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HR 768 IH

To amend title 17, United States Code, to reform the copyright law with respect to satellite retransmissions of broadcast signals, and for other purposes.

February 23, 1999

Mr. COBLE (for himself and Mr. CANNON) introduced the following bill; which was referred to the Committee on the Judiciary

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. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL MARKETS.

(a) IN GENERAL- Chapter 1 of title 17, United States Code, is amended by adding after section 121 the following new section:

`Sec. 122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local markets

`(a) SECONDARY TRANSMISSIONS OF TELEVISION BROADCAST STATIONS BY SATELLITE CARRIERS- A secondary transmission of a primary transmission of a television broadcast station into the station's local market shall be subject to statutory licensing under this section if--

`(1) the secondary transmission is made by a satellite carrier to the public;

`(2) 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

`(3) the satellite carrier makes a direct or indirect charge for the secondary transmission to--

`(A) each subscriber receiving the secondary transmission; or

`(B) a distributor that has contracted with the satellite carrier for direct or indirect delivery of the secondary transmission to the public.

`(b) REPORTING REQUIREMENTS-

`(1) INITIAL LISTS- A satellite carrier that makes secondary transmissions of a primary transmission made by a network station under subsection (a) shall, within 90 days after commencing such secondary transmissions, submit to that station a list identifying (by name and street address, including county and zip code) all subscribers to which the satellite carrier currently makes secondary transmissions of that primary transmission.

`(2) SUBSEQUENT LISTS- After the list is submitted under paragraph (1), the satellite carrier shall, on the 15th of each month, submit to the station a list identifying (by name and street address, including county and zip code) any subscribers who have been added or dropped as subscribers since the last submission under this subsection.

`(3) USE OF SUBSCRIBER INFORMATION- Subscriber information submitted by a satellite carrier under this subsection may be used only for the purposes of monitoring compliance by the satellite carrier with this section.

`(4) REQUIREMENTS OF STATIONS- The submission requirements of this subsection shall apply to a satellite carrier only if the station to whom 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.

`(c) NO ROYALTY FEE REQUIRED- A satellite carrier whose secondary transmissions are subject to statutory licensing under subsection (a) shall have no royalty obligation for such secondary transmissions.

`(d) NONCOMPLIANCE WITH REPORTING REQUIREMENTS- Notwithstanding subsection (a), the willful or repeated secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a primary transmission made by that television broadcast station 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 under sections 502 through 506 and 509, if the satellite carrier has not complied with the reporting requirements of subsection (b).

`(e) WILLFUL ALTERATIONS- Notwithstanding subsection (a), the secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a primary transmission made by that television broadcast station 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 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.

`(f) VIOLATION OF TERRITORIAL RESTRICTIONS ON STATUTORY LICENSE FOR TELEVISION BROADCAST STATIONS-

`(1) INDIVIDUAL VIOLATIONS- The willful or repeated secondary transmission to the public by a satellite carrier of a primary transmission made by a television broadcast station and embodying a performance or display of a work to a subscriber who does not reside in that station's local market, and is not subject to statutory licensing under section 119, 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, except that--

`(A) no damages shall be awarded for such act of infringement if the satellite carrier took corrective action by promptly withdrawing service from the ineligible subscriber; and

`(B) any statutory damages shall not exceed $5 for such subscriber for each month during which the violation occurred.

`(2) PATTERN OF VIOLATIONS- If a satellite carrier engages in a willful or repeated pattern or practice of secondarily transmitting to the public a primary transmission made by a television broadcast station and embodying a performance or display of a work to subscribers who do not reside in that station's local market, and are not subject to statutory licensing under section 119, then in addition to the remedies under paragraph (1)--

`(A) if the pattern or practice has been carried out on a substantially nationwide basis, the court shall order a permanent injunction barring the secondary transmission by the satellite carrier of the primary transmissions of that television broadcast station (and if such television broadcast station is a network station, all other television broadcast stations affiliated with such network), and the court may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out; and

`(B) if the pattern or practice has been carried out on a local or regional basis with respect to more than one television broadcast station (and if such television broadcast station is a network station, all other television broadcast stations affiliated with such network), the court shall order a permanent injunction barring the secondary transmission in that locality or region by the satellite carrier of the primary transmissions of any television broadcast station, and the court may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out.

`(g) BURDEN OF PROOF- In any action brought under subsection (d), (e), or (f), the satellite carrier shall have the burden of proving that its secondary transmission of a primary transmission by a television broadcast station is made only to subscribers located within that station's local market.

`(h) GEOGRAPHIC LIMITATIONS ON SECONDARY TRANSMISSIONS- The statutory license created by this section shall apply to secondary transmissions to locations in the United States, and any commonwealth, territory, or possession of the United States.

`(i) EXCLUSIVITY WITH RESPECT TO SECONDARY TRANSMISSIONS OF BROADCAST STATIONS BY SATELLITE TO MEMBERS OF THE PUBLIC- No provision of section 111 or any other law (other than this section and section 119) shall be construed to contain any authorization, exemption, or license through which secondary transmissions by satellite carriers of programming contained in a primary transmission made by a television broadcast station may be made without obtaining the consent of the copyright owner.

`(j) DEFINITIONS- In this section--

`(1) 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 or indirectly through other program distribution entities.

`(2) LOCAL MARKET- The `local market' of a television broadcast station has the meaning given that term under rules, regulations, and authorizations of the Federal Communications Commission relating to carriage of television broadcast signals by satellite carriers.

`(3) NETWORK STATION; SATELLITE CARRIER; SECONDARY TRANSMISSION- The terms `network station', `satellite carrier' and `secondary transmission' have the meanings given such terms under section 119(d).'.

`(4) SUBSCRIBER- The term `subscriber' means an entity that receives a secondary transmission service by means of a secondary transmission from a satellite and pays a fee for the service, directly or indirectly, to the satellite carrier or to a distributor.

`(5) 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.'.

(b) TECHNICAL AND CONFORMING AMENDMENTS- The table of sections for chapter 1 of title 17, United States Code, is amended by adding after the item relating to section 121 the following:

`122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local market.'.

SEC. 3. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, UNITED STATES CODE.

Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking `December 31, 1999' and inserting `December 31, 2004'.

SEC. 4. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

Section 119(c) of title 17, United States Code, is amended by adding at the end the following new paragraph:

`(4) REDUCTION-

`(A) SUPERSTATION- The rate of the royalty fee in effect on January 1, 1998, payable in each case under subsection (b)(1)(B)(i) shall be reduced by 30 percent.

`(B) NETWORK- The rate of the royalty fee in effect on January 1, 1998, payable under subsection (b)(1)(B)(ii) shall be reduced by 45 percent.

`(5) PUBLIC BROADCASTING SERVICE AS AGENT- For purposes of section 802, with respect to royalty fees paid by satellite carriers for retransmitting the Public Broadcasting Service satellite feed, the Public Broadcasting Service shall be the agent for all public television copyright claimants and all Public Broadcasting Service member stations.'.

SEC. 5. DEFINITIONS.

Section 119(d) of title 17, United States Code, is amended by striking paragraph (10) and inserting the following:

`(10) UNSERVED HOUSEHOLD- The term `unserved household', with respect to a particular television network, means a household that cannot receive, through the use of a conventional outdoor rooftop receiving antenna, an over-the-air signal of grade B intensity (as defined by the Federal Communications Commission) of a primary network station affiliated with that network.'.

SEC. 6. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

(a) SECONDARY TRANSMISSIONS- Section 119(a)(1) of title 17, United States Code, is amended--

(1) by striking the paragraph heading and inserting `(1) SUPERSTATIONS AND PBS SATELLITE FEED- ';

(2) by inserting `or by the Public Broadcasting Service satellite feed' after `superstation'; and

(3) by adding at the end the following: `In the case of the Public Broadcasting Service satellite feed, subsequent to January 1, 2001, or the date on which local retransmissions of broadcast signals are offered to the public, whichever is earlier, the statutory license created by this section shall be conditioned on the Public Broadcasting Service certifying to the Copyright Office on an annual basis that its membership supports the secondary transmission of the Public Broadcasting Service satellite feed, and providing notice to the satellite carrier of such certification.'.

(b) DEFINITION- Section 119(d) of title 17, United States Code, is amended by adding at the end the following:

`(12) PUBLIC BROADCASTING SERVICE SATELLITE FEED- The term `Public Broadcasting Service satellite feed' means the national satellite feed distributed by the Public Broadcasting Service consisting of educational and informational programming intended for private home viewing, to which the Public Broadcasting Service holds national terrestrial broadcast rights.'.

SEC. 7. NOTICE TO SUBSCRIBERS.

Section 119(a)(2) of title 17, United States Code, is amended by adding at the end the following:

`(D) NOTICE TO SUBSCRIBERS- A satellite carrier that makes secondary transmissions of a primary transmission made by a network station pursuant to subparagraph (A) shall, prior to providing service of broadcast signals under this title to a subscriber, provide the subscriber with a written statement describing and quoting the network territorial restrictions of subparagraph (B) of this paragraph and describing and quoting the related provisions of paragraphs (5), (9), and (10). Such statement shall describe the circumstances under which a subscriber may not be eligible for satellite service of a particular network station. With respect to subscribers currently receiving broadcast signals under this title, the satellite carrier shall provide the written statement described in this subparagraph to such subscribers no later than 60 days after the enactment of this subparagraph.'.

SEC. 8. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

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

(1) in paragraph (1), by inserting ` 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,' after `satellite carrier to the public for private home viewing,'; and

(2) in paragraph (2), by inserting ` 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,' after `satellite carrier to the public for private home viewing,'.

SEC. 9. EFFECTIVE DATE.

This Act and the amendments made by this Act shall take effect on January 1, 2000, except that the amendments made by section 4 shall take effect on July 1, 1999.

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