HR 3210 IH

105th CONGRESS

2d Session

H. R. 3210

To amend title 17, United States Code, to reform the copyright law with respect

to satellite retransmissions of broadcast signals, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

February 12, 1998

Mr. COBLE introduced the following bill; which was referred to the Committee on

the Judiciary, and in addition to the Committee on Commerce, for a period to be

subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend title 17, United States Code, to reform the copyright law with respect

to satellite retransmissions of broadcast signals, 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.

This Act may be cited as the `Copyright Compulsory License Improvement Act'.

SEC. 2. SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.

Section 119 of title 17, United States Code, is amended--

(1) by amending the section heading to read as follows:

`Sec. 119. Limitations on exclusive rights: Secondary transmissions by satellite

carriers';

and

(2) by striking subsection (a) and inserting the following:

`(a) SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS FOR PRIVATE HOME VIEWING-

`(1) SECONDARY TRANSMISSIONS OF DISTANT AND LOCAL BROADCAST SIGNALS

SUBJECT TO STATUTORY LICENSING- Subject to the provisions of subsections

(b) and (c) of this section and section 114(d), a secondary transmission

of a primary transmission made by a television broadcast station

licensed by the Federal Communications Commission or by the Public

Broadcasting Service satellite feed and embodying a performance or

display of a work shall be subject to statutory licensing under this

section if--

`(A) the secondary transmission is permissible under the rules,

regulations, and authorizations of the Federal Communications

Commission and is made by a satellite carrier to the public for

private home viewing; and

`(B) the carrier makes a direct or indirect charge for each

retransmission service to each household receiving the secondary

transmission or to a distributor that has contracted with the

carrier for direct or indirect delivery of the secondary

transmission to the public for private home viewing.

`(2) SUBMISSION OF SUBSCRIBER LISTS TO TELEVISION BROADCAST STATIONS-

`(A) INITIAL LISTS- A satellite carrier that makes secondary

transmissions of a primary transmission of a television broadcast

station pursuant to paragraph (1) shall, within 90 days after

commencing such secondary transmissions, submit to that television

broadcast station--

`(i) a list identifying all subscribers within the designated

market area of that television broadcast station to whom the

satellite carrier has made such secondary transmissions; and

`(ii) a list of all television broadcast stations whose primary

transmissions have been transmitted by the satellite carrier to

those subscribers during that 90-day period.

`(B) SUBSEQUENT LISTS- After the submission of the lists under

subparagraph (A), the satellite carrier shall, on the 15th day of

each month, submit to each television broadcast station--

`(i) a list, which shall be dated, that identifies the name of

any subscriber described in subparagraph (A) who has been added

or dropped since the last submission under this paragraph; and

`(ii) a list of all television broadcast stations whose primary

transmissions have been added or dropped by the satellite

carrier since the last submission under this paragraph

`(C) IDENTIFYING INFORMATION- (i) Each list of subscribers under

this paragraph shall include the name of each subscriber, together

with the subscriber's home address, which shall include the street

address or rural route as the case may be, city, county, State, and

zip code and, if different from the subscriber's home address, the

location of the subscriber's satellite receiving dish to which the

secondary transmissions are made, identified by street address or

rural route as the case may be, city, county, State, and zip code.

`(ii) Each list of television broadcast stations under this

paragraph shall include the station's call letters and community of

license.

`(iii) Subscriber information submitted under this paragraph may be

used only for purposes of monitoring compliance by the satellite

carrier with this section.

`(iv) The requirements of this paragraph shall apply to a satellite

carrier only if the television broadcast station to which the

submissions are to be made places on file with the Register of

Copyrights a document identifying the name and address of the person

to whom such submissions are to be made. The Register shall maintain

for public inspection a file of all such documents.

`(3) PENALTIES FOR NONCOMPLIANCE WITH ACCOUNTING AND ROYALTY

REQUIREMENTS- Notwithstanding the provisions of paragraph (1), the

willful or repeated secondary transmission to the public by a satellite

carrier of a primary transmission made by a television broadcast station

licensed by the Federal Communications Commission or by the Public

Broadcasting Service satellite feed and embodying a performance or

display of a work is actionable as an act of infringement under section

501, and is fully subject to the remedies provided by sections 502

through 506 and 509, if the satellite carrier has not deposited the

statement of account and royalties fees required by subsection (b), or

has failed to make the submissions to networks required by paragraph

(2).

`(4) PENALTIES FOR WILLFUL ALTERATIONS OF PROGRAMMING- Notwithstanding

the provisions of paragraph (1), the secondary transmission to the

public by a satellite carrier of a primary transmission made by a

television broadcast station licensed by the Federal Communications

Commission or by the Public Broadcasting Service satellite feed and

embodying a performance or display of a work is actionable as an act of

infringement under section 501, and is fully subject to the remedies

provided by section 502 through 506 and sections 509 and 510, if the

content of the particular program in which the performance or display is

embodied, or any commercial advertising or station announcement

transmitted by the primary transmitter during, or immediately before or

after, the transmission of such program, is in any way willfully altered

by the satellite carrier through changes, deletions, or additions, or is

combined with programming from any other broadcast signal.

`(5) PENALTIES FOR DISCRIMINATION AGAINST DISTRIBUTOR- Notwithstanding

the provisions of paragraph (1), the willful or repeated secondary

transmission to the public by a satellite carrier of a primary

transmission made by a television broadcast station licensed by the

Federal Communications Commission or by the Public Broadcasting Service

satellite feed and embodying the performance or display of a work is

actionable as an act of infringement under section 501, and is fully

subject to the remedies provided by sections 502 through 506 and 509, if

the satellite carrier unlawfully discriminates against a distributor.

`(6) LICENSE LIMITED TO SECONDARY TRANSMISSIONS TO HOUSEHOLDS IN THE

UNITED STATES- The statutory license created by this section shall apply

only to secondary transmissions to households located in the United

States.'.

SEC. 3. STATUTORY LICENSE FOR SATELLITE CARRIERS.

Section 119 of title 17, United States Code, is amended by striking

subsection (b) and inserting the following:

`(b) STATUTORY LICENSE FOR SECONDARY TRANSMISSIONS FOR PRIVATE HOME VIEWING-

`(1) DEPOSIT OF ACCOUNTS AND FEES WITH REGISTER OF COPYRIGHTS- A

satellite carrier whose secondary transmissions are subject to statutory

licensing under subsection (a) shall, on a semiannual basis, deposit

with the Register of Copyrights, in accordance with requirements that

the Register shall prescribe by regulation--

`(A) a statement of account, covering the preceding 6-month period,

specifying the names and locations of all television broadcast

stations whose signals were retransmitted, and listing the Public

Broadcasting Service satellite feed, if carried, at any time during

that period, to subscribers for private home viewing, the total

number of subscribers that received such retransmissions, and other

such data as the Register of Copyrights may from time to time

prescribe by regulation; and

`(B) a royalty fee for that 6-month period for each television

broadcast station whose primary transmission was retransmitted

beyond the local market of the station, and for the Public

Broadcasting Service satellite feed, if carried, computed by

multiplying the total number of subscribers receiving the secondary

transmission, and the number of subscribers receiving a secondary

transmission of the Public Broadcasting Service satellite feed,

during each calendar month by the rate in effect for television

broadcast stations on the day before the effective date of the

`(2) INVESTMENT OF FEES- The Register of Copyrights shall receive all

fees deposited under this section and, after deducting the reasonable

costs incurred by the Copyright Office under this section (other than

the costs deducted under paragraph (4)), shall deposit the balance in

the Treasury of the United States, in such manner as the Secretary of

the Treasury directs. All funds held by the Secretary of the Treasury

shall be invested in interest-bearing securities of the United States

for later distribution with interest by the Copyright Royalty

Adjudication Board as provided in this title. The Register may, four or

more years after the close of any calendar year, close out the account

for royalty payments made under this section for that calendar year

(including payments made under this section as in effect before the

effective date of the Copyright Compulsory License Improvement Act), and

may treat any funds remaining in such account and any subsequent

deposits that would otherwise be attributable to that calendar year as

attributable to the calendar year in which the account is closed.

`(3) PERSONS TO WHOM FEES ARE DISTRIBUTED- The royalty fees deposited

under paragraph (2) shall, in accordance with the procedures provided in

paragraph (4), be distributed to those copyright owners whose works were

included in a secondary transmission for private home viewing made by a

satellite carrier during the applicable 6-month accounting period and

who file a claim with the Librarian of Congress under paragraph (4).

`(4) PROCEDURES FOR DISTRIBUTION- The royalty fees deposited under

paragraph (2) shall be distributed in accordance with the following

procedures:

`(A) FILING OF CLAIMS FOR FEES- During the month of July in each

year, each person claiming to be entitled to statutory license fees

for secondary transmissions for private home viewing shall file a

claim with the Copyright Royalty Adjudication Board, in accordance

with requirements that the Board shall prescribe by regulation. For

purposes of this paragraph, any claimants may agree among themselves

as to the proportionate division of statutory license fees among

them, may lump their claims together and file them jointly or as a

single claim, or may designate a common agent to receive payment on

their behalf.

`(B) DETERMINATION OF CONTROVERSY; DISTRIBUTIONS- After the first

day of August of each year, the Copyright Royalty Adjudication Board

shall determine whether there exists a controversy concerning the

distribution of royalty fees. If the Board determines that no such

controversy exists, the Board shall, after deducting reasonable

administrative costs under this paragraph, distribute such fees to

the copyright owners entitled to receive them, or to their

designated agents. If the Board finds the existence of a

controversy, the Board shall, pursuant to chapter 8 of this title,

conduct a proceeding to determine the distribution of royalty fees.

`(C) WITHHOLDING OF FEES DURING CONTROVERSY- During the pendency of

any proceeding under this subsection, the Copyright Royalty

Adjudication Board shall withhold from distribution an amount

sufficient to satisfy all claims with respect to which a controversy

exists, but shall have discretion to proceed to distribute any

amounts that are not in controversy.'.

SEC. 4. DEFINITIONS.

Section 119 of title 17, United States Code, is amended by striking

subsection (d) and inserting the following:

`(d) DEFINITIONS- As used in this section--

`(1) DESIGNATED MARKET AREA- The term `designated market area' has the

meaning given that term in section 337(g) of the Communications Act of

1934.

`(2) DISTRIBUTOR- The term `distributor' means an entity which contracts

to distribute secondary transmissions from a satellite carrier and,

either as a single channel or in a package with other programming,

provides the secondary transmission either directly to individual

subscribers for private home viewing or indirectly through other program

distribution entities.

`(3) LOCAL MARKET- The `local market' for a television broadcast station

has the meaning given that term in section 337(g) of the Communications

Act of 1934.

`(4) PRIMARY TRANSMISSION- The term `primary transmission' has the

meaning given that term in section 111(f) of this title.

`(5) PRIVATE HOME VIEWING- The term `private home viewing' means the

viewing, for private use in a household by means of satellite reception

equipment which is operated by an individual in that household and which

serves only such household, of a secondary transmission delivered by a

satellite carrier of a primary transmission of a television station

licensed by the Federal Communications Commission or of the Public

Broadcasting Service satellite feed.

`(6) PUBLIC BROADCASTING SERVICE SATELLITE FEED- The term `Public

Broadcasting Service satellite feed' means the national satellite feed

distributed by the Public Broadcasting Service (other than the

transmissions that may not be encrypted under section 705(c) of the

Communications Act of 1934), consisting of educational and informational

programming intended for private home viewing, to which the Public

Broadcasting Service has obtained national terrestrial broadcast rights.

`(7) SATELLITE CARRIER- The term `satellite carrier' means an entity

that uses the facilities of a satellite or satellite service licensed by

the Federal Communications Commission, and operates in the

Fixed-Satellite Service under part 25 of title 47, Code of Federal

Regulations (as in effect on February 1, 1998), or the Direct Broadcast

Satellite Service under part 100 of title 47, Code of Federal

Regulations (as in effect on February 1, 1998), to establish and operate

a channel of communications for point-to-multipoint distribution of

television station signals, and that owns or leases a capacity or

service on a satellite in order to provide such point-to-multipoint

distribution, except to the extent that such entity provides such

distribution pursuant to tariff under the Communications Act of 1934,

other than for private home viewing.

`(8) SECONDARY TRANSMISSION- The term `secondary transmission' means the

further transmitting of a primary transmission simultaneously with the

primary transmission.

`(9) SUBSCRIBER- The term `subscriber' means an individual who receives

a secondary transmission service for private home viewing by means of a

secondary transmission from a satellite carrier and pays a fee for the

service, directly or indirectly, to the satellite carrier or to a

distributor.

`(10) TELEVISION BROADCAST STATION- The term `television broadcast

station' means an over-the-air, commercial or noncommercial television

broadcast station licensed by the Federal Communications Commission

under subpart E of part 73 of title 47, Code of Federal Regulations.'.

SEC. 5. EXCLUSIVITY OF SECTION 119 OF TITLE 17, UNITED STATES CODE.

Section 119 of title 17, United States Code, is amended by adding at the end

the following:

`(e) EXCLUSIVITY FOR THIS SECTION WITH RESPECT TO SECONDARY TRANSMISSIONS OF

TELEVISION STATIONS BY SATELLITE TO MEMBERS OF THE PUBLIC- No provision of

section 111 of this title or any other law (other than this section) shall

be construed to contain any authorization, exemption, or license through

which secondary transmissions by satellite carriers for private home viewing

of programming contained in a primary

transmission may be made without obtaining the consent of the copyright owner.'.

SEC. 6. CONFORMING AMENDMENT.

The table of contents for chapter 1 of title 17, United States Code, is

amended by striking the item relating to section 119 and inserting the

following:

`119. Limitations on exclusive rights: Secondary transmissions by

satellite carriers.'.

SEC. 7. COPYRIGHT ROYALTY ADJUDICATION BOARD.

(a) ESTABLISHMENT AND FUNCTIONS- Chapter 8 of title 17, United States Code,

is amended to read as follows:

`CHAPTER 8--COPYRIGHT ROYALTY ADJUDICATION BOARD

`Sec.

`801. Copyright Royalty Adjudication Board: establishment.

`802. Membership and qualifications of the Board.

`803. Selection of administrative copyright judges.

`804. Independence of the Board.

`805. Removal and sanction of administrative copyright judges.

`806. Functions.

`807. Factors for determining royalty fees.

`808. Institution of proceedings.

`809. Conduct of proceedings.

`810. Judicial review.

`811. Administrative matters.

`Sec. 801. Copyright Royalty Adjudication Board: establishment

`There is hereby established within the Copyright Office the Copyright

Royalty Adjudication Board (hereinafter referred to in this chapter as the

`Board').

`Sec. 802. Membership and qualifications of the Board

`(a) MEMBERSHIP- The Board shall consist of one full-time chief

administrative copyright judge, and such part-time administrative copyright

judges as the Librarian of Congress, upon the recommendation of the Register

of Copyrights, finds necessary to conduct the business of the Board in a

timely manner. At no time shall the number of authorized administrative

`(b) QUALIFICATIONS-

`(1) CHIEF ADMINISTRATIVE COPYRIGHT JUDGE- The chief administrative

practice with demonstrated experience in administrative hearings or

court trials and demonstrated knowledge of copyright law.

`(2) OTHER ADMINISTRATIVE COPYRIGHT JUDGES- Each administrative

shall be an individual with expertise in the business and economics of

industries affected by the actions taken by the Board to carry out its

functions.

`(c) TERMS- (1) The term of each administrative copyright judge (including

the chief administrative copyright judge) shall be 5 years, except that, of

the first administrative copyright judges appointed, the Librarian of

Congress, upon the recommendation of the Register of Copyrights, shall

appoint all but one of them to lesser terms to establish a staggering of

terms such that in any calendar year no more than one term is due to expire.

`(2) The term of each administrative copyright judge (including the chief

administrative copyright judge) shall begin when the term of the predecessor

of that member ends. An individual appointed to fill the vacancy occurring

before the expiration of the term for which the predecessor of that

individual was appointed shall be appointed for the remainder of that term.

When the term of office of a member ends, the member may continue to serve

until a successor is selected.

`(d) COMPENSATION- The compensation of the administrative copyright judges

shall be governed solely by the provisions of section 5376 of title 5 and

such regulations as the Librarian of Congress may adopt that are not

inconsistent with that section. The compensation of the administrative

Office of Personnel Management pursuant to its authority under section

5376(b)(1) of title 5.

`Sec. 803. Selection of administrative copyright judges

`(a) SELECTION- (1) The Librarian of Congress, upon the recommendation of

the Register of Copyrights, shall select the administrative copyright judges

(including the chief administrative copyright judge) among individuals found

qualified under section 802(b) and free of any financial conflict of

interest under section 805(a).

`(2) Administrative copyright judges previously selected by the Librarian of

Congress may be selected to serve additional terms. There shall be no limit

on the number of terms any individual may serve.

`(b) EFFECT OF VACANCY- If any vacancy should occur among the administrative

the vacancy, but in no event shall a vacancy in the Board impair the right

of the remaining administrative copyright judges to exercise all of the

powers of the Board.

`Sec. 804. Independence of the Board

`(a) IN GENERAL- The Board shall have independence in reaching its

determinations concerning the adjustment of copyright royalty rates, the

distribution of copyright royalties, the acceptance or rejection of royalty

claims and rate adjustment petitions, and such rulemaking functions as are

delegated to it under this title.

`(b) PERFORMANCE APPRAISALS- Notwithstanding any other provision of law or

any regulation of the Library of Congress, no administrative copyright judge

shall receive an annual performance appraisal. To the extent that

such removal or sanction regulations as the Librarian of Congress may adopt

pursuant to section 805 requires documentation to establish the cause of such

removal or sanction, the administrative copyright judge may receive an appraisal

related specifically to the cause of the removal or sanction.

`(c) INCONSISTENT DUTIES BARRED- No administrative copyright judge may be

assigned duties inconsistent with his or her duties and responsibilities as

a administrative copyright judge.

`Sec. 805. Removal and sanction of administrative copyright judges

`(a) STANDARDS OF CONDUCT- The Librarian of Congress, upon the

recommendation of the Register of Copyrights, shall adopt regulations

regarding the standards of conduct, including financial conflict of interest

and restrictions against ex parte communications, which shall govern the

administrative copyright judges and the proceedings under this chapter.

`(b) REMOVAL OR SANCTION- The Librarian of Congress, upon the recommendation

of the Register of Copyrights, may remove or sanction an administrative

subsection (a), misconduct, neglect of duty, or any disqualifying physical

or mental disability. Any such removal or sanction may be made only after

notice and opportunity for hearing, but the Librarian of Congress, upon the

recommendation of the Register of Copyrights, may suspend the administrative

`Sec. 806. Functions

`Subject to the provisions of this chapter, the functions of the Board shall

be--

`(1) to make determinations concerning the adjustment of reasonable

`(A) secondary transmissions to the public by a cable system of a

primary transmission as provided in section 111;

`(B) the making and distributing of phonorecords by means other than

digital phonorecord delivery, as provided in section 115;

`(C) secondary transmissions to the public by a satellite carrier of

a primary transmission as provided in section 119; and

`(D) each digital audio recording device imported into and

distributed in the United States or manufactured and distributed

into the United States as provided in section 1004; and

`(2) to make determinations as to reasonable rates and terms of royalty

payments for--

`(A) the public performance of a sound recording by means of a

digital audio transmission as provided in section 114;

`(B) the making and distribution of phonorecords by means of a

digital phonorecord delivery as provided in section 115;

`(C) the public performance of nondramatic musical works by means of

coin-operated phonorecord players as provided in section 116;

`(D) the use of nondramatic musical works and pictorial, graphic,

and sculptural works by public broadcasting entities as provided in

section 118; and

`(E) secondary transmissions to the public by a satellite carrier of

a primary transmission of a public telecommunications signal as

provided in section 119;

`(3) to accept or reject royalty claims filed under sections 111, 119,

and 1007, on the basis of timeliness or the failure to establish the

basis for a claim;

`(4) to determine, in cases where controversy exists, the distribution

of royalty fees deposited with the Register of Copyrights under sections

111, 119, and 1003;

`(5) to determine the status of a digital audio recording device or a

digital audio interface device under sections 1002 and 1003, as provided

in section 1010; and

`(6) to engage in such rulemaking as is expressly provided in sections

111, 114, 115, 118, and 119.

`Sec. 807. Factors for determining royalty fees

`(a) FOR CABLE RATES- The rates applicable under section 111 shall be

calculated solely in accordance with the following provisions:

`(1) The rates established by section 111(d)(1)(B) may be adjusted to

reflect--

`(A) national monetary inflation or deflation, or

`(B) changes in the average rates charged cable subscribers for the

basic service of providing secondary transmissions to maintain the

real constant dollar level of the royalty fee per subscriber which

existed as of October 19, 1976, except that--

`(i) if the average rates charged cable system subscribers for

the basic service of providing secondary transmissions are

changed so that the average rates exceed

national monetary inflation, no change in the rates established by section

111(d)(1)(B) shall be permitted; and

`(ii) no increase in the royalty fee shall be permitted based on

any reduction in the average number of distant signal

equivalents per subscriber.

The Board may consider all factors relating to the maintenance of such

level of payments including, as an extenuating factor, whether the cable

industry has been restrained by subscriber rate regulating authorities

from increasing the rates for the basic service of providing secondary

transmissions.

`(2) In the event that the rules and regulations of the Federal

Communications Commission are amended at any time after April 15, 1976,

to permit the carriage by cable systems of additional television

broadcasting signals beyond the local service area of the primary

transmitters of such signals, the royalty rates established by section

111(d)(1)(B) may be adjusted to insure that the rates for the additional

distant signal equivalents resulting from such carriage are reasonable

in light of the changes effected by the amendment to such rules and

regulations. In determining the reasonableness of rates proposed

following an amendment of Federal Communications Commission rules and

regulations, the Board shall consider, among other factors, the economic

impact on copyright owners and users, except that no adjustment in

royalty rates shall be made under this paragraph with respect to any

distant signal equivalent or fraction thereof represented by--

`(A) carriage of any signal permitted under the rules and

regulations of the Federal Communications Commission in effect on

April 15, 1976, or the carriage of a signal of the same type (that

is, independent, network, or noncommercial educational) substituted

for such permitted signal, or

`(B) a television broadcast signal first carried after April 15,

1976, pursuant to an individual waiver of the rules and regulations

of the Federal Communications Commission, as such rules and

regulations were in effect on April 15, 1976.

`(3) In the event of any change in the rules and regulations of the

Federal Communications Commission with respect to syndicated and sport

program exclusivity after April 15, 1976, the rates established by

section 111(d)(1)(B) may be adjusted to assure that such rates are

reasonable in light of the changes to such rules and regulations, but

any such adjustment shall apply only to the affected television

broadcast signals carried on those systems affected by the change.

`(4) The gross receipts limitations established by section 111(d)(1) (C)

and (D) shall be adjusted to reflect national monetary inflation or

deflation or changes in the average rates charged cable system

subscribers for the basic service of providing secondary transmissions

to maintain the real constant dollar value of the exemption provided by

such section, and the royalty rate specified therein shall not be

subject to adjustment.

`(b) FOR RATES OTHER THAN CABLE OR SATELLITE CARRIERS- The rates applicable

under sections 114, 115, 116, and 118 shall be calculated to achieve the

following objectives:

`(1) To maximize the availability of creative works to the public.

`(2) To afford the copyright owner a fair return for his or her creative

work and the copyright user a fair income under existing economic

conditions.

`(3) To reflect the relative roles of the copyright owner and the

to relative creative contribution, technological contribution, capital

investment, cost, risk, and contribution to the opening of new markets

for creative expression and media for their communications.

`(4) To minimize any disruptive impact on the structure of the

industries involved and on generally prevailing industry practices.

`(c) FOR RATES FOR NONCOMMERCIAL BROADCASTING- The rates applicable under

section 118 shall be calculated to achieve reasonable rates. In determining

reasonable rates, the Board shall base its decision so as to--

`(1) assure a fair return to copyright owners;

`(2) encourage the growth and development of public broadcasting; and

`(3) encourage musical and artistic creation.

`(d) RATES FOR SATELLITE CARRIERS- The rates applicable under section 119

shall be calculated to represent most clearly the fair market value of

secondary transmissions. In determining the fair market value, the Board

shall base its decision on economic, competitive, and programming

information presented by the parties, including--

`(1) the competitive environment in which such programming is

distributed, the cost for similar signals in similar private and

compulsory license marketplaces, and any special features and conditions

of the retransmission marketplace;

`(2) the economic impact of such fees on copyright owners and satellite

carriers; and

`(3) the impact on the continued availability of secondary transmissions

to the public.

`Sec. 808. Institution of proceedings

`(a) PETITION REQUIRED TO INSTITUTE PROCEEDINGS- With respect to proceedings

concerning the adjustment of royalty rates as provided in sections 111, 114,

115, 116, and 119, during the calendar years or under the circumstances

specified in the schedule set forth in subsection (c), any owner or user of

a copyrighted work whose royalty rates are to be established or adjusted by

the Board may file a petition with the Board declaring that the petitioner

requests an adjustment of the rate. The Board shall make a determination as

to whether the petitioner has a significant interest in the royalty rate in

which an adjustment is requested. If the Board determines that the

petitioner has a significant interest, the Board shall cause notice of this

determination, with the reasons therefor, to be published in the Federal

chapter. With respect to proceedings concerning the adjustment of royalty

rates under section 1004, any interested copyright party may petition the

Board as provided in that section.

`(b) PETITION NOT REQUIRED TO INSTITUTE PROCEEDINGS- With respect to

proceedings concerning the adjustment of royalty rates as provided in

section 118 and the distribution of royalties as provided in section 111,

119, and 1007, no petition is required to institute proceedings. All

proceedings concerning the adjustment of rates under section 118 shall

commence as provided in section 118(c) of this title. All proceedings

concerning the distribution of royalties under section 111, 119, or 1007

shall commence as provided in such sections and in subsection (c)(8) of this

section.

`(c) SCHEDULE OF PROCEEDINGS-

`(1) SECTION 111 PROCEEDINGS- In proceedings concerning the adjustment

of royalty rates as provided in section 111, a petition described in

subsection (a) may be filed during the year 2000 and in each subsequent

fifth calendar year, except that in the event that the rules and

regulations of the Federal Communications Commission are amended with

respect to distant signal importation, or to syndicated and sports

program exclusivity, any owner or user of a copyrighted work subject to

the royalty rates established or adjusted pursuant to section 111 may,

within 12 months after such amendments take effect, file a petition with

the Board to institute proceedings to insure that the rates are

reasonable in light of the changes to such rules and regulations. Any

such adjustments shall apply only to the affected television broadcast

signals carried on those systems affected by the change. Any change in

royalty rates made pursuant to this subsection may be reconsidered in

the year 2000, and each fifth calendar year thereafter, as the case may

be.

`(2) SECTION 114 PROCEEDINGS- In proceedings concerning the adjustment

of royalty rates and terms as provided in section 114, the Board shall

proceed when and as provided by that section.

`(3) SECTION 115 PROCEEDINGS- In proceedings concerning the adjustment

of royalty rates and terms as provided in section 115, a petition

described in subsection (a) may be filed in the year 2007 and in each

subsequent tenth calendar year or as prescribed in section 115(c)(3).

`(4) SECTION 116 PROCEEDINGS- (A) In proceedings concerning the

adjustment of royalty rates as provided in section 116, a petition

described in subsection (a) may be filed at any time within 1 year after

negotiated licenses authorized by section 116 are terminated or expire

or are not replaced by subsequent agreements.

`(B) If a negotiated license authorized by section 116 is terminated or

expires and is not replaced by another such license agreement which

provides permission to use a quantity of musical works not substantially

smaller than the quantity of such works performed on coin-operated

phonorecord players during the 1-year period ending March 1, 1989, the

Board, upon petition filed under subsection (a) within 1 year after such

termination or expiration, shall promptly establish an interim royalty

rate or rates for the public performance by means of a coin-operated

phonorecord player of nondramatic musical works embodied in phonorecords

which had been subject to the terminated or expired negotiated license

agreement. Such rate or rates shall be the same as the last such rate or

rates and shall remain in force until the conclusion of the proceedings

to adjust the royalty rates applicable to such works, or until

superseded by a new negotiated license agreement, as provided in section

116(b).

`(5) SECTION 118 PROCEEDINGS- In proceedings concerning the adjustment

of royalty rates and terms as provided in section 118, the Board shall

proceed when and as provided by that section.

`(6) SECTION 119 PROCEEDINGS- In proceedings concerning the adjustment

of royalty rates governing secondary transmissions of as provided in

section 119, a petition described in subsection (a) may be filed during

the year 2001 and in each subsequent fifth calendar year.

`(7) PROCEEDINGS CONCERNING DISTRIBUTION OF ROYALTY FEES- In proceedings

concerning the distribution of royalty fees under section 111, 119, or

1007, the Board shall, upon a determination that a controversy exists

concerning such distribution, cause to be published in the Federal

`Sec. 809. Conduct of proceedings

`(a) BOARD PROCEEDINGS- The Board shall, for the purposes of making its

determinations in carrying out the functions set forth in section 806,

conduct proceedings subject to subchapter II of chapter 5 of title 5.

`(b) PROCEDURES- The Librarian of Congress, upon the recommendation of the

regulations to govern the conduct of the proceedings of the Board. The

regulations shall include, but not be limited to, provisions for--

`(1) public access to and inspection of the records of the Board

pursuant to section 706;

`(2) the right of the public to attend the proceedings of the Board;

`(3) the procedures to apply when formal hearings are conducted; and

`(4) the procedures to apply and the basis upon which distribution or

royalty controversies may be decided on the basis of written pleadings.

`(c) PARTICIPATION OF COPYRIGHT OFFICE- Notwithstanding any regulations

adopted under subsection (b)(3), during the conduct of proceedings, the

served on all parties to the proceeding. The Board may accept or reject the

position of the Copyright Office.

`(d) MAJORITY RULE- The Board shall act in all procedural and substantive

matters on the basis of majority rule.

`(e) NUMBER OF PRESIDING JUDGES- The Board shall decide, in its discretion,

whether 1 or 3 administrative copyright judges shall preside in a royalty

distribution or rate adjustment proceeding. In no event shall the number of

presiding administrative copyright judges be more than 3.

`(f) PARTICIPATION OF PARTIES- Any copyright owner who has filed an

acceptable claim claiming entitlement to the distribution of royalties, or

any copyright owner or user who would be affected by a royalty rate to be

established or adjusted by the Board, may submit relevant information and

proposals to the Board in proceedings applicable to the interest of the

`(g) TIME LIMITS FOR INITIAL DECISION- Proceedings under section 118 operate

under the time limits established in that section. For all other

proceedings, if 1 administrative copyright judge is presiding in a

proceeding, the Board shall issue its initial decision to the parties to the

proceeding and the Register of Copyrights within 6 months after the

declaration of a controversy in the proceeding. If more than 1

administrative copyright judge is presiding in a proceeding, the Board shall

issue its initial decision to the parties to the proceeding and the Register

of Copyrights within 1 year after the declaration of a controversy in the

proceeding.

`(h) REQUIREMENTS FOR INITIAL DECISIONS- The initial decision under

subsection (g) shall include a statement of findings and conclusions and the

reasons or basis therefor, on all the material issues of fact, law, or

discretion presented on the record. The initial decision shall take into

account prior decisions of the Copyright Royalty Tribunal, prior decisions

of copyright arbitration royalty panels, and the procedural and evidentiary

rulings the Librarian of Congress made that were applicable to the

proceedings of the copyright arbitration royalty panels. Notwithstanding any

provision of section 603 or 604 of title 5, neither the initial decision nor

the final decision is required to include a regulatory flexibility analysis.

`(i) PETITIONS FOR RECONSIDERATION AND FINAL AGENCY ACTION- Any party to the

proceeding concerned or the Register of Copyrights may petition the Board to

reconsider its initial decision in the proceeding. If there are no petitions

for reconsideration, the initial decision becomes the final decision of the

Board without further proceedings. If there are petitions for

reconsideration, the Board shall issue a final decision to the parties to

the proceeding and the Register of Copyrights which shall constitute final

agency action. The time period by which parties to the proceeding or the

period by

which the Board shall render its final decision shall be established by

regulation by the Board, subject to the approval of the Register of Copyrights.

`Sec. 810. Judicial review

`(a) APPEALS- Within 1 week after the Board issues a final decision under

section 809, or, if there are no petitions for reconsideration, within one

week after the time the initial decision of the Board under section 809

becomes the final decision, the Board shall cause to be published in the

Federal Register the decision of the rate adjustment or the royalty

distribution, as the case may be. Any aggrieved party who would be bound by

the final decision may appeal the decision to the United States Court of

Appeals for the Federal Circuit within 30 days after the publication of the

decision in the Federal Register. In any appeal to which the Board is a

party, the chief administrative copyright judge shall refer the conduct of

the litigation in defense of the Board's decision to the Department of

Justice. If no appeal is brought within such 30-day period, the decision of

the Board is final, and the royalty fee or determination with respect to the

distribution of fees, as the case may be, shall take effect as set forth in

the decision. The pendency of an appeal under this paragraph shall not

relieve persons obligated to make royalty payments under section 111, 114,

115, 116, 118, 119, or 1003 who would be affected by the determination on

appeal to deposit the statement of account and royalty fees specified in

those sections.

`(b) REVIEW SUBJECT TO CHAPTER 7 OF TITLE 5- The judicial review of the

Board's final decision shall be had, in accordance with chapter 7 of title

5, on the basis of the record before the Board.

`Sec. 811. Administrative matters

`(a) ADMINISTRATIVE SUPPORT- The Library of Congress, upon the

recommendation of the Register of Copyrights, shall provide the Board with

the necessary administrative services and permanent personnel related to

proceedings under this title. The Board may procure temporary and

intermittent services to the same extent as is authorized by sections 3109

and 5376 of title 5.

`(b) AUTHORITY TO PUBLISH IN FEDERAL REGISTER- The actions of the Board

which may be published in the Federal Register by and under the authority of

the Board include--

`(1) actions of the Board required to be published in the Federal

`(2) actions of the Board required to be published in the Federal

`(3) regulations of the Board required to be published in the Federal

adopt.

`(c) DEDUCTION OF COSTS FROM ROYALTY FEES- The Register of Copyrights may,

to the extent not otherwise provided under this title, deduct from royalty

fees deposited or collected under this title the reasonable costs incurred

by the Copyright Office and the Board under this chapter. Such deduction may

be made before the fees are distributed to any copyright claimants. In

addition, all funds made available by an appropriations Act as offsetting

collections and available for decisions under this subsection shall remain

available until expended. In ratemaking proceedings, the reasonable costs of

the Copyright Office and the Board shall be borne by the parties in such

manner and proportion as the Board shall direct.

`(d) POSITIONS REQUIRED FOR ADMINISTRATION OF COMPULSORY LICENSING- Section

307 of the Legislative Branch Appropriations Act of 1994 shall not apply to

the members of the Board, employee positions in the Board, or employee

positions in the Library of Congress that are required to be filled in order

to carry out section 111, 114, 115, 116, 118, or 119 or chapter 10.

`(e) BUDGET- In each annual request for appropriations, the Register of

Copyrights shall identify the portion thereof intended for the support of

the Board and a statement which shall include an assessment of the budgetary

needs of the Board.

`(f) ANNUAL REPORT- The Board shall prepare an annual report of its work and

accomplishments during each fiscal year, which the Register of Copyrights

shall include in the annual report required under section 701(c).'.

(b) CONFORMING AMENDMENT- The item relating to chapter 8 in the table of

chapters for title 17, United States Code, is amended to read as follows:

801'.

SEC. 8. TRANSITION PROVISIONS.

(a) TRANSITIONAL PROCEDURES- During the period beginning on the date of the

enactment of this Act and ending on the effective date of this Act, the

chapter 8 of title 17, United States Code, as amended by section 7 of this

Act. Such regulations shall remain in effect unless and until the Copyright

Royalty Adjudication Board, upon the approval of the Register of Copyrights,

adopts supplemental or superseding regulations pursuant to section 809(b) of

title 17, United States Code.

(b) PROCEEDINGS IN PROGRESS-

(1) COPYRIGHT ARBITRATION ROYALTY PANEL PROCEEDINGS- Unless the Register

of Copyrights, for good cause, finds otherwise, proceedings in which a

of Congress under chapter 8 of title 17, United States Code, as in

effect before the effective date of this Act, shall continue in effect

and shall be governed under chapter 8 of such title, and applicable

regulations, as in effect prior to such effective date. Proceedings in

which a copyright arbitration royalty panel has not been convened by the

Librarian of Congress under chapter 8 of title 17, United States Code,

before the effective date of this Act shall be suspended and recommenced

under the amendments made by section 7.

(2) CONTINUED PROCEEDINGS- For those proceedings continued under

paragraph (1), the functions of the Librarian of Congress and the

arbitration royalty panel under title 17, United States Code, as in

effect before the effective date of this Act, may, in the Librarian's

discretion, upon the recommendation of the Register of Copyrights, be

delegated to the Copyright Royalty Adjudication Board, when constituted.

(3) APPEALS- In any appeal of a decision of the Librarian of Congress

adopting or rejecting a determination of a copyright arbitration royalty

panel which is pending in the United States Court of Appeals for the

District of Columbia Circuit on or after the effective date of this Act,

if such case is remanded by the court, the Librarian of Congress shall

not reconvene the copyright arbitration royalty panel which rendered the

determination, but shall direct the Copyright Royalty Adjudication

Board, when constituted, to conduct proceedings in accordance with the

directions of the court.

all determinations with respect to the proportionate division of compulsory

license fees among copyright claimants, whether made by the Copyright

Royalty Tribunal, copyright arbitration royalty panels, or by voluntary

agreement, before the effective date of this Act, shall remain in effect

until modified by voluntary agreement or pursuant to the amendments made by

this Act.

(d) TRANSFER OF APPROPRIATIONS- All unexpended balances of appropriations

made by the Copyright Office for the support of the copyright arbitration

royalty panels, as of the effective date of this Act, are transferred on

such effective date to the support of the Copyright Royalty Arbitration

Board for the purposes for which such appropriations were made.

SEC. 9. AMENDMENTS TO OTHER PROVISIONS OF TITLE 17, UNITED STATES CODE.

(a) SECONDARY TRANSMISSIONS BY CABLE SYSTEMS- Section 111(d) of title 17,

United States Code, is amended--

(1) in paragraph (2)--

(A) in the last sentence by striking `Librarian of Congress' and all

that follows through the end of the sentence and inserting the

following: `Copyright Royalty Adjudication Board as provided in this

title. The Register of Copyrights may, 4 or more years after the

close of any calendar year, close out the account for royalty

payments made for that calendar year, and may treat any funds

remaining in such account and any subsequent deposits that would

otherwise be attributable to that calendar year as attributable to

the succeeding calendar year.';

(2) in paragraph (3)(A), by striking `nonnetwork';

(3) in paragraph (4)--

(A) in subparagraph (A)--

(i) by striking `Librarian of Congress' the first place it

appears and inserting `Copyright Royalty Adjudication Board';

and

(ii) by striking `Librarian of Congress' the second place it

appears and inserting `Board';

(B) in subparagraph (B)--

(i) by striking `Librarian of Congress shall, upon the

recommendation of the Register of Copyrights' and inserting

`Copyright Royalty Adjudication Board shall';

(ii) by striking `Librarian' each subsequent place it appears

and inserting `Board'; and

(iii) in the last sentence by striking `convene a copyright

royalty arbitration panel' and inserting `conduct a proceeding';

and

(i) by striking `Librarian of Congress' and inserting `Copyright

Royalty Adjudication Board'; and

(ii) by adding at the end the following: `The action of the

Board to distribute royalty fees may precede the declaration of

a controversy if all parties to the proceeding file a petition

with the Board requesting such distribution, except that such

amount may not exceed 50 percent of the amounts on hand at the

time of the request.'.

(b) SCOPE OF EXCLUSIVE RIGHTS IN SOUND RECORDINGS- Section 114(f) of title

17, United States Code, is amended--

(1) in paragraph (1)--

(A) by amending the first sentence to read as follows: `During the

first week of January, 2000, the Copyright Royalty Adjudication

Board shall cause notice to be published in the Federal Register of

the initiation of voluntary negotiation proceedings for the purpose

of determining or adjusting reasonable terms and rates of royalty

payments for the activities specified in subsection (d)(2) of this

section.'; and

(B) in the third sentence by striking `Librarian of Congress' and

inserting `Copyright Royalty Adjudication Board';

(2) by striking paragraphs (2), (3), and (4) and inserting the

following:

`(2) In the absence of license agreements negotiated under paragraph

(1), during the 60-day period beginning 6 months after publication of

the notice specified in paragraph (1), and upon the filing of a petition

in accordance with section 808(a), the Copyright Royalty Adjudication

Board shall, pursuant to chapter 8, conduct a proceeding to determine

and publish in the Federal Register a schedule of rates and terms. In

addition to the objectives set forth in section 807(a) in establishing

or adjusting such rates and terms, the Board may consider the rates and

terms for comparable types of digital audio transmission services and

comparable circumstances under voluntary license agreements negotiated

as provided in paragraph (1). The Copyright Royalty Adjudication Board,

upon the approval of the Register of Copyrights, shall also establish

requirements by which copyright owners may receive reasonable notice of

the use of their sound recordings under this section, and under which

records of such use shall be kept and made available by entities

performing sound recordings.

`(3) License agreements voluntarily negotiated at any time between 1 or

more copyright owners of sound recordings and 1 or more entities

performing sound recordings shall be given effect in lieu of any

determination by the Copyright Royalty Adjudication Board.

`(4) Publication of a notice of the initiation of voluntary negotiation

proceedings as specified in paragraph (1) and the procedures specified

in paragraph (2) shall be repeated, in accordance with regulations that

the Copyright Royalty Adjudication Board, upon the approval of the

`(A) no later than 30 days after a petition is filed by any

sound recordings affected by this section indicating that a new type

of digital audio transmission service on which sound recordings are

performed is or is about to become operational; and

`(B) during the first week of January 2005 and at 5-year intervals

thereafter.'; and

(3) in paragraph (5)(A)(i) by striking `Librarian of Congress' and

inserting `Copyright Royalty Adjudication Board, upon the approval of

the Register of Copyrights,'.

115(c)(3) of title 17, United States Code, is amended--

(1) in subparagraph (C)--

(A) by amending the first sentence to read as follows: `At the times

established in subparagraph (F), the Copyright Royalty Adjudication

Board shall cause notice to be published in the Federal Register of

the initiation of voluntary negotiation proceedings for the purpose

of determining reasonable terms and rates of royalty payments for

the activities specified in subparagraph (A) until the effective

date of any new terms and rates established pursuant to this

subparagraph or subparagraph (D) or (F), or such other date

(regarding digital phonorecord deliveries) as the parties may

agree.';

(B) in the third sentence by striking `Librarian of Congress' and

inserting `Copyright Royalty Adjudication Board';

(2) by amending subparagraph (D) to read as follows:

`(D) In the absence of license agreements negotiated under subparagraphs

(B) and (C), upon the filing of a petition in accordance with section

808(a), the Copyright Royalty Adjudication Board shall, pursuant to

chapter 8, conduct a proceeding to determine and publish in the Federal

distinguish between--

`(i) digital phonorecord deliveries where the reproduction or

distribution of a phonorecord is incidental to the transmission

which constitute the digital phonorecord delivery, and

`(ii) digital phonorecord deliveries in general.

In addition to the objectives set forth in section 807(a), in

establishing or adjusting rates and terms, the Board may consider rates

and terms under voluntary license agreements negotiated as provided in

subparagraphs (B) and (C). The Board, upon the approval of the Register

of Copyrights, shall also establish requirements by which copyright

owners may receive reasonable notice of the use of their works under

this section, and under which records of such use shall be kept and made

available by persons making digital phonorecord deliveries.';

(3) in subparagraph (E)(i) in the first sentence by striking `Librarian

of Congress' and inserting `Copyright Royalty Adjudication Board'; and

(4) in subparagraph (F) by striking `Librarian of Congress' and

inserting ` Copyright Royalty Adjudication Board, upon the approval of

the Register of Copyrights,'.

(d) NEGOTIATED LICENSES FOR PUBLIC PERFORMANCES BY MEANS OF COIN-OPERATED

PHONORECORD PLAYERS- Section 116 of title 17, United States Code, is

amended--

(1) by amending subsection (b)(2) to read as follows:

`(2) RATE ADJUSTMENT PROCEEDING- Parties not subject to such a

negotiation may determine, by a rate adjustment proceeding in accordance

with the provisions of chapter 8, the terms and rates and the division

of fees described in paragraph (1).'; and

(2) in subsection (c)--

(A) in the subsection heading by striking `COPYRIGHT ROYALTY

ARBITRATION PANEL' and inserting `COPYRIGHT ROYALTY ADJUDICATION

BOARD'; and

(B) by striking `a copyright arbitration royalty panel' and

inserting `the Copyright Royalty Adjudication Board'.

(e) USE OF CERTAIN WORKS IN CONNECTION WITH NONCOMMERCIAL BROADCASTING-

Section 118 of title 17, United States Code, is amended--

(1) in subsection (b)--

(A) by striking paragraph (1) and redesignating paragraphs (2) and

(3) as paragraphs (1) and (2), respectively;

(B) in paragraph (1), as so redesignated, by striking `Librarian of

Congress' and inserting `Copyright Royalty Adjudication Board';

(i) by striking `paragraph (2)' each place it appears and

inserting `paragraph (1)';

(ii) by striking `Librarian of Congress' the first place it

appears and inserting `Copyright Royalty Adjudication Board';

(iii) by striking `Librarian of Congress' the second and third

places it appears and inserting `Board'; and

(iv) by striking `Librarian of Congress' the last place it

appears and inserting `Board, upon the approval of the Register

of Copyrights,';

(2) in subsection (c)--

(A) by striking `1997' and inserting `2002'; and

(B) by striking `Librarian of Congress' and inserting `Copyright

Royalty Adjudication Board, upon the approval of the Register of

Copyrights,';

(3) in subsection (d)--

(A) by striking `(b)(2)' and inserting `(b)(1)'; and

(B) by striking `a copyright arbitration royalty panel under

subsection (b)(3)' and inserting `the Copyright Royalty Adjudication

Board under subsection (b)(2)'; and

(4) in subsection (e), by striking paragraphs (1) and (2).

(f) DIGITAL AUDIO RECORDING DEVICES AND MEDIA-

(1) ROYALTY PAYMENTS- Section 1004(a)(3) of title 17, United States

Code, is amended in the third sentence--

(A) by striking `the 6th year after the effective date of this

chapter' and inserting `1998';

(B) by striking `Librarian of Congress' the first place it appears

and inserting `Copyright Royalty Adjudication Board'; and

and inserting `Board'.

(2) ENTITLEMENT TO ROYALTY PAYMENTS- Section 1006(c) of title 17, United

States Code, is amended by striking `Librarian of Congress shall convene

a copyright arbitration royalty panel which' and inserting `Copyright

Royalty Adjudication Board'.

(3) PROCEDURES FOR DISTRIBUTING ROYALTY PAYMENTS- Section 1007 of title

17, United States Code, is amended--

(A) in subsection (a)(1)--

(i) by striking `after the calendar year in which this chapter

takes effect';

(ii) by striking `Librarian of Congress' the first place it

appears and inserting `Copyright Royalty Adjudication Board';

and

(iii) by striking `Librarian of Congress' the second place it

appears and inserting `Board';

(B) in subsection (b)--

(i) by amending the first sentence to read as follows: `After

the first day of March of each year, the Copyright Royalty

Adjudication Board shall determine whether there exists a

controversy concerning the distribution of royalty payments

under section 1006(c).'; and

(ii) by striking `Librarian of Congress' each place it appears

and inserting `Board'; and

(A) by amending the first sentence to read as follows: `If the

controversy, the Board shall, pursuant to chapter 8 of this

title, conduct a proceeding to determine the distribution of

royalty payments.';

(B) by striking `Librarian of Congress' each place it appears

and inserting `Board'; and

`Board under this section. The action of the Board to distribute

royalty fees may precede the declaration of a controversy if all

parties to the proceeding file a petition with the Board

requesting such distribution, except that such amount may not

exceed 50 percent of the amounts on hand at the time of the

request.'.

(4) ADJUDICATION OF CERTAIN DISPUTES- Section 1010 of title 17,

United States Code, is amended--

(A) by amending the section heading to read as follows:

`Sec. 1010. Adjudication of certain disputes';

(B) in subsection (a)--

(i) in the subsection heading by striking `ARBITRATION' and

inserting `ADJUDICATION'; and

(ii) by striking `mutually agree to binding arbitration for

the purpose of determining' and inserting `petition the

and (d) as subsections (b) and (c), respectively;

(D) in subsection (b), as so redesignated, by striking

`arbitration' each place it appears and inserting

`adjudication';

(E) by amending subsection (c), as so redesignated, to read as

follows:

`(c) ADJUDICATION PROCEEDING- The Copyright Royalty Adjudication Board shall

conduct an adjudication proceeding with respect to the matter concerned,

pursuant to chapter 8 of this title. The parties to the proceeding shall

bear the entire costs thereof in such manner and proportion as the Board

shall direct.'; and

(F) by striking subsections (e), (f), and (g).

SEC. 10. TECHNICAL AMENDMENTS.

(a) CLERICAL AMENDMENT TO CHAPTER 10 OF TITLE 17, UNITED STATES CODE- The

item relating to section 1010 in the table of contents for chapter 10 of

title 17, United States Code, is amended to read as follows:

`1010. Adjudication of certain disputes.'.

(b) CLERICAL AMENDMENT TO CHAPTER 9 OF TITLE 17, UNITED STATES CODE- The

item relating to section

903 in the table of contents for chapter 9 of title 17, United States Code, is

amended to read as follows:

`903. Ownership, transfer, licensing, and recordation.'.

in the table of chapters for title 17, United States Code, is amended to

read as follows:

601'.

SEC. 11. RETRANSMISSION CONSENT.

Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) is

amended--

(1) by striking paragraphs (1) and (2) and inserting the following:

`(b)(1) No cable system or other multichannel video programming distributor

shall retransmit the signal of a broadcasting station, or any part thereof,

except--

`(A) with the express authority of the station;

`(B) pursuant to section 614, in the case of a station electing, in

accordance with this subsection, to assert the right to carriage under

such section; or

`(C) pursuant to section 337, in the case of a station electing, in

accordance with this subsection, to assert the right to carriage under

such section.

`(2) The provisions of this subsection shall not apply to--

`(A) retransmission of the signal of a noncommercial broadcasting

station;

`(B) retransmission of the signal of a superstation by a satellite

carrier to subscribers for private home viewing if the originating

station was a superstation on January 1, 1998;

`(C) retransmission of the signal of a broadcasting station that is

owned or operated by, or affiliated with, a broadcasting network

directly to a home satellite antenna, if the household receiving the

signal is located in an area in which such station may not assert its

rights not to have its signal duplicated under the Commission's network

nonduplication regulations; or

`(D) retransmission by a cable operator or other multichannel video

programming distributor of the signal of a superstation if such signal

was obtained from a satellite carrier and the originating station was a

superstation on January 1, 1998.';

(2) by adding at the end of paragraph (3) the following new

subparagraph:

`(C) Within 45 days after the effective date of the Copyright Compulsory

License Improvement Act, the Commission shall commence a rulemaking

proceeding to revise the regulations governing the exercise by television

broadcast stations of the right to grant retransmission consent under this

subsection, and such other regulations as are necessary to administer the

limitation contained in paragraph (2). Such regulations shall establish

election time periods that correspond with those regulations adopted under

subparagraph (B). The rulemaking shall be completed within 180 days after

the effective date of the Copyright Compulsory License Improvement Act.';

and

(3) by adding at the end the following new paragraph:

`(7) For purposes of this subsection:

`(A) The term `superstation' means a television broadcast station, other

than a network station, licensed by the Commission that is secondarily

transmitted by a satellite carrier.

`(B) The term `satellite carrier' has the meaning given that term in

section 119(d) of title 17, United States Code.'.

SEC. 12. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION BROADCAST

SIGNALS.

Title III of the Communications Act of 1934 is amended by inserting after

section 336 the following new section:

`SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

`(a) CARRIAGE OBLIGATIONS- Each satellite carrier providing direct to home

service of a television broadcast station to subscribers located within the

local market of such station shall carry all television broadcast stations

located within that local market. Carriage of additional television

broadcast stations within the local market shall be at the discretion of the

satellite carrier, subject to section 325(b).

`(b) DUPLICATION NOT REQUIRED- Notwithstanding subsection (a), a satellite

carrier shall not be required to carry the signal of any local television

broadcast station that substantially duplicates the signal of another local

television broadcast station which is secondarily transmitted by the

satellite carrier, or to carry the signals of more that one local television

broadcast station affiliated with a particular broadcast network (as the

term is defined by regulation).

`(c) CHANNEL POSITIONING- Each signal carried in fulfillment of the carriage

obligations of a satellite carrier under this section shall be carried on

the satellite carrier channel number on which the local television broadcast

station is broadcast over the air, or on the channel on which it was

broadcast on January 1, 1985, or on the channel it was broadcast on January

1, 1998, at the election of the station, or on such other channel number as

is mutually agreed upon by the station and the satellite carrier. Any

dispute regarding the positioning of local television broadcast stations

shall be resolved by the Commission.

`(d) COMPENSATION FOR CARRIAGE- A satellite carrier shall not accept or

request monetary payment or other valuable consideration in exchange either

for carriage of local television broadcast stations in fulfillment of the

requirements of this section or for channel positioning rights provided to

such stations under this section, except that any such station may be

required to bear the costs associated with delivering a good quality signal

to the principal headend of the satellite carrier.

`(e) REMEDIES-

`(1) COMPLAINTS BY BROADCAST STATIONS- Whenever a local television

broadcast station believes that a satellite carrier has failed to meet

its obligations under this section, such station shall notify the

carrier, in writing, of the alleged failure and identify its reasons for

believing that the satellite carrier is obligated to carry the signal of

such station or has otherwise failed to comply with the channel

positioning or repositioning or other requirements of this section. The

satellite carrier shall, within 30 days of

such written notification, respond in writing to such notification and either

commence to carry the signal of such station in accordance with the terms

requested or state its reasons for believing that it is not obligated to carry

such signal or is in compliance with the channel positioning and repositioning

or other requirements of this section. A local television broadcast station that

is denied carriage or channel positioning or repositioning in accordance with

this section by a satellite carrier may obtain review of such denial by filing a

complaint with the Commission. Such complaint shall allege the manner in which

such satellite carrier has failed to meet its obligations and the basis for such

allegations.

`(2) OPPORTUNITY TO RESPOND- The Commission shall afford such satellite

carrier and opportunity to present data and arguments to establish that

there has been no failure to meet its obligations under this section.

`(3) REMEDIAL ACTIONS; DISMISSAL- Within 120 days after the date a

complaint is filed, the Commission shall determine whether the satellite

carrier has met its obligations under this section. If the Commission

determines that the satellite carrier has failed to meet such

obligations, the Commission shall order the satellite carrier to

reposition the complaining station or, in the case of an obligation to

carry a station, to commence carriage of the station and to continue

such carriage for at least 12 months. If the Commission determines that

the satellite carrier has fully met the requirements of this section, it

shall dismiss the complaint.

`(f) REGULATIONS BY COMMISSION- Within 180 days after the effective date of

this section, the Commission shall, following a rulemaking proceeding, issue

regulations implementing the requirements imposed by this section.

`(g) DEFINITIONS- As used in this section:

`(1) TELEVISION BROADCAST STATION- The term `television broadcast

station' means a full-power television broadcast station, and does not

include a low-power or translator television broadcast station.

`(2) LOCAL MARKET- The term `local market' means the designated market

area in which a station is located and--

`(A) for a commercial television broadcast station located in any of

the 150 largest designated market areas, all commercial television

broadcast stations licensed to a community within the same

designated market area are within the same local market;

`(B) for a commercial television broadcast station that is located

in a designated market area that is not one of the 150 largest, the

local market includes, in addition to all commercial television

broadcast stations licensed to a community within the same

designated market area, any station that is significantly viewed, as

such term is defined in section 76.54 of the Commission's

regulations (47 C.F.R. 76.54); and

`(C) for a noncommercial educational television broadcast station,

the local market includes any station that is licensed to a

community within the same designated market area as the

noncommercial educational television broadcast station.

`(3) DESIGNATED MARKET AREA- The term `designated market area' means a

designated market area, as determined by the Nielsen Media Research and

published in the DMA Market and Demographic Report.'.

SEC. 13. NETWORK NONDUPLICATION; SYNDICATED EXCLUSIVITY AND SPORTS BLACKOUT.

(a) REGULATIONS-

(1) IN GENERAL- Within 45 days after the effective date of this Act, the

Federal Communications Commission shall commence a rulemaking to

establish regulations that apply network nonduplication protection,

syndicated exclusivity protection, and sports blackout protection to the

retransmission of broadcast signals by satellite carriers to subscribers

for private home viewing. To the extent possible, such regulations

shall, subject to paragraph (2), include the same level of protection

accorded retransmissions of television broadcast signals by cable

systems for network nonduplication (47 C.F.R. 76.92), syndicated

exclusivity (47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67).

(2) NETWORK NONDUPLICATION- The network nonduplication regulations

required under paragraph (1) shall allow a television broadcast station

in any local market to assert nonduplication rights--

(A) against a satellite carrier throughout such local market if that

satellite carrier retransmits to subscribers for private home

viewing in such local market the signal of another television

broadcast station located within such local market; or

(B) against all satellite carriers within the zone in which the

television broadcast station may be received over-the-air, using

conventional consumer television receiving equipment, as determined

under regulations prescribed by the Federal Communications

Commission, but such zone shall not extend beyond such local market

of such station.

(3) LOCAL MARKET DEFINED- The term `local market' has the meaning

provided in section 337(g) of the Communications Act of 1934, as added

by section 12 of this Act.

(b) DEFERRED APPLICABILITY OF AMENDMENTS TO SECTION 119 OF TITLE 17, UNITED

STATES CODE- Notwithstanding the amendments to section 119 of title 17,

United States Code, made by this Act, until the regulations regarding

network nonduplication protection are established under subsection (a), the

statutory license under subsection (a) of such section 119 for secondary

transmissions of primary transmissions of programming contained in a primary

transmission made by a network station (as defined in section 119(d) of

title 17, United States Code, as in effect on the day before the effective

date of this Act) shall be limited to secondary transmissions to persons who

reside in unserved households (as defined in section 119(d) of title 17,

United States Code, as in effect on the day before the effective date of

this Act).

SEC. 14. EFFECTIVE DATE.

This Act and the amendments made by this Act shall take effect on January 1,

1999.

END