Madam Speaker, I move to suspend the rules and pass the bill (H.R. 3570) to amend title 17, United States Code, to reauthorize the satellite statutory license, to conform the satellite and cable statutory licenses to all-digital…
Madam Speaker, I move to suspend the rules and pass the bill (H.R. 3570) to amend title 17, United States Code, to reauthorize the satellite statutory license, to conform the satellite and cable statutory licenses to all-digital transmissions, and for other purposes, as amended.
Madam Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.
I also further ask unanimous consent that the gentleman from Virginia (Mr. Boucher) be yielded 10 minutes of my time and that he be allowed to control that time.
I yield myself such time as I may consume.
Madam Speaker and Members, H.R. 3570 extends the compulsory copyright license for satellite television providers for another 5 years, as Congress has done in each of the last two other cycles that this measure has been reauthorized.
This is an important intellectual property law and will also make a number of critical updates and much-needed clarifications to the compulsory copyright licenses for both satellite and cable television. Passage of this legislation before the end of the year is crucial. We must pass this bill in both bodies by December 31. If we don't pass this bill, thousands upon thousands of satellite television subscribers will lose their signals.
In addition to simply reauthorizing the license, the bill ambitiously tackles several other issues for consumers, for content owners, and for cable and satellite companies as well. For example, this bill restores the section 119 license to DISH Satellite Network if they serve every market in the United States, even neglected rural markets. The bill also resolves the phantom signal problem that has caused instability and confusion for the cable and content industries, to the detriment of consumers.
In addition, the bill provides an audit right to content owners so they can be sure that they are being fairly compensated for the use of their intellectual property. It significantly increases penalties for copyright infringement under the licenses and updates the licenses to reflect the national digital television transition.
The Judiciary Committee marked this bill up in September and reported it with a unanimous vote of 34-0. Since the markup, we have worked with the Energy and Commerce Committee, which has jurisdiction over communications policy. The bill that we vote on today is a combined Judiciary and Commerce bill. Title I contains the Judiciary piece on copyright. Title II contains the Commerce piece on communications. The committees have done their best to respect each other's jurisdiction, and I thank the chairman of the committee for his cooperation.
Since the markup, we have made further improvements to the language. We've attempted to address some concerns expressed by members of the committee. The changes include: harmonizing the so-called ``grandfathering'' provisions in the bill with those in the Energy and Commerce bill to ensure that consumers who lawfully receive certain kinds of programming are not abruptly cut off because of changes in the law; providing a method for calculating the value of multicast programming schemes under the section 111 license; strengthening the protections for copyright owners in the qualified carrier provision, which provides an incentive for a satellite carrier to serve every market in the United States; increasing the effectiveness of the national emergency provisions; and authorizing a study of how the compulsory licenses may be phased out in favor of direct negotiation for copyrights over time without disrupting the television marketplace.
Title I also includes a savings clause to make absolutely clear that the changes we make and issues we address have no application to communications law unless specifically mentioned. The committee is amending the cable and satellite licenses to reflect the digital transition--something new--and multicasting, in particular, as it pertains to copyright law only. Nothing in this title should be used as a basis for conclusions concerning cable and satellite regulation in areas where Congress has not yet spoken.
Among the many Members who contributed to this progress, I would like to single out in particular my good friend from Virginia, Rick Boucher, who serves in the dual role as a senior member of the Judiciary Committee and the Chair of the Telecommunications Subcommittee. I also must thank Lamar Smith, the ranking member of the Judiciary Committee, for helping work to improve the bill in several ways. Of course the distinguished chairman of Energy and Commerce, Chairman Henry Waxman, and Ranking Member Barton for all their counsel and cooperation which made this legislation possible.
We've been working on these issues for more than a year now, and the result is a consensus bill among just about all of the industry stakeholders, including satellite and cable companies, studios, sports leagues, public television and several others. Most importantly, it's a bill that improves service to television consumers and fosters efficiency and competition between cable, satellite, and broadcasters. The satellite license expires in less than a month, December 31, and we must have this reauthorized without delay to avoid the immediate loss of service to tens of thousands of satellite consumers.
House of Representatives,
Committee on Homeland Security,
Washington, DC, October 28, 2009.
Hon. John Conyers, Jr.,
Chairman, Committee on the Judiciary, House of
Representatives, Washington, DC.
Dear Chairman Conyers: I write to you regarding H.R. 3570,
the ``Satellite Home Viewer Update and Reauthorization Act of
2009.''
H.R. 3570 contains provisions that fall within the
jurisdiction of the Committee on Homeland Security. I
recognize and appreciate your desire to bring this
legislation before the House in an expeditious manner and,
accordingly, I will not seek a sequential referral of the
bill. However, agreeing to waive consideration of this bill
should not be construed as the Committee on Homeland Security
waiving, altering, or otherwise affecting
its jurisdiction over subject matters contained in the bill
which fall within its Rule X jurisdiction.
Further, I request your support for the appointment of an
appropriate number of Members of the Committee on Homeland
Security to be named as conferees during any House- Senate
conference convened on H.R. 3570 or similar legislation. I
also ask that a copy of this letter and your response be
included in the legislative report on H.R. 3570 and in the
Congressional Record during floor consideration of this bill.
I look forward to working with you as we prepare to pass
this important legislation.
Sincerely,
Bennie G. Thompson,
Chairman.
Madam Speaker, I would like to insert into the Record at this point a more detailed description of the changes that have been made in the bill since it was reported.
Explanation of Changes to SHVRA
Introduction
The Committee believes that the licenses in Sections 111
and 119 should be updated to accommodate the growing practice
of multicast broadcasting, by which television stations
transmit multiple streams of digital television programming
over a single broadcast signal. While the Committee has
endeavored to avoid including in the bill any provisions that
would interfere with existing communications law and
regulation, the Committee has been cognizant of the interplay
between the copyright and the communications elements of the
legislation and intends to confine its amendments to the
copyright licenses only.
In addition to addressing issues raised by multicasting in
the 111 and 119 licenses, this bill addresses important
concerns raised by Members at markup.
The penalties for willful and large-scale infringement of
the license have been increased, and some damages now go
directly to the pool of copyright owners.
The qualified carrier provisions have also been clarified
and strengthened. While nothing in the qualified carrier
provisions reported by the Committee lessened the qualified
carrier's obligation to comply with all aspects of the
Section 119 license, the Committee recognizes that the
royalty and household eligibility requirements of the Section
119 license should not be overshadowed by the qualified
carrier's unique commitment to provide local-into-local
service to all 210 markets. Therefore, the bill provides for
at least one compliance examination and a certification
requirement for the qualified carrier.
Finally, the bill responds to some Members' concerns about
the continued necessity of these compulsory copyright
licenses by providing for a study of policy alternatives that
may enable Congress to phase out the licenses without
unfairly altering the television market or diminishing the
value of the copyrights involved.
I. Section 111 Multicasting
With the transition from analog to digital technology,
questions have arisen as to how digital streams shall be
treated for cable
royalty purposes. The definitions in Section 111 have been
amended to address the multiple digital streams that
television stations are now able to transmit. The definition
of ``primary transmission'' now includes both the primary
stream and any multicast streams transmitted by a television
station. The ``local service area'' definition has been
amended to clarify that the primary stream of a television
broadcast station and any multicast streams of that station
have the same local service area. For example, if the FCC has
determined that a television broadcast station is
``significantly viewed'' in a particular area, that area will
be part of the local service area of all of the station's
digital streams for purposes of section 111. This definition
is relevant to the Copyright Act only, and is not intended to
create any inference in favor or against carriage obligations
for cable multicast streams, which are the exclusive
jurisdiction of the Communications Act and the Federal
Communications Commission.
The calculation of royalties under the cable license has
been amended to value multicast signals. The ``distant signal
equivalent'' definition now specifies that each non-simulcast
primary and multicast stream carried outside of its local
service area will be subject to a separate royalty payment
calculation by cable operators and should be evaluated
separately to determine its distant signal equivalent value
assignment.
Section 111 allows cable systems to pay less than full DSE
rates where FCC rules permit only a portion of a distant
signal to be carried. This amendment gives the same treatment
to multicast streams. The significantly viewed status of a
primary stream under the FCC rules and regulations also
applies to the multicast streams of the same television
stations, to determine distant or local status for royalty
purposes. However, the 3.75 percent ``market quota rate'' and
the ``syndicated exclusivity'' surcharge royalty rates are
only payable for retransmission of primary streams, and are
not applicable to secondary transmission of multicast
streams.
In order to clarify the different types of digital streams
that may be offered by television stations, definitions for
``primary stream,'' and ``multicast stream'' have been
slightly altered and a definition has been added for
``simulcast stream,'' in Section 111. A ``primary stream'' is
the digital stream that a television station is entitled to
demand be carried by cable systems located within the
station's local service area under the FCC's rules in effect
on July 1, 2009. A ``multicast stream'' is any digital stream
transmitted by a television station other than the primary
stream.
The Committee recognizes that some broadcasters may use
their multicast streams to create ``simulcast'' streams--
i.e., streams that duplicate the programming on the
broadcaster's primary stream or on other multicast streams.
For example, a broadcaster may transmit the same content on
two streams, but one stream will be in high definition format
and the other will be in standard definition. In such
instances, a DSE value will be assigned only to one of the
duplicating streams. The Copyright Office may, as
multicasting evolves, determine whether there are other
circumstances in which two streams should be considered
duplicating.
The definitions of ``network station,'' ``independent
station,'' and ``noncommercial station'' have all been
expanded to include a television station's multicast streams
as well as its primary stream. The ``network station''
definition incorporates the conditions under which a
multicast stream may be deemed a network station for royalty
purposes. Thus, to be considered a network station for
royalty purposes, a multicast stream must transmit all or
substantially all of the programming from an interconnected
program service that (a) is owned and operated by one or more
of the networks that supply nationwide programming for a
substantial part of the typical broadcast day and (b) offers
programming on a regular basis for 15 or more hours per week
to at least 25 affiliated television station licensees
located in at least 10 states. These revisions do not
alter the statutory definition of ``network station'' as
it applies to a primary stream.
DSE values are applied to individual multicast streams as
of the date of enactment, except where a cable system was
retransmitting a distant multicast stream prior to that date,
in which case the assignment of a DSE value to that multicast
stream shall commence on July 1, 2010. Separately, a
multicast stream retransmitted by a cable system subject to
an agreement requiring carriage of multicast streams that was
entered into prior to July 1, 2009 will not be assigned a DSE
value for royalty purposes until the first accounting period
after the expiration of the agreement.
While cable operators that did not account for multicast
streams in their royalty calculations prior to the effective
date are not retroactively liable for royalties for such
carriage, cable operators that did may not seek refunds or
offsets of any royalties paid on account of such secondary
transmissions.
The Committee does not intend that any of its audit
provisions in this bill alter existing liability and related
damages for copyright infringements.
II. Section 119 Grandfathering
The Committee also believes that simply because Congress
changes the law, law-abiding consumers should not be deprived
of programming they have become accustomed to receiving
without fair warning. In Section 119, where changes to the
law that govern the treatment of multicast streams have the
potential to render certain consumers ineligible for distant
signals that consumers are currently receiving,
grandfathering provisions have been added to facilitate a
smooth transition to the changed compulsory license system.
Households classified as ``unserved'' with respect to a
particular network station are the only households eligible
to receive secondary transmissions of an affiliate of that
network station under the Section 119 license. The advent of
multicasting has introduced confusion about whether a
``multicast stream'' of a particular network renders a
household served, which would force the satellite carrier to
stop providing distant signal programming to the household
for that network.
The bill harmonizes the preexisting grandfathering
provisions with those in the Energy and Commerce bill to
ensure a smooth transition to a new regime in which, in three
years' time, any stream of local programming, primary or
multicast, will render a household served. Specifically, the
bill provides that households that subscribed to distant
signals before the date of enactment who were lawfully
receiving them can keep those distant signals until the
subscriber elects to no longer receive those signals.
A household that requests a network's distant signal from a
satellite carrier after enactment can receive such a signal
if: (1) the household is in a market where the satellite
carrier offers local service, but does not yet receive from
the satellite carrier the primary stream of an affiliate of
that network that originates within its local market (in
which case the subscriber can keep the distant signal until
he or she does receive such stream from the satellite
carrier); or (2) the household is in a market where the
satellite operator does not yet offer local service (in which
case the subscriber can keep the distant signal until he or
she decides to discontinue it).
III. Increased Protections for Copyright Owners in Section 119
The bill also responds to concerns expressed by Committee
Members at the markup by increasing transparency and
accountability by the qualified carrier concerning its
obligations to copyright owners. A certification provision
similar to the one passed by the Committee on Energy and
Commerce has been added. It requires the satellite carrier to
certify to the district court and the Copyright Office that
it remains compliant with the license 30 months after the
district court initially recognized the satellite company as
a qualified carrier.
The bill provides for at least one Qualified Carrier
Compliance Examination. This examination is not intended to
be punitive. The Committee anticipates that the Comptroller
General will take precautions to ensure that compliance with
its examination does not burden the qualified carrier any
more than is necessary to examine the qualified carrier's
observance of the proper royalty calculation, payment and
adherence to the license's standards for eligible households.
Only if the Comptroller General, in consultation with the
Register of Copyrights, determines that there is a
substantial likelihood that a copyright owner could bring a
successful infringement action will a second examination be
initiated.
The report does not replace the judgment of the district
court, which retains exclusive jurisdiction over the waiver
of the injunction and assessment of damages against the
qualified carrier.
The Committee has taken one other additional step to
strengthen protections for content-owners. The Committee has
increased the damages available for infringement of copyright
by any satellite carrier who engages in a pattern or practice
of wrongful provision of distant signals on a substantially
national basis. Statutory damages of up to $2,500,000 are now
available for each 3-month period of infringement.
Furthermore, these vastly increased damages will be split
between the plaintiff and the pool of copyright holders whose
funds are distributed by the United States Copyright Office,
to compensate copyright owners who may have been unaware of
the infringement.
IV. Study of Alternatives to Compulsory Licenses
Despite these improvements, the Committee is aware that the
compulsory license is not a perfect system. It is, however,
deeply entrenched in the current cable and satellite
television industries, and cannot be eliminated at the
present moment without causing serious disruption for both
the industries and the consumers. The compulsory license
expires at the end of the year and must be reauthorized, but
we know that the television marketplace and broadcast
technology will continue to evolve. This legislation provides
for a study of whether the licenses can be eliminated in the
future, and how the marketplace could and should transition
away from the licenses.
Madam Speaker, I yield with pleasure to Chairman Boucher.
Madam Speaker, I have no further requests for time, and I yield back the balance of my time.
Madam Speaker, on that I demand the yeas and nays.