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