S. Rept. 111-98 - 111th Congress (2009-2010)
November 10, 2009, As Reported by the Judiciary Committee

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Senate Report 111-98 - THE SATELLITE TELEVISION MODERNIZATION ACT OF 2009




[Senate Report 111-98]
[From the U.S. Government Printing Office]


                                                       Calendar No. 165
111th Congress                                                   Report
                                 SENATE
 1st Session                                                     111-98

======================================================================



 
           THE SATELLITE TELEVISION MODERNIZATION ACT OF 2009

                                _______
                                

               November 10, 2009.--Ordered to be printed

                                _______
                                

Mr. Leahy, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                         [To accompany S. 1670]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to which was referred the 
bill (S. 1670) to reform and modernize the limitations on 
exclusive rights relating to secondary transmissions of certain 
signals, having considered the same, reports favorably thereon, 
with an amendment, and recommends that the bill, as amended, do 
pass.

                                CONTENTS

                                                                   Page
  I. Background and Purpose of the Satellite Television Modernization 
     Act of 2009......................................................1
 II. History of the Bill and Committee Consideration..................4
III. Section-by-Section Summary of the Bill...........................5
 IV. Congressional Budget Office Cost Estimate........................7
  V. Regulatory Impact Evaluation.....................................7
 VI. Conclusion.......................................................7
VII. Changes to Existing Law Made by the Bill, as Reported............7

I. Background and Purpose of the Satellite Television Modernization Act 
                                of 2009

    Broadcast television plays an important role in communities 
across the country by providing free access to news, weather, 
and sports that is tailored to the interests of its local 
viewers. The programming and services provided by local 
broadcasters help to foster a sense of community in cities and 
towns across the country. Congress has played a key role in 
ensuring the availability of local programming for as many 
consumers as possible. The Satellite Television Modernization 
Act continues this policy by reauthorizing, modernizing, and 
simplifying important portions of the Copyright Act used by 
satellite providers and cable systems that facilitate the 
retransmission of broadcast stations to consumers.
    Today, broadcast television is but one part of a growing 
matrix of video delivery systems. Cable, satellite, and 
increasingly, the Internet, are viable alternatives to over-
the-air television, but the network of broadcast stations that 
exist in the United States remains the primary way in which 
locally oriented video content is received by consumers. 
Congress has created a statutory structure to enable cable and 
satellite companies to carry broadcast stations, which in turn 
has benefited both the carriers and the broadcasters.
    Every signal broadcast by a television station contains 
copyrighted content, and the Copyright Act grants copyright 
holders the exclusive rights over the public performance of 
their works.\1\ Prior to the Copyright Act of 1976 (the ``1976 
Act''),\2\ however, courts held that a cable system 
retransmitting the content contained in a broadcast signal was 
not engaged in a separate public performance of the content.\3\ 
In the 1976 Act, Congress provided that the secondary 
transmission of a work or display embodied in a primary 
transmission is an act of infringement if done without the 
consent of the content owner or pursuant to the terms of the 
statutory license, created as part of the 1976 Act.\4\
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    \1\See 17 U.S.C. Sec. 106. Broadcast television signals contain the 
copyrighted works of many different rights holders and aggregating 
those rights can be unwieldy. The statutory licenses discussed infra 
create a viable avenue for carriers to clear the necessary rights while 
ensuring copyright holders are compensated.
    \2\Pub. L. No. 94-553.
    \3\See Fortnightly Corp. v. United Artists Television, Inc., 392 
U.S. 390 (1968).
    \4\See 17 U.S.C. Sec. 111.
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    The section 111 statutory license established by Congress 
in 1976 for the cable industry to provide secondary 
transmissions of broadcast programming has not been updated 
significantly since its enactment. As a result, the license 
remains based on rules of the Federal Communications Commission 
(``FCC'') in place more than 30 years ago, many of which have 
long since been repealed.\5\ The modern application of this 
license has resulted in unintended consequences, such as cable 
systems paying copyright holders for the retransmission of 
content to cable subscribers who do not actually receive the 
content. This has become known as the ``phantom signal'' 
issue.\6\ The Satellite Television Modernization Act addresses 
this issue by applying the royalty based only on subscribers 
who actually receive the content, but, in exchange, raising the 
royalty rate.
---------------------------------------------------------------------------
    \5\See A Report of the Register of Copyrights, United States 
Copyright Office, Satellite Home Viewer Extension and Reauthorization 
Act Section 109 Report (June 2008) [hereinafter Section 109 Report] at 
2-8.
    \6\See id. at 99.
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    In the 1980s, satellite television became an increasingly 
viable delivery platform.\7\ Congress facilitated its growth by 
enacting the Satellite Home Viewer Act in 1988,\8\ legislation 
that created a new section 119 statutory license (the ``distant 
signal license'') to be used by satellite providers to 
retransmit the signals of distant network stations to 
households that were unserved by their local broadcast 
stations.
---------------------------------------------------------------------------
    \7\The satellite industry operated under the passive carrier 
exemption of the section 111 license from the inception of the license 
through the mid-1980s, but once satellite providers began to scramble 
their signals, questions were raised about whether they could continue 
to operate as passive carriers. See Section 109 Report, supra note 5 at 
8-9.
    \8\Pub. L. No. 100-667.
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    The Satellite Home Viewer Act included a standard to 
determine if a household was served or unserved that was 
intended to protect local broadcasters. The distant signal 
license defines an unserved household as one that ``cannot 
receive, through the use of a conventional, stationary, outdoor 
rooftop receiving antenna, an over-the-air signal of a primary 
network station affiliated with that network of Grade B 
intensity as defined by the Federal Communications 
Commission.''\9\ Congress set the distant signal license to 
expire in five years, and it has traditionally been 
reauthorized for five-year periods since its inception.
---------------------------------------------------------------------------
    \9\17 Sec. U.S.C. 119(d)(10).
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    The distant signal license grew out of the existing 
satellite technology of the era, which was a satellite beam 
that covered the continental United States. As the industry 
grew throughout the 1990s, it was able to develop technology 
that allowed for the targeting of specific regions within the 
country. This progression in technology made it possible for 
satellite carriers to provide local stations to local markets. 
As a result, when Congress revisited the Satellite Home Viewer 
Act in 1999, it established a new license in section 122 that 
allowed for the retransmission of local broadcast signals in 
local markets (the ``local license'').\10\ Unlike the distant 
signal license, the local license is permanent. The local 
license has been successful in both promoting the satellite 
television industry and enhancing access to local broadcast 
stations.
---------------------------------------------------------------------------
    \10\Pub. L. No. 106-113.
---------------------------------------------------------------------------
    Congress last reauthorized the distant signal license in 
2004.\11\ Each reauthorization of the license has aimed to make 
improvements to the existing system. In this reauthorization, 
Congress must address certain changes to the television 
marketplace. Most significantly, by June 13, 2009, all full 
power broadcast stations in the United States had completed the 
transition from an analog format to digital, pursuant to 
congressional mandate.\12\ The statutory license that governs 
the retransmission of distant broadcast content by the 
satellite industry, however, is currently based on the analog 
format. As a result, virtually all households in the United 
States currently fall under the definition of an unserved 
household for purposes of the distant signal license. The 
legislation reported by the Committee will modernize the 
statutory licenses so that they are based on a digital standard 
and will work efficiently and effectively in the digital world.
---------------------------------------------------------------------------
    \11\Pub. L. No. 108-447.
    \12\Pub. L. No. 111-4.
---------------------------------------------------------------------------
    In June 2008, the United States Copyright Office issued a 
report pursuant to the 2004 reauthorization of the Satellite 
Home Viewer Act.\13\ Congress charged the Copyright Office with 
examining the compulsory licenses and making recommendations to 
improve the current system. The principle recommendation of the 
Copyright Office report was to move towards abolishing the 
licenses, but short of that, the report offers other 
recommendations to streamline and modernize them.\14\
---------------------------------------------------------------------------
    \13\Pub. L. No. 108-447.
    \14\See generally Section 109 Report, supra note 5 at 219.
---------------------------------------------------------------------------
    The Committee bill, as reported, draws on the 
recommendations of the Copyright Office and takes steps to 
begin the process of phasing out the statutory licenses. The 
Satellite Television Modernization Act moves locally-oriented 
provisions out of the distant signal license and places them 
into the permanent local license. These provisions include 
significantly viewed, special exception, and low-power 
stations. Shifting these provisions into the local license will 
ensure that the distant signal license is focused purely on 
providing truly distant signals to consumers unserved by their 
local broadcasters.
    In addition, the Committee bill fixes an issue in the 
distant signal license that currently impedes the ability of 
satellite providers to import a distant signal if a broadcast 
signal from a neighboring market bleeds into portions of 
another market and covers households that would otherwise be 
deemed unserved. The bill also includes a new provision in the 
local license to allow a satellite carrier to import a missing 
network station from an adjacent market when the local market 
is not served by all four principle networks, after the 
provider first obtains the station's consent. The bill also 
makes it easier for satellite carriers to provide State public 
broadcasting networks.
    These changes will improve the ability of satellite 
carriers to provide a full complement of network stations to 
consumers, which will encourage them to launch local service in 
more markets, and to offer more local stations for consumers. 
These changes also signify important steps toward phasing out 
the statutory licenses, in particular the distant signal 
license. As local service is launched in more and more markets, 
the distant signal license will become increasingly unnecessary 
and can eventually be ended.
    Finally, the Satellite Television Modernization Act directs 
the United States Copyright Office to study proposals on 
phasing out the compulsory licenses, and to provide further 
recommendations on the issue. The Copyright Office would issue 
a report on this topic no later than one year following the 
enactment of this legislation.

          II. History of the Bill and Committee Consideration


                      A. INTRODUCTION OF THE BILL

    On September 15, 2009, Senator Leahy introduced the 
Satellite Television Modernization Act of 2009. Senator 
Sessions, Senator Kohl, Senator Hatch, and Senator Kyl were 
original cosponsors. This bill was referred to the Committee on 
the Judiciary.

                              B. HEARINGS

    On February 25, 2009, the Senate Committee on the Judiciary 
had held a hearing on ``Ensuring Television Carriage in the 
Digital Age.'' This hearing was attended by Chairman Leahy, 
Senator Specter, Senator Hatch, Senator Kohl, Senator Feingold, 
Senator Cardin, Senator Wyden, Senator Klobuchar, and Senator 
Kaufman. The following witnesses testified: Charlie Ergen, 
Chairman and CEO of DISH Network, L.L.C.; K. James Yager, CEO 
of Barrington Broadcasting Group, L.L.C., and Chairman of the 
National Association of Broadcaster's Television Board; Martin 
D. Franks, Executive Vice President for Policy, Planning and 
Government Relations, CBS Corporation; David L. Cohen, 
Executive Vice President, Comcast Corporation; and the 
Honorable Robert M. Hartwell, Vermont State Senator, Bennington 
District. The following materials were submitted for the 
Record: statement of Gigi B. Sohn, President of Public 
Knowledge; statement of the Association of Public Television 
Stations; statement of Bob Gabrielli, Senior Vice President, 
DIRECTV, Inc.; and statement of Mike Mountford, CEO, National 
Programming Service.

                         C. LEGISLATIVE HISTORY

    The Senate Judiciary Committee considered S. 1670 on 
September 24, 2009. Two amendments were considered during this 
meeting.
    Senator Leahy offered a managers' amendment cosponsored by 
Senator Sessions, which was adopted by unanimous consent. This 
amendment makes technical corrections to the phantom signal 
provision; defines a ``served household'' as one that receives 
either a good quality digital or analog signal; clarifies that 
stations carried under the short market provision of section 
122 are not part of the carry-one-carry-all requirement of the 
Communications Act of 1934; applies the ``Grade B bleed'' fix 
to all markets; grandfathers current distant signal subscribers 
so that they do not need to be requalified; provides a more 
accurate definition of where local service is available; 
strikes the channel positioning language of the noncommercial 
television provision; and directs the United States Copyright 
Office to study and report within one year on proposals to 
phase-out the statutory licenses.
    Senator Feingold offered an amendment cosponsored by 
Senator Kohl, which was subsequently withdrawn, that would have 
required satellite providers to offer Wisconsin broadcast 
stations to subscribers in eight counties in Wisconsin that are 
located in Designated Market Areas that comprise counties 
primarily located in other states.
    The Committee then voted to report the Satellite Television 
Modernization Act of 2009, as amended, favorably to the Senate 
by voice vote.

              III. Section-by-Section Summary of the Bill


Section 1. Short title; Table of contents

    This section provides that the legislation may be cited as 
the Satellite Television Modernization Act of 2009.

Section 2. Limitations on exclusive rights: Secondary transmissions of 
        superstations and network stations for private home viewing

    In general, this section makes six substantive changes to 
streamline and modernize the section 119 license. First, it 
removes the special exceptions, low power television stations, 
and significantly viewed stations provisions from the section 
119 license. Each of these provisions relates to the ability to 
receive locally-oriented programming. Section 3 of this Act 
recodifies these provisions in the local license--section 122 
of title 17--so that section 119 is more clearly directed 
toward truly distant signals.
    Second, this section updates the distant signal license to 
reflect the digital transition. Specifically, it provides for a 
digital predictive model for determining which households are 
unserved, replacing the analog model. A household that does 
continue to receive a good quality analog signal, however, will 
continue to be deemed a served household.
    Third, this section grandfathers existing subscribers, by 
ensuring that satellite providers do not need to requalify them 
under the new digital standard. It also continues to provide 
that the statutory license does not apply in the case of 
secondary transmissions to a subscriber who was not lawfully 
receiving such secondary transmission as of December 31, 2009, 
and is able to receive a local signal from the satellite 
carrier.
    Fourth, this section modernizes the process for determining 
royalty rates. The current law differentiates between analog 
and digital signal for royalty purposes and continues to refer 
to the copyright arbitration royalty panel process, which no 
longer exists. This section makes the necessary updates for the 
Copyright Royalty Judges to set rates under the current 
statutory system in chapter 8 of title 17.
    Fifth, this section includes within the definition of an 
unserved household a household in which there is no digital 
signal of a station affiliated with the network in the 
household's local market. This has been known as the ``grade B 
bleed'' issue.
    Sixth, this section increases the penalties for violating 
the terms of the license to deter infringement. In addition, 
this section makes the necessary technical and conforming 
changes.

Section 3. Limitations on exclusive rights: Secondary transmissions by 
        satellite carriers within local markets

    In general, this section makes four substantive changes to 
the section 122 license. First, it inserts the significantly 
viewed stations, low power television stations, and special 
exceptions provisions that were removed in section 2 of the Act 
from section 119. In doing so, it also expands the license to 
provide secondary transmissions of the primary transmissions of 
local low power television stations to cover the entire local 
market. Royalties apply in the same manner as they do for these 
three provisions under current law.
    Second, this section facilitates the carriage of networks 
of noncommercial educational broadcast stations. Specifically, 
it applies the statutory license to secondary transmissions of 
primary transmissions from a system of three or more 
noncommercial educational broadcast stations licensed by a 
single entity in a State to any subscriber within that State 
located in a designated market area not otherwise eligible to 
receive secondary transmissions of a noncommercial educational 
broadcast station located within that State. Royalties to the 
copyright owners apply to retransmissions under this provision.
    Third, this section creates a new provision permitting a 
satellite carrier to provide a network signal from an adjacent 
market when a local market is unserved by that network, 
provided the satellite carrier obtain retransmission consent 
from the station. Royalties to the copyright owners apply to 
retransmissions under this provision.
    Fourth, this section increases the penalties for violating 
the terms of the license to deter infringement. In addition, 
this section makes the necessary technical and conforming 
changes.

Section 4. Technical and conforming amendments

    This section makes technical and conforming amendments to 
the Communications Act of 1934, specifying that carriage of low 
power, significantly viewed, special exception, and short 
market stations is optional, and not part of a carry-one-carry-
all requirement.

Section 5. Extension of authority

    This section reauthorizes the section 119 statutory license 
until December 31, 2014.

Section 6. Modifications to the cable statutory license

    This section modifies the royalty calculation methodology 
in the section 111 cable license. This section ensures that the 
gross receipt pool, which serves as the basis for royalty 
payments under the section 111 license, applies only to 
subscribers who can actually receive the relevant content. This 
section also makes adjustments to the royalty rates. In 
addition, this section modifies section 804(b) of title 17, to 
delay proceedings to determine new royalty rates until 2015, 
and sets the effective date for the new royalty rates 
established in this section as the first accounting period of 
2010.

Section 7. Report on market based alternatives to statutory licensing

    This section directs the United States Copyright Office to 
submit a study to the House and Senate Judiciary Committees on 
proposals to phase out the statutory licenses. The report shall 
be due one year following the enactment of the bill.

             IV. Congressional Budget Office Cost Estimate

    The cost estimate provided by the Congressional Budget 
Office pursuant to section 402 of the Congressional Budget Act 
of 1974 was not available for inclusion in this report. The 
estimate will be printed in either a supplemental report or the 
Congressional Record when it is available.

                    V. Regulatory Impact Evaluation

    In compliance with rule XXVI of the Standing Rules of the 
Senate, the Committee finds that no significant regulatory 
impact will result from the enactment of S. 1670.

                             VI. Conclusion

    The Satellite Television Modernization Act of 2009 
sufficiently updates the statutory licenses that govern the 
retransmission of broadcast television content for the digital 
era. This legislation also takes important steps towards 
phasing out the statutory licenses. By modernizing the licenses 
for the digital age, the Satellite Television Modernization Act 
ensures that consumers will receive more local content in the 
most efficient manner possible.

       VII. Changes to Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
S. 1670, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                           UNITED STATES CODE

                          TITLE 17--COPYRIGHTS

CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT

           *       *       *       *       *       *       *



Sec. 111. Limitations on exclusive rights: Secondary transmissions

           *       *       *       *       *       *       *


    (d) Statutory License for Secondary Transmissions by Cable 
Systems.--
          (1) A cable system whose secondary transmissions have 
        been subject to statutory licensing under subsection 
        (c) shall, on a semiannual basis, deposit with the 
        Register of Copyrights, in accordance with requirements 
        that the Register shall prescribe by regulation--

           *       *       *       *       *       *       *

                  [(B) except in the case of a cable system 
                whose royalty is specified in subclause (C) or 
                (D), a total royalty fee 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 
                said period for the basic service of providing 
                secondary transmissions of primary broadcast 
                transmitters, as follows:
                          [(i) 0.675 of 1 per centum of such 
                        gross receipts for the privilege of 
                        further transmitting any nonnetwork 
                        programming of a primary transmitter in 
                        whole or in part beyond the local 
                        service area of such primary 
                        transmitter, such amount to be applied 
                        against the fee, if any, payable 
                        pursuant to paragraphs (ii) through 
                        (iv);
                          [(ii) 0.675 of 1 per centum of such 
                        gross receipts for the first distant 
                        signal equivalent;
                          [(iii) 0.425 of 1 per centum of such 
                        gross receipts for each of the second, 
                        third, and fourth distant signal 
                        equivalents;
                          [(iv) 0.2 of 1 per centum of such 
                        gross receipts for the fifth distant 
                        signal equivalent and each additional 
                        distant signal equivalent thereafter; 
                        and
                        in computing the amounts payable under 
                        paragraphs (ii) through (iv), above, 
                        any fraction of a distant signal 
                        equivalent shall be computed at its 
                        fractional value and, in the case of 
                        any cable system located partly within 
                        and partly without the local service 
                        area of a primary transmitter, gross 
                        receipts shall be limited to those 
                        gross receipts derived from subscribers 
                        located without the local service area 
                        of such primary transmitter; and]
                  (B) except in the case of a cable system 
                whose royalty fee is specified in subparagraph 
                (E) or (F), a total royalty fee 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 
                said period for the basic service of providing 
                secondary transmissions of primary broadcast 
                transmitters, as follows:
                          (i) 1.064 per centum for the 
                        privilege of further transmitting any 
                        nonnetwork programming of a primary 
                        transmitter in whole or in part beyond 
                        the local service area of such primary 
                        transmitter, such amount to be applied 
                        against the fee, if any, payable 
                        pursuant to clauses (ii) through (iv).
                          (ii) 1.064 per centum of such gross 
                        receipts for the first distant signal 
                        equivalent.
                          (iii) 0.701 of 1 per centum of such 
                        gross receipts for each of the second, 
                        third, and fourth distant signal 
                        equivalents.
                          (iv) 0.330 of 1 per centum of such 
                        gross receipts for the fifth distant 
                        signal equivalent and each distant 
                        signal equivalent thereafter;
                  [(C) 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 total $80,000 or less, 
                gross receipts of the cable system for the 
                purpose of this subclause shall be computed by 
                subtracting from such actual gross receipts the 
                amount by which $80,000 exceeds such actual 
                gross receipts, except that in no case shall a 
                cable system's gross receipts be reduced to 
                less than $3,000. The royalty fee payable under 
                this subclause shall be 0.5 of 1 per centum, 
                regardless of the number of distant signal 
                equivalents, if any; and] (C) in computing the 
                amounts payable under clauses (ii) through (iv) 
                of subparagraph (B), any fraction of a distant 
                signal equivalent shall be computed at its 
                fractional value or in the case of any cable 
                system located partly within and partly without 
                a local service area of a primary transmitter, 
                gross receipts shall be limited to those gross 
                receipts derived from subscribers located 
                without the local service area of such primary 
                transmitter;
                  [(D) 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 $80,000 
                but less than $160,000, the royalty fee payable 
                under this subclause shall be (i) 0.5 of 1 per 
                centum of any gross receipts up to $80,000; and 
                (ii) 1 per centum of any gross receipts in 
                excess of $80,000 but less than $160,000, 
                regardless of the number of distant signal 
                equivalents, if any.] (D) in computing the 
                amounts payable under clauses (ii) through (iv) 
                of subparagraph (B), if a cable system provides 
                a secondary transmission of a primary 
                transmitter to some but not all communities 
                served by that cable system, the gross receipts 
                and the distant signal equivalent values for 
                each secondary transmission shall be derived 
                solely on the basis of the subscribers in those 
                communities where the cable system provides 
                each such secondary transmission, provided, 
                however, that the total royalty fee for the 
                period paid by such system shall in no event be 
                less than the royalty fee calculated in 
                accordance with clause (i) of subparagraph (B) 
                multiplied by the gross receipts from all the 
                subscribers to the system; and provided 
                further, that a cable system that on a 
                statement submitted prior to the date of 
                enactment of the Satellite Television 
                Modernization Act of 2009, computed its royalty 
                fee consistent with the methodology in this 
                paragraph or that amends a statement filed 
                prior to the date of enactment of such Act to 
                compute the royalty fee due using this 
                methodology shall not be subject to an action 
                for infringement, or eligible for any royalty 
                refund, 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 total $263,800 or less, 
                gross receipts of the cable system for the 
                purpose of this subparagraph 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. The royalty fee 
                payable under this subparagraph shall be 0.5 of 
                1 per centum, regardless of the number of 
                distant signal equivalents, if any; and
                  (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 subparagraph shall be--
                          (i) 0.5 of 1 per centum of any gross 
                        receipts up to $263,800; and
                          (ii) 1 per centum of any gross 
                        receipts in excess of $283,800 but less 
                        than $527,600 regardless of the number 
                        of distant signal equivalents, if any.

           *       *       *       *       *       *       *


Sec. 119. Limitations on exclusive rights: Secondary transmissions of 
                    superstations and network stations for private home 
                    viewing

    (a) Secondary Transmissions by Satellite Carriers.--

           *       *       *       *       *       *       *

          (2) Network stations.--
                  (A) In general.--Subject to the provisions of 
                [subparagraphs (B) and (C)] subparagraph (B) of 
                this paragraph and paragraphs [(5), (6), (7), 
                and (8)] (4), (5), (6), and (7) of this 
                subsection and section 114(d), secondary 
                transmissions of a performance or display of a 
                work embodied in a primary transmission made by 
                a network station shall be subject to statutory 
                licensing under this section if the secondary 
                transmission is made by a satellite carrier to 
                the public for private home viewing, 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 the carrier makes a direct or 
                indirect charge for such retransmission service 
                to each subscriber receiving the secondary 
                transmission.
                  (B) Secondary transmissions to unserved 
                households.--
                          (i) In general.--The statutory 
                        license provided for in subparagraph 
                        (A) shall be limited to secondary 
                        transmissions of the signals of no more 
                        than two network stations in a single 
                        day for each television network to 
                        persons who reside in unserved 
                        households, except that a satellite 
                        provider lawfully serving a subscriber 
                        with a distant network station pursuant 
                        to this subparagraph while a network 
                        station affiliated with such network 
                        was broadcasting in analog shall not be 
                        required to re-qualify such subscriber 
                        to receive such distant station under 
                        the digital predictive model 
                        established by the Federal 
                        Communications Commission. [The 
                        limitation in this clause shall not 
                        apply to secondary transmissions under 
                        paragraph (3).]
                          (ii) Accurate determinations of 
                        eligibility.--
                                  (I) Accurate predictive 
                                model.--In determining 
                                presumptively whether a person 
                                resides in an unserved 
                                household under subsection 
                                (d)(10)(A), [a court shall rely 
                                on the Individual Location 
                                Longley-Rice model set forth by 
                                the Federal Communications 
                                Commission in Docket No. 98-
                                201, as that model may be 
                                amended by the Commission over 
                                time under section 339(c)(3) of 
                                the Communications Act of 1934 
                                [47 U.S.C.A. 339(c)(3)] to 
                                increase the accuracy of that 
                                model.] a court shall rely, 
                                with respect to a signal 
                                originating as an analog 
                                signal, on the Individual 
                                Location Longley-Rice model set 
                                forth by the Federal 
                                Communications Commission in 
                                Docket No. 98-201, and shall 
                                rely, with respect to a signal 
                                originating as a digital 
                                signal, on the predictive model 
                                established by the Federal 
                                Communications Commission, as 
                                that model may be amended over 
                                time to increase the accuracy 
                                of that model.
                                  (II) Accurate measurements.--
                                For purposes of site 
                                measurements to determine 
                                whether a person resides in an 
                                unserved household under 
                                subsection (d)(10)(A), a court 
                                shall rely on [section 
                                339(c)(4) of the Communications 
                                Act of 1934 [47 U.S.C.A. 
                                339(c)(4)]] rules established 
                                by the Federal Communications 
                                Commission.

           *       *       *       *       *       *       *

                  [(C) Exceptions.--
                          [(i) 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 
                        subparagraph (A) 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 the 
                        regulations of the Commission as in 
                        effect on such date (47 CFR 76.51).
                          [(ii) States with all network 
                        stations and superstations in same 
                        local market.--In a State in which all 
                        network stations and superstations 
                        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 subparagraph (A) 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 of the Code of Federal 
                        Regulations).
                          [(iii) 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 subparagraph (A) 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.
                          [(iv) 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 subparagraph (A) 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.
                          [(v) Applicability of royalty 
                        rates.--The royalty rates under 
                        subsection (b)(1)(B) apply to the 
                        secondary transmissions to which the 
                        statutory license under subparagraph 
                        (A) applies under clauses (i), (ii), 
                        (iii), and (iv).]
                  [(D)] (C) Submission of subscriber lists to 
                networks.--
                          (i) Initial lists.--A satellite 
                        carrier that makes secondary 
                        transmissions of a primary transmission 
                        made by a network station pursuant to 
                        subparagraph (A) shall, 90 days after 
                        commencing such secondary 
                        transmissions, submit to the network 
                        that owns or is affiliated with the 
                        [network station--
                                  [(I) a list identifying (by 
                                name and address, including 
                                street or rural route number, 
                                city, State, and zip code) all 
                                subscribers to which the 
                                satellite carrier makes 
                                secondary transmissions of that 
                                primary transmission to 
                                subscribers in unserved 
                                households; and
                                  [(II) a separate list, 
                                aggregated by designated market 
                                area (as defined in section 
                                122(j)) (by name and address, 
                                including street or rural route 
                                number, city, State, and zip 
                                code), which shall indicate 
                                those subscribers being served 
                                pursuant to paragraph (3), 
                                relating to significantly 
                                viewed stations.] network 
                                station a list, aggregated by 
                                designated market area (as that 
                                term is defined in section 
                                122(j)), indentifying (by name 
                                and address, including street 
                                or rural route number, city, 
                                State, and 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), on the 15th of each month, 
                        the satellite carrier shall submit to 
                        [the network--
                                  [(I) a list identifying (by 
                                name and address, including 
                                street or rural route number, 
                                city, State, and zip code) any 
                                persons who have been added or 
                                dropped as subscribers under 
                                clause (i)(I) since the last 
                                submission under clause (i); 
                                and
                                  [(II) a separate list, 
                                aggregated by designated market 
                                area (by name and street 
                                address, including street or 
                                rural route number, city, 
                                State, and zip code), 
                                identifying those subscribers 
                                whose service pursuant to 
                                paragraph (3), relating to 
                                significantly viewed stations, 
                                has been added or dropped.] the 
                                network a list, aggregated by 
                                designated market area (as that 
                                term is defined in section 
                                122(j)), indentifying (by name 
                                and address, including street 
                                or rural route number, city, 
                                State, and zip code) any 
                                persons who have been added or 
                                dropped as subscribers under 
                                clause (i)(I) since the 
                                submission under clause (i).
                          (iii) Use of subscriber 
                        information.--Subscriber information 
                        submitted by a satellite carrier under 
                        this subparagraph may be used only for 
                        purposes of monitoring compliance by 
                        the satellite carrier with this 
                        subsection.
                          (iv) Applicability.--The submission 
                        requirements of this subparagraph shall 
                        apply to a satellite carrier only if 
                        the network 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) Secondary transmissions of significantly viewed 
        signals.--
                  [(A) In general.--Notwithstanding the 
                provisions of paragraph (2)(B), and subject to 
                subparagraph (B) of this paragraph, the 
                statutory license provided for in paragraphs 
                (1) and (2) shall apply to the secondary 
                transmission of the primary transmission of a 
                network station or a superstation to a 
                subscriber who resides outside the station's 
                local market (as defined in section 122(j)) 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 a cable system whether signals are 
                significantly viewed in a community.
                  [(B) Limitation.--Subparagraph (A) shall 
                apply only to secondary transmissions of the 
                primary transmissions of network stations and 
                superstations to subscribers who receive 
                secondary transmissions from a satellite 
                carrier pursuant to the statutory license under 
                section 122.
                  [(C) Waiver.--
                          [(i) In general.--A subscriber who is 
                        denied the secondary transmission of 
                        the primary transmission of a network 
                        station under subparagraph (B) may 
                        request a waiver from such denial by 
                        submitting a request, through the 
                        subscriber's satellite carrier, to the 
                        network station in the local market 
                        affiliated with the same network where 
                        the subscriber is located. The 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 fails 
                        to accept or reject the subscriber's 
                        request for a waiver within that 30-day 
                        period, that network station shall be 
                        deemed to agree to the waiver request. 
                        Unless specifically stated by the 
                        network station, a waiver that was 
                        granted before the date of the 
                        enactment of the Satellite Home Viewer 
                        Extension and Reauthorization Act of 
                        2004 under section 339(c)(2) of the 
                        Communications Act of 1934 [47 U.S.C.A. 
                        Sec. 339(c)(2)] shall not constitute a 
                        waiver for purposes of this 
                        subparagraph.
                          [(ii) Sunset.--The authority under 
                        clause (i) to grant waivers shall 
                        terminate on December 31, 2008, and any 
                        such waiver in effect shall terminate 
                        on that date.
          [(4) Statutory license where retransmissions into 
        local market available.--
                  [(A) Rules for subscribers to analog signals 
                under subsection (e).--
                          [(i) For those receiving distant 
                        analog signals.--In the case of a 
                        subscriber of a satellite carrier who 
                        is eligible to receive the secondary 
                        transmission of the primary analog 
                        transmission of a network station 
                        solely by reason of subsection (e) (in 
                        this subparagraph referred to as a 
                        ``distant analog signal''), and who, as 
                        of October 1, 2004, is receiving the 
                        distant analog signal of that network 
                        station, the following shall apply:
                                  [(I) In a case in which the 
                                satellite carrier makes 
                                available to the subscriber the 
                                secondary transmission of the 
                                primary analog transmission of 
                                a local network station 
                                affiliated with the same 
                                television network pursuant to 
                                the statutory license under 
                                section 122, the statutory 
                                license under paragraph (2) 
                                shall apply only to secondary 
                                transmissions by that satellite 
                                carrier to that subscriber of 
                                the distant analog signal of a 
                                station affiliated with the 
                                same television network--
                                          [(aa) if, within 60 
                                        days after receiving 
                                        the notice of the 
                                        satellite carrier under 
                                        section 338(h)(1) of 
                                        the Communications Act 
                                        of 1934 [47 U.S.C.A. 
                                        Sec. 338(h)(1)], the 
                                        subscriber elects to 
                                        retain the distant 
                                        analog signal; but
                                          [(bb) only until such 
                                        time as the subscriber 
                                        elects to receive such 
                                        local analog signal.
                                  [(II) Notwithstanding 
                                subclause (I), the statutory 
                                license under paragraph (2) 
                                shall not apply with respect to 
                                any subscriber who is eligible 
                                to receive the distant analog 
                                signal of a television network 
                                station solely by reason of 
                                subsection (e), unless the 
                                satellite carrier, within 60 
                                days after the date of the 
                                enactment of the Satellite Home 
                                Viewer Extension and 
                                Reauthorization Act of 2004, 
                                submits to that television 
                                network a list, aggregated by 
                                designated market area (as 
                                defined in section 
                                122(j)(2)(C)), that--
                                          [(aa) identifies that 
                                        subscriber by name and 
                                        address (street or 
                                        rural route number, 
                                        city, State, and zip 
                                        code) and specifies the 
                                        distant analog signals 
                                        received by the 
                                        subscriber; and
                                          [(bb) states, to the 
                                        best of the satellite 
                                        carrier's knowledge and 
                                        belief, after having 
                                        made diligent and good 
                                        faith inquiries, that 
                                        the subscriber is 
                                        eligible under 
                                        subsection (e) to 
                                        receive the distant 
                                        analog signals.
                          [(ii) For those not receiving distant 
                        analog signals.--In the case of any 
                        subscriber of a satellite carrier who 
                        is eligible to receive the distant 
                        analog signal of a network station 
                        solely by reason of subsection (e) and 
                        who did not receive a distant analog 
                        signal of a station affiliated with the 
                        same network on October 1, 2004, the 
                        statutory license under paragraph (2) 
                        shall not apply to secondary 
                        transmissions by that satellite carrier 
                        to that subscriber of the distant 
                        analog signal of a station affiliated 
                        with the same network.
                  [(B) Rules for other subscribers.--In the 
                case of a subscriber of a satellite carrier who 
                is eligible to receive the secondary 
                transmission of the primary analog transmission 
                of a network station under the statutory 
                license under paragraph (2) (in this 
                subparagraph referred to as a ``distant analog 
                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 1, 2005, the 
                        secondary transmission of the primary 
                        analog transmission of a local network 
                        station affiliated with the same 
                        television network pursuant to the 
                        statutory license under section 122, 
                        the statutory license under paragraph 
                        (2) shall apply only to secondary 
                        transmissions by that satellite carrier 
                        to that subscriber of the distant 
                        analog signal of a station affiliated 
                        with the same television network if the 
                        subscriber's satellite carrier, not 
                        later than March 1, 2005, submits to 
                        that television network a list, 
                        aggregated by designated market area 
                        (as defined in section 122(j)(2)(C)), 
                        that identifies that subscriber by name 
                        and address (street or rural route 
                        number, city, State, and zip code) and 
                        specifies the distant analog signals 
                        received by the subscriber.
                          [(ii) In a case in which the 
                        satellite carrier does not make 
                        available to that subscriber, on 
                        January 1, 2005, the secondary 
                        transmission of the primary analog 
                        transmission of a local network station 
                        affiliated with the same television 
                        network pursuant to the statutory 
                        license under section 122, the 
                        statutory license under paragraph (2) 
                        shall apply only to secondary 
                        transmissions by that satellite carrier 
                        of the distant analog signal of a 
                        station affiliated with the same 
                        network to that subscriber if--
                                  [(I) that subscriber seeks to 
                                subscribe to such distant 
                                analog signal before the date 
                                on which such carrier commences 
                                to provide pursuant to the 
                                statutory license under section 
                                122 the secondary transmissions 
                                of the primary analog 
                                transmission of stations from 
                                the local market of such local 
                                network station; and
                                  [(II) the satellite carrier, 
                                within 60 days after such date, 
                                submits to each television 
                                network a list that identifies 
                                each subscriber in that local 
                                market provided such an analog 
                                signal by name and address 
                                (street or rural route number, 
                                city, State, and zip code) and 
                                specifies the distant analog 
                                signals received by the 
                                subscriber.
                  [(C) Future applicability.--The statutory 
                license under paragraph (2) shall not apply to 
                the secondary transmission by a satellite 
                carrier of a primary analog transmission of a 
                network station to a person who--
                          [(i) is not a subscriber lawfully 
                        receiving such secondary transmission 
                        as of the date of the enactment of the 
                        Satellite Home Viewer Extension and 
                        Reauthorization Act of 2004; and
                          [(ii) 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 analog 
                        transmission of a local network station 
                        affiliated with the same television 
                        network pursuant to the statutory 
                        license under section 122, and such 
                        secondary transmission of such primary 
                        transmission can reach such person.
                  [(D) Special rules for distant digital 
                signals.--The statutory license under paragraph 
                (2) shall apply to secondary transmissions by a 
                satellite carrier to a subscriber of primary 
                digital transmissions of network stations if 
                such secondary transmissions to such subscriber 
                are permitted under section 339(a)(2)(D) of the 
                Communications Act of 1934 [47 U.S.C.A. 
                Sec. 339(a)(2)(D)], as in effect on the day 
                after the date of the enactment of the 
                Satellite Home Viewer Extension and 
                Reauthorization Act of 2004, except that the 
                reference to section 73.683(a) of title 47, 
                Code of Federal Regulations, referred to in 
                section 339(a)(2)(D)(i)(I) [47 U.S.C.A. 
                Sec. 339(a)(2)(D)(i)(I)] shall refer to such 
                section as in effect on the date of the 
                enactment of the Satellite Home Viewer 
                Extension and Reauthorization Act of 2004.
                  [(E) Other provisions not affected.--This 
                paragraph shall not affect the applicability of 
                the statutory license to secondary 
                transmissions under paragraph (3) or to 
                unserved households included under paragraph 
                (12).
                  [(F) Waiver.--A subscriber who is denied the 
                secondary transmission of a network station 
                under subparagraph (C) or (D) may request a 
                waiver from such denial by submitting a 
                request, through the subscriber's satellite 
                carrier, to the network station in the local 
                market affiliated with the same network where 
                the subscriber is located. The 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 fails to 
                accept or reject the subscriber's request for a 
                waiver within that 30-day period, that network 
                station shall be deemed to agree to the waiver 
                request. Unless specifically stated by the 
                network station, a waiver that was granted 
                before the date of the enactment of the 
                Satellite Home Viewer Extension and 
                Reauthorization Act of 2004 under section 
                339(c)(2) of the Communications Act of 1934 [47 
                U.S.C.A. Sec. 339(c)(2)] shall not constitute a 
                waiver for purposes of this subparagraph.
                  [(G) Available defined.--For purposes of this 
                paragraph, a satellite carrier makes available 
                a secondary transmission of the primary 
                transmission of a local station to a subscriber 
                or person if the satellite carrier offers that 
                secondary transmission to other subscribers who 
                reside in the same zip code as that subscriber 
                or person.]
          (3) Statutory license where retransmissions into 
        local market available.--
                  (A) Future applicability.--The statutory 
                license under paragraph (2) shall not apply to 
                the secondary transmission by a satellite 
                carrier of a primary transmission of a network 
                station to a person who--
                          (i) is not a subscriber lawfully 
                        receiving such secondary transmission 
                        as of December 31, 2009; and
                          (ii) 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 television 
                        network pursuant to the statutory 
                        license under section 122, and such 
                        secondary transmission of such primary 
                        transmission can reach such person.
                  (B) Other provisions not affected.--This 
                paragraph shall not affect the applicability of 
                the statutory license to secondary 
                transmissions to unserved households included 
                in paragraph (11).
                  (C) Waiver.--A subscriber who is denied the 
                secondary transmission of a network station 
                under this paragraph may request a waiver from 
                such denial by submitting a request, through 
                the subscriber's satellite carrier, to the 
                network in the local market affiliated with the 
                same network where the subscriber is located. 
                The 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 fails to accept or reject the 
                subscriber's request for a waiver within that 
                30-day period, that network shall be deemed to 
                agree to the waiver request. Unless 
                specifically stated by the network station, a 
                waiver that was granted before the date of the 
                enactment of the Satellite Home Viewer 
                Extension and Reauthorization Act of 2004 under 
                section 339(c)(2) of the Communications Act of 
                1934 (47 U.S.C. 339(c)(2)) shall not constitute 
                a waiver for purposes of this subparagraph.
                  (D) Available defined.--For purposes of this 
                paragraph, a satellite carrier makes available 
                a secondary transmission of the primary 
                transmission of a local station to a subscriber 
                or person if the satellite carrier offers that 
                secondary transmission to the other subscribers 
                who reside in the same nine-digit zip code as 
                that subscriber or person.
          [(5)] (4) Noncompliance with reporting and payment 
        requirements.--Notwithstanding the provisions of 
        paragraphs (1) and (2), the willful or repeated 
        secondary transmission to the public by a satellite 
        carrier of a primary transmission made by a 
        superstation or a network 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 [509], where the satellite carrier has 
        not deposited the statement of account and royalty fee 
        required by subsection (b), or has failed to make the 
        submissions to networks required by paragraph (2)(C).
          [(6)] (5) Willful alterations.--Notwithstanding the 
        provisions of paragraphs (1) and (2), the secondary 
        transmission to the public by a satellite carrier of a 
        performance or display of a work embodied in a primary 
        transmission made by a superstation or a network 
        station is actionable as an act of infringement under 
        section 501, and is fully subject to the remedies 
        provided by sections 502 through 506 and section 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.
          [(7)] (6) Violation of territorial restrictions on 
        statutory license for network stations.--
                  (A) Individual violations.--The willful or 
                repeated secondary transmission by a satellite 
                carrier 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 is actionable as an act of infringement 
                under section 501 and is fully subject to the 
                remedies provided by sections 502 through 506, 
                except that--
                          (i) 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
                          (ii) any statutory damages shall not 
                        exceed [$5] $250 for such subscriber 
                        for each month during which the 
                        violation occurred.
                  (B) Pattern of violations.--If a satellite 
                carrier engages in a willful or repeated 
                pattern or practice of delivering a primary 
                transmission made by a network station and 
                embodying a performance or display of a work to 
                subscribers who are not eligible to receive the 
                transmission under this section, then in 
                addition to the remedies set forth in 
                subparagraph (A)--
                          (i) 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, for private home viewing, of 
                        the primary transmissions of any 
                        primary network station affiliated with 
                        the same network, and the court may 
                        order statutory damages of not to 
                        exceed [$250,000] $2,500,000 for each 
                        6-month period during which the pattern 
                        or practice was carried out; and
                          (ii) if the pattern or practice has 
                        been carried out on a local or regional 
                        basis, the court shall order a 
                        permanent injunction barring the 
                        secondary transmission, for private 
                        home viewing in that locality or 
                        region, by the satellite carrier of the 
                        primary transmissions of any primary 
                        network station affiliated with the 
                        same network, and the court may order 
                        statutory damages of not to exceed 
                        [$250,000] $2,500,000 for each 6-month 
                        period during which the pattern or 
                        practice was carried out.

           *       *       *       *       *       *       *

          [(8)] (7) Discrimination by a satellite carrier.--
        Notwithstanding the provisions of paragraph (1), the 
        willful or repeated secondary transmission to the 
        public by a satellite carrier of a performance or 
        display of a work embodied in a primary transmission 
        made by a superstation or a network station is 
        actionable as an act of infringement under section 501, 
        and is fully subject to the remedies provided by 
        sections 502 through 506, if the satellite carrier 
        unlawfully discriminates against a distributor.
          [(9)] (8) Geographic limitation on secondary 
        transmissions.--The statutory license created by this 
        section shall apply only to secondary transmissions to 
        households located in the United States.
          [(10)] (9) Loser pays for signal intensity 
        measurement; recovery of measurement costs in a civil 
        action.--In any civil action filed relating to the 
        eligibility of subscribing households as unserved 
        households--

           *       *       *       *       *       *       *

          [(11)] (10) Inability to conduct measurement.--If a 
        network station makes a reasonable attempt to conduct a 
        site measurement of its signal at a subscriber's 
        household and is denied access for the purpose of 
        conducting the measurement, and is otherwise unable to 
        conduct a measurement, the satellite carrier shall 
        within 60 days notice thereof, terminate service of the 
        station's network to that household.
          [(12)] (11) Service to recreational vehicles and 
        commercial trucks.--

           *       *       *       *       *       *       *

          [(13)] (12) Statutory license contingent on 
        compliance with FCC rules and remedial steps.--
        Notwithstanding any other provision of this section, 
        the willful or repeated secondary transmission to the 
        public by a satellite carrier of a primary transmission 
        embodying a performance or display of a work made by a 
        broadcast station licensed by the Federal 
        Communications Commission is actionable as an act of 
        infringement under section 501, and is fully subject to 
        the remedies provided by sections 502 through 506, if, 
        at the time of such transmission, the satellite carrier 
        is not in compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission 
        concerning the carriage of television broadcast station 
        signals.
          [(14)] (13) Waivers.--A subscriber who is denied the 
        secondary transmission of a signal of a network station 
        under subsection (a)(2)(B) may request a waiver from 
        such denial by submitting a request, through the 
        subscriber's satellite carrier, to the network station 
        asserting that the secondary transmission is 
        prohibited. The network station shall accept or reject 
        a subscriber's request for a waiver within 30 days 
        after receipt of the request. If a television network 
        station fails to accept or reject a subscriber's 
        request for a waiver within the 30-day period after 
        receipt of the request, that station shall be deemed to 
        agree to the waiver request and have filed such written 
        waiver. Unless specifically stated by the network 
        station, a waiver that was granted before the date of 
        the enactment of the Satellite Home Viewer Extension 
        and Reauthorization Act of 2004 under section 339(c)(2) 
        of the Communications Act of 1934 [47 U.S.C.A. 
        Sec. 339(c)(2)], and that was in effect on such date of 
        enactment, shall constitute a waiver for purposes of 
        this paragraph.
          [(15) Carriage of low power television stations.--
                  [(A) In general.--Notwithstanding paragraph 
                (2)(B), and subject to subparagraphs (B) 
                through (F) of this paragraph, the statutory 
                license provided for in paragraphs (1) and (2) 
                shall apply to the secondary transmission of 
                the primary transmission of a network station 
                or a superstation that is licensed as a low 
                power television station, to a subscriber who 
                resides within the same local market.
                  [(B) Geographic limitation.--
                          [(i) Network stations.--With respect 
                        to network stations, secondary 
                        transmissions provided for in 
                        subparagraph (A) shall be limited to 
                        secondary transmissions to subscribers 
                        who--
                                  [(I) reside in the same local 
                                market as the station 
                                originating the signal; and
                                  [(II) reside within 35 miles 
                                of the transmitter site of such 
                                station, except that in the 
                                case of such a station located 
                                in a standard metropolitan 
                                statistical area which has 1 of 
                                the 50 largest populations of 
                                all standard metropolitan 
                                statistical areas (based on the 
                                1980 decennial census of 
                                population taken by the 
                                Secretary of Commerce), the 
                                number of miles shall be 20.
                          [(ii) Superstations.--With respect to 
                        superstations, secondary transmissions 
                        provided for in subparagraph (A) shall 
                        be limited to secondary transmissions 
                        to subscribers who reside in the same 
                        local market as the station originating 
                        the signal.
                  [(C) 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.
                  [(D) Royalty fees.--Notwithstanding 
                subsection (b)(1)(B), a satellite carrier whose 
                secondary transmissions of the primary 
                transmissions of a low power television station 
                are subject to statutory licensing under this 
                section shall have no royalty obligation for 
                secondary transmissions to a subscriber who 
                resides within 35 miles of the transmitter site 
                of such station, except that in the case of 
                such a station located in a standard 
                metropolitan statistical area which has 1 of 
                the 50 largest populations of all standard 
                metropolitan statistical areas (based on the 
                1980 decennial census of population taken by 
                the Secretary of Commerce), the number of miles 
                shall be 20. Carriage of a superstation that is 
                a low power television station within the 
                station's local market, but outside of the 35-
                mile or 20-mile radius described in the 
                preceding sentence, shall be subject to royalty 
                payments under subsection (b)(1)(B).
                  [(E) Limitation to subscribers taking local-
                into-local service.--Secondary transmissions 
                provided for in subparagraph (A) may be made 
                only to subscribers who receive secondary 
                transmissions of primary transmissions from 
                that satellite carrier pursuant to the 
                statutory license under section 122, and only 
                in conformity with the requirements under 
                340(b) of the Communications Act of 1934 [47 
                U.S.C.A. Sec. 340(b)], as in effect on the date 
                of the enactment of the Satellite Home Viewer 
                Extension and Reauthorization Act of 2004.]
          [(16)] (14) Restricted transmission of out-of-state 
        distant network signals into certain markets.----

           *       *       *       *       *       *       *

    (b) [Statutory License for Secondary Transmissions for 
Private Home Viewing.--] Deposits and distribution of royalty 
fees._
          (1) Deposits with the 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 superstations and network 
                stations whose signals were retransmitted, at 
                any time during that period, to subscribers as 
                described in subsections (a)(1) and (a)(2), the 
                total number of subscribers that received such 
                retransmissions, and such other data as the 
                Register of Copyrights may from time to time 
                prescribe by regulation; and
                  (B) a royalty fee for that 6-month period, 
                computed by multiplying the total number of 
                subscribers receiving each secondary 
                transmission of each superstation or network 
                station during each calendar month by the 
                appropriate rate in effect under this section.
                [Notwithstanding the provisions of subparagraph 
                (B), a satellite carrier whose secondary 
                transmissions are subject to statutory 
                licensing under paragraph (1) or (2) of 
                subsection (a) shall have no royalty obligation 
                for secondary transmissions to a subscriber 
                under paragraph (3) of such subsection.]

           *       *       *       *       *       *       *

    [(c) Adjustment of Royalty Fees.--
          [(1) Applicability and determination of royalty fees 
        for analog signals.--
                  [(A) Initial fee.--The appropriate fee for 
                purposes of determining the royalty fee under 
                subsection (b)(1)(B) for the secondary 
                transmission of the primary analog 
                transmissions of network stations and 
                superstations shall be the appropriate fee set 
                forth in part 258 of title 37, Code of Federal 
                Regulations, as in effect on July 1, 2004, as 
                modified under this paragraph.
                  [(B) Fee set by voluntary negotiation.--On or 
                before January 2, 2005, the Librarian of 
                Congress shall cause to be published in the 
                Federal Register of the initiation of voluntary 
                negotiation proceedings for the purpose of 
                determining the royalty fee to be paid by 
                satellite carriers for the secondary 
                transmission of the primary analog transmission 
                of network stations and superstations under 
                subsection (b)(1)(B).
                  [(C) Negotiations.--Satellite carriers, 
                distributors, and copyright owners entitled to 
                royalty fees under this section shall negotiate 
                in good faith in an effort to reach a voluntary 
                agreement or agreements for the payment of 
                royalty fees. Any such satellite carriers, 
                distributors and copyright owners may at any 
                time negotiate and agree to the royalty fee, 
                and may designate common agents to negotiate, 
                agree to, or pay such fees. If the parties fail 
                to identify common agents, the Librarian of 
                Congress shall do so, after requesting 
                recommendations from the parties to the 
                negotiation proceeding. The parties to each 
                negotiation proceeding shall bear the cost 
                thereof.
                  [(D) Agreements binding on parties; filing of 
                agreements; public notice.--(i) voluntary 
                agreements negotiated at any time in accordance 
                with this paragraph shall be binding upon all 
                satellite carriers, distributors, and copyright 
                owners that a parties thereto. Copies of such 
                agreements shall be filed with the Copyright 
                Office within 30 days after execution in 
                accordance with regulations that the Register 
                of Copyrights shall prescribe.
                  [(ii)(I) Within 10 days after publication in 
                the Federal Register of a notice of the 
                initiation of voluntary negotiation 
                proceedings, parties who have reached a 
                voluntary agreement may request that the 
                royalty fees in that agreement be applied to 
                all satellite carriers, distributors, and 
                copyright owners without convening an 
                arbitration proceeding pursuant to subparagraph 
                (E).
                  [(II) Upon receiving a request under 
                subclause (I), the Librarian of Congress shall 
                immediately provide public notice of the 
                royalty fees from the voluntary agreement and 
                afford parties an opportunity to state that 
                they object to those fees.
                  [(III) The Librarian shall adopt the royalty 
                fees from the voluntary agreement for all 
                satellite carriers, distributors, and copyright 
                owners without convening an arbitration 
                proceeding unless a party with an intent to 
                participate in the arbitration proceeding and a 
                significant interest in the outcome of that 
                proceeding objects under subclause (II).
                  [(E) Period agreement is in effect.--The 
                obligation to pay the royalty fees established 
                under a voluntary agreement which has been 
                filed with the Copyright Office in accordance 
                with this paragraph shall become effective on 
                the date specified in the agreement, and shall 
                remain in effect until December 31, 2009, or in 
                accordance with the terms of the agreement, 
                whichever is later.
                  [(F) Fee set by compulsory arbitration.--
                          [(i) Notice of initiation of 
                        proceedings.--On or before May 1, 2005, 
                        the Librarian of Congress shall cause 
                        notice to be published in the Federal 
                        Register of the initiation of 
                        arbitration proceedings for the purpose 
                        of determining the royalty fee to be 
                        paid for the secondary transmission of 
                        primary analog transmission of network 
                        stations and superstations under 
                        subsection (b)(1)(B) by satellite 
                        carriers and distributors
                                  [(I) in the absence of a 
                                voluntary agreement filed in 
                                accordance with subparagraph 
                                (D) that establishes royalty 
                                fees to be paid by all 
                                satellite carriers and 
                                distributors; or
                                  [(II) if an objection to the 
                                fees from a voluntary agreement 
                                submitted for adoption by the 
                                Librarian of Congress to apply 
                                to all satellite carriers, 
                                distributors, and copyright 
                                owners is received under 
                                subparagraph (D) from a party 
                                with an intent to participate 
                                in the arbitration proceeding 
                                and a significant interest in 
                                the outcome of that proceeding.
                                Such arbitration proceeding 
                                shall be conducted under 
                                chapter 8 as in effect on the 
                                day before the date of the 
                                enactment of the Copyright 
                                Royalty and Distribution Act of 
                                2004.
                          [(ii) Establishment of royalty 
                        fees.--In determining royalty fees 
                        under this subparagraph, the copyright 
                        arbitration royalty panel appointed 
                        under chapter 8, as in effect on the 
                        day before the date of the enactment of 
                        the Copyright Royalty and Distribution 
                        Act of 2004 shall establish fees for 
                        the secondary transmissions of the 
                        primary analog transmission of network 
                        stations and superstations that most 
                        clearly represent the fair market value 
                        of secondary transmissions, except that 
                        the Librarian of Congress and any 
                        copyright arbitration royalty panel 
                        shall adjust those fees to account for 
                        the obligations of the parties under 
                        any applicable voluntary agreement 
                        filed with the Copyright Office 
                        pursuant to subparagraph (D). In 
                        determining the fair market value, the 
                        panel shall base its decision on 
                        economic, competitive, and programming 
                        information presented by the parties, 
                        including--
                                  [(I) the competitive 
                                environment in which such 
                                programming is distributed, the 
                                cost of similar signals in 
                                similar private and compulsory 
                                license marketplaces, and any 
                                special features and conditions 
                                of the retransmission 
                                marketplace;
                                  [(II) the economic impact of 
                                such fees on copyright owners 
                                and satellite carriers; and
                                  [(III) the impact on the 
                                continued availability of 
                                secondary transmissions to the 
                                public.
                          [(iii) Period during which decision 
                        of arbitration panel or order of 
                        librarian effective.--The obligation to 
                        pay the royalty fee established under a 
                        determination which--
                                  [(I) is made by a copyright 
                                arbitration royalty panel in an 
                                arbitration proceeding under 
                                this paragraph and is adopted 
                                by the Librarian of Congress 
                                under section 802(f), as in 
                                effect on the day before the 
                                date of the enactment of the 
                                Copyright Royalty and 
                                Distribution Act of 2004; or
                                  [(II) is established by the 
                                Librarian under section 802(f) 
                                as in effect on the day before 
                                such date of enactment shall be 
                                effective as of January 1, 
                                2005.
                          [(iv) Persons subject to royalty 
                        fee.--The royalty fee referred to in 
                        (iii) shall be binding on all satellite 
                        carriers, distributors and copyright 
                        owners, who are not party to a 
                        voluntary agreement filed with the 
                        Copyright Office under subparagraph 
                        (D).
          [(2) Applicability and determination of royalty fees 
        for digital signals.--The process and requirements for 
        establishing the royalty fee payable under subsection 
        (b)(1)(B) for the secondary transmission of the primary 
        digital transmissions of network stations and 
        superstations shall be the same as that set forth in 
        paragraph (1) for the secondary transmission of the 
        primary analog transmission of network stations and 
        superstations, except that--
                  [(A) the initial fee under paragraph (1)(A) 
                shall be the rates set forth in section 
                298.3(b)(1) and (2) of title 37, Code of 
                Federal Regulations, as in effect on the date 
                of the enactment of the Satellite Home Viewer 
                Extension and Reauthorization Act of 2004, 
                reduced by 22.5 percent;
                  [(B) the notice of initiation of arbitration 
                proceedings required in paragraph (1)(F)(i) 
                shall be published on or before December 31, 
                2005; and
                  [(C) the royalty fees that are established 
                for the secondary transmission of the primary 
                digital transmission of network stations and 
                superstations in accordance with to the 
                procedures set forth in paragraph (1)(F)(iii) 
                and are payable under subsection (b)(1)(B)--
                          [(i) shall be reduced by 22.5 
                        percent; and
                          [(ii) shall be adjusted by the 
                        Librarian of Congress on January 1, 
                        2007, and on January 1 of each year 
                        thereafter, to reflect any changes 
                        occurring during the preceding 12 
                        months in the cost of living as 
                        determined by the most recent Consumer 
                        Price Index (for all consumers and 
                        items) published by the Secretary of 
                        Labor.]
    (c) Adjustment of Royalty Fees.--
          (1) Applicability and determination of royalty 
        fees.--
                  (A) Initial Fee.--The appropriate fee for 
                purposes of determining the royalty fee under 
                subsection (b)(1)(B) for the secondary 
                transmission of the primary transmission of 
                network stations and superstations shall be the 
                appropriate fee set forth in subchapter E of 
                chapter III of title 37, Code of Federal 
                Regulations, as in effect on July 1, 2009, as 
                modified under this paragraph.
                  (B) Fee set by voluntary negotiation.--On or 
                before January 4, 2010, Copyright Royalty 
                Judges shall cause to be published in the 
                Federal Register of the initiation of voluntary 
                negotiation proceedings for the purpose of 
                determining the royalty fee to be paid by 
                satellite carriers for the secondary 
                transmission of the primary transmission of 
                network stations and superstations under 
                subsection (b)(1)(B).
                  (C) Negotiations.--Satellite carriers, 
                distributors, and copyright owners entitled to 
                royalty fees under this section shall negotiate 
                in good faith in an effort to reach a voluntary 
                agreement or agreements for the payment of 
                royalty fees. Any such satellite carriers, 
                distributors, and copyright owners may at any 
                time negotiate and agree to the royalty fee, 
                and may designate common agents to negotiate, 
                agree to, or pay such fees. If the parties fail 
                to indentify common agents, Copyright Royalty 
                Judges shall do so, after requesting 
                recommendations from the parties to the 
                negotiation proceeding. The parties to each 
                negotiation proceeding shall bear the cost 
                thereof.
                  (D)(i) Agreements binding on parties; filing 
                of agreements; public notice.--Voluntary 
                agreements negotiated at any time in accordance 
                with this paragraph shall be binding upon all 
                satellite carriers, distributors, and copyright 
                owners that are parties thereto. Copies of such 
                agreements shall be filed with the Copyright 
                Office within 30 days after execution in 
                accordance with regulations that the Register 
                of Copyrights shall prescribe.
                  (ii)(I) Within 10 days after publication in 
                the Federal Register of a notice of the 
                initiation of voluntary negotiation 
                proceedings, parties who have reached a 
                voluntary agreement may request that the 
                royalty fees in that agreement be applied to 
                all satellite carriers, distributors, and 
                copyright owners without convening a proceeding 
                pursuant to subparagraph (F).
                  (II) Upon receiving a request under subclause 
                (I), the Copyright Royalty Judges shall 
                immediately provide public notice of the 
                royalty fees from the voluntary agreement and 
                afford parties an opportunity to state that 
                they object to those fees.
                  (III) The Copyright Royalty Judges shall 
                adopt the royalty fees from the voluntary 
                agreement for all the satellite carriers, 
                distributors, and copyright owners without 
                convening a proceeding unless a party with an 
                intent to participate in the proceeding and a 
                significant interest in the outcome of that 
                proceeding objects under subclause (II).
                  (E) Period agreement is in effect.--The 
                obligation to pay the royalty fees established 
                under a voluntary agreement which has been 
                filed with the Copyright Office in accordance 
                with this paragraph shall become effective on 
                the date specified in the agreement, and shall 
                remain in effect until December 31, 2014, or in 
                accordance with the terms of the agreement, 
                whichever is later.
                  (F) Proceeding to establish royalty fees.--
                          (i) Notice of initiation of 
                        proceedings; voluntary agreements.--On 
                        or before May 3, 2010, the Copyright 
                        Royalty Judges shall cause notice to be 
                        published in the Federal Register of 
                        the initiation of proceedings for the 
                        purpose of determining the royalty fee 
                        to be paid for the secondary 
                        transmission of primary transmission of 
                        network stations and superstations 
                        under subsection (b)(1)(B) by satellite 
                        carriers and distributors--
                                  (I) in the absence of a 
                                voluntary agreement filed in 
                                accordance with subparagraph 
                                (D) that establishes royalty 
                                fees to be paid by all 
                                satellite carriers and 
                                distributors; or
                                  (II) if an objection to the 
                                fees from a voluntary agreement 
                                submitted for adoption by the 
                                Copyright Royalty Judges to 
                                apply to all satellite 
                                carriers, distributors, and 
                                copyright owners is received 
                                under subparagraph (D) from a 
                                party with an intent to 
                                participate in the proceeding 
                                and a significant interest in 
                                the outcome of that proceeding.
                        Such proceeding shall be conducted as 
                        provided under chapter 8 of this title.
                          (ii) Establishment of royalty fees.--
                        In determining royalty fees under this 
                        paragraph, the Copyright Royalty Judges 
                        shall establish fees for the secondary 
                        transmissions of the primary 
                        transmission of network stations and 
                        superstations that most clearly 
                        represent the fair market value of 
                        secondary transmissions, except that 
                        the Copyright Royalty Judges shall 
                        adjust those fees to account for the 
                        obligations of the parties under any 
                        applicable voluntary agreement filed 
                        with the Copyright Office pursuant to 
                        subparagraph (D). In determining fair 
                        market value, the Copyright Royalty 
                        Judges shall base their decision on 
                        economic, competitive, and programming 
                        information presented by the parties, 
                        including--
                                  (I) the competitive 
                                environment in which such 
                                programming is distributed, the 
                                cost of similar signals in 
                                similar private and compulsory 
                                license marketplaces, and any 
                                special features and conditions 
                                of the retransmission 
                                marketplace;
                                  (II) the economic impact of 
                                such fees on the copyright 
                                owners and satellite carriers; 
                                and (III) the impact on the 
                                continued availability of 
                                secondary transmissions to the 
                                public.
                          (iii) Period during which decision of 
                        the copyright royalty judges 
                        effective.--The obligation to pay the 
                        royalty fee established under a 
                        determination which is made by the 
                        Copyright Royalty Judges under this 
                        paragraph shall be effective as of 
                        January 1, 2010.
                          (iv) Persons subject to royalty 
                        fee.--The royalty fee referred to in 
                        clause (iii) shall be binding on all 
                        satellite carriers, distributors, and 
                        copyright owners who are not party to a 
                        voluntary agreement filed with the 
                        Copyright Office under subparagraph 
                        (D).
          (2) Royalty fee annual adjustment.--The royalty fee 
        payable under subsection (b)(1)(B) for the secondary 
        transmission of the primary transmission of network 
        stations and superstations shall be adjusted annually 
        by the Copyright Royalty Judges to reflect any changes 
        occurring during the preceding 12 months in the cost of 
        living as determined by the most recent Consumer Price 
        Index (for all consumers and items) published by the 
        Secretary of Labor prior to December 1. Notification of 
        the adjusted rates shall be published in the Federal 
        Register prior to December 1 of that year.
    (d) Definitions.--As used in this section--

           *       *       *       *       *       *       *

          (10) Unserved household.--The term ``unserved 
        household'', with respect to a particular television 
        network, means a household that--
                  [(A) cannot receive, through the use of a 
                conventional, stationary, outdoor rooftop 
                receiving antenna, an over-the-air signal of a 
                primary network station affiliated with that 
                network of Grade B intensity as defined by the 
                Federal Communications Commission under section 
                73.683(a) of title 47 of the Code of Federal 
                Regulations, as in effect on January 1, 1999;] 
                (A)(i) is located in a local market in which 
                there is no primary network station affiliated 
                with such network licensed to a community 
                within such local market; or
                  (ii) cannot receive through the use of a 
                conventional, stationary, outdoor rooftop 
                antenna, an--
                          (I) over-the-air analog signal of a 
                        primary network station affiliated with 
                        that network that does not exceed Grade 
                        B intensity as defined by the Federal 
                        Communications Commission under section 
                        73.683(a) of title 47 of the Code of 
                        Federal Regulations, as in effect on 
                        January 1, 1999; or
                          (II) over-the-air digital signal of a 
                        primary network station located in that 
                        household's local market affiliated 
                        with that network that does not exceed 
                        the signal intensity standard in 
                        section 73.622(3)(1) of title 47 of the 
                        Code of Federal Regulations, as in 
                        effect on January 1, 2010;
                  (B) is subject to a waiver that meets the 
                standards of subsection [(a)(14)] (a)(13) 
                whether or not the waiver was granted before 
                the date of the enactment of the Satellite Home 
                Viewer Extension and Reauthorization Act of 
                2004;
                  (C) is a subscriber to whom subsection (e) 
                applies;
                  (D) is a subscriber to whom subsection 
                [(a)(12)] (a)(11) applies; or
                  (E) is a subscriber to whom the exemption 
                under subsection (a)(2)(B)(iii) applies.
          (11) Local market.--The term ``local market'' has the 
        meaning given such term under section 122(j)[, except 
        that with respect to a low power television station, 
        the term ``local market'' means the designated market 
        area in which the station is located].
          [(12) Low power television station.--The term ``low 
        power television station'' means a low power television 
        as defined under 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.]
          [(13)] (12) Commercial establishment.--The term 
        ``commercial establishment''--

           *       *       *       *       *       *       *

    [(f) Expedited Consideration by Justice Department of 
Voluntary Agreements To Provide Satellite Secondary 
Transmissions to Local Markets.--
          [(1) In general.--In a case in which no satellite 
        carrier makes available, to subscribers located in a 
        local market, as defined in section 122(j)(2), the 
        secondary transmission into that market of a primary 
        transmission of one or more television broadcast 
        stations licensed by the Federal Communications 
        Commission, and two or more satellite carriers request 
        a business review letter in accordance with section 
        50.6 of title 28, Code of Federal Regulations (as in 
        effect on July 7, 2004), in order to assess the 
        legality under the antitrust laws of proposed business 
        conduct to make or carry out an agreement to provide 
        such secondary transmission into such local market, the 
        appropriate official of the Department of Justice shall 
        respond to the request no later than 90 days after the 
        date on which the request is received.
          [(2) Definition.--For purposes of this subsection, 
        the term ``antitrust laws''--
                  [(A) has the meaning given that term in 
                subsection (a) of the first section of the 
                Clayton Act (15 U.S.C. 12(a)), except that such 
                term includes section 5 of the Federal Trade 
                Commission Act (15 U.S.C. 45) to the extent 
                such section 5 applies to unfair methods of 
                competition; and
                  [(B) includes any State law similar to the 
                laws referred to in paragraph (1).]

           *       *       *       *       *       *       *


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 
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--
          [(1) the secondary transmission is made by a 
        satellite carrier to the public;
          [(2) 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
          [(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.]
    (a) Secondary Transmissions of Television Broadcast 
Stations by Satellite Carriers.--
          (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 and low power stations.--A 
        secondary transmission of a performance or a display of 
        a work embodied in a primary transmission of a 
        television broadcast station or low power television 
        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) Secondary transmissions of significantly 
                viewed signals.--The statutory license shall 
                apply to the secondary transmission of the 
                primary transmission of a network station or a 
                superstation 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 a cable system whether signals are 
                significantly viewed in a community.
                  (B) Carriage of low power television 
                stations.--
                          (i) In general.--The statutory 
                        license shall apply to the secondary 
                        transmission of the primary 
                        transmission of a station that is 
                        licensed as a low power television 
                        station, to a subscriber who resides 
                        within the same designated market area.
                          (ii) 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.
          (3) Special exceptions.--A secondary transmission of 
        a performance or a 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 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 the regulations of the Commission as 
                in effect on such date (47 C.F.R. 76.51).
                  (B) States with all network stations and 
                superstations in same local market.--In a State 
                in which all networks stations and 
                superstations licensed by the Federal 
                Communications Commission within the 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 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 (section 76.51 of title 47 of the 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 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 
                3 or more noncommercial educational broadcast 
                stations licensed by a single State, political, 
                educational, or special purpose subdivision of 
                a State, or a public agency, the statutory 
                license provided for in this paragraph shall 
                apply to the secondary transmission of that 
                system to any subscriber in any county or 
                county equivalent within that State that is 
                located in the designated market that is not 
                otherwise eligible to receive secondary 
                transmissions of a noncommercial television 
                broadcast station located within that State 
                pursuant to paragraph (1).
          (4) Short markets.--A secondary transmission of a 
        performance of a 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 a primary transmission 
        of a network station from a market adjacent to such 
        local market and no station affiliated with such 
        network is licensed to a community within that local 
        market.
          (5) Applicability of royalty rates.--The royalty 
        rates under section 119(b)(1)(B) shall apply to the 
        secondary transmissions to which the statutory license 
        under paragraphs (3) and (4) apply.
    [(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 the network that owns or is affiliated with 
        the network station a list identifying (by name in 
        alphabetical order and street address, including county 
        and zip code) all subscribers to which the satellite 
        carrier makes secondary transmissions of that primary 
        transmission under subsection (a).
          [(2) Subsequent lists.--After the list is submitted 
        under paragraph (1), the satellite carrier shall, on 
        the 15th of each month, submit to the network a list 
        identifying (by name in alphabetical order 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 networks.--The submission 
        requirements of this subsection shall apply to a 
        satellite carrier only if the network 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 of Copyrights shall maintain 
        for public inspection a file of all such documents.]
    (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 the network that owns or is affiliated with 
        the network station--
                  (A) a list, aggregated by designated market 
                area (as that term is defined in subsection 
                (j)), identifying (by name in alphabetical 
                order and street address, including county and 
                zip code) all subscribers to which the 
                satellite carrier makes secondary transmissions 
                of that primary transmission under subsection 
                (1); and
                  (B) a list, to be prepared and submitted 
                separately from the list required under 
                subparagraph (A), aggregated by designated 
                market area (by name and address, including 
                street or rural route number, city, State, and 
                zip code), which shall indicate those 
                subscribers being served pursuant to paragraphs 
                (2), (3), or (4) of subsection (a).
          (2) Subsequent lists.--After the list is submitted 
        under paragraph (1), the satellite carrier shall, on 
        the 15th of each month, submit to the network--
                  (A) a list, aggregated by market area (as 
                that term is defined in subsection (j)), 
                indentifying (by name in alphabetical order and 
                street address, including county and zip code) 
                any subscribers since the last submission under 
                this subsection; and
                  (B) a list, to be prepared and submitted 
                separately from the list required under 
                subparagraph (A), aggregated by designated 
                market area (by name and street address, 
                including street or rural route number, city, 
                State, and zip code), indentifying those 
                subscribers whose service pursuant to 
                paragraphs (2), (3), or (4) of subsection (a) 
                has been added or dropped.
          (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 networks.--The submission 
        requirements of this subsection shall apply to a 
        satellite carrier only if the network to which the 
        submissions are to be made places on file with the 
        Register of Copyrights a document indentifying the name 
        and address of the person to whom such submissions are 
        to be made. The Register of Copyrights shall maintain 
        for public inspection a file of 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.] (c) No royalty fee required for 
certain secondary transmissions._A satellite carrier whose 
secondary transmissions are subject to statutory licensing 
under paragraphs (1) and (2) of subsection (a) shall have no 
royalty obligation for such secondary transmissions.

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      (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 embodying a 
        performance or display of a work made by a television 
        broadcast station to a subscriber who does not reside 
        in that station's local market, and is not subject to 
        statutory licensing under section 119 or a private 
        licensing agreement, is actionable as an act of 
        infringement under section 501 and is fully subject to 
        the remedies provided by sections 502 through 506, 
        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] $250 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 embodying a performance or display of a 
        work made by a television broadcast station to 
        subscribers who do not reside in that station's local 
        market, and are not subject to statutory licensing 
        under section 119 or a private licensing agreement, 
        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--
                          (i) 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
                          (ii) may order statutory damages not 
                        exceeding [$250,000] $2,500,000 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, the court--
                          (i) 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
                          (ii) may order statutory damages not 
                        exceeding [$250,000] $2,500,000 for 
                        each 6-month period during which the 
                        pattern or practice was carried out.

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    (j) Definitions.--In this section--

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          (3) Low power television station.--The term ``low 
        power television station'' means a low power television 
        as defined under 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.
          [(3)] (4) 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)] (5) Subscriber.--The term ``subscriber'' means 
        a person who 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.
          [(5)] (6) Television broadcast station.--The term 
        ``television broadcast station''--

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CHAPTER 8--PROCEEDINGS BY COPYRIGHT ROYLATY JUDGES

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Sec. 804. Institution of proceedings

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    (b) Timing of Proceedings.--
          (1) Section 111 proceedings.--(A) A petition 
        described in subsection (a) to initiate proceedings 
        under section 801(b)(2) concerning the adjustment of 
        royalty rates under section 111 to which subparagraph 
        (A) or (D) of section 801(b)(2) applies may be filed 
        during the year [2005] 2015 and in each subsequent 
        fifth calendar year.
          (B) In order to initiate proceedings under section 
        801(b)(2) concerning the adjustment of royalty rates 
        under section 111 to which subparagraph (B) or (C) of 
        section 801(b)(2) applies, within 12 months after an 
        event described in either of those subsections, any 
        owner or user of a copyrighted work whose royalty rates 
        are specified by section 111, or by a rate established 
        under this chapter before or after the enactment of the 
        Copyright Royalty and Distribution Reform Act of 2004, 
        may file a petition with the Copyright Royalty Judges 
        declaring that the petitioner requests an adjustment of 
        the rate. The Copyright Royalty Judges shall then 
        proceed as set forth in subsection (a) of this section. 
        Any change in royalty rates made under this chapter 
        pursuant to this subparagraph may be reconsidered in 
        the year [2005] 2015, and each fifth calendar year 
        thereafter, in accordance with the provisions in 
        section 801(b)(2)(B) or (C), as the case may be. A 
        petition for adjustment of rates established by section 
        111(d)(1)(B) as a result of a change in the rules and 
        regulations of the Federal Communications Commission 
        shall set forth the change on which the petition is 
        based.

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                           UNITED STATES CODE

TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS

           *       *       *       *       *       *       *


CHAPTER 5--WIRE OR RADIO COMMUNICATION

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Subchapter III--Special Provisions Relating to Radio

           *       *       *       *       *       *       *



PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


Sec. 338. Carriage of local television signals by satellite carriers

    (a) Carriage obligations.--

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          [(3) Low power station carriage optional.--No low 
        power television station whose signals are provided 
        under section 119(a)(14) of Title 17, shall be entitled 
        to insist on carriage under this section, regardless of 
        whether the satellite carrier provides secondary 
        transmissions of the primary transmissions of other 
        stations in the same local market pursuant to section 
        122 of Title 17, nor shall any such carriage be 
        considered in connection with the requirements of 
        subsection (c) of this section.]
          (3) Carriage of low power, significantly viewed, 
        special exception, and short market stations 
        optional.--No station whose signal is provided under 
        paragraph (2), (3), or (4) of section 122(a) of title 
        17, United States Code, shall be entitled to insist on 
        carriage under this section, regardless of whether the 
        satellite carrier provides secondary transmissions of 
        the primary transmissions of other stations in the same 
        local market pursuant to such section 122, nor shall 
        any such carriage be considered in connection with the 
        requirements of subsection (c) of this section.
          [(3)] (4) Effective date.--No satellite carrier shall 
        be required to carry local television broadcast 
        stations under paragraph (1) until January 1, 2002.
          [(4)] (5) Carriage of signals of local stations in 
        certain markets.--

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