Laws: Cases and Codes : U.S. Code : Title 17 : Section 111


   
U.S. Code as of: 01/19/04
Section 111. Limitations on exclusive rights: Secondary transmissions

      (a) Certain Secondary Transmissions Exempted. - The secondary
    transmission of a performance or display of a work embodied in a
    primary transmission is not an infringement of copyright if - 
        (1) the secondary transmission is not made by a cable system,
      and consists entirely of the relaying, by the management of a
      hotel, apartment house, or similar establishment, of signals
      transmitted by a broadcast station licensed by the Federal
      Communications Commission, within the local service area of such
      station, to the private lodgings of guests or residents of such
      establishment, and no direct charge is made to see or hear the
      secondary transmission; or
        (2) the secondary transmission is made solely for the purpose
      and under the conditions specified by clause (2) of section 110;
      or
        (3) the secondary transmission is made by any carrier who has
      no direct or indirect control over the content or selection of
      the primary transmission or over the particular recipients of the
      secondary transmission, and whose activities with respect to the
      secondary transmission consist solely of providing wires, cables,
      or other communications channels for the use of others: Provided,
      That the provisions of this clause extend only to the activities
      of said carrier with respect to secondary transmissions and do
      not exempt from liability the activities of others with respect
      to their own primary or secondary transmissions;
        (4) the secondary transmission is made by a satellite carrier
      for private home viewing pursuant to a statutory license under
      section 119; or
        (5) the secondary transmission is not made by a cable system
      but is made by a governmental body, or other nonprofit
      organization, without any purpose of direct or indirect
      commercial advantage, and without charge to the recipients of the
      secondary transmission other than assessments necessary to defray
      the actual and reasonable costs of maintaining and operating the
      secondary transmission service.

      (b) Secondary Transmission of Primary Transmission to Controlled
    Group. - Notwithstanding the provisions of subsections (a) and (c),
    the secondary transmission to the public of a performance or
    display of a work embodied in a primary transmission 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
    the primary transmission is not made for reception by the public at
    large but is controlled and limited to reception by particular
    members of the public: Provided, however, That such secondary
    transmission is not actionable as an act of infringement if - 
        (1) the primary transmission is made by a broadcast station
      licensed by the Federal Communications Commission; and
        (2) the carriage of the signals comprising the secondary
      transmission is required under the rules, regulations, or
      authorizations of the Federal Communications Commission; and
        (3) the signal of the primary transmitter is not altered or
      changed in any way by the secondary transmitter.

      (c) Secondary Transmissions by Cable Systems. - 
        (1) Subject to the provisions of clauses (2), (3), and (4) of
      this subsection and section 114(d), secondary transmissions to
      the public by a cable system of a performance or display of a
      work embodied in a primary transmission made by a broadcast
      station licensed by the Federal Communications Commission or by
      an appropriate governmental authority of Canada or Mexico shall
      be subject to statutory licensing upon compliance with the
      requirements of subsection (d) where the carriage of the signals
      comprising the secondary transmission is permissible under the
      rules, regulations, or authorizations of the Federal
      Communications Commission.
        (2) Notwithstanding the provisions of clause (1) of this
      subsection, the willful or repeated secondary transmission to the
      public by a cable system of a primary transmission made by a
      broadcast station licensed by the Federal Communications
      Commission or by an appropriate governmental authority of Canada
      or Mexico and embodying a performance or display of a work 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, in the following cases:
          (A) where the carriage of the signals comprising the
        secondary transmission is not permissible under the rules,
        regulations, or authorizations of the Federal Communications
        Commission; or
          (B) where the cable system has not deposited the statement of
        account and royalty fee required by subsection (d).

        (3) Notwithstanding the provisions of clause (1) of this
      subsection and subject to the provisions of subsection (e) of
      this section, the secondary transmission to the public by a cable
      system of a performance or display of a work embodied in a
      primary transmission made by a broadcast station licensed by the
      Federal Communications Commission or by an appropriate
      governmental authority of Canada or Mexico 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 announcements transmitted by the primary
      transmitter during, or immediately before or after, the
      transmission of such program, is in any way willfully altered by
      the cable system through changes, deletions, or additions, except
      for the alteration, deletion, or substitution of commercial
      advertisements performed by those engaged in television
      commercial advertising market research: Provided, That the
      research company has obtained the prior consent of the advertiser
      who has purchased the original commercial advertisement, the
      television station broadcasting that commercial advertisement,
      and the cable system performing the secondary transmission: And
      provided further, That such commercial alteration, deletion, or
      substitution is not performed for the purpose of deriving income
      from the sale of that commercial time.
        (4) Notwithstanding the provisions of clause (1) of this
      subsection, the secondary transmission to the public by a cable
      system of a performance or display of a work embodied in a
      primary transmission made by a broadcast station licensed by an
      appropriate governmental authority of Canada or Mexico is
      actionable as an act of infringement under section 501, and is
      fully subject to the remedies provided by sections 502 through
      506 and section 509, if (A) with respect to Canadian signals, the
      community of the cable system is located more than 150 miles from
      the United States-Canadian border and is also located south of
      the forty-second parallel of latitude, or (B) with respect to
      Mexican signals, the secondary transmission is made by a cable
      system which received the primary transmission by means other
      than direct interception of a free space radio wave emitted by
      such broadcast television station, unless prior to April 15,
      1976, such cable system was actually carrying, or was
      specifically authorized to carry, the signal of such foreign
      station on the system pursuant to the rules, regulations, or
      authorizations of the Federal Communications Commission.

      (d) Statutory License for Secondary Transmissions by Cable
    Systems. - 
        (1) A cable system whose secondary transmissions have been
      subject to statutory licensing under subsection (c) shall, on a
      semiannual basis, deposit with the Register of Copyrights, in
      accordance with requirements that the Register shall prescribe by
      regulation - 
          (A) a statement of account, covering the six months next
        preceding, specifying the number of channels on which the cable
        system made secondary transmissions to its subscribers, the
        names and locations of all primary transmitters whose
        transmissions were further transmitted by the cable system, the
        total number of subscribers, the gross amounts paid to the
        cable system for the basic service of providing secondary
        transmissions of primary broadcast transmitters, and such other
        data as the Register of Copyrights may from time to time
        prescribe by regulation. In determining the total number of
        subscribers and the gross amounts paid to the cable system for
        the basic service of providing secondary transmissions of
        primary broadcast transmitters, the system shall not include
        subscribers and amounts collected from subscribers receiving
        secondary transmissions for private home viewing pursuant to
        section 119. Such statement shall also include a special
        statement of account covering any nonnetwork television
        programming that was carried by the cable system in whole or in
        part beyond the local service area of the primary transmitter,
        under rules, regulations, or authorizations of the Federal
        Communications Commission permitting the substitution or
        addition of signals under certain circumstances, together with
        logs showing the times, dates, stations, and programs involved
        in such substituted or added carriage; and
          (B) except in the case of a cable system whose royalty is
        specified in subclause (C) or (D), a total royalty fee for the
        period covered by the statement, computed on the basis of
        specified percentages of the gross receipts from subscribers to
        the cable service during said period for the basic service of
        providing secondary transmissions of primary broadcast
        transmitters, as follows:
            (i) 0.675 of 1 per centum of such gross receipts for the
          privilege of further transmitting any nonnetwork programming
          of a primary transmitter in whole or in part beyond the local
          service area of such primary transmitter, such amount to be
          applied against the fee, if any, payable pursuant to
          paragraphs (ii) through (iv);
            (ii) 0.675 of 1 per centum of such gross receipts for the
          first distant signal equivalent;
            (iii) 0.425 of 1 per centum of such gross receipts for each
          of the second, third, and fourth distant signal equivalents;
            (iv) 0.2 of 1 per centum of such gross receipts for the
          fifth distant signal equivalent and each additional distant
          signal equivalent thereafter; and

        in computing the amounts payable under paragraphs (ii) through
        (iv), above, any fraction of a distant signal equivalent shall
        be computed at its fractional value and, in the case of any
        cable system located partly within and partly without the local
        service area of a primary transmitter, gross receipts shall be
        limited to those gross receipts derived from subscribers
        located without the local service area of such primary
        transmitter; and
          (C) if the actual gross receipts paid by subscribers to a
        cable system for the period covered by the statement for the
        basic service of providing secondary transmissions of primary
        broadcast transmitters total $80,000 or less, gross receipts of
        the cable system for the purpose of this subclause shall be
        computed by subtracting from such actual gross receipts the
        amount by which $80,000 exceeds such actual gross receipts,
        except that in no case shall a cable system's gross receipts be
        reduced to less than $3,000. The royalty fee payable under this
        subclause shall be 0.5 of 1 per centum, regardless of the
        number of distant signal equivalents, if any; and
          (D) if the actual gross receipts paid by subscribers to a
        cable system for the period covered by the statement, for the
        basic service of providing secondary transmissions of primary
        broadcast transmitters, are more than $80,000 but less than
        $160,000, the royalty fee payable under this subclause shall be
        (i) 0.5 of 1 per centum of any gross receipts up to $80,000;
        and (ii) 1 per centum of any gross receipts in excess of
        $80,000 but less than $160,000, regardless of the number of
        distant signal equivalents, if any.

        (2) The Register of Copyrights shall receive all fees deposited
      under this section and, after deducting the reasonable costs
      incurred by the Copyright Office under this section, shall
      deposit the balance in the Treasury of the United States, in such
      manner as the Secretary of the Treasury directs. All funds held
      by the Secretary of the Treasury shall be invested in
      interest-bearing United States securities for later distribution
      with interest by the Librarian of Congress in the event no
      controversy over distribution exists, or by a copyright
      arbitration royalty panel in the event a controversy over such
      distribution exists.
        (3) The royalty fees thus deposited shall, in accordance with
      the procedures provided by clause (4), be distributed to those
      among the following copyright owners who claim that their works
      were the subject of secondary transmissions by cable systems
      during the relevant semiannual period:
          (A) any such owner whose work was included in a secondary
        transmission made by a cable system of a nonnetwork television
        program in whole or in part beyond the local service area of
        the primary transmitter; and
          (B) any such owner whose work was included in a secondary
        transmission identified in a special statement of account
        deposited under clause (1)(A);
          (C) any such owner whose work was included in nonnetwork
        programming consisting exclusively of aural signals carried by
        a cable system in whole or in part beyond the local service
        area of the primary transmitter of such programs.

        (4) The royalty fees thus deposited shall be distributed in
      accordance with the following procedures:
          (A) During the month of July in each year, every person
        claiming to be entitled to statutory license fees for secondary
        transmissions shall file a claim with the Librarian of
        Congress, in accordance with requirements that the Librarian of
        Congress shall prescribe by regulation. Notwithstanding any
        provisions of the antitrust laws, for purposes of this clause
        any claimants may agree among themselves as to the
        proportionate division of statutory licensing fees among them,
        may lump their claims together and file them jointly or as a
        single claim, or may designate a common agent to receive
        payment on their behalf.
          (B) After the first day of August of each year, the Librarian
        of Congress shall, upon the recommendation of the Register of
        Copyrights, determine whether there exists a controversy
        concerning the distribution of royalty fees. If the Librarian
        determines that no such controversy exists, the Librarian
        shall, after deducting reasonable administrative costs under
        this section, distribute such fees to the copyright owners
        entitled to such fees, or to their designated agents. If the
        Librarian finds the existence of a controversy, the Librarian
        shall, pursuant to chapter 8 of this title, convene a copyright
        arbitration royalty panel to determine the distribution of
        royalty fees.
          (C) During the pendency of any proceeding under this
        subsection, the Librarian of Congress shall withhold from
        distribution an amount sufficient to satisfy all claims with
        respect to which a controversy exists, but shall have
        discretion to proceed to distribute any amounts that are not in
        controversy.

      (e) Nonsimultaneous Secondary Transmissions by Cable Systems. - 
        (1) Notwithstanding those provisions of the second paragraph of
      subsection (f) relating to nonsimultaneous secondary
      transmissions by a cable system, any such transmissions are
      actionable as an act of infringement under section 501, and are
      fully subject to the remedies provided by sections 502 through
      506 and sections 509 and 510, unless - 
          (A) the program on the videotape is transmitted no more than
        one time to the cable system's subscribers; and
          (B) the copyrighted program, episode, or motion picture
        videotape, including the commercials contained within such
        program, episode, or picture, is transmitted without deletion
        or editing; and
          (C) an owner or officer of the cable system (i) prevents the
        duplication of the videotape while in the possession of the
        system, (ii) prevents unauthorized duplication while in the
        possession of the facility making the videotape for the system
        if the system owns or controls the facility, or takes
        reasonable precautions to prevent such duplication if it does
        not own or control the facility, (iii) takes adequate
        precautions to prevent duplication while the tape is being
        transported, and (iv) subject to clause (2), erases or
        destroys, or causes the erasure or destruction of, the
        videotape; and
          (D) within forty-five days after the end of each calendar
        quarter, an owner or officer of the cable system executes an
        affidavit attesting (i) to the steps and precautions taken to
        prevent duplication of the videotape, and (ii) subject to
        clause (2), to the erasure or destruction of all videotapes
        made or used during such quarter; and
          (E) such owner or officer places or causes each such
        affidavit, and affidavits received pursuant to clause (2)(C),
        to be placed in a file, open to public inspection, at such
        system's main office in the community where the transmission is
        made or in the nearest community where such system maintains an
        office; and
          (F) the nonsimultaneous transmission is one that the cable
        system would be authorized to transmit under the rules,
        regulations, and authorizations of the Federal Communications
        Commission in effect at the time of the nonsimultaneous
        transmission if the transmission had been made simultaneously,
        except that this subclause shall not apply to inadvertent or
        accidental transmissions.

        (2) If a cable system transfers to any person a videotape of a
      program nonsimultaneously transmitted by it, such transfer 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, pursuant to a written, nonprofit
      contract providing for the equitable sharing of the costs of such
      videotape and its transfer, a videotape nonsimultaneously
      transmitted by it, in accordance with clause (1), may be
      transferred by one cable system in Alaska to another system in
      Alaska, by one cable system in Hawaii permitted to make such
      nonsimultaneous transmissions to another such cable system in
      Hawaii, or by one cable system in Guam, the Northern Mariana
      Islands, or the Trust Territory of the Pacific Islands, to
      another cable system in any of those three territories, if - 
          (A) each such contract is available for public inspection in
        the offices of the cable systems involved, and a copy of such
        contract is filed, within thirty days after such contract is
        entered into, with the Copyright Office (which Office shall
        make each such contract available for public inspection); and
          (B) the cable system to which the videotape is transferred
        complies with clause (1)(A), (B), (C)(i), (iii), and (iv), and
        (D) through (F); and
          (C) such system provides a copy of the affidavit required to
        be made in accordance with clause (1)(D) to each cable system
        making a previous nonsimultaneous transmission of the same
        videotape.

        (3) This subsection shall not be construed to supersede the
      exclusivity protection provisions of any existing agreement, or
      any such agreement hereafter entered into, between a cable system
      and a television broadcast station in the area in which the cable
      system is located, or a network with which such station is
      affiliated.
        (4) As used in this subsection, the term "videotape", and each
      of its variant forms, means the reproduction of the images and
      sounds of a program or programs broadcast by a television
      broadcast station licensed by the Federal Communications
      Commission, regardless of the nature of the material objects,
      such as tapes or films, in which the reproduction is embodied.

      (f) Definitions. - As used in this section, the following terms
    and their variant forms mean the following:
        A "primary transmission" is a transmission made to the public
      by the transmitting facility whose signals are being received and
      further transmitted by the secondary transmission service,
      regardless of where or when the performance or display was first
      transmitted.
        A "secondary transmission" is the further transmitting of a
      primary transmission simultaneously with the primary
      transmission, or nonsimultaneously with the primary transmission
      if by a "cable system" not located in whole or in part within the
      boundary of the forty-eight contiguous States, Hawaii, or Puerto
      Rico: Provided, however, That a nonsimultaneous further
      transmission by a cable system located in Hawaii of a primary
      transmission shall be deemed to be a secondary transmission if
      the carriage of the television broadcast signal comprising such
      further transmission is permissible under the rules, regulations,
      or authorizations of the Federal Communications Commission.
        A "cable system" is a facility, located in any State,
      Territory, Trust Territory, or Possession, that in whole or in
      part receives signals transmitted or programs broadcast by one or
      more television broadcast stations licensed by the Federal
      Communications Commission, and makes secondary transmissions of
      such signals or programs by wires, cables, microwave, or other
      communications channels to subscribing members of the public who
      pay for such service. For purposes of determining the royalty fee
      under subsection (d)(1), two or more cable systems in contiguous
      communities under common ownership or control or operating from
      one headend shall be considered as one system.
        The "local service area of a primary transmitter", in the case
      of a television broadcast station, comprises the area in which
      such station is entitled to insist upon its signal being
      retransmitted by a cable system pursuant to the rules,
      regulations, and authorizations of the Federal Communications
      Commission in effect on April 15, 1976, or such station's
      television market as defined in section 76.55(e) of title 47,
      Code of Federal Regulations (as in effect on September 18, 1993),
      or any modifications to such television market made, on or after
      September 18, 1993, pursuant to section 76.55(e) or 76.59 of
      title 47 of the Code of Federal Regulations, or in the case of a
      television broadcast station licensed by an appropriate
      governmental authority of Canada or Mexico, the area in which it
      would be entitled to insist upon its signal being retransmitted
      if it were a television broadcast station subject to such rules,
      regulations, and authorizations. In the case of a low power
      television station, as defined by the rules and regulations of
      the Federal Communications Commission, the "local service area of
      a primary transmitter" comprises the area within 35 miles of the
      transmitter site, except that in the case of such a station
      located in a standard metropolitan statistical area which has one
      of the 50 largest populations of all standard metropolitan
      statistical areas (based on the 1980 decennial census of
      population taken by the Secretary of Commerce), the number of
      miles shall be 20 miles. The "local service area of a primary
      transmitter", in the case of a radio broadcast station, comprises
      the primary service area of such station, pursuant to the rules
      and regulations of the Federal Communications Commission.
        A "distant signal equivalent" is the value assigned to the
      secondary transmission of any nonnetwork television programming
      carried by a cable system in whole or in part beyond the local
      service area of the primary transmitter of such programming. It
      is computed by assigning a value of one to each independent
      station and a value of one-quarter to each network station and
      noncommercial educational station for the nonnetwork programming
      so carried pursuant to the rules, regulations, and authorizations
      of the Federal Communications Commission. The foregoing values
      for independent, network, and noncommercial educational stations
      are subject, however, to the following exceptions and
      limitations. Where the rules and regulations of the Federal
      Communications Commission require a cable system to omit the
      further transmission of a particular program and such rules and
      regulations also permit the substitution of another program
      embodying a performance or display of a work in place of the
      omitted transmission, or where such rules and regulations in
      effect on the date of enactment of this Act permit a cable
      system, at its election, to effect such deletion and substitution
      of a nonlive program or to carry additional programs not
      transmitted by primary transmitters within whose local service
      area the cable system is located, no value shall be assigned for
      the substituted or additional program; where the rules,
      regulations, or authorizations of the Federal Communications
      Commission in effect on the date of enactment of this Act permit
      a cable system, at its election, to omit the further transmission
      of a particular program and such rules, regulations, or
      authorizations also permit the substitution of another program
      embodying a performance or display of a work in place of the
      omitted transmission, the value assigned for the substituted or
      additional program shall be, in the case of a live program, the
      value of one full distant signal equivalent multiplied by a
      fraction that has as its numerator the number of days in the year
      in which such substitution occurs and as its denominator the
      number of days in the year. In the case of a station carried
      pursuant to the late-night or specialty programming rules of the
      Federal Communications Commission, or a station carried on a
      part-time basis where full-time carriage is not possible because
      the cable system lacks the activated channel capacity to
      retransmit on a full-time basis all signals which it is
      authorized to carry, the values for independent, network, and
      noncommercial educational stations set forth above, as the case
      may be, shall be multiplied by a fraction which is equal to the
      ratio of the broadcast hours of such station carried by the cable
      system to the total broadcast hours of the station.
        A "network station" is a television broadcast station that is
      owned or operated by, or affiliated with, one or more of the
      television networks in the United States providing nationwide
      transmissions, and that transmits a substantial part of the
      programming supplied by such networks for a substantial part of
      that station's typical broadcast day.
        An "independent station" is a commercial television broadcast
      station other than a network station.
        A "noncommercial educational station" is a television station
      that is a noncommercial educational broadcast station as defined
      in section 397 of title 47.



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