    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-175
    111th Congress

    An Act

    To extend the statutory license for secondary transmissions under title
    17, United States Code, and for other purposes. <>

    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.
    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.

    [[Page 1219]]

    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

    [[Page 1220]]

    ``(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

    [[Page 1221]]

    (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'';

    [[Page 1222]]

    (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
    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.--

    [[Page 1223]]

    ``(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);

    [[Page 1224]]

    (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

    [[Page 1225]]

    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.

    [[Page 1226]]

    ``(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 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--

    [[Page 1227]]

    (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

    [[Page 1228]]

    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

    [[Page 1229]]

    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 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).

    [[Page 1230]]

    ``(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'';

    [[Page 1231]]

    (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)--

    [[Page 1232]]

    (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

    [[Page 1233]]

    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
    ``(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

    [[Page 1234]]

    (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

    [[Page 1235]]

    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'--

    [[Page 1236]]

    ``(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

    [[Page 1237]]

    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.--
    ``(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.

    [[Page 1238]]

    ``(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.--

    [[Page 1239]]

    (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.--

    [[Page 1240]]

    ``(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' 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.--

    [[Page 1241]]

    ``(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

    [[Page 1242]]

    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

    [[Page 1243]]

    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

    [[Page 1244]]

    ``(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.
    ``(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

    [[Page 1245]]

    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).

    [[Page 1246]]

    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

    [[Page 1247]]

    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

    [[Page 1248]]

    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;
    (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

    [[Page 1249]]

    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

    [[Page 1250]]

    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

    [[Page 1251]]

    ``(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.--

    [[Page 1252]]

    ``(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.--
    ``(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.''.

    [[Page 1253]]

    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:

    [[Page 1254]]

    ``(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

    [[Page 1255]]

    ``(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

    [[Page 1256]]

    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 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

    [[Page 1257]]

    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.

    [[Page 1258]]

    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.

    Approved May 27, 2010.

    LEGISLATIVE HISTORY--S. 3333:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 156 (2010):
    May 7, considered and passed Senate.
    May 12, considered and passed House.