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AMENDMENT TO H.R.2223

4. Although the initial fee schedule is clearly

imposed only on revenues from recurring charges for the

basic cable service, portions of Section ill 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."

AMENDMENT TO H.R. 2223

5. Chapter 5 of H.R. 2223 contains the remedies for

infringement. One special provision gives broadcasters the

right to file copyright infringement suits.

This would appear

to cover such things as accidental carriage of programs which

should have been blacked out by the cable system under the

non-duplication or syndicated exclusivity rules.

In addition

to the nuisance value of these suits, the statutory damages

and attorney's fees could cause substantial expense. Violations

of the FCC's rules should be brought to the agency, not to the

courts by a broadcaster.

Thus, the amendment deletes the

broadcaster's right to sue the cable operator. The true

copyright owner's right to sue for infringement remains intact.

On page 47 strike out line 18 and all that

follows down through line 25.

AMENDMENT TO H.R.2223

6. Governmental and non-profit translators are

exempt from copyright under section 111 (a) (4) of H.R.2223.

This amendment would delete that section.

On page 14, line 18, strike out ";or" and insert

a period in lieu thereof.

On page 14, strike out line 19 and all that

follows down through line 25.

AMENDMENT TO H.R. 2223

7.

There is some language in Section 111 which leaves

the cable operator's liability for copyright on leased

channels somewhat ambiguous.

It seems clear that a cable

operator is like a common carrier in those situations and

therefore only the lessee should bear copyright liability.

This amendment clarifies a CATV operator's liability for

copyright on leased channels.

on page 14, beginning on line 8, strike out "a

common, contract, or special" and insert in lieu

thereof "any".

AMENDMENT TO H.R.2223

8. Section 111(b) covers the "secondary transmission"

of over-the-air pay TV programs.

There is a potential conflict

between this provision and the FCC's rules regarding carriage

of such stations.

This amendment insures that no conflict

.

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 transmission

is not actionable as an act of infringement if the

carriage of the signals comprising the secondary

transmission is required under the rules, regulations,

or authorizations of the Federal Communications

Commission.

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