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8.

AMENDMENT TO H.R.2223

Section 111(b) covers the "secondary transmission of over-the-air pay TV programs. There is a potential confl between this provision and the FCC's rules regarding carriage This amendment insures that no conflict

of such stations.

can occur.

On page 14, line 27, strike out "Notwithstanding the provisions of" and insert in lieu thereof "Except as provided in".

On page 14, line 33, before the period insert the following:

:Provided, however, That such secondary transmissi is not actionable as an act of infringement if the carriage of the signals comprising the secondary transmission is required under the rules, regulation, or authorizations of the Federal Communications

Commission.

AMENDMENT TO H.R.2223

9. The following amendment cleans up the language

in section 111 (e) relating to the necessarily nonsirultaneous carriage of television stations by CATV systems located in Alaska, Hawaii and the various territories and possessions.

On page 17, beginning on line 29, strike out "or" and all that follows down through line 33 and insert in lieu thereof ": Provided, however, That a nonsimultaneous further transmission by a "cable system" not located in whole or in part within the boundary of the forty-eight contiguous States, territories or

possessions of a."

AMENDMENT TO H.R. 2223

3. Chapter 8 of H.R.2223 provides for a Copyright

Tribunal, which is a mechanism for periodic review of CATV's fees. The first readjustment would take effect within 18 months after the Act became law, and then every five years This infinite arbitration provision could

thereafter.

result in a hefty increase in CATV's copyright fees over

the years.

CATV's fee should be set in the bill and not be

subject to change except by future legislation.

This amend

ment deletes CATV fees from those that can be reviewed

periodically by the Copyright Tribunal.

On page 58, line 33, strike out "sections 111 and"

insert in lieu therof "section".

On page 58, line 34, strike out "and" and all that follows down through "fee" on page 59, line 7.

On page 59 beginning on line 13 strike out "sections

111 and" and insert in lieu thereof "section".

On page 59, line 17, insert "section 115 of"

immediately before "this title".

following:

On page 16 beginning on line 9, strike out the

"irrespective of source and separate statements
of the gross revenues paid to the cable system for

advertising, leased channels, and cable-casting

for which a per-program or per-channel charge

is made and by subscribers"

4.

AMENDMENT TO H.R.2223

Although the initial fee schedule is clearly imposed only on revenues from recurring charges for the basic cable service, portions of Section 111 and Chapter 8 raise the spectre of copyright fees also being based in the future on revenues from other sources. This is clearly improper since copyright is and will be paid for product used in such other services as local program origination, leased channel operations and pay cable. In the event periodic review of CATV fees remains in the bill, this amendment will eliminate the above possibility.

On page 59, beginning on line 2, strike out
"or the revenue basis in respect to section 111."

On page 59, beginning on line 6, strike out "or the revenue basis on which the royalty fee shall be

assessed or both."

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