[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3333 Enrolled Bill (ENR)]
S.3333
One Hundred Eleventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, two thousand and ten
An Act
To extend the statutory license for secondary transmissions under title
17, United States Code, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Satellite
Television 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.
TITLE I--STATUTORY LICENSES
SEC. 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.
SEC. 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) October 1, 2010, for multicast streams that exist on
March 31, 2010; 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 ``June 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 ``May 31, 2010'' and inserting
``December 31, 2014''; 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 ``September 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
``May 31, 2010'' and inserting ``December 31, 2014''.
(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''.
SEC. 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.''.
SEC. 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 for
accounting periods beginning 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.
SEC. 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 motion for a waiver of the injunction;
``(iii) a motion that the court appoint a special
master under Rule 53 of the Federal Rules of Civil
Procedure;
``(iv) an agreement by the carrier to pay all expenses
incurred by the special master under paragraph (4)(B)(ii);
and
``(v) a certification issued pursuant to section 342(a)
of Communications Act of 1934.
``(B) Grant of recognition as a qualified carrier.--Upon
receipt of a statement of eligibility, the court shall
recognize the entity as a qualified carrier and issue the
waiver under paragraph (1). Upon motion pursuant to
subparagraph (A)(iii), the court shall appoint a special master
to conduct the examination and provide a report to the court as
provided in paragraph (4)(B).
``(C) Voluntary termination.--At any time, an entity
recognized as a qualified carrier may file a statement of
voluntary termination with the court certifying that it no
longer wishes to be recognized as a qualified carrier. Upon
receipt of such statement, the court shall reinstate the
injunction waived under paragraph (1).
``(D) Loss of recognition prevents future recognition.--No
entity may be recognized as a qualified carrier if such entity
had previously been recognized as a qualified carrier and
subsequently lost such recognition or voluntarily terminated
such recognition under subparagraph (C).
``(4) Qualified carrier obligations and compliance.--
``(A) Continuing obligations.--
``(i) In general.--An entity recognized as a qualified
carrier shall continue to provide local-into-local service
to all DMAs.
``(ii) Cooperation with compliance examination.--An
entity recognized as a qualified carrier shall fully
cooperate with the special master appointed by the court
under paragraph (3)(B) in an examination set forth in
subparagraph (B).
``(B) Qualified carrier compliance examination.--
``(i) Examination and report.--A special master
appointed by the court under paragraph (3)(B) shall conduct
an examination of, and file a report on, the qualified
carrier's compliance with the royalty payment and household
eligibility requirements of the license under this section.
The report shall address the qualified carrier's conduct
during the period beginning on the date on which the
qualified carrier is recognized as such under paragraph
(3)(B) and ending on April 30, 2012.
``(ii) Records of qualified carrier.--Beginning on the
date that is one year after the date on which the qualified
carrier is recognized as such under paragraph (3)(B), but
not later than December 1, 2011, the qualified carrier
shall provide the special master with all records that the
special master considers to be directly pertinent to the
following requirements under this section:
``(I) Proper calculation and payment of royalties
under the statutory license under this section.
``(II) Provision of service under this license to
eligible subscribers only.
``(iii) Submission of report.--The special master shall
file the report required by clause (i) not later than July
24, 2012, with the court referred to in paragraph (1) that
issued the injunction, and the court shall transmit a copy
of the report to the Register of Copyrights, the Committees
on the Judiciary and on Energy and Commerce of the House of
Representatives, and the Committees on the Judiciary and on
Commerce, Science, and Transportation of the Senate.
``(iv) Evidence of infringement.--The special master
shall include in the report a statement of whether the
examination by the special master indicated that there is
substantial evidence that a copyright holder could bring a
successful action under this section against the qualified
carrier for infringement.
``(v) Subsequent examination.--If the special master's
report includes a statement that its examination indicated
the existence of substantial evidence that a copyright
holder could bring a successful action under this section
against the qualified carrier for infringement, the special
master shall, not later than 6 months after the report
under clause (i) is filed, initiate another examination of
the qualified carrier's compliance with the royalty payment
and household eligibility requirements of the license under
this section since the last report was filed under clause
(iii). The special master shall file a report on the
results of the examination conducted under this clause with
the court referred to in paragraph (1) that issued the
injunction, and the court shall transmit a copy to the
Register of Copyrights, the Committees on the Judiciary and
on Energy and Commerce of the House of Representatives, and
the Committees on the Judiciary and on Commerce, Science,
and Transportation of the Senate. The report shall include
a statement described in clause (iv).
``(vi) Compliance.--Upon motion filed by an aggrieved
copyright owner, the court recognizing an entity as a
qualified carrier shall terminate such designation upon
finding that the entity has failed to cooperate with the
examinations required by this subparagraph.
``(vii) Oversight.--During the period of time that the
special master is conducting an examination under this
subparagraph, the Comptroller General shall monitor the
degree to which the entity seeking to be recognized or
recognized as a qualified carrier under paragraph (3) is
complying with the special master's examination. The
qualified carrier shall make available to the Comptroller
General all records and individuals that the Comptroller
General considers necessary to meet the Comptroller
General's obligations under this clause. The Comptroller
General shall report the results of the monitoring required
by this clause to the Committees on the Judiciary and on
Energy and Commerce of the House of Representatives and the
Committees on the Judiciary and on Commerce, Science, and
Transportation of the Senate at intervals of not less than
six months during such period.
``(C) Affirmation.--A qualified carrier shall file an
affidavit with the district court and the Register of
Copyrights 30 months after such status was granted stating
that, to the best of the affiant's knowledge, it is in
compliance with the requirements for a qualified carrier. The
qualified carrier shall attach to its affidavit copies of all
reports or orders issued by the court, the special master, and
the Comptroller General.
``(D) Compliance determination.--Upon the motion of an
aggrieved television broadcast station, the court recognizing
an entity as a qualified carrier may make a determination of
whether the entity is providing local-into-local service to all
DMAs.
``(E) Pleading requirement.--In any motion brought under
subparagraph (D), the party making such motion shall specify
one or more designated market areas (as such term is defined in
section 122(j)(2)(C)) for which the failure to provide service
is being alleged, and, for each such designated market area,
shall plead with particularity the circumstances of the alleged
failure.
``(F) Burden of proof.--In any proceeding to make a
determination under subparagraph (D), and with respect to a
designated market area for which failure to provide service is
alleged, the entity recognized as a qualified carrier shall
have the burden of proving that the entity provided local-into-
local service with a good quality satellite signal to at least
90 percent of the households in such designated market area
(based on the most recent census data released by the United
States Census Bureau) at the time and place alleged.
``(5) Failure to provide service.--
``(A) Penalties.--If the court recognizing an entity as a
qualified carrier finds that such entity has willfully failed
to provide local-into-local service to all DMAs, such finding
shall result in the loss of recognition of the entity as a
qualified carrier and the termination of the waiver provided
under paragraph (1), and the court may, in its discretion--
``(i) treat such failure as an act of infringement
under section 501, and subject such infringement to the
remedies provided for in sections 502 through 506 and
subsection (a)(6)(B) of this section; and
``(ii) impose a fine of not less than $250,000 and not
more than $5,000,000.
``(B) Exception for nonwillful violation.--If the court
determines that the failure to provide local-into-local service
to all DMAs is nonwillful, the court may in its discretion
impose financial penalties for noncompliance that reflect--
``(i) the degree of control the entity had over the
circumstances that resulted in the failure;
``(ii) the quality of the entity's efforts to remedy
the failure and restore service; and
``(iii) the severity and duration of any service
interruption.
``(6) Penalties for violations of license.--A court that finds,
under subsection (a)(6)(A), that an entity recognized as a
qualified carrier has willfully made a secondary transmission of a
primary transmission made by a network station and embodying a
performance or display of a work to a subscriber who is not
eligible to receive the transmission under this section shall
reinstate the injunction waived under paragraph (1), and the court
may order statutory damages of not more than $2,500,000.
``(7) Local-into-local service to all dmas defined.--For
purposes of this subsection:
``(A) In general.--An entity provides `local-into-local
service to all DMAs' if the entity provides local service in
all designated market areas (as such term is defined in section
122(j)(2)(C)) pursuant to the license under section 122.
``(B) Household coverage.--For purposes of subparagraph
(A), an entity that makes available local-into-local service
with a good quality satellite signal to at least 90 percent of
the households in a designated market area based on the most
recent census data released by the United States Census Bureau
shall be considered to be providing local service to such
designated market area.
``(C) Good quality satellite signal defined.--The term
`good quality satellite signal' has the meaning given such term
under section 342(e)(2) of Communications Act of 1934.''.
SEC. 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.''.
SEC. 107. TERMINATION OF LICENSE.
(a) Termination.--Section 119 of title 17, United States Code, as
amended by this Act, shall cease to be effective on December 31, 2014.
(b) Conforming Amendment.--Section 1003(a)(2)(A) of Public Law 111-
118 (17 U.S.C. 119 note) is repealed.
SEC. 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.
TITLE II--COMMUNICATIONS PROVISIONS
SEC. 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.).
SEC. 202. EXTENSION OF AUTHORITY.
Section 325(b) is amended--
(1) in paragraph (2)(C), by striking ``May 31, 2010'' and
inserting ``December 31, 2014''; and
(2) in paragraph (3)(C), by striking ``June 1, 2010'' each
place it appears in clauses (ii) and (iii) and inserting ``January
1, 2015''.
SEC. 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 270 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).
SEC. 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 270 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 270 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).
SEC. 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.
SEC. 206. PROCESS FOR ISSUING QUALIFIED CARRIER CERTIFICATION.
Part I of title III is amended by adding at the end the following
new section:
``SEC. 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.''.
SEC. 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 150 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.''.
SEC. 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.
SEC. 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.''.
TITLE III--REPORTS AND SAVINGS PROVISION
SEC. 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.
SEC. 302. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY
LICENSING.
Not later than 18 months 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.
SEC. 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 18 months 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.
SEC. 304. REPORT ON IN-STATE BROADCAST PROGRAMMING.
Not later than 18 months 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.
SEC. 305. LOCAL NETWORK CHANNEL BROADCAST REPORTS.
(a) Requirement.--
(1) In general.--On the 270th day after the date of the
enactment of this Act, and on each succeeding anniversary of such
270th 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 270 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)).
SEC. 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.
SEC. 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.
TITLE IV--SEVERABILITY
SEC. 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.
TITLE V--DETERMINATION OF BUDGETARY EFFECTS
SEC. 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.