[DOCID: f:s1948is.txt] 106th CONGRESS 1st Session S. 1948 To amend the provisions of title 17, United States Code, and the Communications Act of 1934, relating to copyright licensing and carriage of broadcast signals by satellite. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES November 17, 1999 Mr. Lott introduced the following bill; which was read twice and referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend the provisions of title 17, United States Code, and the Communications Act of 1934, relating to copyright licensing and carriage of broadcast signals by satellite. 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 ``Intellectual Property and Communications Omnibus Reform Act of 1999''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec.1.Short title; table of contents. TITLE I--SATELLITE HOME VIEWER IMPROVEMENT Sec.1001.Short title. Sec.1002.Limitations on exclusive rights; secondary transmissions by satellite carriers within local markets. Sec.1003.Extension of effect of amendments to section 119 of title 17, United States Code. Sec.1004.Computation of royalty fees for satellite carriers. Sec.1005.Distant signal eligibility for consumers. Sec.1006.Public broadcasting service satellite feed. Sec.1007.Application of Federal Communications Commission regulations. Sec.1008.Rules for satellite carriers retransmitting television broadcast signals. Sec.1009.Retransmission consent. Sec.1010.Severability. Sec.1011.Technical amendments. Sec.1012.Effective dates. TITLE II--RURAL LOCAL TELEVISION SIGNALS Sec.2001.Short title. Sec.2002.Local television service in unserved and underserved markets. TITLE III--TRADEMARK CYBERPIRACY PREVENTION Sec.3001.Short title; references. Sec.3002.Cyberpiracy prevention. Sec.3003.Damages and remedies. Sec.3004.Limitation on liability. Sec.3005.Definitions. Sec.3006.Study on abusive domain name registrations involving personal names. Sec.3007.Historic preservation. Sec.3008.Savings clause. Sec.3009.Technical and conforming amendments. Sec.3010.Effective date. TITLE IV--INVENTOR PROTECTION Sec.4001.Short title. Subtitle A--Inventors' Rights Sec.4101.Short title. Sec.4102.Integrity in invention promotion services. Sec.4103.Effective date. Subtitle B--Patent and Trademark Fee Fairness Sec.4201.Short title. Sec.4202.Adjustment of patent fees. Sec.4203.Adjustment of trademark fees. Sec.4204.Study on alternative fee structures. Sec.4205.Patent and Trademark Office Funding. Sec.4206.Effective date. Subtitle C--First Inventor Defense Sec.4301.Short title. Sec.4302.Defense to patent infringement based on earlier inventor. Sec.4303.Effective date and applicability. Subtitle D--Patent Term Guarantee Sec.4401.Short title. Sec.4402.Patent term guarantee authority. Sec.4403.Continued examination of patent applications. Sec.4404.Technical clarification. Sec.4405.Effective date. Subtitle E--Domestic Publication of Patent Applications Published Abroad Sec.4501.Short title. Sec.4502.Publication. Sec.4503.Time for claiming benefit of earlier filing date. Sec.4504.Provisional rights. Sec.4505.Prior art effect of published applications. Sec.4506.Cost recovery for publication. Sec.4507.Conforming amendments. Sec.4508.Effective date. Subtitle F--Optional Inter Partes Reexamination Procedure Sec.4601.Short title. Sec.4602.Ex parte reexamination of patents. Sec.4603.Definitions. Sec.4604.Optional inter partes reexamination procedures. Sec.4605.Conforming amendments. Sec.4606.Report to Congress. Sec.4607.Estoppel effect of reexamination. Sec.4608.Effective date. Subtitle G--Patent and Trademark Office Sec.4701.Short title. Chapter 1--United States Patent and Trademark Office Sec.4711.Establishment of Patent and Trademark Office. Sec.4712.Powers and duties. Sec.4713.Organization and management. Sec.4714.Public advisory committees. Sec.4715.Conforming amendments. Sec.4716.Trademark Trial and Appeal Board. Sec.4717.Board of Patent Appeals and Interferences. Sec.4718.Annual report of Director. Sec.4719.Suspension or exclusion from practice. Sec.4720.Pay of Director and Deputy Director. Chapter 2--Effective Date; Technical Amendments Sec.4731.Effective date. Sec.4732.Technical and conforming amendments. Chapter 3--Miscellaneous Provisions Sec.4741.References. Sec.4742.Exercise of authorities. Sec.4743.Savings provisions. Sec.4744.Transfer of assets. Sec.4745.Delegation and assignment. Sec.4746.Authority of Director of the Office of Management and Budget with respect to functions transferred. Sec.4747.Certain vesting of functions considered transfers. Sec.4748.Availability of existing funds. Sec.4749.Definitions. Subtitle H--Miscellaneous Patent Provisions Sec.4801.Provisional applications. Sec.4802.International applications. Sec.4803.Certain limitations on damages for patent infringement not applicable. Sec.4804.Electronic filing and publications. Sec.4805.Study and report on biological deposits in support of biotechnology patents. Sec.4806.Prior invention. Sec.4807.Prior art exclusion for certain commonly assigned patents. Sec.4808.Exchange of copies of patents with foreign countries. TITLE V--MISCELLANEOUS PROVISIONS Sec.5001.Commission on online child protection. Sec.5002.Privacy protection for donors to public broadcasting entities. Sec.5003.Completion of biennial regulatory review. Sec.5004.Public broadcasting entities. Sec.5005.Technical amendments relating to vessel hull design protection. Sec.5006.Informal rulemaking of copyright determination. Sec.5007.Service of process for surety corporations. Sec.5008.Low-power television. TITLE VI--SUPERFUND RECYCLING EQUITY Sec.6001.Superfund recycling equity. TITLE I--SATELLITE HOME VIEWER IMPROVEMENT SEC. 1001. SHORT TITLE. This title may be cited as the ``Satellite Home Viewer Improvement Act of 1999''. SEC. 1002. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS WITHIN LOCAL MARKETS. (a) In General.--Chapter 1 of title 17, United States Code, is amended by adding after section 121 the following new section: ``Sec. 122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local markets ``(a) Secondary Transmissions of Television Broadcast Stations by Satellite Carriers.--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-- ``(1) the secondary transmission is made by a satellite carrier to the public; ``(2) 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 ``(3) the satellite carrier makes a direct or indirect charge for the secondary transmission to-- ``(A) each subscriber receiving the secondary transmission; or ``(B) a distributor that has contracted with the satellite carrier for direct or indirect delivery of the secondary transmission to the public. ``(b) Reporting Requirements.-- ``(1) Initial lists.--A satellite carrier that makes secondary transmissions of a primary transmission made by a network station under subsection (a) shall, within 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 in alphabetical order and street address, including county and zip code) all subscribers to which the satellite carrier makes secondary transmissions of that primary transmission under subsection (a). ``(2) Subsequent lists.--After the list is submitted under paragraph (1), the satellite carrier shall, on the 15th of each month, submit to the network a list identifying (by name in alphabetical order and street address, including county and zip code) any subscribers who have been added or dropped as subscribers since the last submission under this subsection. ``(3) Use of subscriber information.--Subscriber information submitted by a satellite carrier under this subsection may be used only for the purposes of monitoring compliance by the satellite carrier with this section. ``(4) Requirements of networks.--The submission requirements of this subsection shall apply to a satellite carrier only if the network to which the submissions are to be made places on file with the Register of Copyrights a document identifying the name and address of the person to whom such submissions are to be made. The Register of Copyrights shall maintain for public inspection a file of all such documents. ``(c) No Royalty Fee Required.--A satellite carrier whose secondary transmissions are subject to statutory licensing under subsection (a) shall have no royalty obligation for such secondary transmissions. ``(d) Noncompliance With Reporting and Regulatory Requirements.-- Notwithstanding subsection (a), the willful or repeated secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a primary transmission embodying a performance or display of a work made by that television broadcast station is actionable as an act of infringement under section 501, and is fully subject to the remedies provided under sections 502 through 506 and 509, if the satellite carrier has not complied with the reporting requirements of subsection (b) or with the rules, regulations, and authorizations of the Federal Communications Commission concerning the carriage of television broadcast signals. ``(e) Willful Alterations.--Notwithstanding subsection (a), the secondary transmission to the public by a satellite carrier into the local market of a television broadcast station of a performance or display of a work embodied in a primary transmission made by that television broadcast station is actionable as an act of infringement under section 501, and is fully subject to the remedies provided by sections 502 through 506 and sections 509 and 510, if the content of the particular program in which the performance or display is embodied, or any commercial advertising or station announcement transmitted by the primary transmitter during, or immediately before or after, the transmission of such program, is in any way willfully altered by the satellite carrier through changes, deletions, or additions, or is combined with programming from any other broadcast signal. ``(f) Violation of Territorial Restrictions on Statutory License for Television Broadcast Stations.-- ``(1) Individual violations.--The willful or repeated secondary transmission to the public by a satellite carrier of a primary transmission embodying a performance or display of a work made by a television broadcast station to a subscriber who does not reside in that station's local market, and is not subject to statutory licensing under section 119 or a private licensing agreement, is actionable as an act of infringement under section 501 and is fully subject to the remedies provided by sections 502 through 506 and 509, except that-- ``(A) no damages shall be awarded for such act of infringement if the satellite carrier took corrective action by promptly withdrawing service from the ineligible subscriber; and ``(B) any statutory damages shall not exceed $5 for such subscriber for each month during which the violation occurred. ``(2) Pattern of violations.--If a satellite carrier engages in a willful or repeated pattern or practice of secondarily transmitting to the public a primary transmission embodying a performance or display of a work made by a television broadcast station to subscribers who do not reside in that station's local market, and are not subject to statutory licensing under section 119 or a private licensing agreement, then in addition to the remedies under paragraph (1)-- ``(A) if the pattern or practice has been carried out on a substantially nationwide basis, the court-- ``(i) shall order a permanent injunction barring the secondary transmission by the satellite carrier of the primary transmissions of that television broadcast station (and if such television broadcast station is a network station, all other television broadcast stations affiliated with such network); and ``(ii) may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out; and ``(B) if the pattern or practice has been carried out on a local or regional basis with respect to more than one television broadcast station, the court-- ``(i) shall order a permanent injunction barring the secondary transmission in that locality or region by the satellite carrier of the primary transmissions of any television broadcast station; and ``(ii) may order statutory damages not exceeding $250,000 for each 6-month period during which the pattern or practice was carried out. ``(g) Burden of Proof.--In any action brought under subsection (f), the satellite carrier shall have the burden of proving that its secondary transmission of a primary transmission by a television broadcast station is made only to subscribers located within that station's local market or subscribers being served in compliance with section 119 or a private licensing agreement. ``(h) Geographic Limitations on Secondary Transmissions.--The statutory license created by this section shall apply to secondary transmissions to locations in the United States. ``(i) Exclusivity With Respect to Secondary Transmissions of Broadcast Stations by Satellite to Members of the Public.--No provision of section 111 or any other law (other than this section and section 119) shall be construed to contain any authorization, exemption, or license through which secondary transmissions by satellite carriers of programming contained in a primary transmission made by a television broadcast station may be made without obtaining the consent of the copyright owner. ``(j) Definitions.--In this section-- ``(1) Distributor.--The term `distributor' means an entity which contracts to distribute secondary transmissions from a satellite carrier and, either as a single channel or in a package with other programming, provides the secondary transmission either directly to individual subscribers or indirectly through other program distribution entities. ``(2) Local market.-- ``(A) In general.--The term `local market', in the case of both commercial and noncommercial television broadcast stations, means the designated market area in which a station is located, and-- ``(i) in the case of a commercial television broadcast station, all commercial television broadcast stations licensed to a community within the same designated market area are within the same local market; and ``(ii) in the case of a noncommercial educational television broadcast station, the market includes any station that is licensed to a community within the same designated market area as the noncommercial educational television broadcast station. ``(B) County of license.--In addition to the area described in subparagraph (A), a station's local market includes the county in which the station's community of license is located. ``(C) Designated market area.--For purposes of subparagraph (A), the term `designated market area' means a designated market area, as determined by Nielsen Media Research and published in the 1999-2000 Nielsen Station Index Directory and Nielsen Station Index United States Television Household Estimates or any successor publication. ``(3) Network station; satellite carrier; secondary transmission.--The terms `network station', `satellite carrier', and `secondary transmission' have the meanings given such terms under section 119(d). ``(4) Subscriber.--The term `subscriber' means a person who 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. ``(5) Television broadcast station.--The term `television broadcast station'-- ``(A) means an over-the-air, commercial or noncommercial television broadcast station licensed by the Federal Communications Commission under subpart E of part 73 of title 47, Code of Federal Regulations, except that such term does not include a low-power or translator television station; and ``(B) includes a television broadcast station licensed by an appropriate governmental authority of Canada or Mexico if the station broadcasts primarily in the English language and is a network station as defined in section 119(d)(2)(A).''. (b) Infringement of Copyright.--Section 501 of title 17, United States Code, is amended by adding at the end the following new subsection: ``(f)(1) With respect to any secondary transmission that is made by a satellite carrier of a performance or display of a work embodied in a primary transmission and is actionable as an act of infringement under section 122, a television broadcast station holding a copyright or other license to transmit or perform the same version of that work shall, for purposes of subsection (b) of this section, be treated as a legal or beneficial owner if such secondary transmission occurs within the local market of that station. ``(2) A television broadcast station may file a civil action against any satellite carrier that has refused to carry television broadcast signals, as required under section 122(a)(2), to enforce that television broadcast station's rights under section 338(a) of the Communications Act of 1934.''. (c) Technical and Conforming Amendments.--The table of sections for chapter 1 of title 17, United States Code, is amended by adding after the item relating to section 121 the following: ``122. Limitations on exclusive rights; secondary transmissions by satellite carriers within local market.''. SEC. 1003. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, UNITED STATES CODE. Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking ``December 31, 1999'' and inserting ``December 31, 2004''. SEC. 1004. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS. Section 119(c) of title 17, United States Code, is amended by adding at the end the following new paragraph: ``(4) Reduction.-- ``(A) Superstation.--The rate of the royalty fee in effect on January 1, 1998, payable in each case under subsection (b)(1)(B)(i) shall be reduced by 30 percent. ``(B) Network and public broadcasting satellite feed.--The rate of the royalty fee in effect on January 1, 1998, payable under subsection (b)(1)(B)(ii) shall be reduced by 45 percent. ``(5) Public broadcasting service as agent.--For purposes of section 802, with respect to royalty fees paid by satellite carriers for retransmitting the Public Broadcasting Service satellite feed, the Public Broadcasting Service shall be the agent for all public television copyright claimants and all Public Broadcasting Service member stations.''. SEC. 1005. DISTANT SIGNAL ELIGIBILITY FOR CONSUMERS. (a) Unserved Household.-- (1) In general.--Section 119(d) of title 17, United States Code, is amended by striking paragraph (10) and inserting the following: ``(10) Unserved household.--The term `unserved household', with respect to a particular television network, means a household that-- ``(A) cannot receive, through the use of a conventional, stationary, outdoor rooftop receiving antenna, an over-the-air signal of a primary network station affiliated with that network of Grade B intensity as defined by the Federal Communications Commission under section 73.683(a) of title 47 of the Code of Federal Regulations, as in effect on January 1, 1999; ``(B) is subject to a waiver granted under regulations established under section 339(c)(2) of the Communications Act of 1934; ``(C) is a subscriber to whom subsection (e) applies; ``(D) is a subscriber to whom subsection (a)(11) applies; or ``(E) is a subscriber to whom the exemption under subsection (a)(2)(B)(iii) applies.''. (2) Conforming amendment.--Section 119(a)(2)(B) of title 17, United States Code, is amended to read as follows: ``(B) Secondary transmissions to unserved households.-- ``(i) In general.--The statutory license provided for in subparagraph (A) shall be limited to secondary transmissions of the signals of no more than two network stations in a single day for each television network to persons who reside in unserved households. ``(ii) Accurate determinations of eligibility.-- ``(I) Accurate predictive model.-- In determining presumptively whether a person resides in an unserved household under subsection (d)(10)(A), a court shall rely on the Individual Location Longley-Rice model set forth by the Federal Communications Commission in Docket No. 98-201, as that model may be amended by the Commission over time under section 339(c)(3) of the Communications Act of 1934 to increase the accuracy of that model. ``(II) Accurate measurements.--For purposes of site measurements to determine whether a person resides in an unserved household under subsection (d)(10)(A), a court shall rely on section 339(c)(4) of the Communications Act of 1934. ``(iii) C-band exemption to unserved households.-- ``(I) In general.--The limitations of clause (i) shall not apply to any secondary transmissions by C-band services of network stations that a subscriber to C-band service received before any termination of such secondary transmissions before October 31, 1999. ``(II) Definition.--In this clause the term `C-band service' means a service that is licensed by the Federal Communications Commission and operates in the Fixed Satellite Service under part 25 of title 47 of the Code of Federal Regulations.''. (b) Exception to Limitation on Secondary Transmissions.--Section 119(a)(5) of title 17, United States Code, is amended by adding at the end the following: ``(E) Exception.--The secondary transmission by a satellite carrier of a performance or display of a work embodied in a primary transmission made by a network station to subscribers who do not reside in unserved households shall not be an act of infringement if-- ``(i) the station on May 1, 1991, was retransmitted by a satellite carrier and was not on that date owned or operated by or affiliated with a television network that offered interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated television licensees in 10 or more States; ``(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of this section; and ``(iii) the station is not owned or operated by or affiliated with a television network that, as of January 1, 1995, offered interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated television licensees in 10 or more States.''. (c) Moratorium on Copyright Liability.--Section 119(e) of title 17, United States Code, is amended to read as follows: ``(e) Moratorium on Copyright Liability.--Until December 31, 2004, a subscriber who does not receive a signal of Grade A intensity (as defined in the regulations of the Federal Communications Commission under section 73.683(a) of title 47 of the Code of Federal Regulations, as in effect on January 1, 1999, or predicted by the Federal Communications Commission using the Individual Location Longley-Rice methodology described by the Federal Communications Commission in Docket No. 98-201) of a local network television broadcast station shall remain eligible to receive signals of network stations affiliated with the same network, if that subscriber had satellite service of such network signal terminated after July 11, 1998, and before October 31, 1999, as required by this section, or received such service on October 31, 1999.''. (d) Recreational Vehicle and Commercial Truck Exemption.--Section 119(a) of title 17, United States Code, is amended by adding at the end the following: ``(11) Service to recreational vehicles and commercial trucks.-- ``(A) Exemption.-- ``(i) In general.--For purposes of this subsection, and subject to clauses (ii) and (iii), the term `unserved household' shall include-- ``(I) recreational vehicles as defined in regulations of the Secretary of Housing and Urban Development under section 3282.8 of title 24 of the Code of Federal Regulations; and ``(II) commercial trucks that qualify as commercial motor vehicles under regulations of the Secretary of Transportation under section 383.5 of title 49 of the Code of Federal Regulations. ``(ii) Limitation.--Clause (i) shall apply only to a recreational vehicle or commercial truck if any satellite carrier that proposes to make a secondary transmission of a network station to the operator of such a recreational vehicle or commercial truck complies with the documentation requirements under subparagraphs (B) and (C). ``(iii) Exclusion.--For purposes of this subparagraph, the terms `recreational vehicle' and `commercial truck' shall not include any fixed dwelling, whether a mobile home or otherwise. ``(B) Documentation requirements.--A recreational vehicle or commercial truck shall be deemed to be an unserved household beginning 10 days after the relevant satellite carrier provides to the network that owns or is affiliated with the network station that will be secondarily transmitted to the recreational vehicle or commercial truck the following documents: ``(i) Declaration.--A signed declaration by the operator of the recreational vehicle or commercial truck that the satellite dish is permanently attached to the recreational vehicle or commercial truck, and will not be used to receive satellite programming at any fixed dwelling. ``(ii) Registration.--In the case of a recreational vehicle, a copy of the current State vehicle registration for the recreational vehicle. ``(iii) Registration and license.--In the case of a commercial truck, a copy of-- ``(I) the current State vehicle registration for the truck; and ``(II) a copy of a valid, current commercial driver's license, as defined in regulations of the Secretary of Transportation under section 383 of title 49 of the Code of Federal Regulations, issued to the operator. ``(C) Updated documentation requirements.--If a satellite carrier wishes to continue to make secondary transmissions to a recreational vehicle or commercial truck for more than a 2-year period, that carrier shall provide each network, upon request, with updated documentation in the form described under subparagraph (B) during the 90 days before expiration of that 2-year period.''. (e) Conforming Amendment.--Section 119(d)(11) of title 17, United States Code, is amended to read as follows: ``(11) Local market.--The term `local market' has the meaning given such term under section 122(j).''. SEC. 1006. PUBLIC BROADCASTING SERVICE SATELLITE FEED. (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United States Code, is amended-- (1) by striking the paragraph heading and inserting ``(1) Superstations and pbs satellite feed.--''; (2) by inserting ``or by the Public Broadcasting Service satellite feed'' after ``superstation''; and (3) by adding at the end the following: ``In the case of the Public Broadcasting Service satellite feed, the statutory license shall be effective until January 1, 2002.''. (b) Royalty Fees.--Section 119(b)(1)(B)(iii) of title 17, United States Code, is amended by inserting ``or the Public Broadcasting Service satellite feed'' after ``network station''. (c) Definitions.--Section 119(d) of title 17, United States Code, is amended-- (1) by amending paragraph (9) to read as follows: ``(9) Superstation.--The term `superstation'-- ``(A) means a television broadcast station, other than a network station, licensed by the Federal Communications Commission that is secondarily transmitted by a satellite carrier; and ``(B) except for purposes of computing the royalty fee, includes the Public Broadcasting Service satellite feed.''; and (2) by adding at the end the following: ``(12) Public broadcasting service satellite feed.--The term `Public Broadcasting Service satellite feed' means the national satellite feed distributed and designated for purposes of this section by the Public Broadcasting Service consisting of educational and informational programming intended for private home viewing, to which the Public Broadcasting Service holds national terrestrial broadcast rights.''. SEC. 1007. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS. Section 119(a) of title 17, United States Code, is amended-- (1) in paragraph (1), by inserting ``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,'' after ``satellite carrier to the public for private home viewing,''; (2) in paragraph (2), by inserting ``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,'' after ``satellite carrier to the public for private home viewing,''; and (3) by adding at the end of such subsection (as amended by section 1005(e) of this Act) the following new paragraph: ``(12) Statutory license contingent on compliance with fcc rules and remedial steps.--Notwithstanding any other provision of this section, the willful or repeated secondary transmission to the public by a satellite carrier of a primary transmission embodying a performance or display of a work made by a broadcast station licensed by the Federal Communications Commission is actionable as an act of infringement under section 501, and is fully subject to the remedies provided by sections 502 through 506 and 509, if, at the time of such transmission, the satellite carrier is not in compliance with the rules, regulations, and authorizations of the Federal Communications Commission concerning the carriage of television broadcast station signals.''. SEC. 1008. RULES FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION BROADCAST SIGNALS. (a) Amendments to Communications Act of 1934.--Title III of the Communications Act of 1934 is amended by inserting after section 337 (47 U.S.C. 337) the following new sections: ``SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS. ``(a) Carriage Obligations.-- ``(1) In general.--Subject to the limitations of paragraph (2), each satellite carrier providing, under section 122 of title 17, United States Code, secondary transmissions to subscribers located within the local market of a television broadcast station of a primary transmission made by that station shall carry upon request the signals of all television broadcast stations located within that local market, subject to section 325(b). ``(2) Remedies for failure to carry.--The remedies for any failure to meet the obligations under this subsection shall be available exclusively under section 501(f) of title 17, United States Code. ``(3) Effective date.--No satellite carrier shall be required to carry local television broadcast stations under paragraph (1) until January 1, 2002. ``(b) Good Signal Required.-- ``(1) Costs.--A television broadcast station asserting its right to carriage under subsection (a) shall be required to bear the costs associated with delivering a good quality signal to the designated local receive facility of the satellite carrier or to another facility that is acceptable to at least one-half the stations asserting the right to carriage in the local market. ``(2) Regulations.--The regulations issued under subsection (g) shall set forth the obligations necessary to carry out this subsection. ``(c) Duplication Not Required.-- ``(1) Commercial stations.--Notwithstanding subsection (a), a satellite carrier shall not be required to carry upon request the signal of any local commercial television broadcast station that substantially duplicates the signal of another local commercial television broadcast station which is secondarily transmitted by the satellite carrier within the same local market, or to carry upon request the signals of more than one local commercial television broadcast station in a single local market that is affiliated with a particular television network unless such stations are licensed to communities in different States. ``(2) Noncommercial stations.--The Commission shall prescribe regulations limiting the carriage requirements under subsection (a) of satellite carriers with respect to the carriage of multiple local noncommercial television broadcast stations. To the extent possible, such regulations shall provide the same degree of carriage by satellite carriers of such multiple stations as is provided by cable systems under section 615. ``(d) Channel Positioning.--No satellite carrier shall be required to provide the signal of a local television broadcast station to subscribers in that station's local market on any particular channel number or to provide the signals in any particular order, except that the satellite carrier shall retransmit the signal of the local television broadcast stations to subscribers in the stations' local market on contiguous channels and provide access to such station's signals at a nondiscriminatory price and in a nondiscriminatory manner on any navigational device, on-screen program guide, or menu. ``(e) Compensation for Carriage.--A satellite carrier shall not accept or request monetary payment or other valuable consideration in exchange either for carriage of local television broadcast stations in fulfillment of the requirements of this section or for channel positioning rights provided to such stations under this section, except that any such station may be required to bear the costs associated with delivering a good quality signal to the local receive facility of the satellite carrier. ``(f) Remedies.-- ``(1) Complaints by broadcast stations.--Whenever a local television broadcast station believes that a satellite carrier has failed to meet its obligations under subsections (b) through (e) of this section, such station shall notify the carrier, in writing, of the alleged failure and identify its reasons for believing that the satellite carrier failed to comply with such obligations. The satellite carrier shall, within 30 days after such written notification, respond in writing to such notification and comply with such obligations or state its reasons for believing that it is in compliance with such obligations. A local television broadcast station that disputes a response by a satellite carrier that it is in compliance with such obligations may obtain review of such denial or response by filing a complaint with the Commission. Such complaint shall allege the manner in which such satellite carrier has failed to meet its obligations and the basis for such allegations. ``(2) Opportunity to respond.--The Commission shall afford the satellite carrier against which a complaint is filed under paragraph (1) an opportunity to present data and arguments to establish that there has been no failure to meet its obligations under this section. ``(3) Remedial actions; dismissal.--Within 120 days after the date a complaint is filed under paragraph (1), the Commission shall determine whether the satellite carrier has met its obligations under subsections (b) through (e). If the Commission determines that the satellite carrier has failed to meet such obligations, the Commission shall order the satellite carrier to take appropriate remedial action. If the Commission determines that the satellite carrier has fully met the requirements of such subsections, the Commission shall dismiss the complaint. ``(g) Regulations by Commission.--Within 1 year after the date of the enactment of this section, the Commission shall issue regulations implementing this section following a rulemaking proceeding. The regulations prescribed under this section shall include requirements on satellite carriers that are comparable to the requirements on cable operators under sections 614(b)(3) and (4) and 615(g)(1) and (2). ``(h) Definitions.--As used in this section: ``(1) Distributor.--The term `distributor' means an entity which contracts to distribute secondary transmissions from a satellite carrier and, either as a single channel or in a package with other programming, provides the secondary transmission either directly to individual subscribers or indirectly through other program distribution entities. ``(2) Local receive facility.--The term `local receive facility' means the reception point in each local market which a satellite carrier designates for delivery of the signal of the station for purposes of retransmission. ``(3) Local market.--The term `local market' has the meaning given that term under section 122(j) of title 17, United States Code. ``(4) Satellite carrier.--The term `satellite carrier' has the meaning given such term under section 119(d) of title 17, United States Code. ``(5) Secondary transmission.--The term `secondary transmission' has the meaning given such term in section 119(d) of title 17, United States Code. ``(6) Subscriber.--The term `subscriber' has the meaning given that term under section 122(j) of title 17, United States Code. ``(7) Television broadcast station.--The term `television broadcast station' has the meaning given such term in section 325(b)(7). ``SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE CARRIERS. ``(a) Provisions Relating to Carriage of Distant Signals.-- ``(1) Carriage permitted.-- ``(A) In general.--Subject to section 119 of title 17, United States Code, any satellite carrier shall be permitted to provide the signals of no more than two network stations in a single day for each television network to any household not located within the local markets of those network stations. ``(B) Additional service.--In addition to signals provided under subparagraph (A), any satellite carrier may also provide service under the statutory license of section 122 of title 17, United States Code, to the local market within which such household is located. The service provided under section 122 of such title may be in addition to the two signals provided under section 119 of such title. ``(2) Penalty for violation.--Any satellite carrier that knowingly and willfully provides the signals of television stations to subscribers in violation of this subsection shall be liable for a forfeiture penalty under section 503 in the amount of $50,000 for each violation or each day of a continuing violation. ``(b) Extension of Network Nonduplication, Syndicated Exclusivity, and Sports Blackout to Satellite Retransmission.-- ``(1) Extension of protections.--Within 45 days after the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall commence a single rulemaking proceeding to establish regulations that-- ``(A) apply network nonduplication protection (47 CFR 76.92) syndicated exclusivity protection (47 CFR 76.151), and sports blackout protection (47 CFR 76.67) to the retransmission of the signals of nationally distributed superstations by satellite carriers to subscribers; and ``(B) to the extent technically feasible and not economically prohibitive, apply sports blackout protection (47 CFR 76.67) to the retransmission of the signals of network stations by satellite carriers to subscribers. ``(2) Deadline for action.--The Commission shall complete all actions necessary to prescribe regulations required by this section so that the regulations shall become effective within 1 year after such date of enactment. ``(c) Eligibility for Retransmission.-- ``(1) Signal standard for satellite carrier purposes.--For the purposes of identifying an unserved household under section 119(d)(10) of title 17, United States Code, within 1 year after the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall conclude an inquiry to evaluate all possible standards and factors for determining eligibility for retransmissions of the signals of network stations, and, if appropriate-- ``(A) recommend modifications to the Grade B intensity standard for analog signals set forth in section 73.683(a) of its regulations (47 CFR 73.683(a)), or recommend alternative standards or factors for purposes of determining such eligibility; and ``(B) make a further recommendation relating to an appropriate standard for digital signals. ``(2) Waivers.--A subscriber who is denied the retransmission of a signal of a network station under section 119 of title 17, United States Code, may request a waiver from such denial by submitting a request, through such subscriber's satellite carrier, to the network station asserting that the retransmission is prohibited. The network station shall accept or reject a subscriber's request for a waiver within 30 days after receipt of the request. The subscriber shall be permitted to receive such retransmission under section 119(d)(10)(B) of title 17, United States Code, if such station agrees to the waiver request and files with the satellite carrier a written waiver with respect to that subscriber allowing the subscriber to receive such retransmission. If a television network station fails to accept or reject a subscriber's request for a waiver within the 30-day period after receipt of the request, that station shall be deemed to agree to the waiver request and have filed such written waiver. ``(3) Establishment of improved predictive model required.--Within 180 days after the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall take all actions necessary, including any reconsideration, to develop and prescribe by rule a point-to- point predictive model for reliably and presumptively determining the ability of individual locations to receive signals in accordance with the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code. In prescribing such model, the Commission shall rely on the Individual Location Longley-Rice model set forth by the Federal Communications Commission in Docket No. 98-201 and ensure that such model takes into account terrain, building structures, and other land cover variations. 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. ``(4) Objective verification.-- ``(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 that meets the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code, 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 a test in accordance with section 73.686(d) of its regulations (47 CFR 73.686(d)), or any successor regulation. 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 section (or any successor regulation) demonstrate that the subscriber does not receive a signal that meets or exceeds the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code, the subscriber shall not be denied the retransmission of a signal of a network station under section 119 of title 17, United States Code. ``(B) Designation of tester and allocation of costs.--If the satellite carrier and the network station or stations asserting that the retransmission is prohibited are unable to agree on such a person to conduct the test, the person shall be designated by an independent and neutral entity designated by the Commission by rule. Unless the satellite carrier and the network station or stations otherwise agree, the costs of conducting the test under this paragraph shall be borne by the satellite carrier, if the station's signal meets or exceeds the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code, or by the network station, if its signal fails to meet or exceed such standard. ``(C) Avoidance of undue burden.-- Commission regulations prescribed under this paragraph shall seek to avoid any undue burden on any party. ``(d) Definitions.--For the purposes of this section: ``(1) Local market.--The term `local market' has the meaning given that term under section 122(j) of title 17, United States Code. ``(2) Nationally distributed superstation.--The term `nationally distributed superstation' means a television broadcast station, licensed by the Commission, that-- ``(A) is not owned or operated by or affiliated with a television network that, as of January 1, 1995, offered interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated television licensees in 10 or more States; ``(B) on May 1, 1991, was retransmitted by a satellite carrier and was not a network station at that time; and ``(C) was, as of July 1, 1998, retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code. ``(3) Network station.--The term `network station' has the meaning given such term under section 119(d) of title 17, United States Code. ``(4) Satellite carrier.--The term `satellite carrier' has the meaning given such term under section 119(d) of title 17, United States Code. ``(5) Television network.--The term `television network' means a television network in the United States which offers an interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated broadcast stations in 10 or more States.''. (b) Network Station Definition.--Section 119(d)(2) of title 17, United States Code, is amended-- (1) in subparagraph (B) by striking the period and inserting a semicolon; and (2) by adding after subparagraph (B) the following: ``except that the term does not include the signal of the Alaska Rural Communications Service, or any successor entity to that service.''. SEC. 1009. RETRANSMISSION CONSENT. (a) In General.--Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) is amended-- (1) by amending paragraphs (1) and (2) to read as follows: ``(b)(1) No cable system or other multichannel video programming distributor shall retransmit the signal of a broadcasting station, or any part thereof, except-- ``(A) with the express authority of the originating station; ``(B) under section 614, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section; or ``(C) under section 338, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section. ``(2) This subsection shall not apply-- ``(A) to retransmission of the signal of a noncommercial television broadcast station; ``(B) to retransmission of the signal of a television broadcast station outside the station's local market by a satellite carrier directly to its subscribers, if-- ``(i) such station was a superstation on May 1, 1991; ``(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; and ``(iii) the satellite carrier complies with any network nonduplication, syndicated exclusivity, and sports blackout rules adopted by the Commission under section 339(b) of this Act; ``(C) until December 31, 2004, to retransmission of the signals of network stations directly to a home satellite antenna, if the subscriber receiving the signal-- ``(i) is located in an area outside the local market of such stations; and ``(ii) resides in an unserved household; ``(D) to retransmission by a cable operator or other multichannel video provider, other than a satellite carrier, of the signal of a television broadcast station outside the station's local market if such signal was obtained from a satellite carrier and-- ``(i) the originating station was a superstation on May 1, 1991; and ``(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; or ``(E) during the 6-month period beginning on the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, to the retransmission of the signal of a television broadcast station within the station's local market by a satellite carrier directly to its subscribers under the statutory license of section 122 of title 17, United States Code. For purposes of this paragraph, the terms `satellite carrier' and `superstation' have the meanings given those terms, respectively, in section 119(d) of title 17, United States Code, as in effect on the date of the enactment of the Cable Television Consumer Protection and Competition Act of 1992, the term `unserved household' has the meaning given that term under section 119(d) of such title, and the term `local market' has the meaning given that term in section 122(j) of such title.''; (2) by adding at the end of paragraph (3) the following new subparagraph: ``(C) Within 45 days after the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall commence a rulemaking proceeding to revise the regulations governing the exercise by television broadcast stations of the right to grant retransmission consent under this subsection, and such other regulations as are necessary to administer the limitations contained in paragraph (2). The Commission shall complete all actions necessary to prescribe such regulations within 1 year after such date of enactment. Such regulations shall-- ``(i) establish election time periods that correspond with those regulations adopted under subparagraph (B) of this paragraph; and ``(ii) until January 1, 2006, prohibit a television broadcast station that provides retransmission consent from engaging in exclusive contracts for carriage or failing to negotiate in good faith, and it shall not be a failure to negotiate in good faith if the television broadcast station enters into retransmission consent agreements containing different terms and conditions, including price terms, with different multichannel video programming distributors if such different terms and conditions are based on competitive marketplace considerations.''; (3) in paragraph (4), by adding at the end the following new sentence: ``If an originating television station elects under paragraph (3)(C) to exercise its right to grant retransmission consent under this subsection with respect to a satellite carrier, section 338 shall not apply to the carriage of the signal of such station by such satellite carrier.''; (4) in paragraph (5), by striking ``614 or 615'' and inserting ``338, 614, or 615''; and (5) by adding at the end the following new paragraph: ``(7) For purposes of this subsection, the term-- ``(A) `network station' has the meaning given such term under section 119(d) of title 17, United States Code; and ``(B) `television broadcast station' means an over- the-air commercial or noncommercial television broadcast station licensed by the Commission under subpart E of part 73 of title 47, Code of Federal Regulations, except that such term does not include a low-power or translator television station.''. (b) Enforcement Provisions for Consent for Retransmissions.-- Section 325 of the Communications Act of 1934 (47 U.S.C. 325) is amended by adding at the end the following new subsection: ``(e) Enforcement Proceedings Against Satellite Carriers Concerning Retransmissions of Television Broadcast Stations in the Respective Local Markets of Such Carriers.-- ``(1) Complaints by television broadcast stations.--If after the expiration of the 6-month period described under subsection (b)(2)(E) a television broadcast station believes that a satellite carrier has retransmitted its signal to any person in the local market of such station in violation of subsection (b)(1), the station may file with the Commission a complaint providing-- ``(A) the name, address, and call letters of the station; ``(B) the name and address of the satellite carrier; ``(C) the dates on which the alleged retransmission occurred; ``(D) the street address of at least one person in the local market of the station to whom the alleged retransmission was made; ``(E) a statement that the retransmission was not expressly authorized by the television broadcast station; and ``(F) the name and address of counsel for the station. ``(2) Service of complaints on satellite carriers.--For purposes of any proceeding under this subsection, any satellite carrier that retransmits the signal of any broadcast station shall be deemed to designate the Secretary of the Commission as its agent for service of process. A television broadcast station may serve a satellite carrier with a complaint concerning an alleged violation of subsection (b)(1) through retransmission of a station within the local market of such station by filing the original and two copies of the complaint with the Secretary of the Commission and serving a copy of the complaint on the satellite carrier by means of two commonly used overnight delivery services, each addressed to the chief executive officer of the satellite carrier at its principal place of business, and each marked `URGENT LITIGATION MATTER' on the outer packaging. Service shall be deemed complete one business day after a copy of the complaint is provided to the delivery services for overnight delivery. On receipt of a complaint filed by a television broadcast station under this subsection, the Secretary of the Commission shall send the original complaint by United States mail, postage prepaid, receipt requested, addressed to the chief executive officer of the satellite carrier at its principal place of business. ``(3) Answers by satellite carriers.--Within five business days after the date of service, the satellite carrier shall file an answer with the Commission and shall serve the answer by a commonly used overnight delivery service and by United States mail, on the counsel designated in the complaint at the address listed for such counsel in the complaint. ``(4) Defenses.-- ``(A) Exclusive defenses.--The defenses under this paragraph are the exclusive defenses available to a satellite carrier against which a complaint under this subsection is filed. ``(B) Defenses.--The defenses referred to under subparagraph (A) are the defenses that-- ``(i) the satellite carrier did not retransmit the television broadcast station to any person in the local market of the station during the time period specified in the complaint; ``(ii) the television broadcast station had, in a writing signed by an officer of the television broadcast station, expressly authorized the retransmission of the station by the satellite carrier to each person in the local market of the television broadcast station to which the satellite carrier made such retransmissions for the entire time period during which it is alleged that a violation of subsection (b)(1) has occurred; ``(iii) the retransmission was made after January 1, 2002, and the television broadcast station had elected to assert the right to carriage under section 338 as against the satellite carrier for the relevant period; or ``(iv) the station being retransmitted is a noncommercial television broadcast station. ``(5) Counting of violations.--The retransmission without consent of a particular television broadcast station on a particular day to one or more persons in the local market of the station shall be considered a separate violation of subsection (b)(1). ``(6) Burden of proof.--With respect to each alleged violation, the burden of proof shall be on a television broadcast station to establish that the satellite carrier retransmitted the station to at least one person in the local market of the station on the day in question. The burden of proof shall be on the satellite carrier with respect to all defenses other than the defense under paragraph (4)(B)(i). ``(7) Procedures.-- ``(A) Regulations.--Within 60 days after the date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall issue procedural regulations implementing this subsection which shall supersede procedures under section 312. ``(B) Determinations.-- ``(i) In general.--Within 45 days after the filing of a complaint, the Commission shall issue a final determination in any proceeding brought under this subsection. The Commission's final determination shall specify the number of violations committed by the satellite carrier. The Commission shall hear witnesses only if it clearly appears, based on written filings by the parties, that there is a genuine dispute about material facts. Except as provided in the preceding sentence, the Commission may issue a final ruling based on written filings by the parties. ``(ii) Discovery.--The Commission may direct the parties to exchange pertinent documents, and if necessary to take prehearing depositions, on such schedule as the Commission may approve, but only if the Commission first determines that such discovery is necessary to resolve a genuine dispute about material facts, consistent with the obligation to make a final determination within 45 days. ``(8) Relief.--If the Commission determines that a satellite carrier has retransmitted the television broadcast station to at least one person in the local market of such station and has failed to meet its burden of proving one of the defenses under paragraph (4) with respect to such retransmission, the Commission shall be required to-- ``(A) make a finding that the satellite carrier violated subsection (b)(1) with respect to that station; and ``(B) issue an order, within 45 days after the filing of the complaint, containing-- ``(i) a cease-and-desist order directing the satellite carrier immediately to stop making any further retransmissions of the television broadcast station to any person within the local market of such station until such time as the Commission determines that the satellite carrier is in compliance with subsection (b)(1) with respect to such station; ``(ii) if the satellite carrier is found to have violated subsection (b)(1) with respect to more than two television broadcast stations, a cease-and-desist order directing the satellite carrier to stop making any further retransmission of any television broadcast station to any person within the local market of such station, until such time as the Commission, after giving notice to the station, that the satellite carrier is in compliance with subsection (b)(1) with respect to such stations; and ``(iii) an award to the complainant of that complainant's costs and reasonable attorney's fees. ``(9) Court proceedings on enforcement of commission order.-- ``(A) In general.--On entry by the Commission of a final order granting relief under this subsection-- ``(i) a television broadcast station may apply within 30 days after such entry to the United States District Court for the Eastern District of Virginia for a final judgment enforcing all relief granted by the Commission; and ``(ii) the satellite carrier may apply within 30 days after such entry to the United States District Court for the Eastern District of Virginia for a judgment reversing the Commission's order. ``(B) Appeal.--The procedure for an appeal under this paragraph by the satellite carrier shall supersede any other appeal rights under Federal or State law. A United States district court shall be deemed to have personal jurisdiction over the satellite carrier if the carrier, or a company under common control with the satellite carrier, has delivered television programming by satellite to more than 30 customers in that district during the preceding 4-year period. If the United States District Court for the Eastern District of Virginia does not have personal jurisdiction over the satellite carrier, an enforcement action or appeal shall be brought in the United States District Court for the District of Columbia, which may find personal jurisdiction based on the satellite carrier's ownership of licenses issued by the Commission. An application by a television broadcast station for an order enforcing any cease-and-desist relief granted by the Commission shall be resolved on a highly expedited schedule. No discovery may be conducted by the parties in any such proceeding. The district court shall enforce the Commission order unless the Commission record reflects manifest error and an abuse of discretion by the Commission. ``(10) Civil action for statutory damages.--Within 6 months after issuance of an order by the Commission under this subsection, a television broadcast station may file a civil action in any United States district court that has personal jurisdiction over the satellite carrier for an award of statutory damages for any violation that the Commission has determined to have been committed by a satellite carrier under this subsection. Such action shall not be subject to transfer under section 1404(a) of title 28, United States Code. On finding that the satellite carrier has committed one or more violations of subsection (b), the District Court shall be required to award the television broadcast station statutory damages of $25,000 per violation, in accordance with paragraph (5), and the costs and attorney's fees incurred by the station. Such statutory damages shall be awarded only if the television broadcast station has filed a binding stipulation with the court that such station will donate the full amount in excess of $1,000 of any statutory damage award to the United States Treasury for public purposes. Notwithstanding any other provision of law, a station shall incur no tax liability of any kind with respect to any amounts so donated. Discovery may be conducted by the parties in any proceeding under this paragraph only if and to the extent necessary to resolve a genuinely disputed issue of fact concerning one of the defenses under paragraph (4). In any such action, the defenses under paragraph (4) shall be exclusive, and the burden of proof shall be on the satellite carrier with respect to all defenses other than the defense under paragraph (4)(B)(i). A judgment under this paragraph may be enforced in any manner permissible under Federal or State law. ``(11) Appeals.-- ``(A) In general.--The nonprevailing party before a United States district court may appeal a decision under this subsection to the United States Court of Appeals with jurisdiction over that district court. The Court of Appeals shall not issue any stay of the effectiveness of any decision granting relief against a satellite carrier unless the carrier presents clear and convincing evidence that it is highly likely to prevail on appeal and only after posting a bond for the full amount of any monetary award assessed against it and for such further amount as the Court of Appeals may believe appropriate. ``(B) Appeal.--If the Commission denies relief in response to a complaint filed by a television broadcast station under this subsection, the television broadcast station filing the complaint may file an appeal with the United States Court of Appeals for the District of Columbia Circuit. ``(12) Sunset.--No complaint or civil action may be filed under this subsection after December 31, 2001. This subsection shall continue to apply to any complaint or civil action filed on or before such date.''. SEC. 1010. SEVERABILITY. If any provision of section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)), or the application of that provision to any person or circumstance, is held by a court of competent jurisdiction to violate any provision of the Constitution of the United States, then the other provisions of that section, and the application of that provision to other persons and circumstances, shall not be affected. SEC. 1011. TECHNICAL AMENDMENTS. (a) Technical Amendments Relating to Cable Systems.--Title 17, United States Code, is amended as follows: (1) Such title is amended by striking ``programing'' each place it appears and inserting ``programming''. (2) Section 111 is amended by striking ``compulsory'' each place it appears and inserting ``statutory''. (3) Section 510(b) is amended by striking ``compulsory'' and inserting ``statutory''. (b) Technical Amendments Relating to Performance or Displays Of Works.-- (1) Section 111 of title 17, United States Code, is amended-- (A) in subsection (a), in the matter preceding paragraph (1), by striking ``primary transmission embodying a performance or display of a work'' and inserting ``performance or display of a work embodied in a primary transmission''; (B) in subsection (b), in the matter preceding paragraph (1), by striking ``primary transmission embodying a performance or display of a work'' and inserting ``performance or display of a work embodied in a primary transmission''; and (C) in subsection (c)-- (i) in paragraph (1)-- (I) by inserting ``a performance or display of a work embodied in'' after ``by a cable system of''; and (II) by striking ``and embodying a performance or display of a work''; and (ii) in paragraphs (3) and (4)-- (I) by striking ``a primary transmission'' and inserting ``a performance or display of a work embodied in a primary transmission''; and (II) by striking ``and embodying a performance or display of a work''. (2) Section 119(a) of title 17, United States Code, is amended-- (A) in paragraph (1), by striking ``primary transmission made by a superstation and embodying a performance or display of a work'' and inserting ``performance or display of a work embodied in a primary transmission made by a superstation''; (B) in paragraph (2)(A), by striking ``programming'' and all that follows through ``a work'' and inserting ``a performance or display of a work embodied in a primary transmission made by a network station''; (C) in paragraph (4)-- (i) by inserting ``a performance or display of a work embodied in'' after ``by a satellite carrier of''; and (ii) by striking ``and embodying a performance or display of a work''; and (D) in paragraph (6)-- (i) by inserting ``performance or display of a work embodied in'' after ``by a satellite carrier of''; and (ii) by striking ``and embodying a performance or display of a work''. (3) Section 501(e) of title 17, United States Code, is amended by striking ``primary transmission embodying the performance or display of a work'' and inserting ``performance or display of a work embodied in a primary transmission''. (c) Conforming Amendment.--Section 119(a)(2)(C) of title 17, United States Code, is amended in the first sentence by striking ``currently''. (d) Work Made for Hire.--Section 101 of title 17, United States Code, is amended in the definition relating to work for hire in paragraph (2) by inserting ``as a sound recording,'' after ``audiovisual work''. SEC. 1012. EFFECTIVE DATES. Sections 1001, 1003, 1005, 1007, 1008, 1009, 1010, and 1011 (and the amendments made by such sections) shall take effect on the date of the enactment of this Act. The amendments made by sections 1002, 1004, and 1006 shall be effective as of July 1, 1999. TITLE II--RURAL LOCAL TELEVISION SIGNALS SEC. 2001. SHORT TITLE. This title may be cited as the ``Rural Local Broadcast Signal Act''. SEC. 2002. LOCAL TELEVISION SERVICE IN UNSERVED AND UNDERSERVED MARKETS. (a) In General.--Not later than 1 year after the date of the enactment of this Act, the Federal Communications Commission (``the Commission'') shall take all actions necessary to make a determination regarding licenses or other authorizations for facilities that will utilize, for delivering local broadcast television station signals to satellite television subscribers in unserved and underserved local television markets, spectrum otherwise allocated to commercial use. (b) Rules.-- (1) Form of business.--To the extent not inconsistent with the Communications Act of 1934 and the Commission's rules, the Commission shall permit applicants under subsection (a) to engage in partnerships, joint ventures, and similar operating arrangements for the purpose of carrying out subsection (a). (2) Harmful interference.--The Commission shall ensure that no facility licensed or authorized under subsection (a) causes harmful interference to the primary users of that spectrum or to public safety spectrum use. (3) Limitation on commission.--Except as provided in paragraphs (1) and (2), the Commission may not restrict any entity granted a license or other authorization under subsection (a) from using any reasonable compression, reformatting, or other technology. (c) Report.--Not later than January 1, 2001, the Commission shall report to the Agriculture, Appropriations, and the Judiciary Committees of the Senate and the House of Representatives, the Senate Committee on Commerce, Science, and Transportation, and the House of Representatives Committee on Commerce, on the extent to which licenses and other authorizations under subsection (a) have facilitated the delivery of local signals to satellite television subscribers in unserved and underserved local television markets. The report shall include-- (1) an analysis of the extent to which local signals are being provided by direct-to-home satellite television providers and by other multichannel video program distributors; (2) an enumeration of the technical, economic, and other impediments each type of multichannel video programming distributor has encountered; and (3) recommendations for specific measures to facilitate the provision of local signals to subscribers in unserved and underserved markets by direct-to-home satellite television providers and by other distributors of multichannel video programming service. TITLE III--TRADEMARK CYBERPIRACY PREVENTION SEC. 3001. SHORT TITLE; REFERENCES. (a) Short Title.--This title may be cited as the ``Anticybersquatting Consumer Protection Act''. (b) References to the Trademark Act of 1946.--Any reference in this title to the Trademark Act of 1946 shall be a reference to the Act entitled ``An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes'', approved July 5, 1946 (15 U.S.C. 1051 et seq.). SEC. 3002. CYBERPIRACY PREVENTION. (a) In General.--Section 43 of the Trademark Act of 1946 (15 U.S.C. 1125) is amended by inserting at the end the following: ``(d)(1)(A) A person shall be liable in a civil action by the owner of a mark, including a personal name which is protected as a mark under this section, if, without regard to the goods or services of the parties, that person-- ``(i) has a bad faith intent to profit from that mark, including a personal name which is protected as a mark under this section; and ``(ii) registers, traffics in, or uses a domain name that-- ``(I) in the case of a mark that is distinctive at the time of registration of the domain name, is identical or confusingly similar to that mark; ``(II) in the case of a famous mark that is famous at the time of registration of the domain name, is identical or confusingly similar to or dilutive of that mark; or ``(III) is a trademark, word, or name protected by reason of section 706 of title 18, United States Code, or section 220506 of title 36, United States Code. ``(B)(i) In determining whether a person has a bad faith intent described under subparagraph (A), a court may consider factors such as, but not limited to-- ``(I) the trademark or other intellectual property rights of the person, if any, in the domain name; ``(II) the extent to which the domain name consists of the legal name of the person or a name that is otherwise commonly used to identify that person; ``(III) the person's prior use, if any, of the domain name in connection with the bona fide offering of any goods or services; ``(IV) the person's bona fide noncommercial or fair use of the mark in a site accessible under the domain name; ``(V) the person's intent to divert consumers from the mark owner's online location to a site accessible under the domain name that could harm the goodwill represented by the mark, either for commercial gain or with the intent to tarnish or disparage the mark, by creating a likelihood of confusion as to the source, sponsorship, affiliation, or endorsement of the site; ``(VI) the person's offer to transfer, sell, or otherwise assign the domain name to the mark owner or any third party for financial gain without having used, or having an intent to use, the domain name in the bona fide offering of any goods or services, or the person's prior conduct indicating a pattern of such conduct; ``(VII) the person's provision of material and misleading false contact information when applying for the registration of the domain name, the person's intentional failure to maintain accurate contact information, or the person's prior conduct indicating a pattern of such conduct; ``(VIII) the person's registration or acquisition of multiple domain names which the person knows are identical or confusingly similar to marks of others that are distinctive at the time of registration of such domain names, or dilutive of famous marks of others that are famous at the time of registration of such domain names, without regard to the goods or services of the parties; and ``(IX) the extent to which the mark incorporated in the person's domain name registration is or is not distinctive and famous within the meaning of subsection (c)(1) of section 43. ``(ii) Bad faith intent described under subparagraph (A) shall not be found in any case in which the court determines that the person believed and had reasonable grounds to believe that the use of the domain name was a fair use or otherwise lawful. ``(C) In any civil action involving the registration, trafficking, or use of a domain name under this paragraph, a court may order the forfeiture or cancellation of the domain name or the transfer of the domain name to the owner of the mark. ``(D) A person shall be liable for using a domain name under subparagraph (A) only if that person is the domain name registrant or that registrant's authorized licensee. ``(E) As used in this paragraph, the term `traffics in' refers to transactions that include, but are not limited to, sales, purchases, loans, pledges, licenses, exchanges of currency, and any other transfer for consideration or receipt in exchange for consideration. ``(2)(A) The owner of a mark may file an in rem civil action against a domain name in the judicial district in which the domain name registrar, domain name registry, or other domain name authority that registered or assigned the domain name is located if-- ``(i) the domain name violates any right of the owner of a mark registered in the Patent and Trademark Office, or protected under subsection (a) or (c); and ``(ii) the court finds that the owner-- ``(I) is not able to obtain in personam jurisdiction over a person who would have been a defendant in a civil action under paragraph (1); or ``(II) through due diligence was not able to find a person who would have been a defendant in a civil action under paragraph (1) by-- ``(aa) sending a notice of the alleged violation and intent to proceed under this paragraph to the registrant of the domain name at the postal and e-mail address provided by the registrant to the registrar; and ``(bb) publishing notice of the action as the court may direct promptly after filing the action. ``(B) The actions under subparagraph (A)(ii) shall constitute service of process. ``(C) In an in rem action under this paragraph, a domain name shall be deemed to have its situs in the judicial district in which-- ``(i) the domain name registrar, registry, or other domain name authority that registered or assigned the domain name is located; or ``(ii) documents sufficient to establish control and authority regarding the disposition of the registration and use of the domain name are deposited with the court. ``(D)(i) The remedies in an in rem action under this paragraph shall be limited to a court order for the forfeiture or cancellation of the domain name or the transfer of the domain name to the owner of the mark. Upon receipt of written notification of a filed, stamped copy of a complaint filed by the owner of a mark in a United States district court under this paragraph, the domain name registrar, domain name registry, or other domain name authority shall-- ``(I) expeditiously deposit with the court documents sufficient to establish the court's control and authority regarding the disposition of the registration and use of the domain name to the court; and ``(II) not transfer, suspend, or otherwise modify the domain name during the pendency of the action, except upon order of the court. ``(ii) The domain name registrar or registry or other domain name authority shall not be liable for injunctive or monetary relief under this paragraph except in the case of bad faith or reckless disregard, which includes a willful failure to comply with any such court order. ``(3) The civil action established under paragraph (1) and the in rem action established under paragraph (2), and any remedy available under either such action, shall be in addition to any other civil action or remedy otherwise applicable. ``(4) The in rem jurisdiction established under paragraph (2) shall be in addition to any other jurisdiction that otherwise exists, whether in rem or in personam.''. (b) Cyberpiracy Protections for Individuals.-- (1) In general.-- (A) Civil liability.--Any person who registers a domain name that consists of the name of another living person, or a name substantially and confusingly similar thereto, without that person's consent, with the specific intent to profit from such name by selling the domain name for financial gain to that person or any third party, shall be liable in a civil action by such person. (B) Exception.--A person who in good faith registers a domain name consisting of the name of another living person, or a name substantially and confusingly similar thereto, shall not be liable under this paragraph if such name is used in, affiliated with, or related to a work of authorship protected under title 17, United States Code, including a work made for hire as defined in section 101 of title 17, United States Code, and if the person registering the domain name is the copyright owner or licensee of the work, the person intends to sell the domain name in conjunction with the lawful exploitation of the work, and such registration is not prohibited by a contract between the registrant and the named person. The exception under this subparagraph shall apply only to a civil action brought under paragraph (1) and shall in no manner limit the protections afforded under the Trademark Act of 1946 (15 U.S.C. 1051 et seq.) or other provision of Federal or State law. (2) Remedies.--In any civil action brought under paragraph (1), a court may award injunctive relief, including the forfeiture or cancellation of the domain name or the transfer of the domain name to the plaintiff. The court may also, in its discretion, award costs and attorneys fees to the prevailing party. (3) Definition.--In this subsection, the term ``domain name'' has the meaning given that term in section 45 of the Trademark Act of 1946 (15 U.S.C. 1127). (4) Effective date.--This subsection shall apply to domain names registered on or after the date of the enactment of this Act. SEC. 3003. DAMAGES AND REMEDIES. (a) Remedies in Cases of Domain Name Piracy.-- (1) Injunctions.--Section 34(a) of the Trademark Act of 1946 (15 U.S.C. 1116(a)) is amended in the first sentence by striking ``(a) or (c)'' and inserting ``(a), (c), or (d)''. (2) Damages.--Section 35(a) of the Trademark Act of 1946 (15 U.S.C. 1117(a)) is amended in the first sentence by inserting ``, (c), or (d)'' after ``section 43(a)''. (b) Statutory Damages.--Section 35 of the Trademark Act of 1946 (15 U.S.C. 1117) is amended by adding at the end the following: ``(d) In a case involving a violation of section 43(d)(1), the plaintiff may elect, at any time before final judgment is rendered by the trial court, to recover, instead of actual damages and profits, an award of statutory damages in the amount of not less than $1,000 and not more than $100,000 per domain name, as the court considers just. SEC. 3004. LIMITATION ON LIABILITY. Section 32(2) of the Trademark Act of 1946 (15 U.S.C. 1114) is amended-- (1) in the matter preceding subparagraph (A) by striking ``under section 43(a)'' and inserting ``under section 43(a) or (d)''; and (2) by redesignating subparagraph (D) as subparagraph (E) and inserting after subparagraph (C) the following: ``(D)(i)(I) A domain name registrar, a domain name registry, or other domain name registration authority that takes any action described under clause (ii) affecting a domain name shall not be liable for monetary relief or, except as provided in subclause (II), for injunctive relief, to any person for such action, regardless of whether the domain name is finally determined to infringe or dilute the mark. ``(II) A domain name registrar, domain name registry, or other domain name registration authority described in subclause (I) may be subject to injunctive relief only if such registrar, registry, or other registration authority has-- ``(aa) not expeditiously deposited with a court, in which an action has been filed regarding the disposition of the domain name, documents sufficient for the court to establish the court's control and authority regarding the disposition of the registration and use of the domain name; ``(bb) transferred, suspended, or otherwise modified the domain name during the pendency of the action, except upon order of the court; or ``(cc) willfully failed to comply with any such court order. ``(ii) An action referred to under clause (i)(I) is any action of refusing to register, removing from registration, transferring, temporarily disabling, or permanently canceling a domain name-- ``(I) in compliance with a court order under section 43(d); or ``(II) in the implementation of a reasonable policy by such registrar, registry, or authority prohibiting the registration of a domain name that is identical to, confusingly similar to, or dilutive of another's mark. ``(iii) A domain name registrar, a domain name registry, or other domain name registration authority shall not be liable for damages under this section for the registration or maintenance of a domain name for another absent a showing of bad faith intent to profit from such registration or maintenance of the domain name. ``(iv) If a registrar, registry, or other registration authority takes an action described under clause (ii) based on a knowing and material misrepresentation by any other person that a domain name is identical to, confusingly similar to, or dilutive of a mark, the person making the knowing and material misrepresentation shall be liable for any damages, including costs and attorney's fees, incurred by the domain name registrant as a result of such action. The court may also grant injunctive relief to the domain name registrant, including the reactivation of the domain name or the transfer of the domain name to the domain name registrant. ``(v) A domain name registrant whose domain name has been suspended, disabled, or transferred under a policy described under clause (ii)(II) may, upon notice to the mark owner, file a civil action to establish that the registration or use of the domain name by such registrant is not unlawful under this Act. The court may grant injunctive relief to the domain name registrant, including the reactivation of the domain name or transfer of the domain name to the domain name registrant.''. SEC. 3005. DEFINITIONS. Section 45 of the Trademark Act of 1946 (15 U.S.C. 1127) is amended by inserting after the undesignated paragraph defining the term ``counterfeit'' the following: ``The term `domain name' means any alphanumeric designation which is registered with or assigned by any domain name registrar, domain name registry, or other domain name registration authority as part of an electronic address on the Internet. ``The term `Internet' has the meaning given that term in section 230(f)(1) of the Communications Act of 1934 (47 U.S.C. 230(f)(1)).''. SEC. 3006. STUDY ON ABUSIVE DOMAIN NAME REGISTRATIONS INVOLVING PERSONAL NAMES. (a) In General.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the Patent and Trademark Office and the Federal Election Commission, shall conduct a study and report to Congress with recommendations on guidelines and procedures for resolving disputes involving the registration or use by a person of a domain name that includes the personal name of another person, in whole or in part, or a name confusingly similar thereto, including consideration of and recommendations for-- (1) protecting personal names from registration by another person as a second level domain name for purposes of selling or otherwise transferring such domain name to such other person or any third party for financial gain; (2) protecting individuals from bad faith uses of their personal names as second level domain names by others with malicious intent to harm the reputation of the individual or the goodwill associated with that individual's name; (3) protecting consumers from the registration and use of domain names that include personal names in the second level domain in manners which are intended or are likely to confuse or deceive the public as to the affiliation, connection, or association of the domain name registrant, or a site accessible under the domain name, with such other person, or as to the origin, sponsorship, or approval of the goods, services, or commercial activities of the domain name registrant; (4) protecting the public from registration of domain names that include the personal names of government officials, official candidates, and potential official candidates for Federal, State, or local political office in the United States, and the use of such domain names in a manner that disrupts the electoral process or the public's ability to access accurate and reliable information regarding such individuals; (5) existing remedies, whether under State law or otherwise, and the extent to which such remedies are sufficient to address the considerations described in paragraphs (1) through (4); and (6) the guidelines, procedures, and policies of the Internet Corporation for Assigned Names and Numbers and the extent to which they address the considerations described in paragraphs (1) through (4). (b) Guidelines and Procedures.--The Secretary of Commerce shall, under its Memorandum of Understanding with the Internet Corporation for Assigned Names and Numbers, collaborate to develop guidelines and procedures for resolving disputes involving the registration or use by a person of a domain name that includes the personal name of another person, in whole or in part, or a name confusingly similar thereto. SEC. 3007. HISTORIC PRESERVATION. Section 101(a)(1)(A) of the National Historic Preservation Act (16 U.S.C. 470a(a)(1)(A)) is amended by adding at the end the following: ``Notwithstanding section 43(c) of the Act entitled `An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes', approved July 5, 1946 (commonly known as the `Trademark Act of 1946' (15 U.S.C. 1125(c))), buildings and structures on or eligible for inclusion on the National Register of Historic Places (either individually or as part of a historic district), or designated as an individual landmark or as a contributing building in a historic district by a unit of State or local government, may retain the name historically associated with the building or structure.''. SEC. 3008. SAVINGS CLAUSE. Nothing in this title shall affect any defense available to a defendant under the Trademark Act of 1946 (including any defense under section 43(c)(4) of such Act or relating to fair use) or a person's right of free speech or expression under the first amendment of the United States Constitution. SEC. 3009. TECHNICAL AND CONFORMING AMENDMENTS. Chapter 85 of title 28, United States Code, is amended as follows: (1) Section 1338 of title 28, United States Codes, is amended-- (A) in the section heading by striking ``trade- marks'' and inserting ``trademarks''; (B) in subsection (a) by striking ``trade-marks'' and inserting ``trademarks''; and (C) in subsection (b) by striking ``trade-mark'' and inserting ``trademark''. (2) The item relating to section 1338 in the table of sections for chapter 85 of title 28, United States Code, is amended by striking ``trade-marks'' and inserting ``trademarks''. SEC. 3010. EFFECTIVE DATE. Sections 3002(a), 3003, 3004, 3005, and 3008 of this title shall apply to all domain names registered before, on, or after the date of the enactment of this Act, except that damages under subsection (a) or (d) of section 35 of the Trademark Act of 1946 (15 U.S.C. 1117), as amended by section 3003 of this title, shall not be available with respect to the registration, trafficking, or use of a domain name that occurs before the date of the enactment of this Act. TITLE IV--INVENTOR PROTECTION SEC. 4001. SHORT TITLE. This title may be cited as the ``American Inventors Protection Act of 1999''. Subtitle A--Inventors' Rights SEC. 4101. SHORT TITLE. This subtitle may be cited as the ``Inventors' Rights Act of 1999''. SEC. 4102. INTEGRITY IN INVENTION PROMOTION SERVICES. (a) In General.--Chapter 29 of title 35, United States Code, is amended by adding at the end the following new section: ``Sec. 297. Improper and deceptive invention promotion ``(a) In General.--An invention promoter shall have a duty to disclose the following information to a customer in writing, prior to entering into a contract for invention promotion services: ``(1) the total number of inventions evaluated by the invention promoter for commercial potential in the past 5 years, as well as the number of those inventions that received positive evaluations, and the number of those inventions that received negative evaluations; ``(2) the total number of customers who have contracted with the invention promoter in the past 5 years, not including customers who have purchased trade show services, research, advertising, or other nonmarketing services from the invention promoter, or who have defaulted in their payment to the invention promoter; ``(3) the total number of customers known by the invention promoter to have received a net financial profit as a direct result of the invention promotion services provided by such invention promoter; ``(4) the total number of customers known by the invention promoter to have received license agreements for their inventions as a direct result of the invention promotion services provided by such invention promoter; and ``(5) the names and addresses of all previous invention promotion companies with which the invention promoter or its officers have collectively or individually been affiliated in the previous 10 years. ``(b) Civil Action.--(1) Any customer who enters into a contract with an invention promoter and who is found by a court to have been injured by any material false or fraudulent statement or representation, or any omission of material fact, by that invention promoter (or any agent, employee, director, officer, partner, or independent contractor of such invention promoter), or by the failure of that invention promoter to disclose such information as required under subsection (a), may recover in a civil action against the invention promoter (or the officers, directors, or partners of such invention promoter), in addition to reasonable costs and attorneys' fees-- ``(A) the amount of actual damages incurred by the customer; or ``(B) at the election of the customer at any time before final judgment is rendered, statutory damages in a sum of not more than $5,000, as the court considers just. ``(2) Notwithstanding paragraph (1), in a case where the customer sustains the burden of proof, and the court finds, that the invention promoter intentionally misrepresented or omitted a material fact to such customer, or willfully failed to disclose such information as required under subsection (a), with the purpose of deceiving that customer, the court may increase damages to not more than three times the amount awarded, taking into account past complaints made against the invention promoter that resulted in regulatory sanctions or other corrective actions based on those records compiled by the Commissioner of Patents under subsection (d). ``(c) Definitions.--For purposes of this section-- ``(1) a `contract for invention promotion services' means a contract by which an invention promoter undertakes invention promotion services for a customer; ``(2) a `customer' is any individual who enters into a contract with an invention promoter for invention promotion services; ``(3) the term `invention promoter' means any person, firm, partnership, corporation, or other entity who offers to perform or performs invention promotion services for, or on behalf of, a customer, and who holds itself out through advertising in any mass media as providing such services, but does not include-- ``(A) any department or agency of the Federal Government or of a State or local government; ``(B) any nonprofit, charitable, scientific, or educational organization, qualified under applicable State law or described under section 170(b)(1)(A) of the Internal Revenue Code of 1986; ``(C) any person or entity involved in the evaluation to determine commercial potential of, or offering to license or sell, a utility patent or a previously filed nonprovisional utility patent application; ``(D) any party participating in a transaction involving the sale of the stock or assets of a business; or ``(E) any party who directly engages in the business of retail sales of products or the distribution of products; and ``(4) the term `invention promotion services' means the procurement or attempted procurement for a customer of a firm, corporation, or other entity to develop and market products or services that include the invention of the customer. ``(d) Records of Complaints.-- ``(1) Release of complaints.--The Commissioner of Patents shall make all complaints received by the Patent and Trademark Office involving invention promoters publicly available, together with any response of the invention promoters. The Commissioner of Patents shall notify the invention promoter of a complaint and provide a reasonable opportunity to reply prior to making such complaint publicly available. ``(2) Request for complaints.--The Commissioner of Patents may request complaints relating to invention promotion services from any Federal or State agency and include such complaints in the records maintained under paragraph (1), together with any response of the invention promoters.''. (b) Conforming Amendment.--The table of sections at the beginning of chapter 29 of title 35, United States Code, is amended by adding at the end the following new item: ``297. Improper and deceptive invention promotion.''. SEC. 4103. EFFECTIVE DATE. This subtitle and the amendments made by this subtitle shall take effect 60 days after the date of the enactment of this Act. Subtitle B--Patent and Trademark Fee Fairness SEC. 4201. SHORT TITLE. This subtitle may be cited as the ``Patent and Trademark Fee Fairness Act of 1999''. SEC. 4202. ADJUSTMENT OF PATENT FEES. (a) Original Filing Fee.--Section 41(a)(1)(A) of title 35, United States Code, relating to the fee for filing an original patent application, is amended by striking ``$760'' and inserting ``$690''. (b) Reissue Fee.--Section 41(a)(4)(A) of title 35, United States Code, relating to the fee for filing for a reissue of a patent, is amended by striking ``$760'' and inserting ``$690''. (c) National Fee for Certain International Applications.--Section 41(a)(10) of title 35, United States Code, relating to the national fee for certain international applications, is amended by striking ``$760'' and inserting ``$690''. (d) Maintenance Fees.--Section 41(b)(1) of title 35, United States Code, relating to certain maintenance fees, is amended by striking ``$940'' and inserting ``$830''. SEC. 4203. ADJUSTMENT OF TRADEMARK FEES. Notwithstanding the second sentence of section 31(a) of the Trademark Act of 1946 (15 U.S.C. 111(a)), the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office is authorized in fiscal year 2000 to adjust trademark fees without regard to fluctuations in the Consumer Price Index during the preceding 12 months. SEC. 4204. STUDY ON ALTERNATIVE FEE STRUCTURES. The Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office shall conduct a study of alternative fee structures that could be adopted by the United States Patent and Trademark Office to encourage maximum participation by the inventor community in the United States. The Director shall submit such study to the Committees on the Judiciary of the House of Representatives and the Senate not later than 1 year after the date of the enactment of this Act. SEC. 4205. PATENT AND TRADEMARK OFFICE FUNDING. Section 42(c) of title 35, United States Code, is amended in the second sentence-- (1) by striking ``Fees available'' and inserting ``All fees available''; and (2) by striking ``may'' and inserting ``shall''. SEC. 4206. EFFECTIVE DATE. (a) In General.--Except as provided in subsection (b), the amendments made by this subtitle shall take effect on the date of the enactment of this Act. (b) Section 4202.--The amendments made by section 4202 of this subtitle shall take effect 30 days after the date of the enactment of this Act. Subtitle C--First Inventor Defense SEC. 4301. SHORT TITLE. This subtitle may be cited as the ``First Inventor Defense Act of 1999''. SEC. 4302. DEFENSE TO PATENT INFRINGEMENT BASED ON EARLIER INVENTOR. (a) Defense.--Chapter 28 of title 35, United States Code, is amended by adding at the end the following new section: ``Sec. 273. Defense to infringement based on earlier inventor ``(a) Definitions.--For purposes of this section-- ``(1) the terms `commercially used' and `commercial use' mean use of a method in the United States, so long as such use is in connection with an internal commercial use or an actual arm's-length sale or other arm's-length commercial transfer of a useful end result, whether or not the subject matter at issue is accessible to or otherwise known to the public, except that the subject matter for which commercial marketing or use is subject to a premarketing regulatory review period during which the safety or efficacy of the subject matter is established, including any period specified in section 156(g), shall be deemed `commercially used' and in `commercial use' during such regulatory review period; ``(2) in the case of activities performed by a nonprofit research laboratory, or nonprofit entity such as a university, research center, or hospital, a use for which the public is the intended beneficiary shall be considered to be a use described in paragraph (1), except that the use-- ``(A) may be asserted as a defense under this section only for continued use by and in the laboratory or nonprofit entity; and ``(B) may not be asserted as a defense with respect to any subsequent commercialization or use outside such laboratory or nonprofit entity; ``(3) the term `method' means a method of doing or conducting business; and ``(4) the `effective filing date' of a patent is the earlier of the actual filing date of the application for the patent or the filing date of any earlier United States, foreign, or international application to which the subject matter at issue is entitled under section 119, 120, or 365 of this title. ``(b) Defense to Infringement.-- ``(1) In general.--It shall be a defense to an action for infringement under section 271 of this title with respect to any subject matter that would otherwise infringe one or more claims for a method in the patent being asserted against a person, if such person had, acting in good faith, actually reduced the subject matter to practice at least 1 year before the effective filing date of such patent, and commercially used the subject matter before the effective filing date of such patent. ``(2) Exhaustion of right.--The sale or other disposition of a useful end product produced by a patented method, by a person entitled to assert a defense under this section with respect to that useful end result shall exhaust the patent owner's rights under the patent to the extent such rights would have been exhausted had such sale or other disposition been made by the patent owner. ``(3) Limitations and qualifications of defense.--The defense to infringement under this section is subject to the following: ``(A) Patent.--A person may not assert the defense under this section unless the invention for which the defense is asserted is for a method. ``(B) Derivation.--A person may not assert the defense under this section if the subject matter on which the defense is based was derived from the patentee or persons in privity with the patentee. ``(C) Not a general license.--The defense asserted by a person under this section is not a general license under all claims of the patent at issue, but extends only to the specific subject matter claimed in the patent with respect to which the person can assert a defense under this chapter, except that the defense shall also extend to variations in the quantity or volume of use of the claimed subject matter, and to improvements in the claimed subject matter that do not infringe additional specifically claimed subject matter of the patent. ``(4) Burden of proof.--A person asserting the defense under this section shall have the burden of establishing the defense by clear and convincing evidence. ``(5) Abandonment of use.--A person who has abandoned commercial use of subject matter may not rely on activities performed before the date of such abandonment in establishing a defense under this section with respect to actions taken after the date of such abandonment. ``(6) Personal defense.--The defense under this section may be asserted only by the person who performed the acts necessary to establish the defense and, except for any transfer to the patent owner, the right to assert the defense shall not be licensed or assigned or transferred to another person except as an ancillary and subordinate part of a good faith assignment or transfer for other reasons of the entire enterprise or line of business to which the defense relates. ``(7) Limitation on sites.--A defense under this section, when acquired as part of a good faith assignment or transfer of an entire enterprise or line of business to which the defense relates, may only be asserted for uses at sites where the subject matter that would otherwise infringe one or more of the claims is in use before the later of the effective filing date of the patent or the date of the assignment or transfer of such enterprise or line of business. ``(8) Unsuccessful assertion of defense.--If the defense under this section is pleaded by a person who is found to infringe the patent and who subsequently fails to demonstrate a reasonable basis for asserting the defense, the court shall find the case exceptional for the purpose of awarding attorney fees under section 285 of this title. ``(9) Invalidity.--A patent shall not be deemed to be invalid under section 102 or 103 of this title solely because a defense is raised or established under this section.''. (b) Conforming Amendment.--The table of sections at the beginning of chapter 28 of title 35, United States Code, is amended by adding at the end the following new item: ``273. Defense to infringement based on earlier inventor.''. SEC. 4303. EFFECTIVE DATE AND APPLICABILITY. This subtitle and the amendments made by this subtitle shall take effect on the date of the enactment of this Act, but shall not apply to any action for infringement that is pending on such date of enactment or with respect to any subject matter for which an adjudication of infringement, including a consent judgment, has been made before such date of enactment. Subtitle D--Patent Term Guarantee SEC. 4401. SHORT TITLE. This subtitle may be cited as the ``Patent Term Guarantee Act of 1999''. SEC. 4402. PATENT TERM GUARANTEE AUTHORITY. (a) Adjustment of Patent Term.--Section 154(b) of title 35, United States Code, is amended to read as follows: ``(b) Adjustment of Patent Term.-- ``(1) Patent term guarantees.-- ``(A) Guarantee of prompt patent and trademark office responses.--Subject to the limitations under paragraph (2), if the issue of an original patent is delayed due to the failure of the Patent and Trademark Office to--