qualifying date', for
purposes of paragraph (10)(A), means--
``(A) October 1, 2010, for multicast streams that exist on
March 31, 2010; and
``(B) January 1, 2011, for all other multicast streams.''.
(c) Filing Fee.--Section 119(b)(1) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(C) a filing fee, as determined by the Register of
Copyrights pursuant to section 708(a).''.
(d) Deposit of Statements and Fees; Verification
Procedures.--Section 119(b) is amended--
(1) by amending the subsection heading to read as follows:
``(b) Deposit of Statements and Fees; Verification
Procedures.--'';
(2) in paragraph (1), by striking subparagraph (B) and
inserting the following:
``(B) a royalty fee payable to copyright owners pursuant to
paragraph (4) for that 6-month period, computed by
multiplying the total number of subscribers receiving each
secondary transmission of a primary stream or multicast
stream of each non-network station or network station during
each calendar year month by the appropriate rate in effect
under this subsection; and'';
(3) by redesignating paragraphs (2), (3), and (4) as
paragraphs (3), (4), and (5), respectively;
(4) by inserting after paragraph (1) the following:
``(2) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to permit
interested parties to verify and audit the statements of
account and royalty fees submitted by satellite carriers
under this subsection.'';
(5) in paragraph (3), as redesignated, in the first
sentence--
(A) by inserting ``(including the filing fee specified in
paragraph (1)(C))'' after ``shall receive all fees''; and
(B) by striking ``paragraph (4)'' and inserting ``paragraph
(5)'';
(6) in paragraph (4), as redesignated--
(A) by striking ``paragraph (2)'' and inserting ``paragraph
(3)''; and
(B) by striking ``paragraph (4)'' each place it appears and
inserting ``paragraph (5)''; and
(7) in paragraph (5), as redesignated, by striking
``paragraph (2)'' and inserting ``paragraph (3)''.
(e) Adjustment of Royalty Fees.--Section 119(c) is amended
as follows:
(1) Paragraph (1) is amended--
(A) in the heading for such paragraph, by striking
``analog'';
(B) in subparagraph (A)--
(i) by striking ``primary analog transmissions'' and
inserting ``primary transmissions''; and
(ii) by striking ``July 1, 2004'' and inserting ``July 1,
2009'';
(C) in subparagraph (B)--
(i) by striking ``January 2, 2005, the Librarian of
Congress'' and inserting ``June 1, 2010, the Copyright
Royalty Judges''; and
(ii) by striking ``primary analog transmission'' and
inserting ``primary transmissions'';
(D) in subparagraph (C), by striking ``Librarian of
Congress'' and inserting ``Copyright Royalty Judges'';
(E) in subparagraph (D)--
(i) in clause (i)--
(I) by striking ``(i) Voluntary agreements'' and inserting
the following:
``(i) Voluntary agreements; filing.--Voluntary
agreements''; and
(II) by striking ``that a parties'' and inserting ``that
are parties''; and
(ii) in clause (ii)--
(I) by striking ``(ii)(I) Within'' and inserting the
following:
``(ii) Procedure for adoption of fees.--
``(I) Publication of notice.--Within'';
(II) in subclause (I), by striking ``an arbitration
proceeding pursuant to subparagraph (E)'' and inserting ``a
proceeding under subparagraph (F)'';
(III) in subclause (II), by striking ``(II) Upon receiving
a request under subclause (I), the Librarian of Congress''
and inserting the following:
``(II) Public notice of fees.--Upon receiving a request
under subclause (I), the Copyright Royalty Judges''; and
(IV) in subclause (III)--
(aa) by striking ``(III) The Librarian'' and inserting the
following:
``(III) Adoption of fees.--The Copyright Royalty Judges'';
(bb) by striking ``an arbitration proceeding'' and
inserting ``the proceeding under subparagraph (F)''; and
(cc) by striking ``the arbitration proceeding'' and
inserting ``that proceeding'';
(F) in subparagraph (E)--
(i) by striking ``Copyright Office'' and inserting
``Copyright Royalty Judges''; and
(ii) by striking ``May 31, 2010'' and inserting ``December
31, 2014''; and
(G) in subparagraph (F)--
(i) in the heading, by striking ``compulsory arbitration''
and inserting ``copyright royalty judges proceeding'';
(ii) in clause (i)--
(I) in the heading, by striking ``proceedings'' and
inserting ``the proceeding'';
(II) in the matter preceding subclause (I)--
(aa) by striking ``May 1, 2005, the Librarian of Congress''
and inserting ``September 1, 2010, the Copyright Royalty
Judges'';
(bb) by striking ``arbitration proceedings'' and inserting
``a proceeding'';
(cc) by striking ``fee to be paid'' and inserting ``fees to
be paid'';
(dd) by striking ``primary analog transmission'' and
inserting ``the primary transmissions''; and
(ee) by striking ``distributors'' and inserting
``distributors--'';
(III) in subclause (II)--
(aa) by striking ``Librarian of Congress'' and inserting
``Copyright Royalty Judges''; and
(bb) by striking ``arbitration''; and
(IV) by amending the last sentence to read as follows:
``Such proceeding shall be conducted under chapter 8.'';
(iii) in clause (ii), by amending the matter preceding
subclause (I) to read as follows:
``(ii) Establishment of royalty fees.--In determining
royalty fees under this subparagraph, the Copyright Royalty
Judges shall establish fees for the secondary transmissions
of the primary transmissions of network stations and non-
network stations that most clearly represent the fair market
value of secondary transmissions, except
[[Page S3437]]
that the Copyright Royalty Judges shall adjust royalty fees
to account for the obligations of the parties under any
applicable voluntary agreement filed with the Copyright
Royalty Judges in accordance with subparagraph (D). In
determining the fair market value, the Judges shall base
their decision on economic, competitive, and programming
information presented by the parties, including--'';
(iv) by amending clause (iii) to read as follows:
``(iii) Effective date for decision of copyright royalty
judges.--The obligation to pay the royalty fees established
under a determination that is made by the Copyright Royalty
Judges in a proceeding under this paragraph shall be
effective as of January 1, 2010.''; and
(v) in clause (iv)--
(I) in the heading, by striking ``fee'' and inserting
``fees''; and
(II) by striking ``fee referred to in (iii)'' and inserting
``fees referred to in clause (iii)''.
(2) Paragraph (2) is amended to read as follows:
``(2) Annual royalty fee adjustment.--Effective January 1
of each year, the royalty fee payable under subsection
(b)(1)(B) for the secondary transmission of the primary
transmissions of network stations and non-network stations
shall be adjusted by the Copyright Royalty Judges to reflect
any changes occurring in the cost of living as determined by
the most recent Consumer Price Index (for all consumers and
for all items) published by the Secretary of Labor before
December 1 of the preceding year. Notification of the
adjusted fees shall be published in the Federal Register at
least 25 days before January 1.''.
(f) Definitions.--
(1) Subscriber.--Section 119(d)(8) is amended to read as
follows:
``(8) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a distributor.
``(B) Subscribe.--The term `subscribe' means to elect to
become a subscriber.''.
(2) Local market.--Section 119(d)(11) is amended to read as
follows:
``(11) Local market.--The term `local market' has the
meaning given such term under section 122(j).''.
(3) Low power television station.--Section 119(d) is
amended by striking paragraph (12) and redesignating
paragraphs (13) and (14) as paragraphs (12) and (13),
respectively.
(4) Multicast stream.--Section 119(d), as amended by
paragraph (3), is further amended by adding at the end the
following new paragraph:
``(14) Multicast stream.--The term `multicast stream' means
a digital stream containing programming and program-related
material affiliated with a television network, other than the
primary stream.''.
(5) Primary stream.--Section 119(d), as amended by
paragraph (4), is further amended by adding at the end the
following new paragraph:
``(15) Primary stream.--The term `primary stream' means--
``(A) the single digital stream of programming as to which
a television broadcast station has the right to mandatory
carriage with a satellite carrier under the rules of the
Federal Communications Commission in effect on July 1, 2009;
or
``(B) if there is no stream described in subparagraph (A),
then either--
``(i) the single digital stream of programming associated
with the network last transmitted by the station as an analog
signal; or
``(ii) if there is no stream described in clause (i), then
the single digital stream of programming affiliated with the
network that, as of July 1, 2009, had been offered by the
television broadcast station for the longest period of
time.''.
(6) Clerical amendment.--Section 119(d) is amended in
paragraphs (1), (2), and (5) by striking ``which'' each place
it appears and inserting ``that''.
(g) Superstation Redesignated as Non-Network Station.--
Section 119 is amended--
(1) by striking ``superstation'' each place it appears in a
heading and each place it appears in text and inserting
``non-network station''; and
(2) by striking ``superstations'' each place it appears in
a heading and each place it appears in text and inserting
``non-network stations''.
(h) Removal of Certain Provisions.--
(1) Removal of provisions.--Section 119(a) is amended--
(A) in paragraph (2), by striking subparagraph (C) and
redesignating subparagraph (D) as subparagraph (C);
(B) by striking paragraph (3) and redesignating paragraphs
(4) through (14) as paragraphs (3) through (13),
respectively; and
(C) by striking paragraph (15) and redesignating paragraph
(16) as paragraph (14).
(2) Conforming amendments.--Section 119 is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(5), (6), and (8)'' and
inserting ``(4), (5), and (7)'';
(ii) in paragraph (2)--
(I) in subparagraph (A), by striking ``subparagraphs (B)
and (C) of this paragraph and paragraphs (5), (6), (7), and
(8)'' and inserting ``subparagraph (B) of this paragraph and
paragraphs (4), (5), (6), and (7)'';
(II) in subparagraph (B)(i), by striking the second
sentence; and
(III) in subparagraph (C) (as redesignated), by striking
clauses (i) and (ii) and inserting the following:
``(i) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station pursuant to subparagraph (A) shall, not later
than 90 days after commencing such secondary transmissions,
submit to the network that owns or is affiliated with the
network station a list identifying (by name and address,
including street or rural route number, city, State, and 9-
digit zip code) all subscribers to which the satellite
carrier makes secondary transmissions of that primary
transmission to subscribers in unserved households.
``(ii) Monthly lists.--After the submission of the initial
lists under clause (i), the satellite carrier shall, not
later than the 15th of each month, submit to the network a
list, aggregated by designated market area, identifying (by
name and address, including street or rural route number,
city, State, and 9-digit zip code) any persons who have been
added or dropped as subscribers under clause (i) since the
last submission under this subparagraph.''; and
(iii) in subparagraph (E) of paragraph (3) (as
redesignated)--
(I) by striking ``under paragraph (3) or''; and
(II) by striking ``paragraph (12)'' and inserting
``paragraph (11)''; and
(B) in subsection (b)(1), by striking the final sentence.
(i) Modifications to Provisions for Secondary Transmissions
by Satellite Carriers.--
(1) Predictive model.--Section 119(a)(2)(B)(ii) is amended
by adding at the end the following:
``(III) Accurate predictive model with respect to digital
signals.--Notwithstanding subclause (I), in determining
presumptively whether a person resides in an unserved
household under subsection (d)(10)(A) with respect to digital
signals, a court shall rely on a predictive model set forth
by the Federal Communications Commission pursuant to a
rulemaking as provided in section 339(c)(3) of the
Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that
model may be amended by the Commission over time under such
section to increase the accuracy of that model. Until such
time as the Commission sets forth such model, a court shall
rely on the predictive model as recommended by the Commission
with respect to digital signals in its Report to Congress in
ET Docket No. 05-182, FCC 05-199 (released December 9,
2005).''.
(2) Modifications to statutory license where
retransmissions into local market available.--Section
119(a)(3) (as redesignated) is amended--
(A) by striking ``analog'' each place it appears in a
heading and text;
(B) by striking subparagraphs (B), (C), and (D), and
inserting the following:
``(B) Rules for lawful subscribers as of date of enactment
of 2010 act.--In the case of a subscriber of a satellite
carrier who, on the day before the date of the enactment of
the Satellite Television Extension and Localism Act of 2010,
was lawfully receiving the secondary transmission of the
primary transmission of a network station under the statutory
license under paragraph (2) (in this subparagraph referred to
as the `distant signal'), other than subscribers to whom
subparagraph (A) applies, the statutory license under
paragraph (2) shall apply to secondary transmissions by that
satellite carrier to that subscriber of the distant signal of
a station affiliated with the same television network, and
the subscriber's household shall continue to be considered to
be an unserved household with respect to such network, until
such time as the subscriber elects to terminate such
secondary transmissions, whether or not the subscriber elects
to subscribe to receive the secondary transmission of the
primary transmission of a local network station affiliated
with the same network pursuant to the statutory license under
section 122.
``(C) Future applicability.--
``(i) When local signal available at time of
subscription.--The statutory license under paragraph (2)
shall not apply to the secondary transmission by a satellite
carrier of the primary transmission of a network station to a
person who is not a subscriber lawfully receiving such
secondary transmission as of the date of the enactment of the
Satellite Television Extension and Localism Act of 2010 and,
at the time such person seeks to subscribe to receive such
secondary transmission, resides in a local market where the
satellite carrier makes available to that person the
secondary transmission of the primary transmission of a local
network station affiliated with the same network pursuant to
the statutory license under section 122.
``(ii) When local signal available after subscription.--In
the case of a subscriber who lawfully subscribes to and
receives the secondary transmission by a satellite carrier of
the primary transmission of a network station under the
statutory license under paragraph (2) (in this clause
referred to as the `distant signal') on or after the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010, the statutory license under paragraph
(2) shall apply to secondary transmissions by that satellite
carrier to that subscriber of the distant signal of a station
affiliated with the same television network, and the
subscriber's household shall continue to be considered to be
an
[[Page S3438]]
unserved household with respect to such network, until such
time as the subscriber elects to terminate such secondary
transmissions, but only if such subscriber subscribes to the
secondary transmission of the primary transmission of a local
network station affiliated with the same network within 60
days after the satellite carrier makes available to the
subscriber such secondary transmission of the primary
transmission of such local network station.'';
(C) by redesignating subparagraphs (E), (F), and (G) as
subparagraphs (D), (E), and (F), respectively;
(D) in subparagraph (E) (as redesignated), by striking
``(C) or (D)'' and inserting ``(B) or (C)''; and
(E) in subparagraph (F) (as redesignated), by inserting
``9-digit'' before ``zip code''.
(3) Statutory damages for territorial restrictions.--
Section 119(a)(6) (as redesignated) is amended--
(A) in subparagraph (A)(ii), by striking ``$5'' and
inserting ``$250'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``$250,000 for each 6-month
period'' and inserting ``$2,500,000 for each 3-month
period''; and
(ii) in clause (ii), by striking ``$250,000'' and inserting
``$2,500,000''; and
(C) by adding at the end the following flush sentences:
``The court shall direct one half of any statutory damages
ordered under clause (i) to be deposited with the Register of
Copyrights for distribution to copyright owners pursuant to
subsection (b). The Copyright Royalty Judges shall issue
regulations establishing procedures for distributing such
funds, on a proportional basis, to copyright owners whose
works were included in the secondary transmissions that were
the subject of the statutory damages.''.
(4) Technical amendment.--Section 119(a)(4) (as
redesignated) is amended by striking ``and 509''.
(5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is
amended by striking ``In this clause'' and inserting ``In
this clause,''.
(j) Moratorium Extension.--Section 119(e) is amended by
striking ``May 31, 2010'' and inserting ``December 31,
2014''.
(k) Clerical Amendments.--Section 119 is amended--
(1) by striking ``of the Code of Federal Regulations'' each
place it appears and inserting ``, Code of Federal
Regulations''; and
(2) in subsection (d)(6), by striking ``or the Direct'' and
inserting ``, or the Direct''.
SEC. 103. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE
CARRIERS IN LOCAL MARKETS.
(a) Heading Renamed.--
(1) In general.--The heading of section 122 is amended by
striking ``by satellite carriers within local markets'' and
inserting ``of local television programming by satellite''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 122 and
inserting the following:
``122. Limitations on exclusive rights: Secondary transmissions of
local television programming by satellite.''.
(b) Statutory License.--Section 122(a) is amended to read
as follows:
``(a) Secondary Transmissions Into Local Markets.--
``(1) Secondary transmissions of television broadcast
stations within a local market.--A secondary transmission of
a performance or display of a work embodied in a primary
transmission of a television broadcast station into the
station's local market shall be subject to statutory
licensing under this section if--
``(A) the secondary transmission is made by a satellite
carrier to the public;
``(B) with regard to secondary transmissions, the satellite
carrier is in compliance with the rules, regulations, or
authorizations of the Federal Communications Commission
governing the carriage of television broadcast station
signals; and
``(C) the satellite carrier makes a direct or indirect
charge for the secondary transmission to--
``(i) each subscriber receiving the secondary transmission;
or
``(ii) a distributor that has contracted with the satellite
carrier for direct or indirect delivery of the secondary
transmission to the public.
``(2) Significantly viewed stations.--
``(A) In general.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to subscribers
who receive secondary transmissions of primary transmissions
under paragraph (1) shall be subject to statutory licensing
under this paragraph if the secondary transmission is of the
primary transmission of a network station or a non-network
station to a subscriber who resides outside the station's
local market but within a community in which the signal has
been determined by the Federal Communications Commission to
be significantly viewed in such community, pursuant to the
rules, regulations, and authorizations of the Federal
Communications Commission in effect on April 15, 1976,
applicable to determining with respect to a cable system
whether signals are significantly viewed in a community.
``(B) Waiver.--A subscriber who is denied the secondary
transmission of the primary transmission of a network station
or a non-network station under subparagraph (A) may request a
waiver from such denial by submitting a request, through the
subscriber's satellite carrier, to the network station or
non-network station in the local market affiliated with the
same network or non-network where the subscriber is located.
The network station or non-network station shall accept or
reject the subscriber's request for a waiver within 30 days
after receipt of the request. If the network station or non-
network station fails to accept or reject the subscriber's
request for a waiver within that 30-day period, that network
station or non-network station shall be deemed to agree to
the waiver request.
``(3) Secondary transmission of low power programming.--
``(A) In general.--Subject to subparagraphs (B) and (C), a
secondary transmission of a performance or display of a work
embodied in a primary transmission of a television broadcast
station to subscribers who receive secondary transmissions of
primary transmissions under paragraph (1) shall be subject to
statutory licensing under this paragraph if the secondary
transmission is of the primary transmission of a television
broadcast station that is licensed as a low power television
station, to a subscriber who resides within the same
designated market area as the station that originates the
transmission.
``(B) No applicability to repeaters and translators.--
Secondary transmissions provided for in subparagraph (A)
shall not apply to any low power television station that
retransmits the programs and signals of another television
station for more than 2 hours each day.
``(C) No impact on other secondary transmissions
obligations.--A satellite carrier that makes secondary
transmissions of a primary transmission of a low power
television station under a statutory license provided under
this section is not required, by reason of such secondary
transmissions, to make any other secondary transmissions.
``(4) Special exceptions.--A secondary transmission of a
performance or display of a work embodied in a primary
transmission of a television broadcast station to subscribers
who receive secondary transmissions of primary transmissions
under paragraph (1) shall, if the secondary transmission is
made by a satellite carrier that complies with the
requirements of paragraph (1), be subject to statutory
licensing under this paragraph as follows:
``(A) States with single full-power network station.--In a
State in which there is licensed by the Federal
Communications Commission a single full-power station that
was a network station on January 1, 1995, the statutory
license provided for in this paragraph shall apply to the
secondary transmission by a satellite carrier of the primary
transmission of that station to any subscriber in a community
that is located within that State and that is not within the
first 50 television markets as listed in the regulations of
the Commission as in effect on such date (47 C.F.R. 76.51).
``(B) States with all network stations and non-network
stations in same local market.--In a State in which all
network stations and non-network stations licensed by the
Federal Communications Commission within that State as of
January 1, 1995, are assigned to the same local market and
that local market does not encompass all counties of that
State, the statutory license provided under this paragraph
shall apply to the secondary transmission by a satellite
carrier of the primary transmissions of such station to all
subscribers in the State who reside in a local market that is
within the first 50 major television markets as listed in the
regulations of the Commission as in effect on such date
(section 76.51 of title 47, Code of Federal Regulations).
``(C) Additional stations.--In the case of that State in
which are located 4 counties that--
``(i) on January 1, 2004, were in local markets principally
comprised of counties in another State, and
``(ii) had a combined total of 41,340 television
households, according to the U.S. Television Household
Estimates by Nielsen Media Research for 2004,
the statutory license provided under this paragraph shall
apply to secondary transmissions by a satellite carrier to
subscribers in any such county of the primary transmissions
of any network station located in that State, if the
satellite carrier was making such secondary transmissions to
any subscribers in that county on January 1, 2004.
``(D) Certain additional stations.--If 2 adjacent counties
in a single State are in a local market comprised principally
of counties located in another State, the statutory license
provided for in this paragraph shall apply to the secondary
transmission by a satellite carrier to subscribers in those 2
counties of the primary transmissions of any network station
located in the capital of the State in which such 2 counties
are located, if--
``(i) the 2 counties are located in a local market that is
in the top 100 markets for the year 2003 according to Nielsen
Media Research; and
``(ii) the total number of television households in the 2
counties combined did not exceed 10,000 for the year 2003
according to Nielsen Media Research.
``(E) Networks of noncommercial educational broadcast
stations.--In the case of a system of three or more
noncommercial educational broadcast stations licensed to a
single State, public agency, or political, educational, or
special purpose subdivision of a
[[Page S3439]]
State, the statutory license provided for in this paragraph
shall apply to the secondary transmission of the primary
transmission of such system to any subscriber in any county
or county equivalent within such State, if such subscriber is
located in a designated market area that is not otherwise
eligible to receive the secondary transmission of the primary
transmission of a noncommercial educational broadcast station
located within the State pursuant to paragraph (1).
``(5) Applicability of royalty rates and procedures.--The
royalty rates and procedures under section 119(b) shall apply
to the secondary transmissions to which the statutory license
under paragraph (4) applies.''.
(c) Reporting Requirements.--Section 122(b) is amended--
(1) in paragraph (1), by striking ``station a list'' and
all that follows through the end and inserting the following:
``station--
``(A) a list identifying (by name in alphabetical order and
street address, including county and 9-digit zip code) all
subscribers to which the satellite carrier makes secondary
transmissions of that primary transmission under subsection
(a); and
``(B) a separate list, aggregated by designated market area
(by name and address, including street or rural route number,
city, State, and 9-digit zip code), which shall indicate
those subscribers being served pursuant to paragraph (2) of
subsection (a).''; and
(2) in paragraph (2), by striking ``network a list'' and
all that follows through the end and inserting the following:
``network--
``(A) a list identifying (by name in alphabetical order and
street address, including county and 9-digit zip code) any
subscribers who have been added or dropped as subscribers
since the last submission under this subsection; and
``(B) a separate list, aggregated by designated market area
(by name and street address, including street or rural route
number, city, State, and 9-digit zip code), identifying those
subscribers whose service pursuant to paragraph (2) of
subsection (a) has been added or dropped since the last
submission under this subsection.''.
(d) No Royalty Fee for Certain Secondary Transmissions.--
Section 122(c) is amended--
(1) in the heading, by inserting ``for Certain Secondary
Transmissions'' after ``Required''; and
(2) by striking ``subsection (a)'' and inserting
``paragraphs (1), (2), and (3) of subsection (a)''.
(e) Violations for Territorial Restrictions.--
(1) Modification to statutory damages.--Section 122(f) is
amended--
(A) in paragraph (1)(B), by striking ``$5'' and inserting
``$250''; and
(B) in paragraph (2), by striking ``$250,000'' each place
it appears and inserting ``$2,500,000''.
(2) Conforming amendments for additional stations.--Section
122 is amended--
(A) in subsection (f), by striking ``section 119 or'' each
place it appears and inserting the following: ``section 119,
subject to statutory licensing by reason of paragraph (2)(A),
(3), or (4) of subsection (a), or subject to''; and
(B) in subsection (g), by striking ``section 119 or'' and
inserting the following: ``section 119, paragraph (2)(A),
(3), or (4) of subsection (a), or''.
(f) Definitions.--Section 122(j) is amended--
(1) in paragraph (1), by striking ``which contracts'' and
inserting ``that contracts'';
(2) by redesignating paragraphs (4) and (5) as paragraphs
(6) and (7), respectively;
(3) in paragraph (3)--
(A) by redesignating such paragraph as paragraph (4);
(B) in the heading of such paragraph, by inserting ``non-
network station;'' after ``Network station;''; and
(C) by inserting `` `non-network station','' after ``
`network station','';
(4) by inserting after paragraph (2) the following:
``(3) Low power television station.--The term `low power
television station' means a low power TV station as defined
in section 74.701(f) of title 47, Code of Federal
Regulations, as in effect on June 1, 2004. For purposes of
this paragraph, the term `low power television station'
includes a low power television station that has been
accorded primary status as a Class A television licensee
under section 73.6001(a) of title 47, Code of Federal
Regulations.'';
(5) by inserting after paragraph (4) (as redesignated) the
following:
``(5) Noncommercial educational broadcast station.--The
term `noncommercial educational broadcast station' means a
television broadcast station that is a noncommercial
educational broadcast station as defined in section 397 of
the Communications Act of 1934, as in effect on the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010.''; and
(6) by amending paragraph (6) (as redesignated) to read as
follows:
``(6) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
satellite carrier and pays a fee for the service, directly or
indirectly, to the satellite carrier or to a distributor.''.
SEC. 104. MODIFICATIONS TO CABLE SYSTEM SECONDARY
TRANSMISSION RIGHTS UNDER SECTION 111.
(a) Heading Renamed.--
(1) In general.--The heading of section 111 is amended by
inserting at the end the following: ``of broadcast
programming by cable''.
(2) Table of contents.--The table of contents for chapter 1
is amended by striking the item relating to section 111 and
inserting the following:
``111. Limitations on exclusive rights: Secondary transmissions of
broadcast programming by cable.''.
(b) Technical Amendment.--Section 111(a)(4) is amended by
striking ``; or'' and inserting ``or section 122;''.
(c) Statutory License for Secondary Transmissions by Cable
Systems.--Section 111(d) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``A cable system whose secondary'' and
inserting the following: ``Statement of account and royalty
fees.--Subject to paragraph (5), a cable system whose
secondary''; and
(ii) by striking ``by regulation--'' and inserting ``by
regulation the following:'';
(B) in subparagraph (A)--
(i) by striking ``a statement of account'' and inserting
``A statement of account''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking subparagraphs (B), (C), and (D) and
inserting the following:
``(B) Except in the case of a cable system whose royalty
fee is specified in subparagraph (E) or (F), a total royalty
fee payable to copyright owners pursuant to paragraph (3) for
the period covered by the statement, computed on the basis of
specified percentages of the gross receipts from subscribers
to the cable service during such period for the basic service
of providing secondary transmissions of primary broadcast
transmitters, as follows:
``(i) 1.064 percent of such gross receipts for the
privilege of further transmitting, beyond the local service
area of such primary transmitter, any non-network programming
of a primary transmitter in whole or in part, such amount to
be applied against the fee, if any, payable pursuant to
clauses (ii) through (iv);
``(ii) 1.064 percent of such gross receipts for the first
distant signal equivalent;
``(iii) 0.701 percent of such gross receipts for each of
the second, third, and fourth distant signal equivalents; and
``(iv) 0.330 percent of such gross receipts for the fifth
distant signal equivalent and each distant signal equivalent
thereafter.
``(C) In computing amounts under clauses (ii) through (iv)
of subparagraph (B)--
``(i) any fraction of a distant signal equivalent shall be
computed at its fractional value;
``(ii) in the case of any cable system located partly
within and partly outside of the local service area of a
primary transmitter, gross receipts shall be limited to those
gross receipts derived from subscribers located outside of
the local service area of such primary transmitter; and
``(iii) if a cable system provides a secondary transmission
of a primary transmitter to some but not all communities
served by that cable system--
``(I) the gross receipts and the distant signal equivalent
values for such secondary transmission shall be derived
solely on the basis of the subscribers in those communities
where the cable system provides such secondary transmission;
and
``(II) the total royalty fee for the period paid by such
system shall not be less than the royalty fee calculated
under subparagraph (B)(i) multiplied by the gross receipts
from all subscribers to the system.
``(D) A cable system that, on a statement submitted before
the date of the enactment of the Satellite Television
Extension and Localism Act of 2010, computed its royalty fee
consistent with the methodology under subparagraph (C)(iii),
or that amends a statement filed before such date of
enactment to compute the royalty fee due using such
methodology, shall not be subject to an action for
infringement, or eligible for any royalty refund or offset,
arising out of its use of such methodology on such statement.
``(E) If the actual gross receipts paid by subscribers to a
cable system for the period covered by the statement for the
basic service of providing secondary transmissions of primary
broadcast transmitters are $263,800 or less--
``(i) gross receipts of the cable system for the purpose of
this paragraph shall be computed by subtracting from such
actual gross receipts the amount by which $263,800 exceeds
such actual gross receipts, except that in no case shall a
cable system's gross receipts be reduced to less than
$10,400; and
``(ii) the royalty fee payable under this paragraph to
copyright owners pursuant to paragraph (3) shall be 0.5
percent, regardless of the number of distant signal
equivalents, if any.
``(F) If the actual gross receipts paid by subscribers to a
cable system for the period covered by the statement for the
basic service of providing secondary transmissions of primary
broadcast transmitters are more than $263,800 but less than
$527,600, the royalty fee payable under this paragraph to
copyright owners pursuant to paragraph (3) shall be--
``(i) 0.5 percent of any gross receipts up to $263,800,
regardless of the number of distant signal equivalents, if
any; and
[[Page S3440]]
``(ii) 1 percent of any gross receipts in excess of
$263,800, but less than $527,600, regardless of the number of
distant signal equivalents, if any.
``(G) A filing fee, as determined by the Register of
Copyrights pursuant to section 708(a).'';
(2) in paragraph (2), in the first sentence--
(A) by striking ``The Register of Copyrights'' and
inserting the following ``Handling of fees.--The Register of
Copyrights''; and
(B) by inserting ``(including the filing fee specified in
paragraph (1)(G))'' after ``shall receive all fees'';
(3) in paragraph (3)--
(A) by striking ``The royalty fees'' and inserting the
following: ``Distribution of royalty fees to copyright
owners.--The royalty fees'';
(B) in subparagraph (A)--
(i) by striking ``any such'' and inserting ``Any such'';
and
(ii) by striking ``; and'' and inserting a period;
(C) in subparagraph (B)--
(i) by striking ``any such'' and inserting ``Any such'';
and
(ii) by striking the semicolon and inserting a period; and
(D) in subparagraph (C), by striking ``any such'' and
inserting ``Any such'';
(4) in paragraph (4), by striking ``The royalty fees'' and
inserting the following: ``Procedures for royalty fee
distribution.--The royalty fees''; and
(5) by adding at the end the following new paragraphs:
``(5) 3.75 percent rate and syndicated exclusivity
surcharge not applicable to multicast streams.--The royalty
rates specified in sections 256.2(c) and 256.2(d) of title
37, Code of Federal Regulations (commonly referred to as the
`3.75 percent rate' and the `syndicated exclusivity
surcharge', respectively), as in effect on the date of the
enactment of the Satellite Television Extension and Localism
Act of 2010, as such rates may be adjusted, or such sections
redesignated, thereafter by the Copyright Royalty Judges,
shall not apply to the secondary transmission of a multicast
stream.
``(6) Verification of accounts and fee payments.--The
Register of Copyrights shall issue regulations to provide for
the confidential verification by copyright owners whose works
were embodied in the secondary transmissions of primary
transmissions pursuant to this section of the information
reported on the semiannual statements of account filed under
this subsection for accounting periods beginning on or after
January 1, 2010, in order that the auditor designated under
subparagraph (A) is able to confirm the correctness of the
calculations and royalty payments reported therein. The
regulations shall--
``(A) establish procedures for the designation of a
qualified independent auditor--
``(i) with exclusive authority to request verification of
such a statement of account on behalf of all copyright owners
whose works were the subject of secondary transmissions of
primary transmissions by the cable system (that deposited the
statement) during the accounting period covered by the
statement; and
``(ii) who is not an officer, employee, or agent of any
such copyright owner for any purpose other than such audit;
``(B) establish procedures for safeguarding all non-public
financial and business information provided under this
paragraph;
``(C)(i) require a consultation period for the independent
auditor to review its conclusions with a designee of the
cable system;
``(ii) establish a mechanism for the cable system to remedy
any errors identified in the auditor's report and to cure any
underpayment identified; and
``(iii) provide an opportunity to remedy any disputed facts
or conclusions;
``(D) limit the frequency of requests for verification for
a particular cable system and the number of audits that a
multiple system operator can be required to undergo in a
single year; and
``(E) permit requests for verification of a statement of
account to be made only within 3 years after the last day of
the year in which the statement of account is filed.
``(7) Acceptance of additional deposits.--Any royalty fee
payments received by the Copyright Office from cable systems
for the secondary transmission of primary transmissions that
are in addition to the payments calculated and deposited in
accordance with this subsection shall be deemed to have been
deposited for the particular accounting period for which they
are received and shall be distributed as specified under this
subsection.''.
(d) Effective Date of New Royalty Fee Rates.--The royalty
fee rates established in section 111(d)(1)(B) of title 17,
United States Code, as amended by subsection (c)(1)(C) of
this section, shall take effect commencing with the first
accounting period occurring in 2010.
(e) Definitions.--Section 111(f) is amended--
(1) by striking the first undesignated paragraph and
inserting the following:
``(1) Primary transmission.--A `primary transmission' is a
transmission made to the public by a transmitting facility
whose signals are being received and further transmitted by a
secondary transmission service, regardless of where or when
the performance or display was first transmitted. In the case
of a television broadcast station, the primary stream and any
multicast streams transmitted by the station constitute
primary transmissions.'';
(2) in the second undesignated paragraph--
(A) by striking ``A `secondary transmission' '' and
inserting the following:
``(2) Secondary transmission.--A `secondary transmission'
''; and
(B) by striking `` `cable system' '' and inserting ``cable
system'';
(3) in the third undesignated paragraph--
(A) by striking ``A `cable system' '' and inserting the
following:
``(3) Cable system.--A `cable system' ''; and
(B) by striking ``Territory, Trust Territory, or
Possession'' and inserting ``territory, trust territory, or
possession of the United States'';
(4) in the fourth undesignated paragraph, in the first
sentence--
(A) by striking ``The `local service area of a primary
transmitter', in the case of a television broadcast station,
comprises the area in which such station is entitled to
insist'' and inserting the following:
``(4) Local service area of a primary transmitter.--The
`local service area of a primary transmitter', in the case of
both the primary stream and any multicast streams transmitted
by a primary transmitter that is a television broadcast
station, comprises the area where such primary transmitter
could have insisted'';
(B) by striking ``76.59 of title 47 of the Code of Federal
Regulations'' and inserting the following: ``76.59 of title
47, Code of Federal Regulations, or within the noise-limited
contour as defined in 73.622(e)(1) of title 47, Code of
Federal Regulations''; and
(C) by striking ``as defined by the rules and regulations
of the Federal Communications Commission,'';
(5) by amending the fifth undesignated paragraph to read as
follows:
``(5) Distant signal equivalent.--
``(A) In general.--Except as provided under subparagraph
(B), a `distant signal equivalent'--
``(i) is the value assigned to the secondary transmission
of any non-network television programming carried by a cable
system in whole or in part beyond the local service area of
the primary transmitter of such programming; and
``(ii) is computed by assigning a value of one to each
primary stream and to each multicast stream (other than a
simulcast) that is an independent station, and by assigning a
value of one-quarter to each primary stream and to each
multicast stream (other than a simulcast) that is a network
station or a noncommercial educational station.
``(B) Exceptions.--The values for independent, network, and
noncommercial educational stations specified in subparagraph
(A) are subject to the following:
``(i) Where the rules and regulations of the Federal
Communications Commission require a cable system to omit the
further transmission of a particular program and such rules
and regulations also permit the substitution of another
program embodying a performance or display of a work in place
of the omitted transmission, or where such rules and
regulations in effect on the date of the enactment of the
Copyright Act of 1976 permit a cable system, at its election,
to effect such omission and substitution of a nonlive program
or to carry additional programs not transmitted by primary
transmitters within whose local service area the cable system
is located, no value shall be assigned for the substituted or
additional program.
``(ii) Where the rules, regulations, or authorizations of
the Federal Communications Commission in effect on the date
of the enactment of the Copyright Act of 1976 permit a cable
system, at its election, to omit the further transmission of
a particular program and such rules, regulations, or
authorizations also permit the substitution of another
program embodying a performance or display of a work in place
of the omitted transmission, the value assigned for the
substituted or additional program shall be, in the case of a
live program, the value of one full distant signal equivalent
multiplied by a fraction that has as its numerator the number
of days in the year in which such substitution occurs and as
its denominator the number of days in the year.
``(iii) In the case of the secondary transmission of a
primary transmitter that is a television broadcast station
pursuant to the late-night or specialty programming rules of
the Federal Communications Commission, or the secondary
transmission of a primary transmitter that is a television
broadcast station on a part-time basis where full-time
carriage is not possible because the cable system lacks the
activated channel capacity to retransmit on a full-time basis
all signals that it is authorized to carry, the values for
independent, network, and noncommercial educational stations
set forth in subparagraph (A), as the case may be, shall be
multiplied by a fraction that is equal to the ratio of the
broadcast hours of such primary transmitter retransmitted by
the cable system to the total broadcast hours of the primary
transmitter.
``(iv) No value shall be assigned for the secondary
transmission of the primary stream or any multicast streams
of a primary transmitter that is a television broadcast
station in any community that is within the local service
area of the primary transmitter.'';
(6) by striking the sixth undesignated paragraph and
inserting the following:
``(6) Network station.--
[[Page S3441]]
``(A) Treatment of primary stream.--The term `network
station' shall be applied to a primary stream of a television
broadcast station that is owned or operated by, or affiliated
with, one or more of the television networks in the United
States providing nationwide transmissions, and that transmits
a substantial part of the programming supplied by such
networks for a substantial part of the primary stream's
typical broadcast day.
``(B) Treatment of multicast streams.--The term `network
station' shall be applied to a multicast stream on which a
television broadcast station transmits all or substantially
all of the programming of an interconnected program service
that--
``(i) is owned or operated by, or affiliated with, one or
more of the television networks described in subparagraph
(A); and
``(ii) offers programming on a regular basis for 15 or more
hours per week to at least 25 of the affiliated television
licensees of the interconnected program service in 10 or more
States.'';
(7) by striking the seventh undesignated paragraph and
inserting the following:
``(7) Independent station.--The term `independent station'
shall be applied to the primary stream or a multicast stream
of a television broadcast station that is not a network
station or a noncommercial educational station.'';
(8) by striking the eighth undesignated paragraph and
inserting the following:
``(8) Noncommercial educational station.--The term
`noncommercial educational station' shall be applied to the
primary stream or a multicast stream of a television
broadcast station that is a noncommercial educational
broadcast station as defined in section 397 of the
Communications Act of 1934, as in effect on the date of the
enactment of the Satellite Television Extension and Localism
Act of 2010.''; and
(9) by adding at the end the following:
``(9) Primary stream.--A `primary stream' is--
``(A) the single digital stream of programming that, before
June 12, 2009, was substantially duplicating the programming
transmitted by the television broadcast station as an analog
signal; or
``(B) if there is no stream described in subparagraph (A),
then the single digital stream of programming transmitted by
the television broadcast station for the longest period of
time.
``(10) Primary transmitter.--A `primary transmitter' is a
television or radio broadcast station licensed by the Federal
Communications Commission, or by an appropriate governmental
authority of Canada or Mexico, that makes primary
transmissions to the public.
``(11) Multicast stream.--A `multicast stream' is a digital
stream of programming that is transmitted by a television
broadcast station and is not the station's primary stream.
``(12) Simulcast.--A `simulcast' is a multicast stream of a
television broadcast station that duplicates the programming
transmitted by the primary stream or another multicast stream
of such station.
``(13) Subscriber; subscribe.--
``(A) Subscriber.--The term `subscriber' means a person or
entity that receives a secondary transmission service from a
cable system and pays a fee for the service, directly or
indirectly, to the cable system.
``(B) Subscribe.--The term `subscribe' means to elect to
become a subscriber.''.
(f) Timing of Section 111 Proceedings.--Section 804(b)(1)
is amended by striking ``2005'' each place it appears and
inserting ``2015''.
(g) Technical and Conforming Amendments.--
(1) Corrections to fix level designations.--Section 111 is
amended--
(A) in subsections (a), (c), and (e), by striking
``clause'' each place it appears and inserting ``paragraph'';
(B) in subsection (c)(1), by striking ``clauses'' and
inserting ``paragraphs''; and
(C) in subsection (e)(1)(F), by striking ``subclause'' and
inserting ``subparagraph''.
(2) Conforming amendment to hyphenate nonnetwork.--Section
111 is amended by striking ``nonnetwork'' each place it
appears and inserting ``non-network''.
(3) Previously undesignated paragraph.--Section 111(e)(1)
is amended by striking ``second paragraph of subsection (f)''
and inserting ``subsection (f)(2)''.
(4) Removal of superfluous ands.--Section 111(e) is
amended--
(A) in paragraph (1)(A), by striking ``and'' at the end;
(B) in paragraph (1)(B), by striking ``and'' at the end;
(C) in paragraph (1)(C), by striking ``and'' at the end;
(D) in paragraph (1)(D), by striking ``and'' at the end;
and
(E) in paragraph (2)(A), by striking ``and'' at the end.
(5) Removal of variant forms references.--Section 111 is
amended--
(A) in subsection (e)(4), by striking ``, and each of its
variant forms,''; and
(B) in subsection (f), by striking ``and their variant
forms''.
(6) Correction to territory reference.--Section 111(e)(2)
is amended in the matter preceding subparagraph (A) by
striking ``three territories'' and inserting ``five
entities''.
(h) Effective Date With Respect to Multicast Streams.--
(1) In general.--Subject to paragraphs (2) and (3), the
amendments made by this section, to the extent such
amendments assign a distant signal equivalent value to the
secondary transmission of the multicast stream of a primary
transmitter, shall take effect on the date of the enactment
of this Act.
(2) Delayed applicability.--
(A) Secondary transmissions of a multicast stream beyond
the local service area of its primary transmitter before 2010
act.--In any case in which a cable system was making
secondary transmissions of a multicast stream beyond the
local service area of its primary transmitter before the date
of the enactment of this Act, a distant signal equivalent
value (referred to in paragraph (1)) shall not be assigned to
secondary transmissions of such multicast stream that are
made on or before June 30, 2010.
(B) Multicast streams subject to preexisting written
agreements for the secondary transmission of such streams.--
In any case in which the secondary transmission of a
multicast stream of a primary transmitter is the subject of a
written agreement entered into on or before June 30, 2009,
between a cable system or an association representing the
cable system and a primary transmitter or an association
representing the primary transmitter, a distant signal
equivalent value (referred to in paragraph (1)) shall not be
assigned to secondary transmissions of such multicast stream
beyond the local service area of its primary transmitter that
are made on or before the date on which such written
agreement expires.
(C) No refunds or offsets for prior statements of
account.--A cable system that has reported secondary
transmissions of a multicast stream beyond the local service
area of its primary transmitter on a statement of account
deposited under section 111 of title 17, United States Code,
before the date of the enactment of this Act shall not be
entitled to any refund, or offset, of royalty fees paid on
account of such secondary transmissions of such multicast
stream.
(3) Definitions.--In this subsection, the terms ``cable
system'', ``secondary transmission'', ``multicast stream'',
and ``local service area of a primary transmitter'' have the
meanings given those terms in section 111(f) of title 17,
United States Code, as amended by this section.
SEC. 105. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
LOCAL SERVICE FOR ALL DMAS.
Section 119 is amended by adding at the end the following
new subsection:
``(g) Certain Waivers Granted to Providers of Local-Into-
Local Service to All DMAs.--
``(1) Injunction waiver.--A court that issued an injunction
pursuant to subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction if
the court recognizes the entity against which the injunction
was issued as a qualified carrier.
``(2) Limited temporary waiver.--
``(A) In general.--Upon a request made by a satellite
carrier, a court that issued an injunction against such
carrier under subsection (a)(7)(B) before the date of the
enactment of this subsection shall waive such injunction with
respect to the statutory license provided under subsection
(a)(2) to the extent necessary to allow such carrier to make
secondary transmissions of primary transmissions made by a
network station to unserved households located in short
markets in which such carrier was not providing local service
pursuant to the license under section 122 as of December 31,
2009.
``(B) Expiration of temporary waiver.--A temporary waiver
of an injunction under subparagraph (A) shall expire after
the end of the 120-day period beginning on the date such
temporary waiver is issued unless extended for good cause by
the court making the temporary waiver.
``(C) Failure to provide local-into-local service to all
dmas.--
``(i) Failure to act reasonably and in good faith.--If the
court issuing a temporary waiver under subparagraph (A)
determines that the satellite carrier that made the request
for such waiver has failed to act reasonably or has failed to
make a good faith effort to provide local-into-local service
to all DMAs, such failure--
``(I) is actionable as an act of infringement under section
501 and the court may in its discretion impose the remedies
provided for in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(II) shall result in the termination of the waiver issued
under subparagraph (A).
``(ii) Failure to provide local-into-local service.--If the
court issuing a temporary waiver under subparagraph (A)
determines that the satellite carrier that made the request
for such waiver has failed to provide local-into-local
service to all DMAs, but determines that the carrier acted
reasonably and in good faith, the court may in its discretion
impose financial penalties that reflect--
``(I) the degree of control the carrier had over the
circumstances that resulted in the failure;
``(II) the quality of the carrier's efforts to remedy the
failure; and
``(III) the severity and duration of any service
interruption.
``(D) Single temporary waiver available.--An entity may
only receive one temporary waiver under this paragraph.
``(E) Short market defined.--For purposes of this
paragraph, the term `short market'
[[Page S3442]]
means a local market in which programming of one or more of
the four most widely viewed television networks nationwide as
measured on the date of the enactment of this subsection is
not offered on the primary stream transmitted by any local
television broadcast station.
``(3) Establishment of qualified carrier recognition.--
``(A) Statement of eligibility.--An entity seeking to be
recognized as a qualified carrier under this subsection shall
file a statement of eligibility with the court that imposed
the injunction. A statement of eligibility must include--
``(i) an affidavit that the entity is providing local-into-
local service to all DMAs;
``(ii) a motion for a waiver of the injunction;
``(iii) a motion that the court appoint a special master
under Rule 53 of the Federal Rules of Civil Procedure;
``(iv) an agreement by the carrier to pay all expenses
incurred by the special master under paragraph (4)(B)(ii);
and
``(v) a certification issued pursuant to section 342(a) of
Communications Act of 1934.
``(B) Grant of recognition as a qualified carrier.--Upon
receipt of a statement of eligibility, the court shall
recognize the entity as a qualified carrier and issue the
waiver under paragraph (1). Upon motion pursuant to
subparagraph (A)(iii), the court shall appoint a special
master to conduct the examination and provide a report to the
court as provided in paragraph (4)(B).
``(C) Voluntary termination.--At any time, an entity
recognized as a qualified carrier may file a statement of
voluntary termination with the court certifying that it no
longer wishes to be recognized as a qualified carrier. Upon
receipt of such statement, the court shall reinstate the
injunction waived under paragraph (1).
``(D) Loss of recognition prevents future recognition.--No
entity may be recognized as a qualified carrier if such
entity had previously been recognized as a qualified carrier
and subsequently lost such recognition or voluntarily
terminated such recognition under subparagraph (C).
``(4) Qualified carrier obligations and compliance.--
``(A) Continuing obligations.--
``(i) In general.--An entity recognized as a qualified
carrier shall continue to provide local-into-local service to
all DMAs.
``(ii) Cooperation with compliance examination.--An entity
recognized as a qualified carrier shall fully cooperate with
the special master appointed by the court under paragraph
(3)(B) in an examination set forth in subparagraph (B).
``(B) Qualified carrier compliance examination.--
``(i) Examination and report.--A special master appointed
by the court under paragraph (3)(B) shall conduct an
examination of, and file a report on, the qualified carrier's
compliance with the royalty payment and household eligibility
requirements of the license under this section. The report
shall address the qualified carrier's conduct during the
period beginning on the date on which the qualified carrier
is recognized as such under paragraph (3)(B) and ending on
April 30, 2012.
``(ii) Records of qualified carrier.--Beginning on the date
that is one year after the date on which the qualified
carrier is recognized as such under paragraph (3)(B), but not
later than December 1, 2011, the qualified carrier shall
provide the special master with all records that the special
master considers to be directly pertinent to the following
requirements under this section:
``(I) Proper calculation and payment of royalties under the
statutory license under this section.
``(II) Provision of service under this license to eligible
subscribers only.
``(iii) Submission of report.--The special master shall
file the report required by clause (i) not later than July
24, 2012, with the court referred to in paragraph (1) that
issued the injunction, and the court shall transmit a copy of
the report to the Register of Copyrights, the Committees on
the Judiciary and on Energy and Commerce of the House of
Representatives, and the Committees on the Judiciary and on
Commerce, Science, and Transportation of the Senate.
``(iv) Evidence of infringement.--The special master shall
include in the report a statement of whether the examination
by the special master indicated that there is substantial
evidence that a copyright holder could bring a successful
action under this section against the qualified carrier for
infringement.
``(v) Subsequent examination.--If the special master's
report includes a statement that its examination indicated
the existence of substantial evidence that a copyright holder
could bring a successful action under this section against
the qualified carrier for infringement, the special master
shall, not later than 6 months after the report under clause
(i) is filed, initiate another examination of the qualified
carrier's compliance with the royalty payment and household
eligibility requirements of the license under this section
since the last report was filed under clause (iii). The
special master shall file a report on the results of the
examination conducted under this clause with the court
referred to in paragraph (1) that issued the injunction, and
the court shall transmit a copy to the Register of
Copyrights, the Committees on the Judiciary and on Energy and
Commerce of the House of Representatives, and the Committees
on the Judiciary and on Commerce, Science, and Transportation
of the Senate. The report shall include a statement described
in clause (iv).
``(vi) Compliance.--Upon motion filed by an aggrieved
copyright owner, the court recognizing an entity as a
qualified carrier shall terminate such designation upon
finding that the entity has failed to cooperate with the
examinations required by this subparagraph.
``(vii) Oversight.--During the period of time that the
special master is conducting an examination under this
subparagraph, the Comptroller General shall monitor the
degree to which the entity seeking to be recognized or
recognized as a qualified carrier under paragraph (3) is
complying with the special master's examination. The
qualified carrier shall make available to the Comptroller
General all records and individuals that the Comptroller
General considers necessary to meet the Comptroller General's
obligations under this clause. The Comptroller General shall
report the results of the monitoring required by this clause
to the Committees on the Judiciary and on Energy and Commerce
of the House of Representatives and the Committees on the
Judiciary and on Commerce, Science, and Transportation of the
Senate at intervals of not less than six months during such
period.
``(C) Affirmation.--A qualified carrier shall file an
affidavit with the district court and the Register of
Copyrights 30 months after such status was granted stating
that, to the best of the affiant's knowledge, it is in
compliance with the requirements for a qualified carrier. The
qualified carrier shall attach to its affidavit copies of all
reports or orders issued by the court, the special master,
and the Comptroller General.
``(D) Compliance determination.--Upon the motion of an
aggrieved television broadcast station, the court recognizing
an entity as a qualified carrier may make a determination of
whether the entity is providing local-into-local service to
all DMAs.
``(E) Pleading requirement.--In any motion brought under
subparagraph (D), the party making such motion shall specify
one or more designated market areas (as such term is defined
in section 122(j)(2)(C)) for which the failure to provide
service is being alleged, and, for each such designated
market area, shall plead with particularity the circumstances
of the alleged failure.
``(F) Burden of proof.--In any proceeding to make a
determination under subparagraph (D), and with respect to a
designated market area for which failure to provide service
is alleged, the entity recognized as a qualified carrier
shall have the burden of proving that the entity provided
local-into-local service with a good quality satellite signal
to at least 90 percent of the households in such designated
market area (based on the most recent census data released by
the United States Census Bureau) at the time and place
alleged.
``(5) Failure to provide service.--
``(A) Penalties.--If the court recognizing an entity as a
qualified carrier finds that such entity has willfully failed
to provide local-into-local service to all DMAs, such finding
shall result in the loss of recognition of the entity as a
qualified carrier and the termination of the waiver provided
under paragraph (1), and the court may, in its discretion--
``(i) treat such failure as an act of infringement under
section 501, and subject such infringement to the remedies
provided for in sections 502 through 506 and subsection
(a)(6)(B) of this section; and
``(ii) impose a fine of not less than $250,000 and not more
than $5,000,000.
``(B) Exception for nonwillful violation.--If the court
determines that the failure to provide local-into-local
service to all DMAs is nonwillful, the court may in its
discretion impose financial penalties for noncompliance that
reflect--
``(i) the degree of control the entity had over the
circumstances that resulted in the failure;
``(ii) the quality of the entity's efforts to remedy the
failure and restore service; and
``(iii) the severity and duration of any service
interruption.
``(6) Penalties for violations of license.--A court that
finds, under subsection (a)(6)(A), that an entity recognized
as a qualified carrier has willfully made a secondary
transmission of a primary transmission made by a network
station and embodying a performance or display of a work to a
subscriber who is not eligible to receive the transmission
under this section shall reinstate the injunction waived
under paragraph (1), and the court may order statutory
damages of not more than $2,500,000.
``(7) Local-into-local service to all dmas defined.--For
purposes of this subsection:
``(A) In general.--An entity provides `local-into-local
service to all DMAs' if the entity provides local service in
all designated market areas (as such term is defined in
section 122(j)(2)(C)) pursuant to the license under section
122.
``(B) Household coverage.--For purposes of subparagraph
(A), an entity that makes available local-into-local service
with a good quality satellite signal to at least 90 percent
of the households in a designated market area based on the
most recent census data released by the United States Census
Bureau shall be considered to be providing local service to
such designated market area.
[[Page S3443]]
``(C) Good quality satellite signal defined.--The term
`good quality satellite signal' has the meaning given such
term under section 342(e)(2) of Communications Act of
1934.''.
SEC. 106. COPYRIGHT OFFICE FEES.
Section 708(a) is amended--
(1) in paragraph (8), by striking ``and'' after the
semicolon;
(2) in paragraph (9), by striking the period and inserting
a semicolon;
(3) by inserting after paragraph (9) the following:
``(10) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section
119 or 122; and
``(11) on filing a statement of account based on secondary
transmissions of primary transmissions pursuant to section
111.''; and
(4) by adding at the end the following new sentence: ``Fees
established under paragraphs (10) and (11) shall be
reasonable and may not exceed one-half of the cost necessary
to cover reasonable expenses incurred by the Copyright Office
for the collection and administration of the statements of
account and any royalty fees deposited with such
statements.''.
SEC. 107. TERMINATION OF LICENSE.
(a) Termination.--Section 119 of title 17, United States
Code, as amended by this Act, shall cease to be effective on
December 31, 2014.
(b) Conforming Amendment.--Section 1003(a)(2)(A) of Public
Law 111-118 (17 U.S.C. 119 note) is repealed.
SEC. 108. CONSTRUCTION.
Nothing in section 111, 119, or 122 of title 17, United
States Code, including the amendments made to such sections
by this title, shall be construed to affect the meaning of
any terms under the Communications Act of 1934, except to the
extent that such sections are specifically cross-referenced
in such Act or the regulations issued thereunder.
TITLE II--COMMUNICATIONS PROVISIONS
SEC. 201. REFERENCE.
Except as otherwise provided, whenever in this title an
amendment is made to a section or other provision, the
reference shall be considered to be made to such section or
provision of the Communications Act of 1934 (47 U.S.C. 151 et
seq.).
SEC. 202. EXTENSION OF AUTHORITY.
Section 325(b) is amended--
(1) in paragraph (2)(C), by striking ``May 31, 2010'' and
inserting ``December 31, 2014''; and
(2) in paragraph (3)(C), by striking ``June 1, 2010'' each
place it appears in clauses (ii) and (iii) and inserting
``January 1, 2015''.
SEC. 203. SIGNIFICANTLY VIEWED STATIONS.
(a) In General.--Paragraphs (1) and (2) of section 340(b)
are amended to read as follows:
``(1) Service limited to subscribers taking local-into-
local service.--This section shall apply only to
retransmissions to subscribers of a satellite carrier who
receive retransmissions of a signal from that satellite
carrier pursuant to section 338.
``(2) Service limitations.--A satellite carrier may
retransmit to a subscriber in high definition format the
signal of a station determined by the Commission to be
significantly viewed under subsection (a) only if such
carrier also retransmits in high definition format the signal
of a station located in the local market of such subscriber
and affiliated with the same network whenever such format is
available from such station.''.
(b) Rulemaking Required.--Within 270 days after the date of
the enactment of this Act, the Federal Communications
Commission shall take all actions necessary to promulgate a
rule to implement the amendments made by subsection (a).
SEC. 204. DIGITAL TELEVISION TRANSITION CONFORMING
AMENDMENTS.
(a) Section 338.--Section 338 is amended--
(1) in subsection (a), by striking ``(3) effective date.--
No satellite'' and all that follows through ``until January
1, 2002.''; and
(2) by amending subsection (g) to read as follows:
``(g) Carriage of Local Stations on a Single Reception
Antenna.--
``(1) Single reception antenna.--Each satellite carrier
that retransmits the signals of local television broadcast
stations in a local market shall retransmit such stations in
such market so that a subscriber may receive such stations by
means of a single reception antenna and associated equipment.
``(2) Additional reception antenna.--If the carrier
retransmits the signals of local television broadcast
stations in a local market in high definition format, the
carrier shall retransmit such signals in such market so that
a subscriber may receive such signals by means of a single
reception antenna and associated equipment, but such antenna
and associated equipment may be separate from the single
reception antenna and associated equipment used to comply
with paragraph (1).''.
(b) Section 339.--Section 339 is amended--
(1) in subsection (a)--
(A) in paragraph (1)(B), by striking ``Such two network
stations'' and all that follows through ``more than two
network stations.''; and
(B) in paragraph (2)--
(i) in the heading for subparagraph (A), by striking ``to
analog signals'';
(ii) in subparagraph (A)--
(I) in the heading for clause (i), by striking ``analog'';
(II) in clause (i)--
(aa) by striking ``analog'' each place it appears; and
(bb) by striking ``October 1, 2004'' and inserting
``October 1, 2009'';
(III) in the heading for clause (ii), by striking
``analog''; and
(IV) in clause (ii)--
(aa) by striking ``analog'' each place it appears; and
(bb) by striking ``2004'' and inserting ``2009'';
(iii) by amending subparagraph (B) to read as follows:
``(B) Rules for other subscribers.--
``(i) In general.--In the case of a subscriber of a
satellite carrier who is eligible to receive the signal of a
network station under this section (in this subparagraph
referred to as a `distant signal'), other than subscribers to
whom subparagraph (A) applies, the following shall apply:
``(I) In a case in which the satellite carrier makes
available to that subscriber, on January 1, 2005, the signal
of a local network station affiliated with the same
television network pursuant to section 338, the carrier may
only provide the secondary transmissions of the distant
signal of a station affiliated with the same network to that
subscriber if the subscriber's satellite carrier, not later
than March 1, 2005, submits to that television network the
list and statement required by subparagraph (F)(i).
``(II) In a case in which the satellite carrier does not
make available to that subscriber, on January 1, 2005, the
signal of a local network station pursuant to section 338,
the carrier may only provide the secondary transmissions of
the distant signal of a station affiliated with the same
network to that subscriber if--
``(aa) that subscriber seeks to subscribe to such distant
signal before the date on which such carrier commences to
carry pursuant to section 338 the signals of stations from
the local market of such local network station; and
``(bb) the satellite carrier, within 60 days after such
date, submits to each television network the list and
statement required by subparagraph (F)(ii).
``(ii) Special circumstances.--A subscriber of a satellite
carrier who was lawfully receiving the distant signal of a
network station on the day before the date of enactment of
the Satellite Television Extension and Localism Act of 2010
may receive both such distant signal and the local signal of
a network station affiliated with the same network until such
subscriber chooses to no longer receive such distant signal
from such carrier, whether or not such subscriber elects to
subscribe to such local signal.'';
(iv) in subparagraph (C)--
(I) by striking ``analog'';
(II) in clause (i), by striking ``the Satellite Home Viewer
Extension and Reauthorization Act of 2004; and'' and
inserting the following:
``the Satellite Television Extension and Localism Act of 2010
and, at the time such person seeks to subscribe to receive
such secondary transmission, resides in a local market where
the satellite carrier makes available to that person the
signal of a local network station affiliated with the same
television network pursuant to section 338 (and the
retransmission of such signal by such carrier can reach such
subscriber); or''; and
(III) by amending clause (ii) to read as follows:
``(ii) lawfully subscribes to and receives a distant signal
on or after the date of enactment of the Satellite Television
Extension and Localism Act of 2010, and, subsequent to such
subscription, the satellite carrier makes available to that
subscriber the signal of a local network station affiliated
with the same network as the distant signal (and the
retransmission of such signal by such carrier can reach such
subscriber), unless such person subscribes to the signal of
the local network station within 60 days after such signal is
made available.'';
(v) in subparagraph (D)--
(I) in the heading, by striking ``digital'';
(II) by striking clauses (i), (iii) through (v), (vii)
through (ix), and (xi);
(III) by redesignating clause (vi) as clause (i) and
transferring such clause to appear before clause (ii);
(IV) by amending such clause (i) (as so redesignated) to
read as follows:
``(i) Eligibility and signal testing.--A subscriber of a
satellite carrier shall be eligible to receive a distant
signal of a network station affiliated with the same network
under this section if, with respect to a local network
station, such subscriber--
``(I) is a subscriber whose household is not predicted by
the model specified in subsection (c)(3) to receive the
signal intensity required under section 73.622(e)(1) or, in
the case of a low-power station or translator station
transmitting an analog signal, section 73.683(a) of title 47,
Code of Federal Regulations, or a successor regulation;
``(II) is determined, based on a test conducted in
accordance with section 73.686(d) of title 47, Code of
Federal Regulations, or any successor regulation, not to be
able to receive a signal that exceeds the signal intensity
standard in section 73.622(e)(1) or, in the case of a low-
power station or translator station transmitting an analog
signal, section 73.683(a) of such title, or a successor
regulation; or
``(III) is in an unserved household, as determined under
section 119(d)(10)(A) of title 17, United States Code.'';
(V) in clause (ii)--
(aa) by striking ``digital'' in the heading;
(bb) by striking ``digital'' the first two places such term
appears;
[[Page S3444]]
(cc) by striking ``Satellite Home Viewer Extension and
Reauthorization Act of 2004'' and inserting ``Satellite
Television Extension and Localism Act of 2010''; and
(dd) by striking ``, whether or not such subscriber elects
to subscribe to local digital signals'';
(VI) by inserting after clause (ii) the following new
clause:
``(iii) Time-shifting prohibited.--In a case in which the
satellite carrier makes available to an eligible subscriber
under this subparagraph the signal of a local network station
pursuant to section 338, the carrier may only provide the
distant signal of a station affiliated with the same network
to that subscriber if, in the case of any local market in the
48 contiguous States of the United States, the distant signal
is the secondary transmission of a station whose prime time
network programming is generally broadcast simultaneously
with, or later than, the prime time network programming of
the affiliate of the same network in the local market.''; and
(VII) by redesignating clause (x) as clause (iv); and
(vi) in subparagraph (E), by striking ``distant analog
signal or'' and all that follows through ``(B), or (D))'' and
inserting ``distant signal'';
(2) in subsection (c)--
(A) by amending paragraph (3) to read as follows:
``(3) Establishment of improved predictive model and on-
location testing required.--
``(A) Predictive model.--Within 270 days after the date of
the enactment of the Satellite Television Extension and
Localism Act of 2010, the Commission shall develop and
prescribe by rule a point-to-point predictive model for
reliably and presumptively determining the ability of
individual locations, through the use of an antenna, to
receive signals in accordance with the signal intensity
standard in section 73.622(e)(1) of title 47, Code of Federal
Regulations, or a successor regulation, including to account
for the continuing operation of translator stations and low
power television stations. In prescribing such model, the
Commission shall rely on the Individual Location Longley-Rice
model set forth by the Commission in CS Docket No. 98-201, as
previously revised with respect to analog signals, and as
recommended by the Commission with respect to digital signals
in its Report to Congress in ET Docket No. 05-182, FCC 05-199
(released December 9, 2005). The Commission shall establish
procedures for the continued refinement in the application of
the model by the use of additional data as it becomes
available.
``(B) On-location testing.--The Commission shall issue an
order completing its rulemaking proceeding in ET Docket No.
06-94 within 270 days after the date of enactment of the
Satellite Television Extension and Localism Act of 2010. In
conducting such rulemaking, the Commission shall seek ways to
minimize consumer burdens associated with on-location
testing.'';
(B) by amending paragraph (4)(A) to read as follows:
``(A) In general.--If a subscriber's request for a waiver
under paragraph (2) is rejected and the subscriber submits to
the subscriber's satellite carrier a request for a test
verifying the subscriber's inability to receive a signal of
the signal intensity referenced in clause (i) of subsection
(a)(2)(D), the satellite carrier and the network station or
stations asserting that the retransmission is prohibited with
respect to that subscriber shall select a qualified and
independent person to conduct the test referenced in such
clause. Such test shall be conducted within 30 days after the
date the subscriber submits a request for the test. If the
written findings and conclusions of a test conducted in
accordance with such clause demonstrate that the subscriber
does not receive a signal that meets or exceeds the requisite
signal intensity standard in such clause, the subscriber
shall not be denied the retransmission of a signal of a
network station under section 119(d)(10)(A) of title 17,
United States Code.'';
(C) in paragraph (4)(B), by striking ``the signal
intensity'' and all that follows through ``United States
Code'' and inserting ``such requisite signal intensity
standard''; and
(D) in paragraph (4)(E), by striking ``Grade B intensity''.
(c) Section 340.--Section 340(i) is amended by striking
paragraph (4).
SEC. 205. APPLICATION PENDING COMPLETION OF RULEMAKINGS.
(a) In General.--During the period beginning on the date of
the enactment of this Act and ending on the date on which the
Federal Communications Commission adopts rules pursuant to
the amendments to the Communications Act of 1934 made by
section 203 and section 204 of this title, the Federal
Communications Commission shall follow its rules and
regulations promulgated pursuant to sections 338, 339, and
340 of the Communications Act of 1934 as in effect on the day
before the date of the enactment of this Act.
(b) Translator Stations and Low Power Television
Stations.--Notwithstanding subsection (a), for purposes of
determining whether a subscriber within the local market
served by a translator station or a low power television
station affiliated with a television network is eligible to
receive distant signals under section 339 of the
Communications Act of 1934, the rules and regulations of the
Federal Communications Commission for determining such
subscriber's eligibility as in effect on the day before the
date of the enactment of this Act shall apply until the date
on which the translator station or low power television
station is licensed to broadcast a digital signal.
(c) Definitions.--As used in this subtitle:
(1) Local market; low power television station; satellite
carrier; subscriber; television broadcast station.--The terms
``local market'', ``low power television station'',
``satellite carrier'', ``subscriber'', and ``television
broadcast station'' have the meanings given such terms in
section 338(k) of the Communications Act of 1934.
(2) Network station; television network.--The terms
``network station'' and ``television network'' have the
meanings given such terms in section 339(d) of such Act.
SEC. 206. PROCESS FOR ISSUING QUALIFIED CARRIER
CERTIFICATION.
Part I of title III is amended by adding at the end the
following new section:
``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER
CERTIFICATION.
``(a) Certification.--The Commission shall issue a
certification for the purposes of section 119(g)(3)(A)(iii)
of title 17, United States Code, if the Commission determines
that--
``(1) a satellite carrier is providing local service
pursuant to the statutory license under section 122 of such
title in each designated market area; and
``(2) with respect to each designated market area in which
such satellite carrier was not providing such local service
as of the date of enactment of the Satellite Television
Extension and Localism Act of 2010--
``(A) the satellite carrier's satellite beams are designed,
and predicted by the satellite manufacturer's pre-launch test
data, to provide a good quality satellite signal to at least
90 percent of the households in each such designated market
area based on the most recent census data released by the
United States Census Bureau; and
``(B) there is no material evidence that there has been a
satellite or sub-system failure subsequent to the satellite's
launch that precludes the ability of the satellite carrier to
satisfy the requirements of subparagraph (A).
``(b) Information Required.--Any entity seeking the
certification provided for in subsection (a) shall submit to
the Commission the following information:
``(1) An affidavit stating that, to the best of the
affiant's knowledge, the satellite carrier provides local
service in all designated market areas pursuant to the
statutory license provided for in section 122 of title 17,
United States Code, and listing those designated market areas
in which local service was provided as of the date of
enactment of the Satellite Television Extension and Localism
Act of 2010.
``(2) For each designated market area not listed in
paragraph (1):
``(A) Identification of each such designated market area
and the location of its local receive facility.
``(B) Data showing the number of households, and maps
showing the geographic distribution thereof, in each such
designated market area based on the most recent census data
released by the United States Census Bureau.
``(C) Maps, with superimposed effective isotropically
radiated power predictions obtained in the satellite
manufacturer's pre-launch tests, showing that the contours of
the carrier's satellite beams as designed and the geographic
area that the carrier's satellite beams are designed to cover
are predicted to provide a good quality satellite signal to
at least 90 percent of the households in such designated
market area based on the most recent census data released by
the United States Census Bureau.
``(D) For any satellite relied upon for certification under
this section, an affidavit stating that, to the best of the
affiant's knowledge, there have been no satellite or sub-
system failures subsequent to the satellite's launch that
would degrade the design performance to such a degree that a
satellite transponder used to provide local service to any
such designated market area is precluded from delivering a
good quality satellite signal to at least 90 percent of the
households in such designated market area based on the most
recent census data released by the United States Census
Bureau.
``(E) Any additional engineering, designated market area,
or other information the Commission considers necessary to
determine whether the Commission shall grant a certification
under this section.
``(c) Certification Issuance.--
``(1) Public comment.--The Commission shall provide 30 days
for public comment on a request for certification under this
section.
``(2) Deadline for decision.--The Commission shall grant or
deny a request for certification within 90 days after the
date on which such request is filed.
``(d) Subsequent Affirmation.--An entity granted qualified
carrier status pursuant to section 119(g) of title 17, United
States Code, shall file an affidavit with the Commission 30
months after such status was granted stating that, to the
best of the affiant's knowledge, it is in compliance with the
requirements for a qualified carrier.
``(e) Definitions.--For the purposes of this section:
``(1) Designated market area.--The term `designated market
area' has the meaning given such term in section 122(j)(2)(C)
of title 17, United States Code.
``(2) Good quality satellite signal.--
[[Page S3445]]
``(A) In general.--The term ``good quality satellite
signal'' means--
``(i) a satellite signal whose power level as designed
shall achieve reception and demodulation of the signal at an
availability level of at least 99.7 percent using--
``(I) models of satellite antennas normally used by the
satellite carrier's subscribers; and
``(II) the same calculation methodology used by the
satellite carrier to determine predicted signal availability
in the top 100 designated market areas; and
``(ii) taking into account whether a signal is in standard
definition format or high definition format, compression
methodology, modulation, error correction, power level, and
utilization of advances in technology that do not circumvent
the intent of this section to provide for non-discriminatory
treatment with respect to any comparable television broadcast
station signal, a video signal transmitted by a satellite
carrier such that--
``(I) the satellite carrier treats all television broadcast
stations' signals the same with respect to statistical
multiplexer prioritization; and
``(II) the number of video signals in the relevant
satellite transponder is not more than the then current
greatest number of video signals carried on any equivalent
transponder serving the top 100 designated market areas.
``(B) Determination.--For the purposes of subparagraph (A),
the top 100 designated market areas shall be as determined by
Nielsen Media Research and published in the Nielsen Station
Index Directory and Nielsen Station Index United States
Television Household Estimates or any successor publication
as of the date of a satellite carrier's application for
certification under this section.''.
SEC. 207. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION
DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL
TELEVISION STATIONS.
(a) In General.--Section 338(a) is amended by adding at the
end the following new paragraph:
``(5) Nondiscrimination in carriage of high definition
signals of noncommercial educational television stations.--
``(A) Existing carriage of high definition signals.--If,
before the date of enactment of the Satellite Television
Extension and Localism Act of 2010, an eligible satellite
carrier is providing, under section 122 of title 17, United
States Code, any secondary transmissions in high definition
format to subscribers located within the local market of a
television broadcast station of a primary transmission made
by that station, then such satellite carrier shall carry the
signals in high-definition format of qualified noncommercial
educational television stations located within that local
market in accordance with the following schedule:
``(i) By December 31, 2010, in at least 50 percent of the
markets in which such satellite carrier provides such
secondary transmissions in high definition format.
``(ii) By December 31, 2011, in every market in which such
satellite carrier provides such secondary transmissions in
high definition format.
``(B) New initiation of service.--If, on or after the date
of enactment of the Satellite Television Extension and
Localism Act of 2010, an eligible satellite carrier initiates
the provision, under section 122 of title 17, United States
Code, of any secondary transmissions in high definition
format to subscribers located within the local market of a
television broadcast station of a primary transmission made
by that station, then such satellite carrier shall carry the
signals in high-definition format of all qualified
noncommercial educational television stations located within
that local market.''.
(b) Definitions.--Section 338(k) is amended--
(1) by redesignating paragraphs (2) through (8) as
paragraphs (3) through (9), respectively;
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Eligible satellite carrier.--The term `eligible
satellite carrier' means any satellite carrier that is not a
party to a carriage contract that--
``(A) governs carriage of at least 30 qualified
noncommercial educational television stations; and
``(B) is in force and effect within 150 days after the date
of enactment of the Satellite Television Extension and
Localism Act of 2010.'';
(3) by redesignating paragraphs (6) through (9) (as
previously redesignated) as paragraphs (7) through (10),
respectively; and
(4) by inserting after paragraph (5) (as so redesignated)
the following new paragraph:
``(6) Qualified noncommercial educational television
station.--The term `qualified noncommercial educational
television station' means any full-power television broadcast
station that--
``(A) under the rules and regulations of the Commission in
effect on March 29, 1990, is licensed by the Commission as a
noncommercial educational broadcast station and is owned and
operated by a public agency, nonprofit foundation, nonprofit
corporation, or nonprofit association; and
``(B) has as its licensee an entity that is eligible to
receive a community service grant, or any successor grant
thereto, from the Corporation for Public Broadcasting, or any
successor organization thereto, on the basis of the formula
set forth in section 396(k)(6)(B) of this title.''.
SEC. 208. SAVINGS CLAUSE REGARDING DEFINITIONS.
Nothing in this title or the amendments made by this title
shall be construed to affect--
(1) the meaning of the terms ``program related'' and
``primary video'' under the Communications Act of 1934; or
(2) the meaning of the term ``multicast'' in any
regulations issued by the Federal Communications Commission.
SEC. 209. STATE PUBLIC AFFAIRS BROADCASTS.
Section 335(b) is amended--
(1) by inserting ``STATE PUBLIC AFFAIRS,'' after
``EDUCATIONAL,'' in the heading;
(2) by striking paragraph (1) and inserting the following:
``(1) Channel capacity required.--
``(A) In general.--Except as provided in subparagraph (B),
the Commission shall require, as a condition of any
provision, initial authorization, or authorization renewal
for a provider of direct broadcast satellite service
providing video programming, that the provider of such
service reserve a portion of its channel capacity, equal to
not less than 4 percent nor more than 7 percent, exclusively
for noncommercial programming of an educational or
informational nature.
``(B) Requirement for qualified satellite provider.--The
Commission shall require, as a condition of any provision,
initial authorization, or authorization renewal for a
qualified satellite provider of direct broadcast satellite
service providing video programming, that such provider
reserve a portion of its channel capacity, equal to not less
than 3.5 percent nor more than 7 percent, exclusively for
noncommercial programming of an educational or informational
nature.'';
(3) in paragraph (5), by striking ``For purposes of the
subsection--'' and inserting ``For purposes of this
subsection:''; and
(4) by adding at the end of paragraph (5) the following:
``(C) The term `qualified satellite provider' means any
provider of direct broadcast satellite service that--
``(i) provides the retransmission of the State public
affairs networks of at least 15 different States;
``(ii) offers the programming of State public affairs
networks upon reasonable prices, terms, and conditions as
determined by the Commission under paragraph (4); and
``(iii) does not delete any noncommercial programming of an
educational or informational nature in connection with the
carriage of a State public affairs network.
``(D) The term `State public affairs network' means a non-
commercial non-broadcast network or a noncommercial
educational television station--
``(i) whose programming consists of information about State
government deliberations and public policy events; and
``(ii) that is operated by--
``(I) a State government or subdivision thereof;
``(II) an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 that is exempt from
taxation under section 501(a) of such Code and that is
governed by an independent board of directors; or
``(III) a cable system.''.
TITLE III--REPORTS AND SAVINGS PROVISION
SEC. 301. DEFINITION.
In this title, the term ``appropriate Congressional
committees'' means the Committees on the Judiciary and on
Commerce, Science, and Transportation of the Senate and the
Committees on the Judiciary and on Energy and Commerce of the
House of Representatives.
SEC. 302. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY
LICENSING.
Not later than 18 months after the date of the enactment of
this Act, and after consultation with the Federal
Communications Commission, the Register of Copyrights shall
submit to the appropriate Congressional committees a report
containing--
(1) proposed mechanisms, methods, and recommendations on
how to implement a phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code, by making such sections inapplicable
to the secondary transmission of a performance or display of
a work embodied in a primary transmission of a broadcast
station that is authorized to license the same secondary
transmission directly with respect to all of the performances
and displays embodied in such primary transmission;
(2) any recommendations for alternative means to implement
a timely and effective phase-out of the statutory licensing
requirements set forth in sections 111, 119, and 122 of title
17, United States Code; and
(3) any recommendations for legislative or administrative
actions as may be appropriate to achieve such a phase-out.
SEC. 303. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY
LICENSING MODIFICATIONS.
(a) Study.--The Comptroller General shall conduct a study
that analyzes and evaluates the changes to the carriage
requirements currently imposed on multichannel video
programming distributors under the Communications Act of 1934
(47 U.S.C. 151 et seq.) and the regulations promulgated by
the Federal Communications Commission that would be required
or beneficial to consumers, and such other matters as the
Comptroller General deems appropriate, if Congress
implemented a phase-out of the current statutory licensing
requirements set forth
[[Page S3446]]
under sections 111, 119, and 122 of title 17, United States
Code. Among other things, the study shall consider the impact
such a phase-out and related changes to carriage requirements
would have on consumer prices and access to programming.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall report
to the appropriate Congressional committees the results of
the study, including any recommendations for legislative or
administrative actions.
SEC. 304. REPORT ON IN-STATE BROADCAST PROGRAMMING.
Not later than 18 months after the date of the enactment of
this Act, the Federal Communications Commission shall submit
to the appropriate Congressional committees a report
containing an analysis of--
(1) the number of households in a State that receive the
signals of local broadcast stations assigned to a community
of license that is located in a different State;
(2) the extent to which consumers in each local market have
access to in-state broadcast programming over the air or from
a multichannel video programming distributor; and
(3) whether there are alternatives to the use of designated
market areas, as defined in section 122 of title 17, United
States Code, to define local markets that would provide more
consumers with in-state broadcast programming.
SEC. 305. LOCAL NETWORK CHANNEL BROADCAST REPORTS.
(a) Requirement.--
(1) In general.--On the 270th day after the date of the
enactment of this Act, and on each succeeding anniversary of
such 270th day, each satellite carrier shall submit an annual
report to the Federal Communications Commission setting
forth--
(A) each local market in which it--
(i) retransmits signals of 1 or more television broadcast
stations with a community of license in that market;
(ii) has commenced providing such signals in the preceding
1-year period; and
(iii) has ceased to provide such signals in the preceding
1-year period; and
(B) detailed information regarding the use and potential
use of satellite capacity for the retransmission of local
signals in each local market.
(2) Termination.--The requirement under paragraph (1) shall
cease after each satellite carrier has submitted 5 reports
under such paragraph.
(b) FCC Study; Report.--
(1) Study.--If no satellite carrier files a request for a
certification under section 342 of the Communications Act of
1934 (as added by section 206 of this title) within 270 days
after the date of the enactment of this Act, the Federal
Communications Commission shall initiate a study of--
(A) incentives that would induce a satellite carrier to
provide the signals of 1 or more television broadcast
stations licensed to provide signals in local markets in
which the satellite carrier does not provide such signals;
and
(B) the economic and satellite capacity conditions
affecting delivery of local signals by satellite carriers to
these markets.
(2) Report.--Within 1 year after the date of the initiation
of the study under paragraph (1), the Federal Communications
Commission shall submit a report to the appropriate
Congressional committees containing its findings,
conclusions, and recommendations.
(c) Definitions.--In this section--
(1) the terms ``local market'' and ``satellite carrier''
have the meaning given such terms in section 339(d) of the
Communications Act of 1934 (47 U.S.C. 339(d)); and
(2) the term ``television broadcast station'' has the
meaning given such term in section 325(b)(7) of such Act (47
U.S.C. 325(b)(7)).
SEC. 306. SAVINGS PROVISION REGARDING USE OF NEGOTIATED
LICENSES.
(a) In General.--Nothing in this Act, title 17, United
States Code, the Communications Act of 1934, regulations
promulgated by the Register of Copyrights under this title or
title 17, United States Code, or regulations promulgated by
the Federal Communications Commission under this Act or the
Communications Act of 1934 shall be construed to prevent a
multichannel video programming distributor from
retransmitting a performance or display of a work pursuant to
an authorization granted by the copyright owner or, if within
the scope of its authorization, its licensee.
(b) Limitation.--Nothing in subsection (a) shall be
construed to affect any obligation of a multichannel video
programming distributor under section 325(b) of the
Communications Act of 1934 to obtain the authority of a
television broadcast station before retransmitting that
station's signal.
SEC. 307. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.
(a) Effective Date.--Unless specifically provided
otherwise, this Act, and the amendments made by this Act,
shall take effect on February 27, 2010, and with the
exception of the reference in subsection (b), all references
to the date of enactment of this Act shall be deemed to refer
to February 27, 2010, unless otherwise specified.
(b) Noninfringement of Copyright.--The secondary
transmission of a performance or display of a work embodied
in a primary transmission is not an infringement of copyright
if it was made by a satellite carrier on or after February
27, 2010, and prior to enactment of this Act, and was in
compliance with the law as in existence on February 27, 2010.
TITLE IV--SEVERABILITY
SEC. 401. SEVERABILITY.
If any provision of this Act, an amendment made by this
Act, or the application of such provision or amendment to any
person or circumstance is held to be unconstitutional, the
remainder of this Act, the amendments made by this Act, and
the application of such provision or amendment to any person
or circumstance shall not be affected thereby.
TITLE V--DETERMINATION OF BUDGETARY EFFECTS
SEC. 501. DETERMINATION OF BUDGETARY EFFECTS.
(a) In General.--The budgetary effects of this Act, for the
purpose of complying with the Statutory Pay-As-You-Go-Act of
2010, shall be determined by reference to the latest
statement titled ``Budgetary Effects of PAYGO Legislation''
for this Act, submitted for printing in the Congressional
Record by the Chairman of the Senate Budget Committee,
provided that such statement has been submitted prior to the
vote on passage.
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