[Congressional Record (Bound Edition), Volume 155 (2009), Part 16]
[Extensions of Remarks]
[Pages 21695-21696]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCTION OF SATELLITE HOME VIEWER UPDATE AND REAUTHORIZATION ACT 
                              (``SHVURA'')

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                      Tuesday, September 15, 2009

  Mr. CONYERS. Madam Speaker, today I am introducing the ``Satellite 
Home Viewer Update and Reauthorization Act,'' legislation that 
modernizes, simplifies and improves the compulsory copyright licenses 
governing the retransmission of distant television signals by cable and 
satellite television operators. I am joined by Representative Boucher, 
Representative Wasserman Schultz and Representative Johnson.
  Both the cable and satellite industries rely on these licenses to 
provide television programming to their customers. The satellite 
Section 119 license will expire on December 31, unless we act. This 
legislation renews the satellite license for five years.
  These compulsory copyright licenses were designed to facilitate 
investment in new creative works by the satellite and cable industries 
by eliminating direct negotiation with the copyright owners for the use 
of distant signal programming. These companies pay copyright royalty 
fees to a pool, at a rate set by statute, and are then distributed to 
the copyright owners by the United States Copyright Office.
  In the five years since we last addressed these issues, the cable and 
satellite industries have changed dramatically. The country underwent a 
transition from analog to digital television, the cable industry has 
grown and consolidated, and the satellite industry has expended its 
reach, signing up more subscribers and providing more markets with 
local-into-local service.
  This legistion reflects the recent transition to digital television 
by clarifying that the compulsory licenses apply to digital streams 
instead of just analog streams, and by providing for an updated 
technological model to predict the eligibility of satellite subscribers 
for distant signals under the Section 119 license. It also takes into 
account the advent of multicasting, which is a direct result of the new 
capacity created by the transition to digital signals and was not 
contemplated by the previous licensing schemes.
  One important purpose of the Section 119 license is to ensure that 
consumers who live in markets that may be missing certain network 
affiliates can receive the full complement of network programming. The 
new language clarifies the ways in which the license can be used by 
satellite companies to accomplish this.
  Changes in the cable television marketplace have resulted in 
confusion over the proper way to calculate royalties under the Section 
111 cable compulsory license. This so-called ``phantom signal'' 
uncertainty has chilled both the cable and content industries, creating 
legal ambiguity that deters investment and growth, and threatens to 
raise cable price and disrupt cable service. This legislation alters 
the way the royalty rates are calculated to restore certainty to the 
marketplace and make the compensation for copyrighted content more 
fair.
  This legislation also gives television and cable providers the 
flexibility they need to assist the United States Government in times 
of national emergency. Previously, during national emergencies, the 
compulsory licenses precluded cable and satellite companies from 
broadcasting certain distant signals to government organizations. Now 
the licensees can provide the government with the information it needs 
to monitor and respond to a natural disaster or man-made catastrophe.
  This legislation also attempts to help rural markets that are 
currently not receiving ``local-into-local'' service. To incentivize 
satellite companies to serve these disadvantaged markets, the 
legislation restores the section 119 license to DISH network, which 
lost its license three years ago for noncompliance, on the condition 
that DISH enter all television markets in the United States. It is 
anticipated that this change will spur price and market competition 
between the major satellite providers to broaden and improve service to 
consumers.
  The legislation streamlilnes and updates the compulsory license 
system in several other ways. It substantially heightens the penalties 
for copyright infringement. It provides a verification right for 
copyright owners to ensure that they are being properly compensated for 
the use of their intellectual property. It corrects and updates 
provisions related to rate-setting proceedings before the Copyright 
Royalty Judges. It adds a royalty filing fee to defray the 
administrative costs of disbursing the copyright payments to the pool. 
And it moves provisions for low power television and ``significantly 
viewed'' stations from Section 119 to Section 122 to reflect the 
``local'' nature of those signals.

[[Page 21696]]

  The current compulsory licenses were not designed for this new 
digital era. This legislation is necessary to avoid immediate 
disruption in service to satellite consumers, long-term deterioration 
of service to cable consumers, and to enhance and protect the rights of 
content-creators.

                          ____________________