MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE CARRIERS.

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; and124 STAT. 1220“(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”; and124 STAT. 1221(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”;124 STAT. 1222(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.—124 STAT. 1223“(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);124 STAT. 1224(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 124 STAT. 1225 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 122.124 STAT. 1226“(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—124 STAT. 1227(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”.