CABLE COPYRIGHT LEGISLATION THURSDAY, JUNE 3, 1982 HOUSE OF REPRESENTATIVES, CONSUMER PROTECTION, AND FINANCE, The subcommittee met, pursuant to call, at 9:45 a.m., in room 2123, Rayburn House Office Building, Hon. Timothy E. Wirth (chairman) presiding. Mr. WIRTH. The subcommittee will please come to order. I thank you all for your patience for being here this morning. The Telecommunications Subcommittee will consider H.R. 5949, the cable television copyright bill. H.R. 5949, which was introduced by my distinguished colleague from Wisconsin, Congressman Kastenmeier, was jointly referred to the Judiciary and Commerce Committees. We Recently the bill was reported by the full Judiciary Committee. We are very privileged to have three key members of that committee here this morning to explain the intent and effect of the proposed legislation to us. I think it is fair to say that this legislation represents a compromise principally among three industry groups: the Motion Picture Association of America, the National Association of Broadcasters, and the National Cable Television Association. These groups believe that this legislation constructs a "level playing field" that fairly balances their various competing interests. I apologize for using the sports analogy for discussing this legislation. Others, such as the professional sports leagues and small broadcasters, do not feel the legislation adequately protects their interests, as I am sure we will hear today. Although the copyright laws themselves are not within the primary jurisdiction of this subcommittee, the cable copyright legislation affects many questions related to competition among the various video technologies and could impact the diversity of information sources available to the public. Along these lines, one key issue that the subcommittee should consider is to what extent principles should be codified today, which may become obsolete as a more competitive video marketplace develops in the future. (1) On the other hand, the subcommittee should consider the importance of providing a workable approach to balancing the divergent interests of the various groups who are affected by this bill. We have an unusually distinguished panel of witnesses before us this morning to enlighten us with respect to these issues. Before we begin, I would like to ask if any of the members of the subcommittee have opening statements they would like to make. Before we begin, I would like to ask Mr. Swift if he has any comments to make? Mr. SWIFT. No. Mr. WIRTH. Thank you very much. Thank you, gentlemen, for being with us. [The text of H.R. 5949 and any agency reports thereon will be printed at this point in the record:] [Testimony resumes on p. 55.] [Text of H.R. 5949 and agency reports follow:] To amend the copyright law respecting the limitations on exclusive rights to secondary transmissions, and for other purposes. I IN THE HOUSE OF REPRESENTATIVES MARCH 24, 1982 Mr. KASTENMEIER (for himself and Mr. RAILSBACK) introduced the following bill; which was referred jointly to the Committees on the Judiciary and Energy and Commerce A BILL To amend the copyright law respecting the limitations on exclusive rights to secondary transmissions, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, TITLE I-GENERAL AMENDMENTS TO THE 3 4 5 COPYRIGHT ACT "SEC. 101. (a) Section 111(a)(3) of title 17, United 6 States Code is amended to read as follows: "(3) the secondary transmission is made by any 7 8 carrier who has no direct or indirect control over the 9 content of the primary transmission or over the ulti 1 2 3 4 5 6 7 8 9 2 mate recipients of the secondary mission, and whose activities with respect to the secondary transmission consist primarily 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 or like entity with respect to secondary transmissions and do not exempt from liability the activities of others with respect to their own primary or secondary transmissions. 10 (b) Section 111(b) of title 17, United States Code, is 11 amended to read as follows: 12 "(b) SECONDARY TRANSMISSION OF PRIMARY TRANS13 MISSION TO CONTROLLED GROUP.-Notwithstanding the 14 provisions of subsections (a) and (c), the secondary transmis15 sion to the public of a primary transmission embodying a per16 formance or display of a work is actionable as an act of in17 fringement under section 501, and is fully subject to the rem18 edies provided by sections 502 through 506 and 509, if the 19 primary transmission is not made for reception by the public 20 at large but is not made for reception by the public at large 21 but is controlled and limited to reception by particular mem22 bers of the public: Provided, however, That such secondary 23 transmission is not actionable as an act of infringement if HR 5949 IH 1 2 3 4 5 CO 6 7 8 9 10 11 12 3 "(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 by sections 331 and 332 of the Communications Act of 1934, as amended and 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) Section 111(c) (1) and (2) of title 17, United States 13 Code, are amended to read as follows: 14 "(c) SECONDARY TRANSMISSIONS BY CABLE SYS 15 TEMS. "(1) Subject to provisions of clauses (2), (3), (4), and (5) of this subsection, secondary transmissions 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 of display of a work shall be subject to compulsory licensing upon compliance with the requirements of subsection (d) where the carriage of the signals comprising the secondary transmission is per HR 5949 IH |