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116th Congress }                                              { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                              { 116-354

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



 
  SATELLITE TELEVISION COMMUNITY PROTECTION AND PROMOTION ACT OF 2019

                                _______
                                

 December 17, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5140]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 5140) to amend title 17, United States Code, to 
narrow the category of households eligible to receive signals 
under a distant-signal satellite license, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for the Legislation..........................     4
Hearings.........................................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
New Budget Authority and Tax Expenditures and Congressional 
  Budget Office Cost Estimate....................................     8
Duplication of Federal Programs..................................     8
Performance Goals and Objectives.................................     8
Advisory on Earmarks.............................................     8
Section-by-Section Analysis......................................     8
Changes in Existing Law Made by the Bill, as Reported............    10

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Satellite Television Community 
Protection and Promotion Act of 2019''.

SEC. 2. ELIGIBILITY TO RECEIVE SIGNALS UNDER A DISTANT-SIGNAL SATELLITE 
                    LICENSE.

  (a) In General.--Section 119 of title 17, United States Code, is 
amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``signals, and'' and 
                                inserting ``signals,'';
                                  (II) by inserting ``, and the carrier 
                                provides local-into-local service to 
                                all DMAs'' after ``receiving the 
                                secondary transmission''; and
                                  (III) by adding at the end the 
                                following new sentence: ``Failure to 
                                reach an agreement with network 
                                stations to retransmit their signals 
                                shall not be construed to affect 
                                compliance with providing local-into-
                                local service to all DMAs if the 
                                satellite carrier has the capability to 
                                retransmit such signals when an 
                                agreement is reached.''; and
                          (ii) in subparagraph (B)--
                                  (I) by striking clauses (ii) and 
                                (iii); and
                                  (II) by adding at the end the 
                                following:
                          ``(ii) Short markets.--In the case of 
                        secondary transmissions to households located 
                        in short markets, subject to clause (i), the 
                        statutory license shall be further limited to 
                        secondary transmissions of only those primary 
                        transmissions of network stations that embody 
                        the programming of networks not offered on the 
                        primary stream or the multicast stream 
                        transmitted by any network station in that 
                        market.''; and
                          (iii) by adding at the end the following:
                  ``(D) Temporary and limited use of license.--
                          ``(i) In general.--Notwithstanding the 
                        requirement under subparagraph (A) that a 
                        satellite carrier provide local-into-local 
                        service to all DMAs before making a secondary 
                        transmission under the license under this 
                        section, a satellite carrier that does not 
                        provide local-into-local service to all DMAs 
                        may make a covered transmission under such 
                        license if not later than 180 days after the 
                        date of the enactment of the Satellite 
                        Television Community Protection and Promotion 
                        Act of 2019 the satellite carrier--
                                  ``(I) demonstrates that it has acted 
                                reasonably and made a good faith effort 
                                to provide local-into-local service to 
                                all DMAs and that it will continue to 
                                make a good faith effort to provide 
                                local-into-local service to all DMAs; 
                                and
                                  ``(II) files a Notice of Temporary 
                                Limited Use with the Copyright Office 
                                in accordance with clause (ii).
                          ``(ii) Notice of temporary limited use.--A 
                        Notice of Temporary Limited Use filed with the 
                        Copyright Office under this subparagraph shall 
                        contain--
                                  ``(I) an affirmation that the carrier 
                                intends to make covered transmissions 
                                under the license under this section 
                                despite not providing local-into-local 
                                service to all DMAs;
                                  ``(II) a signed statement that the 
                                satellite carrier acted reasonably and 
                                made good faith efforts to provide 
                                local-into-local service to all DMAs;
                                  ``(III) a list of the designated 
                                market areas with respect to which no 
                                local-into-local service is provided by 
                                the satellite carrier; and
                                  ``(IV) a summary of actions taken by 
                                the satellite carrier to make 
                                arrangements to provide local-into-
                                local service to all DMAs.
                          ``(iii) Period of temporary and limited 
                        license.--
                                  ``(I) Initial 90-day period.--A 
                                satellite carrier that meets the 
                                requirements of this subparagraph may 
                                use the license under this section to 
                                make covered transmissions for a 90-day 
                                period beginning on the date such 
                                carrier files a Notice of Temporary 
                                Limited Use with the Copyright Office.
                                  ``(II) Additional periods.--The 
                                initial 90-day period described under 
                                clause (I) may be extended for 
                                additional periods of 90 days if the 
                                satellite carrier files a new Notice of 
                                Temporary Limited Use with the 
                                Copyright Office on or before the last 
                                day of such initial period, and each 
                                successive 90-day period thereafter.
                          ``(iv) Audit and verification of notices.--
                        The Register of Copyrights shall issue 
                        regulations that are similar in nature to the 
                        regulations issued under subsection (b)(2) to 
                        permit interested parties to verify and audit 
                        Notices of Temporary Limited Use filed by 
                        satellite carriers under this subparagraph.
                          ``(v) Challenge.--Any owner of a network 
                        station for which the primary stream or 
                        multicast stream of that network would have 
                        been transmitted by a satellite carrier under 
                        the license under this section but for the 
                        failure of that satellite carrier to provide 
                        local-into-local service to all DMAs may bring 
                        a civil action to challenge the sufficiency of 
                        the reasonable actions and good faith efforts 
                        of that satellite carrier to provide local-
                        into-local service to all DMAs, as such actions 
                        and efforts are described in the applicable 
                        Notice of Temporary Limited Use.
                          ``(vi) Covered transmission defined.--In this 
                        subparagraph, the term `covered transmission' 
                        means a secondary transmission of a primary 
                        transmission made by a network station to an 
                        unserved household.''.
                  (B) by striking paragraphs (3), (6)(E), (9), (10), 
                and (13); and
                  (C) by redesignating paragraphs (4), (5), (6), (7), 
                (8), (11), (12), and (14) as paragraphs (3) through 
                (10), respectively;
          (2) in subsection (c)(1)(E)--
                  (A) by striking the comma after ``in the agreement'';
                  (B) by striking ``until December 31, 2019, or''; and
                  (C) by striking ``, whichever is later'' and 
                inserting ``until the subscriber for which the royalty 
                is payable is no longer eligible to receive a secondary 
                transmission pursuant to the license under this 
                section'';
          (3) in subsection (d)--
                  (A) in paragraph (10)--
                          (i) in subparagraph (D), by striking 
                        ``subsection (a)(11)'' and inserting 
                        ``subsection (a)(8)'';
                          (ii) by striking subparagraphs (A), (B), (C), 
                        and (E);
                          (iii) by redesignating subparagraph (D) as 
                        subparagraph (A); and
                          (iv) by adding at the end the following:
                  ``(B) is a subscriber located in a short market.'';
                  (B) by striking paragraph (13);
                  (C) by redesignating paragraphs (14) and (15) as 
                paragraphs (13) and (14), respectively; and
                  (D) by adding at the end the following:
          ``(15) Local-into-local service to all dmas.--The term 
        `local-into-local service to all DMAs' has the meaning given 
        such term in subsection (f)(7).
          ``(16) Short market.--The term `short market' means a local 
        market in which programming of one or more of the four most 
        widely viewed television networks nationwide is not offered on 
        either the primary stream or multicast stream transmitted by 
        any network station in that market.'';
          (4) by striking subsections (e) and (h); and
          (5) by redesignating subsections (f) and (g) as subsections 
        (e) and (f).
  (b) Previously Covered Subscribers Under the STELA Reauthorization 
Act of 2014.--
          (1) In general.--A subscriber of a satellite carrier who 
        receives the secondary transmission of a network station under 
        the statutory license in section 119 of title 17, United States 
        Code, as in effect on the day before the date of the enactment 
        of this Act, and to whom subsection (a)(2)(B) of such section, 
        as amended by subsection (a), does not apply, shall continue to 
        be eligible to receive that secondary transmission from such 
        carrier under such license, and at the royalty rate established 
        for such license by the Copyright Royalty Board or voluntary 
        agreement, as applicable, until the date that is the earlier 
        of--
                  (A) 180 days after the date of the enactment of this 
                Act; or
                  (B) the date on which such carrier provides local-
                into-local service to all DMAs.
          (2) Definitions.--In this subsection, the terms ``satellite 
        carrier'', ``subscriber'', ``secondary transmission'', 
        ``network station'', and ``local-into-local service to all 
        DMAs'' have the meaning given those terms in section 119 of 
        title 17, United States Code.
  (c) Conforming Amendments.--Title 17, United States Code, is further 
amended--
          (1) in section 119, as amended by subsection (a)--
                  (A) in subsection (a)--
                          (i) in paragraph (1), by striking 
                        ``paragraphs (4), (5), and (7)'' and inserting 
                        ``paragraphs (3), (4), and (6)''; and
                          (ii) in paragraph (2), by striking 
                        ``paragraphs (4), (5), (6), and (7)'' and 
                        inserting ``paragraphs (3), (4), (5), and 
                        (6)''; and
                  (B) in subsection (g), by striking ``subsection 
                (a)(7)(B)'' each place it appears and inserting 
                ``subsection (a)(5)(B)''; and
          (2) in section 501(e), by striking ``section 119(a)(5)'' and 
        inserting ``section 119(a)(3)''.

                          Purpose and Summary

    The compulsory license in section 119 of the Copyright Act, 
17 U.S.C. Sec. 119, which allows a satellite carrier to 
retransmit distant broadcast signals to an ``unserved 
household,'' is set to expire on December 31, 2019.\1\ When 
this statutory license was created in 1988, the satellite 
television industry was in its infancy. Since then, technology 
has developed to allow satellite carriers to more easily 
retransmit local (instead of distant) television signals into 
local markets. The television industry overall has also evolved 
with the proliferation of ``over-the-top'' services that 
deliver television through the Internet, which, since it is 
generally unregulated, shows the marketplace's ability to 
facilitate the licensing of rights to retransmit television 
stations, including broadcast stations. In light of these 
changed circumstances, several categories of viewers falling 
within the definition of ``unserved household'' are no longer 
appropriately considered unserved--instead, section 119 is 
being used to provide them with distant broadcast signals when 
local broadcast signals are available, the technology to 
retransmit them exists, and either free market-based 
negotiations or a separate statutory license under 17 U.S.C. 
Sec. 122 would permit their retransmission. This has the effect 
of denying viewers access to local news, weather, and emergency 
alerts. In contrast, other categories of viewers covered by the 
definition of ``unserved household'' may still need the 
statutory license provided by section 119 to ensure access to 
broadcast network television. These categories include viewers 
in television markets lacking one or more local broadcasters--
``short markets''--and viewers without a fixed location--those 
in recreational vehicles or commercial trucks.
---------------------------------------------------------------------------
    \1\Satellite Television Extension and Localism Act Reauthorization 
Act of 2014 Sec. Sec. 201, 202, Pub. L. No. 113-200, 128 Stat. 2059 
(2014).
---------------------------------------------------------------------------
    In light of these competing considerations, H.R. 5140, the 
``Satellite Television Community Protection and Promotion Act 
of 2019,'' narrows the households eligible to receive out-of-
state programming under the license to these final two 
categories of viewers and makes this reauthorization permanent. 
In addition, to promote the retransmission of local broadcast 
signals, the Act conditions satellite carriers' use of the new, 
more narrow section 119 statutory license on providing access 
to local broadcast programming nationwide where it is 
available.

                Background and Need for the Legislation

    Most satellite television subscribers receive local 
broadcast programming that is retransmitted from their local 
network stations. When a satellite carrier provides such 
``local service,'' subscribers have access to important local 
news, local weather, and local emergency information. For some 
(typically rural) subscribers, instead of seeing news, weather, 
or emergency information from their own towns, they get 
retransmissions of ``distant'' programming from outside of 
their local market. Those subscribers see network programming 
from a larger, sometimes much farther, market like New York or 
Los Angeles instead.
    The subscribers subject to ``distant'' programming are in 
households covered by section 119 of the Copyright Act. Section 
119 establishes a compulsory license that allows satellite 
carriers to retransmit to ``unserved households'' broadcast 
television programming from television stations located outside 
of the unserved household's local market.\2\ Enacted as a 
temporary provision in 1988,\3\ section 119 has required 
reauthorization approximately every five years. Congress's 
latest reauthorization, the Satellite Television Extension and 
Localism Act Reauthorization Act (``STELAR'') of 2014, is set 
to expire on December 31, 2019.\4\
---------------------------------------------------------------------------
    \2\17 U.S.C. Sec. 119(a)(2)(A)-(B) (2019).
    \3\Satellite Home Viewer Act of 1988, Pub. L. No. 100-667, 102 
Stat. 3949 (1988).
    \4\Satellite Television Extension and Localism Act Reauthorization 
Act of 2014, Pub. L. No. 113-200, 128 Stat. 2059 (2014).
---------------------------------------------------------------------------
    The section 119 license is an exception to the general 
copyright principle that copyright owners control the 
distribution and dissemination of their works. Under the 
license, satellite carriers pay government-set royalty rates 
for the distant programming, and they are relieved from needing 
to negotiate licenses with individual copyright owners.\5\
---------------------------------------------------------------------------
    \5\The Copyright Office has administered the compulsory license 
since it was established in 1988, which has included collecting 
statements of account and royalties from satellite carriers and 
distributing them to the appropriate rights holders. Licensing, U.S. 
Copyright Office, https://www.copyright.gov/licensing/ (last visited 
Dec. 3, 2019).
---------------------------------------------------------------------------
    Congress created the section 119 license during the 
satellite industry's nascency to allow satellite television to 
better compete with cable. Since then, the satellite industry 
has matured with two major players, DISH Network and AT&T's 
DirecTV. Technological limitations have likewise dissolved such 
that ``local service''--where subscribers receive local 
programming via satellite transmission--is pervasive and 
technologically feasible in all 210 geographic television 
markets (known as ``designated market areas''). DISH Network 
provides local service in all 210 designated market areas; 
DirecTV offers local service in 198.\6\
---------------------------------------------------------------------------
    \6\The designated market areas to which DirecTV does not provide 
local service include: Alpena, MI; Bowling Green, KY; Casper-Riverton, 
WY; Cheyenne, WY-Scottsbluff, NE; Glendive, MT; Grand Junction-
Montrose, CO; Helena, MT; North Platte, NE; Ottumwa, IA-Kirksville, MO; 
Presque Isle, ME; San Angelo, TX; and Victoria, TX. See John Eggerton, 
Senators Press AT&T/DirecTV for Small-Market, Remote Area TV Signals, 
Broadcasting & Cable (Mar. 14, 2019), https://
www.broadcastingcable.com/news/senators-press-at-t-directv-for-small-
market-remote-area-tv-signals.
---------------------------------------------------------------------------
    Under section 119, ``unserved households'' that are 
eligible for the license include households that do not receive 
sufficiently strong over-the-air signals; recreational vehicles 
and commercial trucks; households that receive a waiver from a 
local network affiliate to receive a distant signal; and 
households that are in markets where local service is available 
but that have been ``grandfathered'' into eligibility.\7\ 
Households in seven ``short markets''--that is, markets where 
one or more of the four broadcast networks is not offered 
locally--also receive distant broadcast programming under the 
section 119 license.\8\ DISH and AT&T estimate that 
approximately 870,000 subscribers receive one or more stations 
through the section 119 license.\9\ When asked by Chairman 
Nadler and Ranking Member Collins in a letter last spring, 
neither carrier provided a breakdown of the number of 
subscribers per category, citing concerns that such information 
was competitively sensitive.\10\
---------------------------------------------------------------------------
    \7\17 U.S.C. Sec. 119(d)(10)(B)-(E), (g)(2)(E).
    \8\The seven ``short markets'' are: Alpena, MI; Glendive, MT; 
Harrisonburg, VA/WV; Mankato, MN; Parkersburg, OH/WV; Presque Isle, ME; 
and Zanesville, OH. See Letter from Jeffrey H. Blum, Senior Vice 
President, DISH Network Corp., to Jerrold Nadler, Chairman, & Doug 
Collins, Ranking Member, U.S. House of Representatives Comm. on the 
Judiciary (Apr. 19, 2019).
    \9\Id.; Letter from Timothy P. McKone, Exec. Vice President, AT&T 
Services, Inc., to Jerrold Nadler, Chairman, & Doug Collins, Ranking 
Member, U.S. House of Representatives Comm. on the Judiciary 1 (Apr. 
19, 2019).
    \10\Letter from Jeffrey H. Blum, supra note 8; Letter from Timothy 
P. McKone, supra note 9.
---------------------------------------------------------------------------
    The Copyright Office has reported a decline in section 119 
royalties reported by satellite carriers of between 85% and 
99.5% since 2014.\11\ The television marketplace also has 
transformed since section 119's last reauthorization in 2014, 
including the proliferation of ``over-the-top'' services that 
deliver television through the Internet, such as Hulu and 
Netflix, which operate absent any statutory license.\12\ It is 
the Copyright Office's view that the section 119 license should 
sunset as intended and allow free-market negotiations take 
place.
---------------------------------------------------------------------------
    \11\Letter from Karyn A. Temple, Register of Copyrights, U.S. 
Copyright Office, to Jerrold Nadler, Chairman, & Doug Collins, Ranking 
Member, U.S. House of Representatives Comm. on the Judiciary 2 (June 3, 
2019).
    \12\Id. at 3.
---------------------------------------------------------------------------
    Broadcasters, some rural groups, and some Members of 
Congress who represent areas subject to the license have also 
urged Congress not to reauthorize section 119 so that 
subscribers can get satellite access to their local stations. 
For example, in a letter to the House Committee on the 
Judiciary and the House Committee on Energy and Commerce, Rep. 
David Loebsack (D-IA), wrote:

          It is apparent that the existence of the distant 
        signal license creates a disincentive for DIRECTV to 
        offer my constituents the broadcast channels from their 
        local DMA. . . . I'd ask that you keep in mind how this 
        law impacts viewers in my district, as well as viewers 
        in the 11 other neglected markets across the country, 
        from accessing important local broadcast programming 
        via satellite.\13\
---------------------------------------------------------------------------
    \13\ Letter from Dave Loebsack, Member of Congress, to Frank 
Pallone, Jr., Chairman, & Greg Walden, Ranking Member, H. Comm. on 
Energy & Commerce, and Jerrold Nadler, Chairman, & Doug Collins, 
Ranking Member, H. Comm. on the Judiciary (May 30, 2019).

    The Rural and Agriculture Council of America raised similar 
localism concerns in its outreach to Congress this summer, 
---------------------------------------------------------------------------
stating:

          The policies of STELAR--first enacted before the rise 
        of even the early Internet--have been surpassed by 
        technological advances and now cause definite harm to 
        our rural communities. Rural Americans rely on local 
        broadcasting for critical information and news about 
        our local communities and, especially when we are out 
        in the field, up-to-the minute weather and emergency 
        information. This is critical local information not 
        only for the productivity of our lands, but also for 
        the safety of our livestock and families. Yet, because 
        of STELAR, major satellite television providers are 
        carrying television stations from outside these rural 
        areas rather than the local stations themselves.\14\
---------------------------------------------------------------------------
    \14\ Letter from Rural & Agriculture Council of America et al., to 
Frank Pallone, Jr., Chairman, & Greg Walden, Ranking Member, H. Comm. 
on Energy & Commerce, and Roger Wicker, Chairman, & Maria Cantwell, 
Ranking Member, S. Comm. on Commerce, Sci., & Transp. (June 3, 2019).

    H.R. 5140 accounts for the need to prioritize access to 
local programming and acknowledges the vulnerabilities that 
some households might face in a purely market-based system. 
H.R. 5140 does so by first conditioning a satellite carrier's 
use of the license on the carrier's provision of local service 
in all 210 designated market areas. The bill then lets the 
license expire for almost all covered households, with two 
exceptions: (1) recreational vehicles and commercial trucks, 
whose subscriber size may not be large enough to make free-
market negotiations worth the effort, and (2) households in 
short markets that by definition do not have local alternatives 
for at least one network. The license would be permanent for 
these two groups.
    For households no longer covered by section 119, the 
narrowed license would likely mean that these viewers would get 
local broadcast signals instead of imported, distant signals. A 
local-signal satellite license is available to satellite 
carriers under section 122 of the Copyright Act,\15\ which DISH 
already uses in all 210 markets and which DirecTV uses in 198 
markets.
---------------------------------------------------------------------------
    \15\ 17 U.S.C. Sec. 122.
---------------------------------------------------------------------------
    To address concerns that a year-end expiration of the 
section 119 license might be disruptive in the short-term, H.R. 
5140 provides a 180-day transition period during which a 
satellite carrier can continue to use the license for 
households no longer covered under the bill, giving the carrier 
time to transition to offering local service in all designated 
market areas. If a satellite carrier is unable to offer the 
requisite local service within that 180-day period, but it has 
acted reasonably and made good faith efforts to do so, the 
carrier may temporarily use the license for covered households 
for a 90-day period after filing a notice with the Copyright 
Office that, among other things, outlines its efforts to 
provide local service. The carrier can file for subsequent 
temporary 90-day licenses by filing further notices.

                                Hearings

    The Committee on the Judiciary held no hearings on H.R. 
5140 in the 116th Congress, but received testimony on the 
upcoming expiration of the section 119 license from the 
Register of Copyrights, Karyn A. Temple, on June 26, 2019.

                        Committee Consideration

    On November 20, 2019, the Committee met in open session and 
ordered the bill, H.R. 5140, favorably reported as amended, by 
a voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that no 
rollcall votes occurred during the Committee's consideration of 
H.R. 5140.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

  New Budget Authority and Tax Expenditures and Congressional Budget 
                          Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures.

                    Duplication of Federal Programs

    No provision of H.R. 5140 establishes or reauthorizes a 
program of the federal government known to be duplicative of 
another federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                    Performance Goals and Objectives

    The Committee states that pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
5140 would modify the compulsory license in section 119 of the 
Copyright Act by conditioning satellite carriers' use of the 
license on providing access to local broadcast programming 
nationwide and narrowing the households eligible to receive 
out-of-state programming under the license.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 5140 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee.
    Sec. 1. Short Title. Section 1 sets forth the short title 
of the bill as the ``Satellite Television Community Protection 
and Promotion Act of 2019''.
    Sec. 2. Eligibility to Receive Signals Under a Distant-
Signal Satellite License. Section 2 makes several amendments to 
17 U.S.C. Sec.  119.
    Section 2(a)(1)(A)(i) amends 17 U.S.C. Sec. 119(a)(2) to 
condition a satellite carrier's eligibility to use the section 
119 license to carry distant signals to ``unserved households'' 
(as subsequently redefined) on the carrier's retransmission of 
local television broadcast stations (i.e., providing ``local 
service'') in all 210 designated market areas. This clause 
notes that a carrier's failure to reach a retransmission 
consent agreement with a broadcast station does not affect the 
carrier's compliance with the local service requirement if the 
carrier has the technical capability to provide local service 
once such an agreement is reached.
    Section(a)(1)(A)(ii) removes language related to the 
eligibility of households no longer covered under the bill--
namely, households that did not receive sufficiently strong 
over-the-air signals and households under the C-band exemption. 
This clause also clarifies that use of the license for 
subscribers in short markets is limited to secondary 
transmissions of only those networks that are not offered in 
the local market.
    Section (a)(1)(A)(iii) establishes a mechanism by which a 
satellite carrier that has not implemented local service in all 
designated market areas can temporarily continue to carry 
distant signals to ``unserved households.'' Under this 
provision, to temporarily use the license, the carrier must 
demonstrate that it has acted reasonably and made good faith 
efforts to provide the requisite local service and file a 
Notice of Temporary Limited Use with the Copyright Office 
within 180 days following the enactment of the bill. The 
carrier's notice must include an affirmation that it intends to 
provide distant signals under the section 119 license; a signed 
statement that it has acted reasonably and made good faith 
efforts to provide the requisite local service; a list of the 
designated market areas to which it does not provide local 
service; and a summary of the actions it has taken to provide 
local service to all designated market areas. The temporary 
license lasts 90 days and can be extended for additional 90-day 
periods if the carrier files a new notice. An owner of a 
network station that could have been retransmitted but for the 
carrier's failure to provide local service may challenge the 
sufficiency of the carrier's efforts in a civil action.
    Section 2(a)(1)(B)-(C) strikes certain language no longer 
applicable under the narrowed license--namely, language related 
to subscribers previously eligible despite the availability of 
local service (Sec. 119(a)(3), (13)) and language related to 
signal measurements, which are no longer needed because there 
are no ``unserved households'' that are defined solely in 
relation to broadcast signal strength (Sec. 119(a)(9)-(10)).
    Section 2(a)(2) amends 17 U.S.C. Sec. 119(c)(1)(E) to state 
that voluntary agreements that were entered into under the 
license are in effect under the terms of those agreements until 
the subscriber is no longer eligible to receive secondary 
transmissions under the bill.
    Section 2(a)(3) amends the definition of ``unserved 
household'' to be limited to subscribers in short markets and 
RVs/commercial trucks while removing other categories that are 
no longer needed. The term ``local-into-local service to all 
DMAs'' is defined via a cross-reference to the same requirement 
in (redesignated) subsection (f), where providing local-into-
local service was previously required for certain satellite 
carriers to continue to use the section 119 license under the 
Satellite Television Extension and Localism Act of 2010, Pub. 
L. 111-175. The term ``short market'' is defined as a market 
missing one or more local broadcast networks, where 
availability of a local broadcast network is defined with 
reference to the broadcast being offered on the primary stream 
or multicast stream, reflecting the current practice of which 
types of local broadcast stations are carried under the 
statutory license for local-into-local carriage under 17 U.S.C. 
Sec.  122.
    Section 2(a)(4)-(5) strikes 17 U.S.C. Sec. 119(e) and 17 
U.S.C. Sec. 119(h). Subsection (e) refers to households no 
longer covered under the bill, while subsection (h) contains 
the license's expiration date. The removal of subsection (h) 
makes the modified section 119 license for RVs/commercial 
trucks and households in short markets permanent.
    Section 2(b)(1) establishes a 180-day transition period 
during which a household that is not covered under the bill's 
narrowed license remains eligible to receive retransmissions 
under the distant-signal license regardless of the status of 
the satellite carrier's provision of local service in all 
designated market areas. The household's eligibility would 
expire after those 180 days or once the satellite carrier 
provides local service in all 210 designated market areas, 
whichever is sooner.
    Section 2(b)(2) incorporates several definitions by 
reference from section 119, since section 2(b) of the bill is 
uncodified.
    Section 2(c) provides several conforming amendments.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, 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):

                      TITLE 17, UNITED STATES CODE




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CHAPTER 1--SUBJECT MATTER AND SCOPE OF COPYRIGHT

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Sec. 119. Limitations on exclusive rights: Secondary transmissions of 
                    distant television programming by satellite

  (a) Secondary Transmissions by Satellite Carriers.--
          (1) Non-network stations.--Subject to the provisions 
        of [paragraphs (4), (5), and (7)] paragraphs (3), (4), 
        and (6) 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 
        non-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 or for viewing in a 
        commercial establishment, 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 each 
        retransmission service to each subscriber receiving the 
        secondary transmission or to a distributor that has 
        contracted with the carrier for direct or indirect 
        delivery of the secondary transmission to the public 
        for private home viewing or for viewing in a commercial 
        establishment.
          (2) Network stations.--
                  (A) In general.--Subject to the provisions of 
                subparagraph (B) of this paragraph and 
                [paragraphs (4), (5), (6), and (7)] paragraphs 
                (3), (4), (5), and (6) 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] signals, the 
                carrier makes a direct or indirect charge for 
                such retransmission service to each subscriber 
                receiving the secondary transmission, and the 
                carrier provides local-into-local service to 
                all DMAs. Failure to reach an agreement with 
                network stations to retransmit their signals 
                shall not be construed to affect compliance 
                with providing local-into-local service to all 
                DMAs if the satellite carrier has the 
                capability to retransmit such signals when an 
                agreement is reached.
                  (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.
                          [(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 
                                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.
                                  [(III) Accurate predictive 
                                model with respect to digital 
                                signals.--Notwithstanding 
                                subclause (I), in determining 
                                presumptively whether a person 
                                resides in an unserved 
                                household under subsection 
                                (d)(10)(A) with respect to 
                                digital signals, a court shall 
                                rely on a predictive model set 
                                forth by the Federal 
                                Communications Commission 
                                pursuant to a rulemaking as 
                                provided in section 339(c)(3) 
                                of the Communications Act of 
                                1934 (47 U.S.C. 339(c)(3)), as 
                                that model may be amended by 
                                the Commission over time under 
                                such section to increase the 
                                accuracy of that model. Until 
                                such time as the Commission 
                                sets forth such model, a court 
                                shall rely on the predictive 
                                model as recommended by the 
                                Commission with respect to 
                                digital signals in its Report 
                                to Congress in ET Docket No. 
                                05-182, FCC 05-199 (released 
                                December 9, 2005).
                          [(iii) C-band exemption to unserved 
                        households.--
                                  [(I) In general.--The 
                                limitations of clause (i) shall 
                                not apply to any secondary 
                                transmissions by C-band 
                                services of network stations 
                                that a subscriber to C-band 
                                service received before any 
                                termination of such secondary 
                                transmissions before October 
                                31, 1999.
                                  [(II) Definition.--In this 
                                clause, the term ``C-band 
                                service'' means a service that 
                                is licensed by the Federal 
                                Communications Commission and 
                                operates in the Fixed Satellite 
                                Service under part 25 of title 
                                47, Code of Federal 
                                Regulations.]
                          (ii) Short markets.--In the case of 
                        secondary transmissions to households 
                        located in short markets, subject to 
                        clause (i), the statutory license shall 
                        be further limited to secondary 
                        transmissions of only those primary 
                        transmissions of network stations that 
                        embody the programming of networks not 
                        offered on the primary stream or the 
                        multicast stream transmitted by any 
                        network station in that market.
                  (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, not later than 
                        90 days after commencing such secondary 
                        transmissions, submit to the network 
                        that owns or is affiliated with the 
                        network station a list identifying (by 
                        name and address, including street or 
                        rural route number, city, State, and 9-
                        digit zip code) all subscribers to 
                        which the satellite carrier makes 
                        secondary transmissions of that primary 
                        transmission to subscribers in unserved 
                        households.
                          (ii) Monthly lists.--After the 
                        submission of the initial lists under 
                        clause (i), the satellite carrier 
                        shall, not later than the 15th of each 
                        month, submit to the network a list, 
                        aggregated by designated market area, 
                        identifying (by name and address, 
                        including street or rural route number, 
                        city, State, and 9-digit zip code) any 
                        persons who have been added or dropped 
                        as subscribers under clause (i) since 
                        the last submission under this 
                        subparagraph.
                          (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.
                  (D) Temporary and limited use of license.--
                          (i) In general.--Notwithstanding the 
                        requirement under subparagraph (A) that 
                        a satellite carrier provide local-into-
                        local service to all DMAs before making 
                        a secondary transmission under the 
                        license under this section, a satellite 
                        carrier that does not provide local-
                        into-local service to all DMAs may make 
                        a covered transmission under such 
                        license if not later than 180 days 
                        after the date of the enactment of the 
                        Satellite Television Community 
                        Protection and Promotion Act of 2019 
                        the satellite carrier--
                                  (I) demonstrates that it has 
                                acted reasonably and made a 
                                good faith effort to provide 
                                local-into-local service to all 
                                DMAs and that it will continue 
                                to make a good faith effort to 
                                provide local-into-local 
                                service to all DMAs; and
                                  (II) files a Notice of 
                                Temporary Limited Use with the 
                                Copyright Office in accordance 
                                with clause (ii).
                          (ii) Notice of temporary limited 
                        use.--A Notice of Temporary Limited Use 
                        filed with the Copyright Office under 
                        this subparagraph shall contain--
                                  (I) an affirmation that the 
                                carrier intends to make covered 
                                transmissions under the license 
                                under this section despite not 
                                providing local-into-local 
                                service to all DMAs;
                                  (II) a signed statement that 
                                the satellite carrier acted 
                                reasonably and made good faith 
                                efforts to provide local-into-
                                local service to all DMAs;
                                  (III) a list of the 
                                designated market areas with 
                                respect to which no local-into-
                                local service is provided by 
                                the satellite carrier; and
                                  (IV) a summary of actions 
                                taken by the satellite carrier 
                                to make arrangements to provide 
                                local-into-local service to all 
                                DMAs.
                          (iii) Period of temporary and limited 
                        license.--
                                  (I) Initial 90-day period.--A 
                                satellite carrier that meets 
                                the requirements of this 
                                subparagraph may use the 
                                license under this section to 
                                make covered transmissions for 
                                a 90-day period beginning on 
                                the date such carrier files a 
                                Notice of Temporary Limited Use 
                                with the Copyright Office.
                                  (II) Additional periods.--The 
                                initial 90-day period described 
                                under clause (I) may be 
                                extended for additional periods 
                                of 90 days if the satellite 
                                carrier files a new Notice of 
                                Temporary Limited Use with the 
                                Copyright Office on or before 
                                the last day of such initial 
                                period, and each successive 90-
                                day period thereafter.
                          (iv) Audit and verification of 
                        notices.--The Register of Copyrights 
                        shall issue regulations that are 
                        similar in nature to the regulations 
                        issued under subsection (b)(2) to 
                        permit interested parties to verify and 
                        audit Notices of Temporary Limited Use 
                        filed by satellite carriers under this 
                        subparagraph.
                          (v) Challenge.--Any owner of a 
                        network station for which the primary 
                        stream or multicast stream of that 
                        network would have been transmitted by 
                        a satellite carrier under the license 
                        under this section but for the failure 
                        of that satellite carrier to provide 
                        local-into-local service to all DMAs 
                        may bring a civil action to challenge 
                        the sufficiency of the reasonable 
                        actions and good faith efforts of that 
                        satellite carrier to provide local-
                        into-local service to all DMAs, as such 
                        actions and efforts are described in 
                        the applicable Notice of Temporary 
                        Limited Use.
                          (vi) Covered transmission defined.--
                        In this subparagraph, the term 
                        ``covered transmission'' means a 
                        secondary transmission of a primary 
                        transmission made by a network station 
                        to an unserved household.
          [(3) Statutory license where retransmissions into 
        local market available.--
                  [(A) Rules for subscribers to signals under 
                subsection (e).--
                          [(i) For those receiving distant 
                        signals.--In the case of a subscriber 
                        of a satellite carrier who is eligible 
                        to receive the secondary transmission 
                        of the primary transmission of a 
                        network station solely by reason of 
                        subsection (e) (in this subparagraph 
                        referred to as a ``distant signal''), 
                        and who, as of October 1, 2004, is 
                        receiving the distant 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 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 
                                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, the subscriber 
                                        elects to retain the 
                                        distant signal; but
                                          [(bb) only until such 
                                        time as the subscriber 
                                        elects to receive such 
                                        local 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 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 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 
                                        signals.
                          [(ii) For those not receiving distant 
                        signals.--In the case of any subscriber 
                        of a satellite carrier who is eligible 
                        to receive the distant signal of a 
                        network station solely by reason of 
                        subsection (e) and who did not receive 
                        a distant 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 signal of a station 
                        affiliated with the same network.
                  [(B) Rules for lawful subscribers as of date 
                of enactment of 2010 act.--In the case of a 
                subscriber of a satellite carrier who, on the 
                day before the date of the enactment of the 
                Satellite Television Extension and Localism Act 
                of 2010, was lawfully receiving the secondary 
                transmission of the primary transmission of a 
                network station under the statutory license 
                under paragraph (2) (in this subparagraph 
                referred to as the ``distant signal''), other 
                than subscribers to whom subparagraph (A) 
                applies, the statutory license under paragraph 
                (2) shall apply to secondary transmissions by 
                that satellite carrier to that subscriber of 
                the distant signal of a station affiliated with 
                the same television network, and the 
                subscriber's household shall continue to be 
                considered to be an unserved household with 
                respect to such network, until such time as the 
                subscriber elects to terminate such secondary 
                transmissions, whether or not the subscriber 
                elects to subscribe to receive the secondary 
                transmission of the primary transmission of a 
                local network station affiliated with the same 
                network pursuant to the statutory license under 
                section 122.
                  [(C) Future applicability.--
                          [(i) When local signal available at 
                        time of subscription.--The statutory 
                        license under paragraph (2) shall not 
                        apply to the secondary transmission by 
                        a satellite carrier of the primary 
                        transmission of a network station to a 
                        person who is not a subscriber lawfully 
                        receiving such secondary transmission 
                        as of the date of the enactment of the 
                        Satellite Television Extension and 
                        Localism Act of 2010 and, at the time 
                        such person seeks to subscribe to 
                        receive such secondary transmission, 
                        resides in a local market where the 
                        satellite carrier makes available to 
                        that person the secondary transmission 
                        of the primary transmission of a local 
                        network station affiliated with the 
                        same network pursuant to the statutory 
                        license under section 122.
                          [(ii) When local signal available 
                        after subscription.--In the case of a 
                        subscriber who lawfully subscribes to 
                        and receives the secondary transmission 
                        by a satellite carrier of the primary 
                        transmission of a network station under 
                        the statutory license under paragraph 
                        (2) (in this clause referred to as the 
                        ``distant signal'') on or after the 
                        date of the enactment of the Satellite 
                        Television Extension and Localism Act 
                        of 2010, the statutory license under 
                        paragraph (2) shall apply to secondary 
                        transmissions by that satellite carrier 
                        to that subscriber of the distant 
                        signal of a station affiliated with the 
                        same television network, and the 
                        subscriber's household shall continue 
                        to be considered to be an unserved 
                        household with respect to such network, 
                        until such time as the subscriber 
                        elects to terminate such secondary 
                        transmissions, but only if such 
                        subscriber subscribes to the secondary 
                        transmission of the primary 
                        transmission of a local network station 
                        affiliated with the same network within 
                        60 days after the satellite carrier 
                        makes available to the subscriber such 
                        secondary transmission of the primary 
                        transmission of such local network 
                        station.
                  [(D) Other provisions not affected.--This 
                paragraph shall not affect the applicability of 
                the statutory license to secondary 
                transmissions to unserved households included 
                under paragraph (11).
                  [(E) Waiver.--A subscriber who is denied the 
                secondary transmission of a network station 
                under subparagraph (B) or (C) 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 
                shall not constitute a waiver for purposes of 
                this subparagraph.
                  [(F) 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 9-digit zip code as that 
                subscriber or person.]
          [(4)] (3) 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 non-network 
        station 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, 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).
          [(5)] (4) 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 non-network station 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.
          [(6)] (5) 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 $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 $2,500,000 for each 3-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 
                        $2,500,000 for each 6-month period 
                        during which the pattern or practice 
                        was carried out.
                  (C) Previous subscribers excluded.--
                Subparagraphs (A) and (B) do not apply to 
                secondary transmissions by a satellite carrier 
                to persons who subscribed to receive such 
                secondary transmissions from the satellite 
                carrier or a distributor before November 16, 
                1988.
                  (D) Burden of proof.--In any action brought 
                under this paragraph, the satellite carrier 
                shall have the burden of proving that its 
                secondary transmission of a primary 
                transmission by a network station is to a 
                subscriber who is eligible to receive the 
                secondary transmission under this section.
                  [(E) Exception.--The secondary transmission 
                by a satellite carrier of a performance or 
                display of a work embodied in a primary 
                transmission made by a network station to 
                subscribers who do not reside in unserved 
                households shall not be an act of infringement 
                if--
                          [(i) the station on May 1, 1991, was 
                        retransmitted by a satellite carrier 
                        and was not on that date owned or 
                        operated by or affiliated with a 
                        television network that offered 
                        interconnected program service on a 
                        regular basis for 15 or more hours per 
                        week to at least 25 affiliated 
                        television licensees in 10 or more 
                        States;
                          [(ii) as of July 1, 1998, such 
                        station was retransmitted by a 
                        satellite carrier under the statutory 
                        license of this section; and
                          [(iii) the station is not owned or 
                        operated by or affiliated with a 
                        television network that, as of January 
                        1, 1995, offered interconnected program 
                        service on a regular basis for 15 or 
                        more hours per week to at least 25 
                        affiliated television licensees in 10 
                        or more States.]
        The court shall direct one half of any statutory 
        damages ordered under clause (i) to be deposited with 
        the Register of Copyrights for distribution to 
        copyright owners pursuant to subsection (b). The 
        Copyright Royalty Judges shall issue regulations 
        establishing procedures for distributing such funds, on 
        a proportional basis, to copyright owners whose works 
        were included in the secondary transmissions that were 
        the subject of the statutory damages.
          [(7)] (6) 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 non-network station 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.
          [(8)] (7) 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.
          [(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--
                  [(A) a network station challenging such 
                eligibility shall, within 60 days after receipt 
                of the measurement results and a statement of 
                such costs, reimburse the satellite carrier for 
                any signal intensity measurement that is 
                conducted by that carrier in response to a 
                challenge by the network station and that 
                establishes the household is an unserved 
                household; and
                  [(B) a satellite carrier shall, within 60 
                days after receipt of the measurement results 
                and a statement of such costs, reimburse the 
                network station challenging such eligibility 
                for any signal intensity measurement that is 
                conducted by that station and that establishes 
                the household is not an unserved household.
          [(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.]
          [(11)] (8) Service to recreational vehicles and 
        commercial trucks.--
                  (A) Exemption.--
                          (i) In general.--For purposes of this 
                        subsection, and subject to clauses (ii) 
                        and (iii), the term ``unserved 
                        household'' shall include--
                                  (I) recreational vehicles as 
                                defined in regulations of the 
                                Secretary of Housing and Urban 
                                Development under section 
                                3282.8 of title 24, Code of 
                                Federal Regulations; and
                                  (II) commercial trucks that 
                                qualify as commercial motor 
                                vehicles under regulations of 
                                the Secretary of Transportation 
                                under section 383.5 of title 
                                49, Code of Federal 
                                Regulations.
                          (ii) Limitation.--Clause (i) shall 
                        apply only to a recreational vehicle or 
                        commercial truck if any satellite 
                        carrier that proposes to make a 
                        secondary transmission of a network 
                        station to the operator of such a 
                        recreational vehicle or commercial 
                        truck complies with the documentation 
                        requirements under subparagraphs (B) 
                        and (C).
                          (iii) Exclusion.--For purposes of 
                        this subparagraph, the terms 
                        ``recreational vehicle'' and 
                        ``commercial truck'' shall not include 
                        any fixed dwelling, whether a mobile 
                        home or otherwise.
                  (B) Documentation requirements.--A 
                recreational vehicle or commercial truck shall 
                be deemed to be an unserved household beginning 
                10 days after the relevant satellite carrier 
                provides to the network that owns or is 
                affiliated with the network station that will 
                be secondarily transmitted to the recreational 
                vehicle or commercial truck the following 
                documents:
                          (i) Declaration.--A signed 
                        declaration by the operator of the 
                        recreational vehicle or commercial 
                        truck that the satellite dish is 
                        permanently attached to the 
                        recreational vehicle or commercial 
                        truck, and will not be used to receive 
                        satellite programming at any fixed 
                        dwelling.
                          (ii) Registration.--In the case of a 
                        recreational vehicle, a copy of the 
                        current State vehicle registration for 
                        the recreational vehicle.
                          (iii) Registration and license.--In 
                        the case of a commercial truck, a copy 
                        of--
                                  (I) the current State vehicle 
                                registration for the truck; and
                                  (II) a copy of a valid, 
                                current commercial driver's 
                                license, as defined in 
                                regulations of the Secretary of 
                                Transportation under section 
                                383 of title 49, Code of 
                                Federal Regulations, issued to 
                                the operator.
                  (C) Updated documentation requirements.--If a 
                satellite carrier wishes to continue to make 
                secondary transmissions to a recreational 
                vehicle or commercial truck for more than a 2-
                year period, that carrier shall provide each 
                network, upon request, with updated 
                documentation in the form described under 
                subparagraph (B) during the 90 days before 
                expiration of that 2-year period.
          [(12)] (9) 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.
          [(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, and that was in 
        effect on such date of enactment, shall constitute a 
        waiver for purposes of this paragraph.]
          [(14)] (10) Restricted transmission of out-of-state 
        distant network signals into certain markets.--
                  (A) Out-of-state network affiliates.--
                Notwithstanding any other provision of this 
                title, the statutory license in this subsection 
                and subsection (b) shall not apply to any 
                secondary transmission of the primary 
                transmission of a network station located 
                outside of the State of Alaska to any 
                subscriber in that State to whom the secondary 
                transmission of the primary transmission of a 
                television station located in that State is 
                made available by the satellite carrier 
                pursuant to section 122.
                  (B) Exception.--The limitation in 
                subparagraph (A) shall not apply to the 
                secondary transmission of the primary 
                transmission of a digital signal of a network 
                station located outside of the State of Alaska 
                if at the time that the secondary transmission 
                is made, no television station licensed to a 
                community in the State and affiliated with the 
                same network makes primary transmissions of a 
                digital signal.
  (b) Deposit of Statements and Fees; Verification 
Procedures.--
          (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 non-network stations 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;
                  (B) a royalty fee payable to copyright owners 
                pursuant to paragraph (4) for that 6-month 
                period, computed by multiplying the total 
                number of subscribers receiving each secondary 
                transmission of a primary stream or multicast 
                stream of each non-network station or network 
                station during each calendar year month by the 
                appropriate rate in effect under this 
                subsection; and
                  (C) a filing fee, as determined by the 
                Register of Copyrights pursuant to section 
                708(a).
          (2) Verification of accounts and fee payments.--The 
        Register of Copyrights shall issue regulations to 
        permit interested parties to verify and audit the 
        statements of account and royalty fees submitted by 
        satellite carriers under this subsection.
          (3) Investment of fees.--The Register of Copyrights 
        shall receive all fees (including the filing fee 
        specified in paragraph (1)(C)) deposited under this 
        section and, after deducting the reasonable costs 
        incurred by the Copyright Office under this section 
        (other than the costs deducted under paragraph (5)), 
        shall deposit the balance in the Treasury of the United 
        States, in such manner as the Secretary of the Treasury 
        directs. All funds held by the Secretary of the 
        Treasury shall be invested in interest-bearing 
        securities of the United States for later distribution 
        with interest by the Librarian of Congress as provided 
        by this title.
          (4) Persons to whom fees are distributed.--The 
        royalty fees deposited under paragraph (3) shall, in 
        accordance with the procedures provided by paragraph 
        (5), be distributed to those copyright owners whose 
        works were included in a secondary transmission made by 
        a satellite carrier during the applicable 6-month 
        accounting period and who file a claim with the 
        Copyright Royalty Judges under paragraph (5).
          (5) Procedures for distribution.--The royalty fees 
        deposited under paragraph (3) shall be distributed in 
        accordance with the following procedures:
                  (A) Filing of claims for fees.--During the 
                month of July in each year, each person 
                claiming to be entitled to statutory license 
                fees for secondary transmissions shall file a 
                claim with the Copyright Royalty Judges, in 
                accordance with requirements that the Copyright 
                Royalty Judges shall prescribe by regulation. 
                For purposes of this paragraph, any claimants 
                may agree among themselves as to the 
                proportionate division of statutory license 
                fees among them, may lump their claims together 
                and file them jointly or as a single claim, or 
                may designate a common agent to receive payment 
                on their behalf.
                  (B) Determination of controversy; 
                distributions.--After the first day of August 
                of each year, the Copyright Royalty Judges 
                shall determine whether there exists a 
                controversy concerning the distribution of 
                royalty fees. If the Copyright Royalty Judges 
                determine that no such controversy exists, the 
                Copyright Royalty Judges shall authorize the 
                Librarian of Congress to proceed to distribute 
                such fees to the copyright owners entitled to 
                receive them, or to their designated agents, 
                subject to the deduction of reasonable 
                administrative costs under this section. If the 
                Copyright Royalty Judges find the existence of 
                a controversy, the Copyright Royalty Judges 
                shall, pursuant to chapter 8 of this title, 
                conduct a proceeding to determine the 
                distribution of royalty fees.
                  (C) Withholding of fees during controversy.--
                During the pendency of any proceeding under 
                this subsection, the Copyright Royalty Judges 
                shall have the discretion to authorize the 
                Librarian of Congress to proceed to distribute 
                any amounts that are not in controversy.
  (c) Adjustment of Royalty Fees.--
          (1) Applicability and determination of royalty fees 
        for 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 transmissions of 
                network stations and non-network stations shall 
                be the appropriate fee set forth in part 258 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 June 1, 2010, the 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 transmissions of 
                network stations and non-network stations 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 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) Agreements binding on parties; filing of 
                agreements; public notice.--
                          (i) Voluntary agreements; filing.--
                        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) Procedure for adoption of 
                        fees.--
                                  (I) Publication of notice.--
                                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 under subparagraph 
                                (F).
                                  (II) Public notice of fees.--
                                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) Adoption of fees.--The 
                                Copyright Royalty Judges shall 
                                adopt the royalty fees from the 
                                voluntary agreement for all 
                                satellite carriers, 
                                distributors, and copyright 
                                owners without convening the 
                                proceeding under subparagraph 
                                (F) unless a party with an 
                                intent to participate in that 
                                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 Royalty Judges in 
                accordance with this paragraph shall become 
                effective on the date specified in the 
                agreement[,] and shall remain in effect [until 
                December 31, 2019, or] in accordance with the 
                terms of the agreement[, whichever is later] 
                until the subscriber for which the royalty is 
                payable is no longer eligible to receive a 
                secondary transmission pursuant to the license 
                under this section.
                  (F) Fee set by copyright royalty judges 
                proceeding.--
                          (i) Notice of initiation of the 
                        proceeding.--On or before September 1, 
                        2010, the Copyright Royalty Judges 
                        shall cause notice to be published in 
                        the Federal Register of the initiation 
                        of a proceeding for the purpose of 
                        determining the royalty fees to be paid 
                        for the secondary transmission of the 
                        primary transmissions of network 
                        stations and non-network stations 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 under 
                chapter 8.
                          (ii) Establishment of royalty fees.--
                        In determining royalty fees under this 
                        subparagraph, the Copyright Royalty 
                        Judges shall establish fees for the 
                        secondary transmissions of the primary 
                        transmissions of network stations and 
                        non-network stations that most clearly 
                        represent the fair market value of 
                        secondary transmissions, except that 
                        the Copyright Royalty Judges shall 
                        adjust royalty fees to account for the 
                        obligations of the parties under any 
                        applicable voluntary agreement filed 
                        with the Copyright Royalty Judges in 
                        accordance with subparagraph (D). In 
                        determining the fair market value, the 
                        Judges shall base their decision on 
                        economic, competitive, and programming 
                        information presented by the parties, 
                        including--
                                  (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) Effective date for decision of 
                        copyright royalty judges.--The 
                        obligation to pay the royalty fees 
                        established under a determination that 
                        is made by the Copyright Royalty Judges 
                        in a proceeding under this paragraph 
                        shall be effective as of January 1, 
                        2010.
                          (iv) Persons subject to royalty 
                        fees.--The royalty fees 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) Annual royalty fee adjustment.--Effective January 
        1 of each year, the royalty fee payable under 
        subsection (b)(1)(B) for the secondary transmission of 
        the primary transmissions of network stations and non-
        network stations shall be adjusted by the Copyright 
        Royalty Judges to reflect any changes occurring in the 
        cost of living as determined by the most recent 
        Consumer Price Index (for all consumers and for all 
        items) published by the Secretary of Labor before 
        December 1 of the preceding year. Notification of the 
        adjusted fees shall be published in the Federal 
        Register at least 25 days before January 1.
  (d) Definitions.--As used in this section--
          (1) Distributor.--The term ``distributor'' means an 
        entity that contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers or indirectly through other 
        program distribution entities in accordance with the 
        provisions of this section.
          (2) Network station.--The term ``network station'' 
        means--
                  (A) a television station licensed by the 
                Federal Communications Commission, including 
                any translator station or terrestrial satellite 
                station that rebroadcasts all or substantially 
                all of the programming broadcast by a network 
                station, that is owned or operated by, or 
                affiliated with, one or more of the television 
                networks in the United States that offer an 
                interconnected program service on a regular 
                basis for 15 or more hours per week to at least 
                25 of its affiliated television licensees in 10 
                or more States; or
                  (B) a noncommercial educational broadcast 
                station (as defined in section 397 of the 
                Communications Act of 1934);
        except that the term does not include the signal of the 
        Alaska Rural Communications Service, or any successor 
        entity to that service.
          (3) Primary network station.--The term ``primary 
        network station'' means a network station that 
        broadcasts or rebroadcasts the basic programming 
        service of a particular national network.
          (4) Primary transmission.--The term ``primary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (5) Private home viewing.--The term ``private home 
        viewing'' means the viewing, for private use in a 
        household by means of satellite reception equipment 
        that is operated by an individual in that household and 
        that serves only such household, of a secondary 
        transmission delivered by a satellite carrier of a 
        primary transmission of a television station licensed 
        by the Federal Communications Commission.
          (6) Satellite carrier.--The term ``satellite 
        carrier'' means an entity that uses the facilities of a 
        satellite or satellite service licensed by the Federal 
        Communications Commission and operates in the Fixed-
        Satellite Service under part 25 of title 47, Code of 
        Federal Regulations, or the Direct Broadcast Satellite 
        Service under part 100 of title 47, Code of Federal 
        Regulations, to establish and operate a channel of 
        communications for point-to-multipoint distribution of 
        television station signals, and that owns or leases a 
        capacity or service on a satellite in order to provide 
        such point-to-multipoint distribution, except to the 
        extent that such entity provides such distribution 
        pursuant to tariff under the Communications Act of 
        1934, other than for private home viewing pursuant to 
        this section.
          (7) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given that term in 
        section 111(f) of this title.
          (8) Subscriber; subscribe.--
                  (A) Subscriber.--The term ``subscriber'' 
                means a person or entity that receives a 
                secondary transmission service from a satellite 
                carrier and pays a fee for the service, 
                directly or indirectly, to the satellite 
                carrier or to a distributor.
                  (B) Subscribe.--The term ``subscribe'' means 
                to elect to become a subscriber.
          (9) Non-network station.--The term ``non-network 
        station'' means a television station, other than a 
        network station, licensed by the Federal Communications 
        Commission, that is secondarily transmitted by a 
        satellite carrier.
          (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 an 
                antenna, an over-the-air signal containing the 
                primary stream, or, on or after the qualifying 
                date, the multicast stream, originating in that 
                household's local market and affiliated with 
                that network of--
                          [(i) if the signal originates as an 
                        analog signal, Grade B intensity as 
                        defined by the Federal Communications 
                        Commission in section 73.683(a) of 
                        title 47, Code of Federal Regulations, 
                        as in effect on January 1, 1999; or
                          [(ii) if the signal originates as a 
                        digital signal, intensity defined in 
                        the values for the digital television 
                        noise-limited service contour, as 
                        defined in regulations issued by the 
                        Federal Communications Commission 
                        (section 73.622(e) of title 47, Code of 
                        Federal Regulations), as such 
                        regulations may be amended from time to 
                        time;
                  [(B) is subject to a waiver that meets the 
                standards of subsection (a)(13), whether or not 
                the waiver was granted before the date of the 
                enactment of the Satellite Television Extension 
                and Localism Act of 2010;
                  [(C) is a subscriber to whom subsection (e) 
                applies;]
                  [(D)] (A) is a subscriber to whom [subsection 
                (a)(11)] subsection (a)(8) applies; or
                  [(E) is a subscriber to whom the exemption 
                under subsection (a)(2)(B)(iii) applies.]
                  (B) is a subscriber located in a short 
                market.
          (11) Local market.--The term ``local market'' has the 
        meaning given such term under section 122(j).
          (12) Commercial establishment.--The term ``commercial 
        establishment''--
                  (A) means an establishment used for 
                commercial purposes, such as a bar, restaurant, 
                private office, fitness club, oil rig, retail 
                store, bank or other financial institution, 
                supermarket, automobile or boat dealership, or 
                any other establishment with a common business 
                area; and
                  (B) does not include a multi-unit permanent 
                or temporary dwelling where private home 
                viewing occurs, such as a hotel, dormitory, 
                hospital, apartment, condominium, or prison.
          [(13) Qualifying date.--The term ``qualifying date'', 
        for purposes of paragraph (10)(A), means--
                  [(A) October 1, 2010, for multicast streams 
                that exist on March 31, 2010; and
                  [(B) January 1, 2011, for all other multicast 
                streams.]
          [(14)] (13) Multicast stream.--The term ``multicast 
        stream'' means a digital stream containing programming 
        and program-related material affiliated with a 
        television network, other than the primary stream.
          [(15)] (14) Primary stream.--The term ``primary 
        stream'' means--
                  (A) the single digital stream of programming 
                as to which a television broadcast station has 
                the right to mandatory carriage with a 
                satellite carrier under the rules of the 
                Federal Communications Commission in effect on 
                July 1, 2009; or
                  (B) if there is no stream described in 
                subparagraph (A), then either--
                          (i) the single digital stream of 
                        programming associated with the network 
                        last transmitted by the station as an 
                        analog signal; or
                          (ii) if there is no stream described 
                        in clause (i), then the single digital 
                        stream of programming affiliated with 
                        the network that, as of July 1, 2009, 
                        had been offered by the television 
                        broadcast station for the longest 
                        period of time.
          (15) Local-into-local service to all dmas.--The term 
        ``local-into-local service to all DMAs'' has the 
        meaning given such term in subsection (f)(7).
          (16) Short market.--The term ``short market'' means a 
        local market in which programming of one or more of the 
        four most widely viewed television networks nationwide 
        is not offered on either the primary stream or 
        multicast stream transmitted by any network station in 
        that market.
  [(e) Moratorium on Copyright Liability.--Until December 31, 
2019, a subscriber who does not receive a signal of Grade A 
intensity (as defined in the regulations of the Federal 
Communications Commission under section 73.683(a) of title 47, 
Code of Federal Regulations, as in effect on January 1, 1999, 
or predicted by the Federal Communications Commission using the 
Individual Location Longley-Rice methodology described by the 
Federal Communications Commission in Docket No. 98-201) of a 
local network television broadcast station shall remain 
eligible to receive signals of network stations affiliated with 
the same network, if that subscriber had satellite service of 
such network signal terminated after July 11, 1998, and before 
October 31, 1999, as required by this section, or received such 
service on October 31, 1999.]
  [(f)] (e) 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).
  [(g)] (f) Certain Waivers Granted to Providers of Local-into-
local Service to All DMAs.--
          (1) Injunction waiver.--A court that issued an 
        injunction pursuant to [subsection (a)(7)(B)] 
        subsection (a)(5)(B) before the date of the enactment 
        of this subsection shall waive such injunction if the 
        court recognizes the entity against which the 
        injunction was issued as a qualified carrier.
          (2) Limited temporary waiver.--
                  (A) In general.--Upon a request made by a 
                satellite carrier, a court that issued an 
                injunction against such carrier under 
                [subsection (a)(7)(B)] subsection (a)(5)(B) 
                before the date of the enactment of this 
                subsection shall waive such injunction with 
                respect to the statutory license provided under 
                subsection (a)(2) to the extent necessary to 
                allow such carrier to make secondary 
                transmissions of primary transmissions made by 
                a network station to unserved households 
                located in short markets in which such carrier 
                was not providing local service pursuant to the 
                license under section 122 as of December 31, 
                2009.
                  (B) Expiration of temporary waiver.--A 
                temporary waiver of an injunction under 
                subparagraph (A) shall expire after the end of 
                the 120-day period beginning on the date such 
                temporary waiver is issued unless extended for 
                good cause by the court making the temporary 
                waiver.
                  (C) Failure to provide local-into-local 
                service to all dmas.--
                          (i) Failure to act reasonably and in 
                        good faith.--If the court issuing a 
                        temporary waiver under subparagraph (A) 
                        determines that the satellite carrier 
                        that made the request for such waiver 
                        has failed to act reasonably or has 
                        failed to make a good faith effort to 
                        provide local-into-local service to all 
                        DMAs, such failure--
                                  (I) is actionable as an act 
                                of infringement under section 
                                501 and the court may in its 
                                discretion impose the remedies 
                                provided for in sections 502 
                                through 506 and subsection 
                                (a)(6)(B) of this section; and
                                  (II) shall result in the 
                                termination of the waiver 
                                issued under subparagraph (A).
                          (ii) Failure to provide local-into-
                        local service.--If the court issuing a 
                        temporary waiver under subparagraph (A) 
                        determines that the satellite carrier 
                        that made the request for such waiver 
                        has failed to provide local-into-local 
                        service to all DMAs, but determines 
                        that the carrier acted reasonably and 
                        in good faith, the court may in its 
                        discretion impose financial penalties 
                        that reflect--
                                  (I) the degree of control the 
                                carrier had over the 
                                circumstances that resulted in 
                                the failure;
                                  (II) the quality of the 
                                carrier's efforts to remedy the 
                                failure; and
                                  (III) the severity and 
                                duration of any service 
                                interruption.
                  (D) Single temporary waiver available.--An 
                entity may only receive one temporary waiver 
                under this paragraph.
                  (E) Short market defined.--For purposes of 
                this paragraph, the term ``short market'' means 
                a local market in which programming of one or 
                more of the four most widely viewed television 
                networks nationwide as measured on the date of 
                the enactment of this subsection is not offered 
                on the primary stream transmitted by any local 
                television broadcast station.
          (3) Establishment of qualified carrier recognition.--
                  (A) Statement of eligibility.--An entity 
                seeking to be recognized as a qualified carrier 
                under this subsection shall file a statement of 
                eligibility with the court that imposed the 
                injunction. A statement of eligibility must 
                include--
                          (i) an affidavit that the entity is 
                        providing local-into-local service to 
                        all DMAs;
                          (ii) a motion for a waiver of the 
                        injunction;
                          (iii) a motion that the court appoint 
                        a special master under Rule 53 of the 
                        Federal Rules of Civil Procedure;
                          (iv) an agreement by the carrier to 
                        pay all expenses incurred by the 
                        special master under paragraph 
                        (4)(B)(ii); and
                          (v) a certification issued pursuant 
                        to section 342(a) of Communications Act 
                        of 1934.
                  (B) Grant of recognition as a qualified 
                carrier.--Upon receipt of a statement of 
                eligibility, the court shall recognize the 
                entity as a qualified carrier and issue the 
                waiver under paragraph (1). Upon motion 
                pursuant to subparagraph (A)(iii), the court 
                shall appoint a special master to conduct the 
                examination and provide a report to the court 
                as provided in paragraph (4)(B).
                  (C) Voluntary termination.--At any time, an 
                entity recognized as a qualified carrier may 
                file a statement of voluntary termination with 
                the court certifying that it no longer wishes 
                to be recognized as a qualified carrier. Upon 
                receipt of such statement, the court shall 
                reinstate the injunction waived under paragraph 
                (1).
                  (D) Loss of recognition prevents future 
                recognition.--No entity may be recognized as a 
                qualified carrier if such entity had previously 
                been recognized as a qualified carrier and 
                subsequently lost such recognition or 
                voluntarily terminated such recognition under 
                subparagraph (C).
          (4) Qualified carrier obligations and compliance.--
                  (A) Continuing obligations.--
                          (i) In general.--An entity recognized 
                        as a qualified carrier shall continue 
                        to provide local-into-local service to 
                        all DMAs.
                          (ii) Cooperation with compliance 
                        examination.--An entity recognized as a 
                        qualified carrier shall fully cooperate 
                        with the special master appointed by 
                        the court under paragraph (3)(B) in an 
                        examination set forth in subparagraph 
                        (B).
                  (B) Qualified carrier compliance 
                examination.--
                          (i) Examination and report.--A 
                        special master appointed by the court 
                        under paragraph (3)(B) shall conduct an 
                        examination of, and file a report on, 
                        the qualified carrier's compliance with 
                        the royalty payment and household 
                        eligibility requirements of the license 
                        under this section. The report shall 
                        address the qualified carrier's conduct 
                        during the period beginning on the date 
                        on which the qualified carrier is 
                        recognized as such under paragraph 
                        (3)(B) and ending on April 30, 2012.
                          (ii) Records of qualified carrier.--
                        Beginning on the date that is one year 
                        after the date on which the qualified 
                        carrier is recognized as such under 
                        paragraph (3)(B), but not later than 
                        December 1, 2011, the qualified carrier 
                        shall provide the special master with 
                        all records that the special master 
                        considers to be directly pertinent to 
                        the following requirements under this 
                        section:
                                  (I) Proper calculation and 
                                payment of royalties under the 
                                statutory license under this 
                                section.
                                  (II) Provision of service 
                                under this license to eligible 
                                subscribers only.
                          (iii) Submission of report.--The 
                        special master shall file the report 
                        required by clause (i) not later than 
                        July 24, 2012, with the court referred 
                        to in paragraph (1) that issued the 
                        injunction, and the court shall 
                        transmit a copy of the report to the 
                        Register of Copyrights, the Committees 
                        on the Judiciary and on Energy and 
                        Commerce of the House of 
                        Representatives, and the Committees on 
                        the Judiciary and on Commerce, Science, 
                        and Transportation of the Senate.
                          (iv) Evidence of infringement.--The 
                        special master shall include in the 
                        report a statement of whether the 
                        examination by the special master 
                        indicated that there is substantial 
                        evidence that a copyright holder could 
                        bring a successful action under this 
                        section against the qualified carrier 
                        for infringement.
                          (v) Subsequent examination.--If the 
                        special master's report includes a 
                        statement that its examination 
                        indicated the existence of substantial 
                        evidence that a copyright holder could 
                        bring a successful action under this 
                        section against the qualified carrier 
                        for infringement, the special master 
                        shall, not later than 6 months after 
                        the report under clause (i) is filed, 
                        initiate another examination of the 
                        qualified carrier's compliance with the 
                        royalty payment and household 
                        eligibility requirements of the license 
                        under this section since the last 
                        report was filed under clause (iii). 
                        The special master shall file a report 
                        on the results of the examination 
                        conducted under this clause with the 
                        court referred to in paragraph (1) that 
                        issued the injunction, and the court 
                        shall transmit a copy to the Register 
                        of Copyrights, the Committees on the 
                        Judiciary and on Energy and Commerce of 
                        the House of Representatives, and the 
                        Committees on the Judiciary and on 
                        Commerce, Science, and Transportation 
                        of the Senate. The report shall include 
                        a statement described in clause (iv).
                          (vi) Compliance.--Upon motion filed 
                        by an aggrieved copyright owner, the 
                        court recognizing an entity as a 
                        qualified carrier shall terminate such 
                        designation upon finding that the 
                        entity has failed to cooperate with an 
                        examination required by this 
                        subparagraph.
                          (vii) Oversight.--During the period 
                        of time that the special master is 
                        conducting an examination under this 
                        subparagraph, the Comptroller General 
                        shall monitor the degree to which the 
                        entity seeking to be recognized or 
                        recognized as a qualified carrier under 
                        paragraph (3) is complying with the 
                        special master's examination. The 
                        qualified carrier shall make available 
                        to the Comptroller General all records 
                        and individuals that the Comptroller 
                        General considers necessary to meet the 
                        Comptroller General's obligations under 
                        this clause. The Comptroller General 
                        shall report the results of the 
                        monitoring required by this clause to 
                        the Committees on the Judiciary and on 
                        Energy and Commerce of the House of 
                        Representatives and the Committees on 
                        the Judiciary and on Commerce, Science, 
                        and Transportation of the Senate at 
                        intervals of not less than six months 
                        during such period.
                  (C) Affirmation.--A qualified carrier shall 
                file an affidavit with the district court and 
                the Register of Copyrights 30 months after such 
                status was granted stating that, to the best of 
                the affiant's knowledge, it is in compliance 
                with the requirements for a qualified carrier. 
                The qualified carrier shall attach to its 
                affidavit copies of all reports or orders 
                issued by the court, the special master, and 
                the Comptroller General.
                  (D) Compliance determination.--Upon the 
                motion of an aggrieved television broadcast 
                station, the court recognizing an entity as a 
                qualified carrier may make a determination of 
                whether the entity is providing local-into-
                local service to all DMAs.
                  (E) Pleading requirement.--In any motion 
                brought under subparagraph (D), the party 
                making such motion shall specify one or more 
                designated market areas (as such term is 
                defined in section 122(j)(2)(C)) for which the 
                failure to provide service is being alleged, 
                and, for each such designated market area, 
                shall plead with particularity the 
                circumstances of the alleged failure.
                  (F) Burden of proof.--In any proceeding to 
                make a determination under subparagraph (D), 
                and with respect to a designated market area 
                for which failure to provide service is 
                alleged, the entity recognized as a qualified 
                carrier shall have the burden of proving that 
                the entity provided local-into-local service 
                with a good quality satellite signal to at 
                least 90 percent of the households in such 
                designated market area (based on the most 
                recent census data released by the United 
                States Census Bureau) at the time and place 
                alleged.
          (5) Failure to provide service.--
                  (A) Penalties.--If the court recognizing an 
                entity as a qualified carrier finds that such 
                entity has willfully failed to provide local-
                into-local service to all DMAs, such finding 
                shall result in the loss of recognition of the 
                entity as a qualified carrier and the 
                termination of the waiver provided under 
                paragraph (1), and the court may, in its 
                discretion--
                          (i) treat such failure as an act of 
                        infringement under section 501, and 
                        subject such infringement to the 
                        remedies provided for in sections 502 
                        through 506 and subsection (a)(6)(B) of 
                        this section; and
                          (ii) impose a fine of not less than 
                        $250,000 and not more than $5,000,000.
                  (B) Exception for nonwillful violation.--If 
                the court determines that the failure to 
                provide local-into-local service to all DMAs is 
                nonwillful, the court may in its discretion 
                impose financial penalties for noncompliance 
                that reflect--
                          (i) the degree of control the entity 
                        had over the circumstances that 
                        resulted in the failure;
                          (ii) the quality of the entity's 
                        efforts to remedy the failure and 
                        restore service; and
                          (iii) the severity and duration of 
                        any service interruption.
          (6) Penalties for violations of license.--A court 
        that finds, under subsection (a)(6)(A), that an entity 
        recognized as a qualified carrier has willfully made a 
        secondary transmission of a primary transmission made 
        by a network station and embodying a performance or 
        display of a work to a subscriber who is not eligible 
        to receive the transmission under this section shall 
        reinstate the injunction waived under paragraph (1), 
        and the court may order statutory damages of not more 
        than $2,500,000.
          (7) Local-into-local service to all dmas defined.--
        For purposes of this subsection:
                  (A) In general.--An entity provides ``local-
                into-local service to all DMAs'' if the entity 
                provides local service in all designated market 
                areas (as such term is defined in section 
                122(j)(2)(C)) pursuant to the license under 
                section 122.
                  (B) Household coverage.--For purposes of 
                subparagraph (A), an entity that makes 
                available local-into-local service with a good 
                quality satellite signal to at least 90 percent 
                of the households in a designated market area 
                based on the most recent census data released 
                by the United States Census Bureau shall be 
                considered to be providing local service to 
                such designated market area.
                  (C) Good quality satellite signal defined.--
                The term ``good quality satellite signal'' has 
                the meaning given such term under section 
                342(e)(2) of Communications Act of 1934.
  [(h) Termination of License.--This section shall cease to be 
effective on December 31, 2019.]

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CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES

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Sec. 501. Infringement of copyright

  (a) Anyone who violates any of the exclusive rights of the 
copyright owner as provided by sections 106 through 122 or of 
the author as provided in section 106A(a), or who imports 
copies or phonorecords into the United States in violation of 
section 602, is an infringer of the copyright or right of the 
author, as the case may be. For purposes of this chapter (other 
than section 506), any reference to copyright shall be deemed 
to include the rights conferred by section 106A(a). As used in 
this subsection, the term ``anyone'' includes any State, any 
instrumentality of a State, and any officer or employee of a 
State or instrumentality of a State acting in his or her 
official capacity. Any State, and any such instrumentality, 
officer, or employee, shall be subject to the provisions of 
this title in the same manner and to the same extent as any 
nongovernmental entity.
  (b) The legal or beneficial owner of an exclusive right under 
a copyright is entitled, subject to the requirements of section 
411, to institute an action for any infringement of that 
particular right committed while he or she is the owner of it. 
The court may require such owner to serve written notice of the 
action with a copy of the complaint upon any person shown, by 
the records of the Copyright Office or otherwise, to have or 
claim an interest in the copyright, and shall require that such 
notice be served upon any person whose interest is likely to be 
affected by a decision in the case. The court may require the 
joinder, and shall permit the intervention, of any person 
having or claiming an interest in the copyright.
  (c) For any secondary transmission by a cable system that 
embodies a performance or a display of a work which is 
actionable as an act of infringement under subsection (c) of 
section 111, a television broadcast station holding a copyright 
or other license to transmit or perform the same version of 
that work shall, for purposes of subsection (b) of this 
section, be treated as a legal or beneficial owner if such 
secondary transmission occurs within the local service area of 
that television station.
  (d) For any secondary transmission by a cable system that is 
actionable as an act of infringement pursuant to section 
111(c)(3), the following shall also have standing to sue: (i) 
the primary transmitter whose transmission has been altered by 
the cable system; and (ii) any broadcast station within whose 
local service area the secondary transmission occurs.
  (e) With respect to any secondary transmission that is made 
by a satellite carrier of a performance or display of a work 
embodied in a primary transmission and is actionable as an act 
of infringement under [section 119(a)(5)] section 119(a)(3), a 
network station holding a copyright or other license to 
transmit or perform the same version of that work shall, for 
purposes of subsection (b) of this section, be treated as a 
legal or beneficial owner if such secondary transmission occurs 
within the local service area of that station.
  (f)(1) With respect to any secondary transmission that is 
made by a satellite carrier of a performance or display of a 
work embodied in a primary transmission and is actionable as an 
act of infringement under section 122, a television broadcast 
station holding a copyright or other license to transmit or 
perform the same version of that work shall, for purposes of 
subsection (b) of this section, be treated as a legal or 
beneficial owner if such secondary transmission occurs within 
the local market of that station.
  (2) A television broadcast station may file a civil action 
against any satellite carrier that has refused to carry 
television broadcast signals, as required under section 
122(a)(2), to enforce that television broadcast station's 
rights under section 338(a) of the Communications Act of 1934.

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