S. 3191 (111th): Satellite Television Extension and Localism Act of 2010

111th Congress, 2009–2010. Text as of Aug 25, 2010 (Passed the Senate (Engrossed)).

Status & Summary | PDF | Source: GPO

111th CONGRESS

2d Session

S. 3191

IN THE SENATE OF THE UNITED STATES

AN ACT

To reauthorize the Satellite Home Viewer Extension and Reauthorization Act of 2004, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Satellite Televison Extension and Localism Act of 2010.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Statutory Licenses

Sec. 101. Reference.

Sec. 102. Modifications to statutory license for satellite carriers.

Sec. 103. Modifications to statutory license for satellite carriers in local markets.

Sec. 104. Modifications to cable system secondary transmission rights under section 111.

Sec. 105. Certain waivers granted to providers of local-into-local service for all DMAs.

Sec. 106. Copyright Office fees.

Sec. 107. Termination of license.

Sec. 108. Construction.

TITLE II—Communications Provisions

Sec. 201. Reference.

Sec. 202. Extension of authority.

Sec. 203. Significantly viewed stations.

Sec. 204. Digital television transition conforming amendments.

Sec. 205. Application pending completion of rulemakings.

Sec. 206. Process for issuing qualified carrier certification.

Sec. 207. Nondiscrimination in carriage of high definition digital signals of noncommercial educational television stations.

Sec. 208. Savings clause regarding definitions.

Sec. 209. State public affairs broadcasts.

TITLE III—Reports and Savings Provision

Sec. 301. Definition.

Sec. 302. Report on market based alternatives to statutory licensing.

Sec. 303. Report on communications implications of statutory licensing modifications.

Sec. 304. Report on in-state broadcast programming.

Sec. 305. Local network channel broadcast reports.

Sec. 306. Savings provision regarding use of negotiated licenses.

Sec. 307. Effective date; Noninfringement of copyright.

TITLE IV—Severability

Sec. 401. Severability.

TITLE V—Determination of Budgetary Effects

Sec. 501. Determination of Budgetary Effects.

I

Statutory Licenses

101.

Reference

Except as otherwise provided, whenever in this title an amendment is made to a section or other provision, the reference shall be considered to be made to such section or provision of title 17, United States Code.

102.

Modifications to statutory license for satellite carriers

(a)

Heading renamed

(1)

In general

The heading of section 119 is amended by striking superstations and network stations for private home viewing and inserting distant television programming by satellite.

(2)

Table of contents

The table of contents for chapter 1 is amended by striking the item relating to section 119 and inserting the following:

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

.

(b)

Unserved household defined

(1)

In general

Section 119(d)(10) is amended—

(A)

by striking subparagraph (A) and inserting the following:

(A)

cannot receive, through the use of an antenna, an over-the-air signal containing the primary stream, or, on or after the qualifying date, the multicast stream, originating in that household’s local market and affiliated with that network of—

(i)

if the signal originates as an analog signal, Grade B intensity as defined by the Federal Communications Commission in section 73.683(a) of title 47, Code of Federal Regulations, as in effect on January 1, 1999; or

(ii)

if the signal originates as a digital signal, intensity defined in the values for the digital television noise-limited service contour, as defined in regulations issued by the Federal Communications Commission (section 73.622(e) of title 47, Code of Federal Regulations), as such regulations may be amended from time to time;

;

(B)

in subparagraph (B)—

(i)

by striking subsection (a)(14) and inserting subsection (a)(13),; and

(ii)

by striking Satellite Home Viewer Extension and Reauthorization Act of 2004 and inserting Satellite Television Extension and Localism Act of 2010; and

(C)

in subparagraph (D), by striking (a)(12) and inserting (a)(11).

(2)

Qualifying date defined

Section 119(d) is amended by adding at the end the following:

(14)

Qualifying date

The term qualifying date, for purposes of paragraph (10)(A), means—

(A)

July 1, 2010, for multicast streams that exist on December 31, 2009; and

(B)

January 1, 2011, for all other multicast streams.

.

(c)

Filing fee

Section 119(b)(1) is amended—

(1)

in subparagraph (A), by striking and after the semicolon at the end;

(2)

in subparagraph (B), by striking the period and inserting ; and; and

(3)

by adding at the end the following:

(C)

a filing fee, as determined by the Register of Copyrights pursuant to section 708(a).

.

(d)

Deposit of statements and fees; verification procedures

Section 119(b) is amended—

(1)

by amending the subsection heading to read as follows: (b) Deposit of statements and fees; verification procedures.—;

(2)

in paragraph (1), by striking subparagraph (B) and inserting the following:

(B)

a royalty fee payable to copyright owners pursuant to paragraph (4) for that 6-month period, computed by multiplying the total number of subscribers receiving each secondary transmission of a primary stream or multicast stream of each non-network station or network station during each calendar year month by the appropriate rate in effect under this subsection; and

;

(3)

by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively;

(4)

by inserting after paragraph (1) the following:

(2)

Verification of accounts and fee payments

The Register of Copyrights shall issue regulations to permit interested parties to verify and audit the statements of account and royalty fees submitted by satellite carriers under this subsection.

;

(5)

in paragraph (3), as redesignated, in the first sentence—

(A)

by inserting (including the filing fee specified in paragraph (1)(C)) after shall receive all fees; and

(B)

by striking paragraph (4) and inserting paragraph (5);

(6)

in paragraph (4), as redesignated—

(A)

by striking paragraph (2) and inserting paragraph (3); and

(B)

by striking paragraph (4) each place it appears and inserting paragraph (5); and

(7)

in paragraph (5), as redesignated, by striking paragraph (2) and inserting paragraph (3).

(e)

Adjustment of royalty fees

Section 119(c) is amended as follows:

(1)

Paragraph (1) is amended—

(A)

in the heading for such paragraph, by striking analog;

(B)

in subparagraph (A)—

(i)

by striking primary analog transmissions and inserting primary transmissions; and

(ii)

by striking July 1, 2004 and inserting July 1, 2009;

(C)

in subparagraph (B)—

(i)

by striking January 2, 2005, the Librarian of Congress and inserting May 1, 2010, the Copyright Royalty Judges; and

(ii)

by striking primary analog transmission and inserting primary transmissions;

(D)

in subparagraph (C), by striking Librarian of Congress and inserting Copyright Royalty Judges;

(E)

in subparagraph (D)—

(i)

in clause (i)—

(I)

by striking (i) Voluntary agreements and inserting the following:

(i)

Voluntary agreements; filing

Voluntary agreements

; and

(II)

by striking that a parties and inserting that are parties; and

(ii)

in clause (ii)—

(I)

by striking (ii)(I) Within and inserting the following:

(ii)

Procedure for adoption of fees

(I)

Publication of notice

Within

;

(II)

in subclause (I), by striking an arbitration proceeding pursuant to subparagraph (E) and inserting a proceeding under subparagraph (F);

(III)

in subclause (II), by striking (II) Upon receiving a request under subclause (I), the Librarian of Congress and inserting the following:

(II)

Public notice of fees

Upon receiving a request under subclause (I), the Copyright Royalty Judges

; and

(IV)

in subclause (III)—

(aa)

by striking (III) The Librarian and inserting the following:

(III)

Adoption of fees

The Copyright Royalty Judges

;

(bb)

by striking an arbitration proceeding and inserting the proceeding under subparagraph (F); and

(cc)

by striking the arbitration proceeding and inserting that proceeding;

(F)

in subparagraph (E)—

(i)

by striking Copyright Office and inserting Copyright Royalty Judges; and

(ii)

by striking April 30, 2010 and inserting December 31, 2020; and

(G)

in subparagraph (F)—

(i)

in the heading, by striking compulsory arbitration and inserting copyright royalty judges proceeding;

(ii)

in clause (i)—

(I)

in the heading, by striking proceedings and inserting the proceeding;

(II)

in the matter preceding subclause (I)—

(aa)

by striking May 1, 2005, the Librarian of Congress and inserting July 1, 2010, the Copyright Royalty Judges;

(bb)

by striking arbitration proceedings and inserting a proceeding;

(cc)

by striking fee to be paid and inserting fees to be paid;

(dd)

by striking primary analog transmission and inserting the primary transmissions; and

(ee)

by striking distributors and inserting distributors—;

(III)

in subclause (II)—

(aa)

by striking Librarian of Congress and inserting Copyright Royalty Judges; and

(bb)

by striking arbitration; and

(IV)

by amending the last sentence to read as follows: Such proceeding shall be conducted under chapter 8.;

(iii)

in clause (ii), by amending the matter preceding subclause (I) to read as follows:

(ii)

Establishment of royalty fees

In determining royalty fees under this subparagraph, the Copyright Royalty Judges shall establish fees for the secondary transmissions of the primary transmissions of network stations and non-network stations that most clearly represent the fair market value of secondary transmissions, except that the Copyright Royalty Judges shall adjust royalty fees to account for the obligations of the parties under any applicable voluntary agreement filed with the Copyright Royalty Judges in accordance with subparagraph (D). In determining the fair market value, the Judges shall base their decision on economic, competitive, and programming information presented by the parties, including—

;

(iv)

by amending clause (iii) to read as follows:

(iii)

Effective date for decision of copyright royalty judges

The obligation to pay the royalty fees established under a determination that is made by the Copyright Royalty Judges in a proceeding under this paragraph shall be effective as of January 1, 2010.

; and

(v)

in clause (iv)—

(I)

in the heading, by striking fee and inserting fees; and

(II)

by striking fee referred to in (iii) and inserting fees referred to in clause (iii).

(2)

Paragraph (2) is amended to read as follows:

(2)

Annual royalty fee adjustment

Effective January 1 of each year, the royalty fee payable under subsection (b)(1)(B) for the secondary transmission of the primary transmissions of network stations and non-network stations shall be adjusted by the Copyright Royalty Judges to reflect any changes occurring in the cost of living as determined by the most recent Consumer Price Index (for all consumers and for all items) published by the Secretary of Labor before December 1 of the preceding year. Notification of the adjusted fees shall be published in the Federal Register at least 25 days before January 1.

.

(f)

Definitions

(1)

Subscriber

Section 119(d)(8) is amended to read as follows:

(8)

Subscriber; subscribe

(A)

Subscriber

The term subscriber means a person or entity that receives a secondary transmission service from a satellite carrier and pays a fee for the service, directly or indirectly, to the satellite carrier or to a distributor.

(B)

Subscribe

The term subscribe means to elect to become a subscriber.

.

(2)

Local market

Section 119(d)(11) is amended to read as follows:

(11)

Local market

The term local market has the meaning given such term under section 122(j).

.

(3)

Low power television station

Section 119(d) is amended by striking paragraph (12) and redesignating paragraphs (13) and (14) as paragraphs (12) and (13), respectively.

(4)

Multicast stream

Section 119(d), as amended by paragraph (3), is further amended by adding at the end the following new paragraph:

(14)

Multicast stream

The term multicast stream means a digital stream containing programming and program-related material affiliated with a television network, other than the primary stream.

.

(5)

Primary stream

Section 119(d), as amended by paragraph (4), is further amended by adding at the end the following new paragraph:

(15)

Primary stream

The term primary stream means—

(A)

the single digital stream of programming as to which a television broadcast station has the right to mandatory carriage with a satellite carrier under the rules of the Federal Communications Commission in effect on July 1, 2009; or

(B)

if there is no stream described in subparagraph (A), then either—

(i)

the single digital stream of programming associated with the network last transmitted by the station as an analog signal; or

(ii)

if there is no stream described in clause (i), then the single digital stream of programming affiliated with the network that, as of July 1, 2009, had been offered by the television broadcast station for the longest period of time.

.

(6)

Clerical amendment

Section 119(d) is amended in paragraphs (1), (2), and (5) by striking which each place it appears and inserting that.

(g)

Superstation redesignated as non-network station

Section 119 is amended—

(1)

by striking superstation each place it appears in a heading and each place it appears in text and inserting non-network station; and

(2)

by striking superstations each place it appears in a heading and each place it appears in text and inserting non-network stations.

(h)

Removal of certain provisions

(1)

Removal of provisions

Section 119(a) is amended—

(A)

in paragraph (2), by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph (C);

(B)

by striking paragraph (3) and redesignating paragraphs (4) through (14) as paragraphs (3) through (13), respectively; and

(C)

by striking paragraph (15) and redesignating paragraph (16) as paragraph (14).

(2)

Conforming amendments

Section 119 is amended—

(A)

in subsection (a)—

(i)

in paragraph (1), by striking (5), (6), and (8) and inserting (4), (5), and (7);

(ii)

in paragraph (2)—

(I)

in subparagraph (A), by striking subparagraphs (B) and (C) of this paragraph and paragraphs (5), (6), (7), and (8) and inserting subparagraph (B) of this paragraph and paragraphs (4), (5), (6), and (7);

(II)

in subparagraph (B)(i), by striking the second sentence; and

(III)

in subparagraph (C) (as redesignated), by striking clauses (i) and (ii) and inserting the following:

(i)

Initial lists

A satellite carrier that makes secondary transmissions of a primary transmission made by a network station pursuant to subparagraph (A) shall, not later than 90 days after commencing such secondary transmissions, submit to the network that owns or is affiliated with the network station a list identifying (by name and address, including street or rural route number, city, State, and 9-digit zip code) all subscribers to which the satellite carrier makes secondary transmissions of that primary transmission to subscribers in unserved households.

(ii)

Monthly lists

After the submission of the initial lists under clause (i), the satellite carrier shall, not later than the 15th of each month, submit to the network a list, aggregated by designated market area, identifying (by name and address, including street or rural route number, city, State, and 9-digit zip code) any persons who have been added or dropped as subscribers under clause (i) since the last submission under this subparagraph.

; and

(iii)

in subparagraph (E) of paragraph (3) (as redesignated)—

(I)

by striking under paragraph (3) or; and

(II)

by striking paragraph (12) and inserting paragraph (11); and

(B)

in subsection (b)(1), by striking the final sentence.

(i)

Modifications to provisions for secondary transmissions by satellite carriers

(1)

Predictive model

Section 119(a)(2)(B)(ii) is amended by adding at the end the following:

(III)

Accurate predictive model with respect to digital signals

Notwithstanding subclause (I), in determining presumptively whether a person resides in an unserved household under subsection (d)(10)(A) with respect to digital signals, a court shall rely on a predictive model set forth by the Federal Communications Commission pursuant to a rulemaking as provided in section 339(c)(3) of the Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that model may be amended by the Commission over time under such section to increase the accuracy of that model. Until such time as the Commission sets forth such model, a court shall rely on the predictive model as recommended by the Commission with respect to digital signals in its Report to Congress in ET Docket No. 05–182, FCC 05–199 (released December 9, 2005).

.

(2)

Modifications to statutory license where retransmissions into local market available

Section 119(a)(3) (as redesignated) is amended—

(A)

by striking analog each place it appears in a heading and text;

(B)

by striking subparagraphs (B), (C), and (D), and inserting the following:

(B)

Rules for lawful subscribers as of date of enactment of 2010 Act

In the case of a subscriber of a satellite carrier who, on the day before the date of the enactment of the Satellite Television Extension and Localism Act of 2010, was lawfully receiving the secondary transmission of the primary transmission of a network station under the statutory license under paragraph (2) (in this subparagraph referred to as the distant signal), other than subscribers to whom subparagraph (A) applies, the statutory license under paragraph (2) shall apply to secondary transmissions by that satellite carrier to that subscriber of the distant signal of a station affiliated with the same television network, and the subscriber’s household shall continue to be considered to be an unserved household with respect to such network, until such time as the subscriber elects to terminate such secondary transmissions, whether or not the subscriber elects to subscribe to receive the secondary transmission of the primary transmission of a local network station affiliated with the same network pursuant to the statutory license under section 122.

(C)

Future applicability

(i)

When local signal available at time of subscription

The statutory license under paragraph (2) shall not apply to the secondary transmission by a satellite carrier of the primary transmission of a network station to a person who is not a subscriber lawfully receiving such secondary transmission as of the date of the enactment of the Satellite Television Extension and Localism Act of 2010 and, at the time such person seeks to subscribe to receive such secondary transmission, resides in a local market where the satellite carrier makes available to that person the secondary transmission of the primary transmission of a local network station affiliated with the same network pursuant to the statutory license under section 122.

(ii)

When local signal available after subscription

In the case of a subscriber who lawfully subscribes to and receives the secondary transmission by a satellite carrier of the primary transmission of a network station under the statutory license under paragraph (2) (in this clause referred to as the distant signal) on or after the date of the enactment of the Satellite Television Extension and Localism Act of 2010, the statutory license under paragraph (2) shall apply to secondary transmissions by that satellite carrier to that subscriber of the distant signal of a station affiliated with the same television network, and the subscriber’s household shall continue to be considered to be an unserved household with respect to such network, until such time as the subscriber elects to terminate such secondary transmissions, but only if such subscriber subscribes to the secondary transmission of the primary transmission of a local network station affiliated with the same network within 60 days after the satellite carrier makes available to the subscriber such secondary transmission of the primary transmission of such local network station.

;

(C)

by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively;

(D)

in subparagraph (E) (as redesignated), by striking (C) or (D) and inserting (B) or (C); and

(E)

in subparagraph (F) (as redesignated), by inserting 9-digit before zip code.

(3)

Statutory damages for territorial restrictions

Section 119(a)(6) (as redesignated) is amended—

(A)

in subparagraph (A)(ii), by striking $5 and inserting $250;

(B)

in subparagraph (B)—

(i)

in clause (i), by striking $250,000 for each 6-month period and inserting $2,500,000 for each 3-month period; and

(ii)

in clause (ii), by striking $250,000 and inserting $2,500,000; and

(C)

by adding at the end the following flush sentences:

The court shall direct one half of any statutory damages ordered under clause (i) to be deposited with the Register of Copyrights for distribution to copyright owners pursuant to subsection (b). The Copyright Royalty Judges shall issue regulations establishing procedures for distributing such funds, on a proportional basis, to copyright owners whose works were included in the secondary transmissions that were the subject of the statutory damages.

.

(4)

Technical amendment

Section 119(a)(4) (as redesignated) is amended by striking and 509.

(5)

Clerical amendment

Section 119(a)(2)(B)(iii)(II) is amended by striking In this clause and inserting In this clause,.

(j)

Moratorium extension

Section 119(e) is amended by striking April 30, 2010 and inserting December 31, 2020.

(k)

Clerical amendments

Section 119 is amended—

(1)

by striking of the Code of Federal Regulations each place it appears and inserting , Code of Federal Regulations; and

(2)

in subsection (d)(6), by striking or the Direct and inserting , or the Direct.

103.

Modifications to statutory license for satellite carriers in local markets

(a)

Heading renamed

(1)

In general

The heading of section 122 is amended by striking by satellite carriers within local markets and inserting of local television programming by satellite.

(2)

Table of contents

The table of contents for chapter 1 is amended by striking the item relating to section 122 and inserting the following:

122. Limitations on exclusive rights: Secondary transmissions of local television programming by satellite.

.

(b)

Statutory license

Section 122(a) is amended to read as follows:

(a)

Secondary transmissions into local markets

(1)

Secondary transmissions of television broadcast stations within a local market

A secondary transmission of a performance or display of a work embodied in a primary transmission of a television broadcast station into the station's local market shall be subject to statutory licensing under this section if—

(A)

the secondary transmission is made by a satellite carrier to the public;

(B)

with regard to secondary transmissions, the satellite carrier is in compliance with the rules, regulations, or authorizations of the Federal Communications Commission governing the carriage of television broadcast station signals; and

(C)

the satellite carrier makes a direct or indirect charge for the secondary transmission to—

(i)

each subscriber receiving the secondary transmission; or

(ii)

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

(2)

Significantly viewed stations

(A)

In general

A secondary transmission of a performance or display of a work embodied in a primary transmission of a television broadcast station to subscribers who receive secondary transmissions of primary transmissions under paragraph (1) shall be subject to statutory licensing under this paragraph if the secondary transmission is of the primary transmission of a network station or a non-network station to a subscriber who resides outside the station's local market but within a community in which the signal has been determined by the Federal Communications Commission to be significantly viewed in such community, pursuant to the rules, regulations, and authorizations of the Federal Communications Commission in effect on April 15, 1976, applicable to determining with respect to a cable system whether signals are significantly viewed in a community.

(B)

Waiver

A subscriber who is denied the secondary transmission of the primary transmission of a network station or a non-network station under subparagraph (A) may request a waiver from such denial by submitting a request, through the subscriber’s satellite carrier, to the network station or non-network station in the local market affiliated with the same network or non-network where the subscriber is located. The network station or non-network station shall accept or reject the subscriber’s request for a waiver within 30 days after receipt of the request. If the network station or non-network station fails to accept or reject the subscriber’s request for a waiver within that 30-day period, that network station or non-network station shall be deemed to agree to the waiver request.

(3)

Secondary transmission of low power programming

(A)

In general

Subject to subparagraphs (B) and (C), a secondary transmission of a performance or display of a work embodied in a primary transmission of a television broadcast station to subscribers who receive secondary transmissions of primary transmissions under paragraph (1) shall be subject to statutory licensing under this paragraph if the secondary transmission is of the primary transmission of a television broadcast station that is licensed as a low power television station, to a subscriber who resides within the same designated market area as the station that originates the transmission.

(B)

No applicability to repeaters and translators

Secondary transmissions provided for in subparagraph (A) shall not apply to any low power television station that retransmits the programs and signals of another television station for more than 2 hours each day.

(C)

No impact on other secondary transmissions obligations

A satellite carrier that makes secondary transmissions of a primary transmission of a low power television station under a statutory license provided under this section is not required, by reason of such secondary transmissions, to make any other secondary transmissions.

(4)

Special Exceptions

A secondary transmission of a performance or display of a work embodied in a primary transmission of a television broadcast station to subscribers who receive secondary transmissions of primary transmissions under paragraph (1) shall, if the secondary transmission is made by a satellite carrier that complies with the requirements of paragraph (1), be subject to statutory licensing under this paragraph as follows:

(A)

States with single full-power network station

In a State in which there is licensed by the Federal Communications Commission a single full-power station that was a network station on January 1, 1995, the statutory license provided for in this paragraph shall apply to the secondary transmission by a satellite carrier of the primary transmission of that station to any subscriber in a community that is located within that State and that is not within the first 50 television markets as listed in the regulations of the Commission as in effect on such date (47 C.F.R. 76.51).

(B)

States with all network stations and non-network stations in same local market

In a State in which all network stations and non-network stations licensed by the Federal Communications Commission within that State as of January 1, 1995, are assigned to the same local market and that local market does not encompass all counties of that State, the statutory license provided under this paragraph shall apply to the secondary transmission by a satellite carrier of the primary transmissions of such station to all subscribers in the State who reside in a local market that is within the first 50 major television markets as listed in the regulations of the Commission as in effect on such date (section 76.51 of title 47, Code of Federal Regulations).

(C)

Additional stations

In the case of that State in which are located 4 counties that—

(i)

on January 1, 2004, were in local markets principally comprised of counties in another State, and

(ii)

had a combined total of 41,340 television households, according to the U.S. Television Household Estimates by Nielsen Media Research for 2004,

the statutory license provided under this paragraph shall apply to secondary transmissions by a satellite carrier to subscribers in any such county of the primary transmissions of any network station located in that State, if the satellite carrier was making such secondary transmissions to any subscribers in that county on January 1, 2004.
(D)

Certain additional stations

If 2 adjacent counties in a single State are in a local market comprised principally of counties located in another State, the statutory license provided for in this paragraph shall apply to the secondary transmission by a satellite carrier to subscribers in those 2 counties of the primary transmissions of any network station located in the capital of the State in which such 2 counties are located, if—

(i)

the 2 counties are located in a local market that is in the top 100 markets for the year 2003 according to Nielsen Media Research; and

(ii)

the total number of television households in the 2 counties combined did not exceed 10,000 for the year 2003 according to Nielsen Media Research.

(E)

Networks of noncommercial educational broadcast stations

In the case of a system of three or more noncommercial educational broadcast stations licensed to a single State, public agency, or political, educational, or special purpose subdivision of a State, the statutory license provided for in this paragraph shall apply to the secondary transmission of the primary transmission of such system to any subscriber in any county or county equivalent within such State, if such subscriber is located in a designated market area that is not otherwise eligible to receive the secondary transmission of the primary transmission of a noncommercial educational broadcast station located within the State pursuant to paragraph (1).

(5)

Applicability of royalty rates and procedures

The royalty rates and procedures under section 119(b) shall apply to the secondary transmissions to which the statutory license under paragraph (4) applies.

.

(c)

Reporting requirements

Section 122(b) is amended—

(1)

in paragraph (1), by striking station a list and all that follows through the end and inserting the following:

station—

(A)

a list identifying (by name in alphabetical order and street address, including county and 9-digit zip code) all subscribers to which the satellite carrier makes secondary transmissions of that primary transmission under subsection (a); and

(B)

a separate list, aggregated by designated market area (by name and address, including street or rural route number, city, State, and 9-digit zip code), which shall indicate those subscribers being served pursuant to paragraph (2) of subsection (a).

; and

(2)

in paragraph (2), by striking network a list and all that follows through the end and inserting the following:

network—

(A)

a list identifying (by name in alphabetical order and street address, including county and 9-digit zip code) any subscribers who have been added or dropped as subscribers since the last submission under this subsection; and

(B)

a separate list, aggregated by designated market area (by name and street address, including street or rural route number, city, State, and 9-digit zip code), identifying those subscribers whose service pursuant to paragraph (2) of subsection (a) has been added or dropped since the last submission under this subsection.

.

(d)

No royalty fee for certain secondary transmissions

Section 122(c) is amended—

(1)

in the heading, by inserting for certain secondary transmissions after required; and

(2)

by striking subsection (a) and inserting paragraphs (1), (2), and (3) of subsection (a).

(e)

Violations for territorial restrictions

(1)

Modification to statutory damages

Section 122(f) is amended—

(A)

in paragraph (1)(B), by striking $5 and inserting $250; and

(B)

in paragraph (2), by striking $250,000 each place it appears and inserting $2,500,000.

(2)

Conforming amendments for additional stations

Section 122 is amended—

(A)

in subsection (f), by striking section 119 or each place it appears and inserting the following: section 119, subject to statutory licensing by reason of paragraph (2)(A), (3), or (4) of subsection (a), or subject to; and

(B)

in subsection (g), by striking section 119 or and inserting the following: section 119, paragraph (2)(A), (3), or (4) of subsection (a), or.

(f)

Definitions

Section 122(j) is amended—

(1)

in paragraph (1), by striking which contracts and inserting that contracts;

(2)

by redesignating paragraphs (4) and (5) as paragraphs (6) and (7), respectively;

(3)

in paragraph (3)—

(A)

by redesignating such paragraph as paragraph (4);

(B)

in the heading of such paragraph, by inserting non-network station; after Network station;; and

(C)

by inserting non-network station, after network station,;

(4)

by inserting after paragraph (2) the following:

(3)

Low power television station

The term low power television station means a low power TV station as defined in section 74.701(f) of title 47, Code of Federal Regulations, as in effect on June 1, 2004. For purposes of this paragraph, the term low power television station includes a low power television station that has been accorded primary status as a Class A television licensee under section 73.6001(a) of title 47, Code of Federal Regulations.

;

(5)

by inserting after paragraph (4) (as redesignated) the following:

(5)

Noncommercial educational broadcast station

The term noncommercial educational broadcast station means a television broadcast station that is a noncommercial educational broadcast station as defined in section 397 of the Communications Act of 1934, as in effect on the date of the enactment of the Satellite Television Extension and Localism Act of 2010.

; and

(6)

by amending paragraph (6) (as redesignated) to read as follows:

(6)

Subscriber

The term subscriber means a person or entity that receives a secondary transmission service from a satellite carrier and pays a fee for the service, directly or indirectly, to the satellite carrier or to a distributor.

.

104.

Modifications to cable system secondary transmission rights under section 111

(a)

Heading renamed

(1)

In general

The heading of section 111 is amended by inserting at the end the following: of broadcast programming by cable.

(2)

Table of contents

The table of contents for chapter 1 is amended by striking the item relating to section 111 and inserting the following:

111. Limitations on exclusive rights: Secondary transmissions of broadcast programming by cable.

.

(b)

Technical amendment

Section 111(a)(4) is amended by striking ; or and inserting or section 122;.

(c)

Statutory license for secondary transmissions by cable systems

Section 111(d) is amended—

(1)

in paragraph (1)—

(A)

in the matter preceding subparagraph (A)—

(i)

by striking A cable system whose secondary and inserting the following: Statement of account and royalty fees.—Subject to paragraph (5), a cable system whose secondary; and

(ii)

by striking by regulation— and inserting by regulation the following:;

(B)

in subparagraph (A)—

(i)

by striking a statement of account and inserting A statement of account; and

(ii)

by striking ; and and inserting a period; and

(C)

by striking subparagraphs (B), (C), and (D) and inserting the following:

(B)

Except in the case of a cable system whose royalty fee is specified in subparagraph (E) or (F), a total royalty fee payable to copyright owners pursuant to paragraph (3) for the period covered by the statement, computed on the basis of specified percentages of the gross receipts from subscribers to the cable service during such period for the basic service of providing secondary transmissions of primary broadcast transmitters, as follows:

(i)

1.064 percent of such gross receipts for the privilege of further transmitting, beyond the local service area of such primary transmitter, any non-network programming of a primary transmitter in whole or in part, such amount to be applied against the fee, if any, payable pursuant to clauses (ii) through (iv);

(ii)

1.064 percent of such gross receipts for the first distant signal equivalent;

(iii)

0.701 percent of such gross receipts for each of the second, third, and fourth distant signal equivalents; and

(iv)

0.330 percent of such gross receipts for the fifth distant signal equivalent and each distant signal equivalent thereafter.

(C)

In computing amounts under clauses (ii) through (iv) of subparagraph (B)—

(i)

any fraction of a distant signal equivalent shall be computed at its fractional value;

(ii)

in the case of any cable system located partly within and partly outside of the local service area of a primary transmitter, gross receipts shall be limited to those gross receipts derived from subscribers located outside of the local service area of such primary transmitter; and

(iii)

if a cable system provides a secondary transmission of a primary transmitter to some but not all communities served by that cable system—

(I)

the gross receipts and the distant signal equivalent values for such secondary transmission shall be derived solely on the basis of the subscribers in those communities where the cable system provides such secondary transmission; and

(II)

the total royalty fee for the period paid by such system shall not be less than the royalty fee calculated under subparagraph (B)(i) multiplied by the gross receipts from all subscribers to the system.

(D)

A cable system that, on a statement submitted before the date of the enactment of the Satellite Television Extension and Localism Act of 2010, computed its royalty fee consistent with the methodology under subparagraph (C)(iii), or that amends a statement filed before such date of enactment to compute the royalty fee due using such methodology, shall not be subject to an action for infringement, or eligible for any royalty refund or offset, arising out of its use of such methodology on such statement.

(E)

If the actual gross receipts paid by subscribers to a cable system for the period covered by the statement for the basic service of providing secondary transmissions of primary broadcast transmitters are $263,800 or less—

(i)

gross receipts of the cable system for the purpose of this paragraph shall be computed by subtracting from such actual gross receipts the amount by which $263,800 exceeds such actual gross receipts, except that in no case shall a cable system’s gross receipts be reduced to less than $10,400; and

(ii)

the royalty fee payable under this paragraph to copyright owners pursuant to paragraph (3) shall be 0.5 percent, regardless of the number of distant signal equivalents, if any.

(F)

If the actual gross receipts paid by subscribers to a cable system for the period covered by the statement for the basic service of providing secondary transmissions of primary broadcast transmitters are more than $263,800 but less than $527,600, the royalty fee payable under this paragraph to copyright owners pursuant to paragraph (3) shall be—

(i)

0.5 percent of any gross receipts up to $263,800, regardless of the number of distant signal equivalents, if any; and

(ii)

1 percent of any gross receipts in excess of $263,800, but less than $527,600, regardless of the number of distant signal equivalents, if any.

(G)

A filing fee, as determined by the Register of Copyrights pursuant to section 708(a).

;

(2)

in paragraph (2), in the first sentence—

(A)

by striking The Register of Copyrights and inserting the following Handling of Fees.—The Register of Copyrights; and

(B)

by inserting (including the filing fee specified in paragraph (1)(G)) after shall receive all fees;

(3)

in paragraph (3)—

(A)

by striking The royalty fees and inserting the following: Distribution of royalty fees to copyright owners.—The royalty fees;

(B)

in subparagraph (A)—

(i)

by striking any such and inserting Any such; and

(ii)

by striking ; and and inserting a period;

(C)

in subparagraph (B)—

(i)

by striking any such and inserting Any such; and

(ii)

by striking the semicolon and inserting a period; and

(D)

in subparagraph (C), by striking any such and inserting Any such;

(4)

in paragraph (4), by striking The royalty fees and inserting the following: Procedures for royalty fee distribution.—The royalty fees; and

(5)

by adding at the end the following new paragraphs:

(5)

3.75 percent rate and syndicated exclusivity surcharge not applicable to multicast streams

The royalty rates specified in sections 256.2(c) and 256.2(d) of title 37, Code of Federal Regulations (commonly referred to as the 3.75 percent rate and the syndicated exclusivity surcharge, respectively), as in effect on the date of the enactment of the Satellite Television Extension and Localism Act of 2010, as such rates may be adjusted, or such sections redesignated, thereafter by the Copyright Royalty Judges, shall not apply to the secondary transmission of a multicast stream.

(6)

Verification of accounts and fee payments

The Register of Copyrights shall issue regulations to provide for the confidential verification by copyright owners whose works were embodied in the secondary transmissions of primary transmissions pursuant to this section of the information reported on the semiannual statements of account filed under this subsection on or after January 1, 2010, in order that the auditor designated under subparagraph (A) is able to confirm the correctness of the calculations and royalty payments reported therein. The regulations shall—

(A)

establish procedures for the designation of a qualified independent auditor—

(i)

with exclusive authority to request verification of such a statement of account on behalf of all copyright owners whose works were the subject of secondary transmissions of primary transmissions by the cable system (that deposited the statement) during the accounting period covered by the statement; and

(ii)

who is not an officer, employee, or agent of any such copyright owner for any purpose other than such audit;

(B)

establish procedures for safeguarding all non-public financial and business information provided under this paragraph;

(C)
(i)

require a consultation period for the independent auditor to review its conclusions with a designee of the cable system;

(ii)

establish a mechanism for the cable system to remedy any errors identified in the auditor’s report and to cure any underpayment identified; and

(iii)

provide an opportunity to remedy any disputed facts or conclusions;

(D)

limit the frequency of requests for verification for a particular cable system and the number of audits that a multiple system operator can be required to undergo in a single year; and

(E)

permit requests for verification of a statement of account to be made only within 3 years after the last day of the year in which the statement of account is filed.

(7)

Acceptance of additional deposits

Any royalty fee payments received by the Copyright Office from cable systems for the secondary transmission of primary transmissions that are in addition to the payments calculated and deposited in accordance with this subsection shall be deemed to have been deposited for the particular accounting period for which they are received and shall be distributed as specified under this subsection.

.

(d)

Effective date of new royalty fee rates

The royalty fee rates established in section 111(d)(1)(B) of title 17, United States Code, as amended by subsection (c)(1)(C) of this section, shall take effect commencing with the first accounting period occurring in 2010.

(e)

Definitions

Section 111(f) is amended—

(1)

by striking the first undesignated paragraph and inserting the following:

(1)

Primary Transmission

A primary transmission is a transmission made to the public by a transmitting facility whose signals are being received and further transmitted by a secondary transmission service, regardless of where or when the performance or display was first transmitted. In the case of a television broadcast station, the primary stream and any multicast streams transmitted by the station constitute primary transmissions.

;

(2)

in the second undesignated paragraph—

(A)

by striking A secondary transmission and inserting the following:

(2)

Secondary Transmission

A secondary transmission

; and

(B)

by striking cable system and inserting cable system;

(3)

in the third undesignated paragraph—

(A)

by striking A cable system and inserting the following:

(3)

Cable system

A cable system

; and

(B)

by striking Territory, Trust Territory, or Possession and inserting territory, trust territory, or possession of the United States;

(4)

in the fourth undesignated paragraph, in the first sentence—

(A)

by striking The local service area of a primary transmitter, in the case of a television broadcast station, comprises the area in which such station is entitled to insist and inserting the following:

(4)

Local service area of a primary transmitter

The local service area of a primary transmitter, in the case of both the primary stream and any multicast streams transmitted by a primary transmitter that is a television broadcast station, comprises the area where such primary transmitter could have insisted

;

(B)

by striking 76.59 of title 47 of the Code of Federal Regulations and inserting the following: 76.59 of title 47, Code of Federal Regulations, or within the noise-limited contour as defined in 73.622(e)(1) of title 47, Code of Federal Regulations; and

(C)

by striking as defined by the rules and regulations of the Federal Communications Commission,;

(5)

by amending the fifth undesignated paragraph to read as follows:

(5)

Distant signal equivalent

(A)

In general

Except as provided under subparagraph (B), a distant signal equivalent

(i)

is the value assigned to the secondary transmission of any non-network television programming carried by a cable system in whole or in part beyond the local service area of the primary transmitter of such programming; and

(ii)

is computed by assigning a value of one to each primary stream and to each multicast stream (other than a simulcast) that is an independent station, and by assigning a value of one-quarter to each primary stream and to each multicast stream (other than a simulcast) that is a network station or a noncommercial educational station.

(B)

Exceptions

The values for independent, network, and noncommercial educational stations specified in subparagraph (A) are subject to the following:

(i)

Where the rules and regulations of the Federal Communications Commission require a cable system to omit the further transmission of a particular program and such rules and regulations also permit the substitution of another program embodying a performance or display of a work in place of the omitted transmission, or where such rules and regulations in effect on the date of the enactment of the Copyright Act of 1976 permit a cable system, at its election, to effect such omission and substitution of a nonlive program or to carry additional programs not transmitted by primary transmitters within whose local service area the cable system is located, no value shall be assigned for the substituted or additional program.

(ii)

Where the rules, regulations, or authorizations of the Federal Communications Commission in effect on the date of the enactment of the Copyright Act of 1976 permit a cable system, at its election, to omit the further transmission of a particular program and such rules, regulations, or authorizations also permit the substitution of another program embodying a performance or display of a work in place of the omitted transmission, the value assigned for the substituted or additional program shall be, in the case of a live program, the value of one full distant signal equivalent multiplied by a fraction that has as its numerator the number of days in the year in which such substitution occurs and as its denominator the number of days in the year.

(iii)

In the case of the secondary transmission of a primary transmitter that is a television broadcast station pursuant to the late-night or specialty programming rules of the Federal Communications Commission, or the secondary transmission of a primary transmitter that is a television broadcast station on a part-time basis where full-time carriage is not possible because the cable system lacks the activated channel capacity to retransmit on a full-time basis all signals that it is authorized to carry, the values for independent, network, and noncommercial educational stations set forth in subparagraph (A), as the case may be, shall be multiplied by a fraction that is equal to the ratio of the broadcast hours of such primary transmitter retransmitted by the cable system to the total broadcast hours of the primary transmitter.

(iv)

No value shall be assigned for the secondary transmission of the primary stream or any multicast streams of a primary transmitter that is a television broadcast station in any community that is within the local service area of the primary transmitter.

;

(6)

by striking the sixth undesignated paragraph and inserting the following:

(6)

Network station

(A)

Treatment of primary stream

The term network station shall be applied to a primary stream of a television broadcast station that is owned or operated by, or affiliated with, one or more of the television networks in the United States providing nationwide transmissions, and that transmits a substantial part of the programming supplied by such networks for a substantial part of the primary stream’s typical broadcast day.

(B)

Treatment of multicast streams

The term ‘network station’ shall be applied to a multicast stream on which a television broadcast station transmits all or substantially all of the programming of an interconnected program service that—

(i)

is owned or operated by, or affiliated with, one or more of the television networks described in subparagraph (A); and

(ii)

offers programming on a regular basis for 15 or more hours per week to at least 25 of the affiliated television licensees of the interconnected program service in 10 or more States.

;

(7)

by striking the seventh undesignated paragraph and inserting the following:

(7)

Independent station

The term independent station shall be applied to the primary stream or a multicast stream of a television broadcast station that is not a network station or a noncommercial educational station.

;

(8)

by striking the eighth undesignated paragraph and inserting the following:

(8)

Noncommercial educational station

The term noncommercial educational station shall be applied to the primary stream or a multicast stream of a television broadcast station that is a noncommercial educational broadcast station as defined in section 397 of the Communications Act of 1934, as in effect on the date of the enactment of the Satellite Television Extension and Localism Act of 2010.

; and

(9)

by adding at the end the following:

(9)

Primary stream

A primary stream is—

(A)

the single digital stream of programming that, before June 12, 2009, was substantially duplicating the programming transmitted by the television broadcast station as an analog signal; or

(B)

if there is no stream described in subparagraph (A), then the single digital stream of programming transmitted by the television broadcast station for the longest period of time.

(10)

Primary transmitter

A primary transmitter is a television or radio broadcast station licensed by the Federal Communications Commission, or by an appropriate governmental authority of Canada or Mexico, that makes primary transmissions to the public.

(11)

Multicast stream

A multicast stream is a digital stream of programming that is transmitted by a television broadcast station and is not the station’s primary stream.

(12)

Simulcast

A simulcast is a multicast stream of a television broadcast station that duplicates the programming transmitted by the primary stream or another multicast stream of such station.

(13)

Subscriber; subscribe

(A)

Subscriber

The term subscriber means a person or entity that receives a secondary transmission service from a cable system and pays a fee for the service, directly or indirectly, to the cable system.

(B)

Subscribe

The term subscribe means to elect to become a subscriber.

.

(f)

Timing of section 111 proceedings

Section 804(b)(1) is amended by striking 2005 each place it appears and inserting 2015.

(g)

Technical and conforming amendments

(1)

Corrections to fix level designations

Section 111 is amended—

(A)

in subsections (a), (c), and (e), by striking clause each place it appears and inserting paragraph;

(B)

in subsection (c)(1), by striking clauses and inserting paragraphs; and

(C)

in subsection (e)(1)(F), by striking subclause and inserting subparagraph.

(2)

Conforming amendment to hyphenate nonnetwork

Section 111 is amended by striking nonnetwork each place it appears and inserting non-network.

(3)

Previously undesignated paragraph

Section 111(e)(1) is amended by striking second paragraph of subsection (f) and inserting subsection (f)(2).

(4)

Removal of superfluous ands

Section 111(e) is amended—

(A)

in paragraph (1)(A), by striking and at the end;

(B)

in paragraph (1)(B), by striking and at the end;

(C)

in paragraph (1)(C), by striking and at the end;

(D)

in paragraph (1)(D), by striking and at the end; and

(E)

in paragraph (2)(A), by striking and at the end.

(5)

Removal of variant forms references

Section 111 is amended—

(A)

in subsection (e)(4), by striking , and each of its variant forms,; and

(B)

in subsection (f), by striking and their variant forms.

(6)

Correction to territory reference

Section 111(e)(2) is amended in the matter preceding subparagraph (A) by striking three territories and inserting five entities.

(h)

Effective date with respect to multicast streams

(1)

In general

Subject to paragraphs (2) and (3), the amendments made by this section, to the extent such amendments assign a distant signal equivalent value to the secondary transmission of the multicast stream of a primary transmitter, shall take effect on the date of the enactment of this Act.

(2)

Delayed applicability

(A)

Secondary transmissions of a multicast stream beyond the local service area of its primary transmitter before 2010 act

In any case in which a cable system was making secondary transmissions of a multicast stream beyond the local service area of its primary transmitter before the date of the enactment of this Act, a distant signal equivalent value (referred to in paragraph (1)) shall not be assigned to secondary transmissions of such multicast stream that are made on or before June 30, 2010.

(B)

Multicast streams subject to preexisting written agreements for the secondary transmission of such streams

In any case in which the secondary transmission of a multicast stream of a primary transmitter is the subject of a written agreement entered into on or before June 30, 2009, between a cable system or an association representing the cable system and a primary transmitter or an association representing the primary transmitter, a distant signal equivalent value (referred to in paragraph (1)) shall not be assigned to secondary transmissions of such multicast stream beyond the local service area of its primary transmitter that are made on or before the date on which such written agreement expires.

(C)

No refunds or offsets for prior statements of account

A cable system that has reported secondary transmissions of a multicast stream beyond the local service area of its primary transmitter on a statement of account deposited under section 111 of title 17, United States Code, before the date of the enactment of this Act shall not be entitled to any refund, or offset, of royalty fees paid on account of such secondary transmissions of such multicast stream.

(3)

Definitions

In this subsection, the terms cable system, secondary transmission, multicast stream, and local service area of a primary transmitter have the meanings given those terms in section 111(f) of title 17, United States Code, as amended by this section.

105.

Certain waivers granted to providers of local-into-local service for all DMAs

Section 119 is amended by adding at the end the following new subsection:

(g)

Certain waivers granted to providers of Local-Into-Local service to all DMAs

(1)

Injunction waiver

A court that issued an injunction pursuant to subsection (a)(7)(B) before the date of the enactment of this subsection shall waive such injunction if the court recognizes the entity against which the injunction was issued as a qualified carrier.

(2)

Limited temporary waiver

(A)

In general

Upon a request made by a satellite carrier, a court that issued an injunction against such carrier under subsection (a)(7)(B) before the date of the enactment of this subsection shall waive such injunction with respect to the statutory license provided under subsection (a)(2) to the extent necessary to allow such carrier to make secondary transmissions of primary transmissions made by a network station to unserved households located in short markets in which such carrier was not providing local service pursuant to the license under section 122 as of December 31, 2009.

(B)

Expiration of temporary waiver

A temporary waiver of an injunction under subparagraph (A) shall expire after the end of the 120-day period beginning on the date such temporary waiver is issued unless extended for good cause by the court making the temporary waiver.

(C)

Failure to provide local-into-local service to all DMAs

(i)

Failure to act reasonably and in good faith

If the court issuing a temporary waiver under subparagraph (A) determines that the satellite carrier that made the request for such waiver has failed to act reasonably or has failed to make a good faith effort to provide local-into-local service to all DMAs, such failure—

(I)

is actionable as an act of infringement under section 501 and the court may in its discretion impose the remedies provided for in sections 502 through 506 and subsection (a)(6)(B) of this section; and

(II)

shall result in the termination of the waiver issued under subparagraph (A).

(ii)

Failure to provide local-into-local service

If the court issuing a temporary waiver under subparagraph (A) determines that the satellite carrier that made the request for such waiver has failed to provide local-into-local service to all DMAs, but determines that the carrier acted reasonably and in good faith, the court may in its discretion impose financial penalties that reflect—

(I)

the degree of control the carrier had over the circumstances that resulted in the failure;

(II)

the quality of the carrier's efforts to remedy the failure; and

(III)

the severity and duration of any service interruption.

(D)

Single temporary waiver available

An entity may only receive one temporary waiver under this paragraph.

(E)

Short market defined

For purposes of this paragraph, the term short market means a local market in which programming of one or more of the four most widely viewed television networks nationwide as measured on the date of the enactment of this subsection is not offered on the primary stream transmitted by any local television broadcast station.

(3)

Establishment of qualified carrier recognition

(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 request for a waiver of the injunction; and

(iii)

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).

(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 GAO examination

An entity recognized as a qualified carrier shall fully cooperate with the Comptroller General in the examination required by subparagraph (B).

(B)

Qualified carrier compliance examination

(i)

Examination and report

The Comptroller General shall conduct an examination and publish a report concerning 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 December 31, 2011.

(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 October 1, 2011, the qualified carrier shall provide the Comptroller General with all records that the Comptroller General, in consultation with the Register of Copyrights, 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 Comptroller General shall file the report required by clause (i) not later than March 1, 2012, with the court referred to in paragraph (1) that issued the injunction, 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 Comptroller General shall include in the report a statement of whether the examination by the Comptroller General indicated that there is substantial evidence that a copyright holder could bring a successful action under this section against the qualified carrier for infringement. The Comptroller General shall consult with the Register of Copyrights in preparing such statement.

(v)

Subsequent examination

If the report includes the Comptroller General’s statement that there is substantial evidence that a copyright holder could bring a successful action under this section against the qualified carrier for infringement, the Comptroller General shall, not later than 6 months after the report under clause (i) is published, 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 Comptroller General shall file a report on such examination with the court referred to in paragraph (1) that issued the injunction, 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), prepared in consultation with the Register of Copyrights.

(vi)

Compliance

Upon motion filed by an aggrieved copyright owner, the court recognizing an entity as a qualified carrier shall terminate such designation upon finding that the entity has failed to cooperate with the examinations required by this subparagraph.

(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.

(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 signal has the meaning given such term under section 342(e)(2) of Communications Act of 1934.

.

106.

Copyright Office fees

Section 708(a) is amended—

(1)

in paragraph (8), by striking and after the semicolon;

(2)

in paragraph (9), by striking the period and inserting a semicolon;

(3)

by inserting after paragraph (9) the following:

(10)

on filing a statement of account based on secondary transmissions of primary transmissions pursuant to section 119 or 122; and

(11)

on filing a statement of account based on secondary transmissions of primary transmissions pursuant to section 111.

; and

(4)

by adding at the end the following new sentence: Fees established under paragraphs (10) and (11) shall be reasonable and may not exceed one-half of the cost necessary to cover reasonable expenses incurred by the Copyright Office for the collection and administration of the statements of account and any royalty fees deposited with such statements..

107.

Termination of license

Section 1003(a)(2)(A) of Public Law 111–118 is amended by striking April 30, 2010 and inserting December 31, 2020.

108.

Construction

Nothing in section 111, 119, or 122 of title 17, United States Code, including the amendments made to such sections by this title, shall be construed to affect the meaning of any terms under the Communications Act of 1934, except to the extent that such sections are specifically cross-referenced in such Act or the regulations issued thereunder.

II

Communications Provisions

201.

Reference

Except as otherwise provided, whenever in this title an amendment is made to a section or other provision, the reference shall be considered to be made to such section or provision of the Communications Act of 1934 (47 U.S.C. 151 et seq.).

202.

Extension of authority

Section 325(b) is amended—

(1)

in paragraph (2)(C), by striking April 30, 2010 and inserting December 31, 2020; and

(2)

in paragraph (3)(C), by striking May 1, 2010 each place it appears in clauses (ii) and (iii) and inserting January 1, 2021.

203.

Significantly viewed stations

(a)

In general

Paragraphs (1) and (2) of section 340(b) are amended to read as follows:

(1)

Service limited to subscribers taking local-into-local service

This section shall apply only to retransmissions to subscribers of a satellite carrier who receive retransmissions of a signal from that satellite carrier pursuant to section 338.

(2)

Service Limitations

A satellite carrier may retransmit to a subscriber in high definition format the signal of a station determined by the Commission to be significantly viewed under subsection (a) only if such carrier also retransmits in high definition format the signal of a station located in the local market of such subscriber and affiliated with the same network whenever such format is available from such station.

.

(b)

Rulemaking required

Within 240 days after the date of the enactment of this Act, the Federal Communications Commission shall take all actions necessary to promulgate a rule to implement the amendments made by subsection (a).

204.

Digital television transition conforming amendments

(a)

Section 338

Section 338 is amended—

(1)

in subsection (a), by striking (3) Effective Date.—No satellite and all that follows through until January 1, 2002.; and

(2)

by amending subsection (g) to read as follows:

(g)

Carriage of Local Stations on a Single Reception Antenna

(1)

Single reception antenna

Each satellite carrier that retransmits the signals of local television broadcast stations in a local market shall retransmit such stations in such market so that a subscriber may receive such stations by means of a single reception antenna and associated equipment.

(2)

Additional reception antenna

If the carrier retransmits the signals of local television broadcast stations in a local market in high definition format, the carrier shall retransmit such signals in such market so that a subscriber may receive such signals by means of a single reception antenna and associated equipment, but such antenna and associated equipment may be separate from the single reception antenna and associated equipment used to comply with paragraph (1).

.

(b)

Section 339

Section 339 is amended—

(1)

in subsection (a)—

(A)

in paragraph (1)(B), by striking Such two network stations and all that follows through more than two network stations.; and

(B)

in paragraph (2)—

(i)

in the heading for subparagraph (A), by striking to analog signals;

(ii)

in subparagraph (A)—

(I)

in the heading for clause (i), by striking analog;

(II)

in clause (i)—

(aa)

by striking analog each place it appears; and

(bb)

by striking October 1, 2004 and inserting October 1, 2009;

(III)

in the heading for clause (ii), by striking analog; and

(IV)

in clause (ii)—

(aa)

by striking analog each place it appears; and

(bb)

by striking 2004 and inserting 2009;

(iii)

by amending subparagraph (B) to read as follows:

(B)

Rules for other subscribers

(i)

In general

In the case of a subscriber of a satellite carrier who is eligible to receive the signal of a network station under this section (in this subparagraph referred to as a distant signal), other than subscribers to whom subparagraph (A) applies, the following shall apply:

(I)

In a case in which the satellite carrier makes available to that subscriber, on January 1, 2005, the signal of a local network station affiliated with the same television network pursuant to section 338, the carrier may only provide the secondary transmissions of the distant signal of a station affiliated with the same network to that subscriber if the subscriber’s satellite carrier, not later than March 1, 2005, submits to that television network the list and statement required by subparagraph (F)(i).

(II)

In a case in which the satellite carrier does not make available to that subscriber, on January 1, 2005, the signal of a local network station pursuant to section 338, the carrier may only provide the secondary transmissions of the distant signal of a station affiliated with the same network to that subscriber if—

(aa)

that subscriber seeks to subscribe to such distant signal before the date on which such carrier commences to carry pursuant to section 338 the signals of stations from the local market of such local network station; and

(bb)

the satellite carrier, within 60 days after such date, submits to each television network the list and statement required by subparagraph (F)(ii).

(ii)

Special circumstances

A subscriber of a satellite carrier who was lawfully receiving the distant signal of a network station on the day before the date of enactment of the Satellite Television Extension and Localism Act of 2010 may receive both such distant signal and the local signal of a network station affiliated with the same network until such subscriber chooses to no longer receive such distant signal from such carrier, whether or not such subscriber elects to subscribe to such local signal.

;

(iv)

in subparagraph (C)—

(I)

by striking analog;

(II)

in clause (i), by striking the Satellite Home Viewer Extension and Reauthorization Act of 2004; and and inserting the following:

the Satellite Television Extension and Localism Act of 2010 and, at the time such person seeks to subscribe to receive such secondary transmission, resides in a local market where the satellite carrier makes available to that person the signal of a local network station affiliated with the same television network pursuant to section 338 (and the retransmission of such signal by such carrier can reach such subscriber); or

; and

(III)

by amending clause (ii) to read as follows:

(ii)

lawfully subscribes to and receives a distant signal on or after the date of enactment of the Satellite Television Extension and Localism Act of 2010, and, subsequent to such subscription, the satellite carrier makes available to that subscriber the signal of a local network station affiliated with the same network as the distant signal (and the retransmission of such signal by such carrier can reach such subscriber), unless such person subscribes to the signal of the local network station within 60 days after such signal is made available.

;

(v)

in subparagraph (D)—

(I)

in the heading, by striking digital;

(II)

by striking clauses (i), (iii) through (v), (vii) through (ix), and (xi);

(III)

by redesignating clause (vi) as clause (i) and transferring such clause to appear before clause (ii);

(IV)

by amending such clause (i) (as so redesignated) to read as follows:

(i)

Eligibility and Signal Testing

A subscriber of a satellite carrier shall be eligible to receive a distant signal of a network station affiliated with the same network under this section if, with respect to a local network station, such subscriber—

(I)

is a subscriber whose household is not predicted by the model specified in subsection (c)(3) to receive the signal intensity required under section 73.622(e)(1) or, in the case of a low-power station or translator station transmitting an analog signal, section 73.683(a) of title 47, Code of Federal Regulations, or a successor regulation;

(II)

is determined, based on a test conducted in accordance with section 73.686(d) of title 47, Code of Federal Regulations, or any successor regulation, not to be able to receive a signal that exceeds the signal intensity standard in section 73.622(e)(1) or, in the case of a low-power station or translator station transmitting an analog signal, section 73.683(a) of such title, or a successor regulation; or

(III)

is in an unserved household, as determined under section 119(d)(10)(A) of title 17, United States Code.

;

(V)

in clause (ii)—

(aa)

by striking digital in the heading;

(bb)

by striking digital the first two places such term appears;

(cc)

by striking Satellite Home Viewer Extension and Reauthorization Act of 2004 and inserting Satellite Television Extension and Localism Act of 2010; and

(dd)

by striking , whether or not such subscriber elects to subscribe to local digital signals;

(VI)

by inserting after clause (ii) the following new clause:

(iii)

Time-shifting prohibited

In a case in which the satellite carrier makes available to an eligible subscriber under this subparagraph the signal of a local network station pursuant to section 338, the carrier may only provide the distant signal of a station affiliated with the same network to that subscriber if, in the case of any local market in the 48 contiguous States of the United States, the distant signal is the secondary transmission of a station whose prime time network programming is generally broadcast simultaneously with, or later than, the prime time network programming of the affiliate of the same network in the local market.

; and

(VII)

by redesignating clause (x) as clause (iv); and

(vi)

in subparagraph (E), by striking distant analog signal or and all that follows through (B), or (D)) and inserting distant signal;

(2)

in subsection (c)—

(A)

by amending paragraph (3) to read as follows:

(3)

Establishment of improved predictive model and on-location testing required

(A)

Predictive model

Within 240 days after the date of the enactment of the Satellite Television Extension and Localism Act of 2010, the Commission shall develop and prescribe by rule a point-to-point predictive model for reliably and presumptively determining the ability of individual locations, through the use of an antenna, to receive signals in accordance with the signal intensity standard in section 73.622(e)(1) of title 47, Code of Federal Regulations, or a successor regulation, including to account for the continuing operation of translator stations and low power television stations. In prescribing such model, the Commission shall rely on the Individual Location Longley-Rice model set forth by the Commission in CS Docket No. 98–201, as previously revised with respect to analog signals, and as recommended by the Commission with respect to digital signals in its Report to Congress in ET Docket No. 05–182, FCC 05–199 (released December 9, 2005). The Commission shall establish procedures for the continued refinement in the application of the model by the use of additional data as it becomes available.

(B)

On-location testing

The Commission shall issue an order completing its rulemaking proceeding in ET Docket No. 06–94 within 240 days after the date of enactment of the Satellite Television Extension and Localism Act of 2010. In conducting such rulemaking, the Commission shall seek ways to minimize consumer burdens associated with on-location testing.

;

(B)

by amending paragraph (4)(A) to read as follows:

(A)

In general

If a subscriber’s request for a waiver under paragraph (2) is rejected and the subscriber submits to the subscriber’s satellite carrier a request for a test verifying the subscriber’s inability to receive a signal of the signal intensity referenced in clause (i) of subsection (a)(2)(D), the satellite carrier and the network station or stations asserting that the retransmission is prohibited with respect to that subscriber shall select a qualified and independent person to conduct the test referenced in such clause. Such test shall be conducted within 30 days after the date the subscriber submits a request for the test. If the written findings and conclusions of a test conducted in accordance with such clause demonstrate that the subscriber does not receive a signal that meets or exceeds the requisite signal intensity standard in such clause, the subscriber shall not be denied the retransmission of a signal of a network station under section 119(d)(10)(A) of title 17, United States Code.

;

(C)

in paragraph (4)(B), by striking the signal intensity and all that follows through United States Code and inserting such requisite signal intensity standard; and

(D)

in paragraph (4)(E), by striking Grade B intensity.

(c)

Section 340

Section 340(i) is amended by striking paragraph (4).

205.

Application pending completion of rulemakings

(a)

In general

During the period beginning on the date of the enactment of this Act and ending on the date on which the Federal Communications Commission adopts rules pursuant to the amendments to the Communications Act of 1934 made by section 203 and section 204 of this title, the Federal Communications Commission shall follow its rules and regulations promulgated pursuant to sections 338, 339, and 340 of the Communications Act of 1934 as in effect on the day before the date of the enactment of this Act.

(b)

Translator stations and low power television stations

Notwithstanding subsection (a), for purposes of determining whether a subscriber within the local market served by a translator station or a low power television station affiliated with a television network is eligible to receive distant signals under section 339 of the Communications Act of 1934, the rules and regulations of the Federal Communications Commission for determining such subscriber’s eligibility as in effect on the day before the date of the enactment of this Act shall apply until the date on which the translator station or low power television station is licensed to broadcast a digital signal.

(c)

Definitions

As used in this subtitle:

(1)

Local market; low power television station; satellite carrier; subscriber; television broadcast station

The terms local market, low power television station, satellite carrier, subscriber, and television broadcast station have the meanings given such terms in section 338(k) of the Communications Act of 1934.

(2)

Network station; television network

The terms network station and television network have the meanings given such terms in section 339(d) of such Act.

206.

Process for issuing qualified carrier certification

Part I of title III is amended by adding at the end the following new section:

342.

Process for issuing qualified carrier certification

(a)

Certification

The Commission shall issue a certification for the purposes of section 119(g)(3)(A)(iii) of title 17, United States Code, if the Commission determines that—

(1)

a satellite carrier is providing local service pursuant to the statutory license under section 122 of such title in each designated market area; and

(2)

with respect to each designated market area in which such satellite carrier was not providing such local service as of the date of enactment of the Satellite Television Extension and Localism Act of 2010

(A)

the satellite carrier’s satellite beams are designed, and predicted by the satellite manufacturer’s pre-launch test data, to provide a good quality satellite signal to at least 90 percent of the households in each such designated market area based on the most recent census data released by the United States Census Bureau; and

(B)

there is no material evidence that there has been a satellite or sub-system failure subsequent to the satellite’s launch that precludes the ability of the satellite carrier to satisfy the requirements of subparagraph (A).

(b)

Information required

Any entity seeking the certification provided for in subsection (a) shall submit to the Commission the following information:

(1)

An affidavit stating that, to the best of the affiant’s knowledge, the satellite carrier provides local service in all designated market areas pursuant to the statutory license provided for in section 122 of title 17, United States Code, and listing those designated market areas in which local service was provided as of the date of enactment of the Satellite Television Extension and Localism Act of 2010.

(2)

For each designated market area not listed in paragraph (1):

(A)

Identification of each such designated market area and the location of its local receive facility.

(B)

Data showing the number of households, and maps showing the geographic distribution thereof, in each such designated market area based on the most recent census data released by the United States Census Bureau.

(C)

Maps, with superimposed effective isotropically radiated power predictions obtained in the satellite manufacturer’s pre-launch tests, showing that the contours of the carrier’s satellite beams as designed and the geographic area that the carrier’s satellite beams are designed to cover are predicted to provide a good quality satellite signal to at least 90 percent of the households in such designated market area based on the most recent census data released by the United States Census Bureau.

(D)

For any satellite relied upon for certification under this section, an affidavit stating that, to the best of the affiant’s knowledge, there have been no satellite or sub-system failures subsequent to the satellite’s launch that would degrade the design performance to such a degree that a satellite transponder used to provide local service to any such designated market area is precluded from delivering a good quality satellite signal to at least 90 percent of the households in such designated market area based on the most recent census data released by the United States Census Bureau.

(E)

Any additional engineering, designated market area, or other information the Commission considers necessary to determine whether the Commission shall grant a certification under this section.

(c)

Certification Issuance

(1)

Public comment

The Commission shall provide 30 days for public comment on a request for certification under this section.

(2)

Deadline for decision

The Commission shall grant or deny a request for certification within 90 days after the date on which such request is filed.

(d)

Subsequent affirmation

An entity granted qualified carrier status pursuant to section 119(g) of title 17, United States Code, shall file an affidavit with the Commission 30 months after such status was granted stating that, to the best of the affiant’s knowledge, it is in compliance with the requirements for a qualified carrier.

(e)

Definitions

For the purposes of this section:

(1)

Designated Market Area

The term designated market area has the meaning given such term in section 122(j)(2)(C) of title 17, United States Code.

(2)

Good quality satellite signal

(A)

In general

The term “good quality satellite signal” means—

(i)

a satellite signal whose power level as designed shall achieve reception and demodulation of the signal at an availability level of at least 99.7 percent using—

(I)

models of satellite antennas normally used by the satellite carrier’s subscribers; and

(II)

the same calculation methodology used by the satellite carrier to determine predicted signal availability in the top 100 designated market areas; and

(ii)

taking into account whether a signal is in standard definition format or high definition format, compression methodology, modulation, error correction, power level, and utilization of advances in technology that do not circumvent the intent of this section to provide for non-discriminatory treatment with respect to any comparable television broadcast station signal, a video signal transmitted by a satellite carrier such that—

(I)

the satellite carrier treats all television broadcast stations’ signals the same with respect to statistical multiplexer prioritization; and

(II)

the number of video signals in the relevant satellite transponder is not more than the then current greatest number of video signals carried on any equivalent transponder serving the top 100 designated market areas.

(B)

Determination

For the purposes of subparagraph (A), the top 100 designated market areas shall be as determined by Nielsen Media Research and published in the Nielsen Station Index Directory and Nielsen Station Index United States Television Household Estimates or any successor publication as of the date of a satellite carrier’s application for certification under this section.

.

207.

Nondiscrimination in carriage of high definition digital signals of noncommercial educational television stations

(a)

In general

Section 338(a) is amended by adding at the end the following new paragraph:

(5)

Nondiscrimination in Carriage of High Definition Signals of Noncommercial Educational Television Stations

(A)

Existing carriage of high definition signals

If, before the date of enactment of the Satellite Television Extension and Localism Act of 2010, an eligible satellite carrier is providing, under section 122 of title 17, United States Code, any secondary transmissions in high definition format to subscribers located within the local market of a television broadcast station of a primary transmission made by that station, then such satellite carrier shall carry the signals in high-definition format of qualified noncommercial educational television stations located within that local market in accordance with the following schedule:

(i)

By December 31, 2010, in at least 50 percent of the markets in which such satellite carrier provides such secondary transmissions in high definition format.

(ii)

By December 31, 2011, in every market in which such satellite carrier provides such secondary transmissions in high definition format.

(B)

New Initiation of Service

If, on or after the date of enactment of the Satellite Television Extension and Localism Act of 2010, an eligible satellite carrier initiates the provision, under section 122 of title 17, United States Code, of any secondary transmissions in high definition format to subscribers located within the local market of a television broadcast station of a primary transmission made by that station, then such satellite carrier shall carry the signals in high-definition format of all qualified noncommercial educational television stations located within that local market.

.

(b)

Definitions

Section 338(k) is amended—

(1)

by redesignating paragraphs (2) through (8) as paragraphs (3) through (9), respectively;

(2)

by inserting after paragraph (1) the following new paragraph:

(2)

Eligible Satellite Carrier

The term eligible satellite carrier means any satellite carrier that is not a party to a carriage contract that—

(A)

governs carriage of at least 30 qualified noncommercial educational television stations; and

(B)

is in force and effect within 120 days after the date of enactment of the Satellite Television Extension and Localism Act of 2010.

;

(3)

by redesignating paragraphs (6) through (9) (as previously redesignated) as paragraphs (7) through (10), respectively; and

(4)

by inserting after paragraph (5) (as so redesignated) the following new paragraph:

(6)

Qualified Noncommercial Educational Television Station

The term ‘qualified noncommercial educational television station’ means any full-power television broadcast station that—

(A)

under the rules and regulations of the Commission in effect on March 29, 1990, is licensed by the Commission as a noncommercial educational broadcast station and is owned and operated by a public agency, nonprofit foundation, nonprofit corporation, or nonprofit association; and

(B)

has as its licensee an entity that is eligible to receive a community service grant, or any successor grant thereto, from the Corporation for Public Broadcasting, or any successor organization thereto, on the basis of the formula set forth in section 396(k)(6)(B) of this title.

.

208.

Savings clause regarding definitions

Nothing in this title or the amendments made by this title shall be construed to affect—

(1)

the meaning of the terms program related and primary video under the Communications Act of 1934; or

(2)

the meaning of the term multicast in any regulations issued by the Federal Communications Commission.

209.

State public affairs broadcasts

Section 335(b) is amended—

(1)

by inserting State Public Affairs, after Educational, in the heading;

(2)

by striking paragraph (1) and inserting the following:

(1)

Channel capacity required

(A)

In general

Except as provided in subparagraph (B), the Commission shall require, as a condition of any provision, initial authorization, or authorization renewal for a provider of direct broadcast satellite service providing video programming, that the provider of such service reserve a portion of its channel capacity, equal to not less than 4 percent nor more than 7 percent, exclusively for noncommercial programming of an educational or informational nature.

(B)

Requirement for qualified satellite provider

The Commission shall require, as a condition of any provision, initial authorization, or authorization renewal for a qualified satellite provider of direct broadcast satellite service providing video programming, that such provider reserve a portion of its channel capacity, equal to not less than 3.5 percent nor more than 7 percent, exclusively for noncommercial programming of an educational or informational nature.

;

(3)

in paragraph (5), by striking For purposes of the subsection— and inserting For purposes of this subsection:; and

(4)

by adding at the end of paragraph (5) the following:

(C)

The term qualified satellite provider means any provider of direct broadcast satellite service that—

(i)

provides the retransmission of the State public affairs networks of at least 15 different States;

(ii)

offers the programming of State public affairs networks upon reasonable prices, terms, and conditions as determined by the Commission under paragraph (4); and

(iii)

does not delete any noncommercial programming of an educational or informational nature in connection with the carriage of a State public affairs network.

(D)

The term State public affairs network means a non-commercial non-broadcast network or a noncommercial educational television station—

(i)

whose programming consists of information about State government deliberations and public policy events; and

(ii)

that is operated by—

(I)

a State government or subdivision thereof;

(II)

an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of such Code and that is governed by an independent board of directors; or

(III)

a cable system.

.

III

Reports and Savings Provision

301.

Definition

In this title, the term appropriate Congressional committees means the Committees on the Judiciary and on Commerce, Science, and Transportation of the Senate and the Committees on the Judiciary and on Energy and Commerce of the House of Representatives.

302.

Report on market based alternatives to statutory licensing

Not later than 1 year after the date of the enactment of this Act, and after consultation with the Federal Communications Commission, the Register of Copyrights shall submit to the appropriate Congressional committees a report containing—

(1)

proposed mechanisms, methods, and recommendations on how to implement a phase-out of the statutory licensing requirements set forth in sections 111, 119, and 122 of title 17, United States Code, by making such sections inapplicable to the secondary transmission of a performance or display of a work embodied in a primary transmission of a broadcast station that is authorized to license the same secondary transmission directly with respect to all of the performances and displays embodied in such primary transmission;

(2)

any recommendations for alternative means to implement a timely and effective phase-out of the statutory licensing requirements set forth in sections 111, 119, and 122 of title 17, United States Code; and

(3)

any recommendations for legislative or administrative actions as may be appropriate to achieve such a phase-out.

303.

Report on communications implications of statutory licensing modifications

(a)

Study

The Comptroller General shall conduct a study that analyzes and evaluates the changes to the carriage requirements currently imposed on multichannel video programming distributors under the Communications Act of 1934 (47 U.S.C. 151 et seq.) and the regulations promulgated by the Federal Communications Commission that would be required or beneficial to consumers, and such other matters as the Comptroller General deems appropriate, if Congress implemented a phase-out of the current statutory licensing requirements set forth under sections 111, 119, and 122 of title 17, United States Code. Among other things, the study shall consider the impact such a phase-out and related changes to carriage requirements would have on consumer prices and access to programming.

(b)

Report

Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall report to the appropriate Congressional committees the results of the study, including any recommendations for legislative or administrative actions.

304.

Report on in-state broadcast programming

Not later than 1 year after the date of the enactment of this Act, the Federal Communications Commission shall submit to the appropriate Congressional committees a report containing an analysis of—

(1)

the number of households in a State that receive the signals of local broadcast stations assigned to a community of license that is located in a different State;

(2)

the extent to which consumers in each local market have access to in-state broadcast programming over the air or from a multichannel video programming distributor; and

(3)

whether there are alternatives to the use of designated market areas, as defined in section 122 of title 17, United States Code, to define local markets that would provide more consumers with in-state broadcast programming.

305.

Local network channel broadcast reports

(a)

Requirement

(1)

In General

On the 180th day after the date of the enactment of this Act, and on each succeeding anniversary of such 180th day, each satellite carrier shall submit an annual report to the Federal Communications Commission setting forth—

(A)

each local market in which it—

(i)

retransmits signals of 1 or more television broadcast stations with a community of license in that market;

(ii)

has commenced providing such signals in the preceding 1-year period; and

(iii)

has ceased to provide such signals in the preceding 1-year period; and

(B)

detailed information regarding the use and potential use of satellite capacity for the retransmission of local signals in each local market.

(2)

Termination

The requirement under paragraph (1) shall cease after each satellite carrier has submitted 5 reports under such paragraph.

(b)

FCC Study; Report

(1)

Study

If no satellite carrier files a request for a certification under section 342 of the Communications Act of 1934 (as added by section 206 of this title) within 180 days after the date of the enactment of this Act, the Federal Communications Commission shall initiate a study of—

(A)

incentives that would induce a satellite carrier to provide the signals of 1 or more television broadcast stations licensed to provide signals in local markets in which the satellite carrier does not provide such signals; and

(B)

the economic and satellite capacity conditions affecting delivery of local signals by satellite carriers to these markets.

(2)

Report

Within 1 year after the date of the initiation of the study under paragraph (1), the Federal Communications Commission shall submit a report to the appropriate Congressional committees containing its findings, conclusions, and recommendations.

(c)

Definitions

In this section—

(1)

the terms local market and satellite carrier have the meaning given such terms in section 339(d) of the Communications Act of 1934 (47 U.S.C. 339(d)); and

(2)

the term television broadcast station has the meaning given such term in section 325(b)(7) of such Act (47 U.S.C. 325(b)(7)).

306.

Savings provision regarding use of negotiated licenses

(a)

In general

Nothing in this Act, title 17, United States Code, the Communications Act of 1934, regulations promulgated by the Register of Copyrights under this title or title 17, United States Code, or regulations promulgated by the Federal Communications Commission under this Act or the Communications Act of 1934 shall be construed to prevent a multichannel video programming distributor from retransmitting a performance or display of a work pursuant to an authorization granted by the copyright owner or, if within the scope of its authorization, its licensee.

(b)

Limitation

Nothing in subsection (a) shall be construed to affect any obligation of a multichannel video programming distributor under section 325(b) of the Communications Act of 1934 to obtain the authority of a television broadcast station before retransmitting that station’s signal.

307.

Effective date; Noninfringement of copyright

(a)

Effective date

Unless specifically provided otherwise, this Act, and the amendments made by this Act, shall take effect on February 27, 2010, and with the exception of the reference in subsection (b), all references to the date of enactment of this Act shall be deemed to refer to February 27, 2010, unless otherwise specified.

(b)

Noninfringement of copyright

The secondary transmission of a performance or display of a work embodied in a primary transmission is not an infringement of copyright if it was made by a satellite carrier on or after February 27, 2010, and prior to enactment of this Act, and was in compliance with the law as in existence on February 27, 2010.

IV

Severability

401.

Severability

If any provision of this Act, an amendment made by this Act, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this Act, the amendments made by this Act, and the application of such provision or amendment to any person or circumstance shall not be affected thereby.

V

Determination of Budgetary Effects

501.

Determination of Budgetary Effects

(a)

In General

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest statement titled “Budgetary Effects of PAYGO Legislation” for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.

Passed the Senate March 26 (legislative day, March 25), 2010.

Secretary