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$2. Urges that the Honorable John Glenn and Honorable Robert Taft, Senators and Honorable Wayne L. Hays, our Congressman, do everything within their power to defeat Senate Bill S.1361.

$3. That this resolution shall take effect and be in force from and after the earliest period allowed by law.

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"Broadcasters perform, viewers do not perform. Thus while both broad
caster and viewer play crucial roles in the total television process a line is
drawn between them One is treated as active performer, the other a passive
beneficiary When CATV is considered in this framework we conclude that
it falls on the viewer's side of the line Essentially a CATV no more than en
hances the viewer's capacity to receive the broadcaster's signal it provides
a well-located antenna with an efficient connection to the viewers televisión
set. It is true that a CATV system plays an active role in making reception
possible in a given area, but so do ordinary television sets and anter has
(Footnotes omitted)

Section 106 lists five fundamental rights given to copyright owners - the ex production, adaptation, publication performance and display - are stated genera ly in this sex' y" "These exclusive rights, which comprise the so-called bunde of "ghts that is a copyright. are cumulative and may overlap in some cases Each of the five enumerated rights may be subdivided indefinitely and, may be owned and enforced separately

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However, the bill, after setting up these exclusive rights provides var tions, or exceptions in the remaining 11 sections of the chapter Thus section sections and m't be read in conjunction with those provisions (Report, p 1 et seq.

Section 111 which was deleted from H R 2512 before it was passed by the Hruse in cas been revised by the Senate This section modifies the liability of CATV by imitations on the ex. us of rights of copyright owners in secondary transmission

This section has five subsections Subsection (a) provides that a secondary transmission embodying a performance or display of a work is not an infringement if

(1) The secondary transmission is not made by a cabie System but ig
antenna system located in the local service area of a broadcast stat.
FCC for which no direct charge is made

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(2) The secondary transmission is solely for purposes described in clause (2
(systematic instructional activities related to teaching content of the trash
transmitted for reception in classrooms to persons disabled from attending
reception by government employees in the course of official dutiesi
(3) The secondary transmission is by a carner that has no control over subject
cipients thereof and which only provides wife or cat e for use of others
(4) The secondary transmission is by a governmental body or other nun pr
which makes no charge except to defray actual expenses This exempt
translators or boosters This exemption does not apply to a catie te ev a
(Report id, p 131)

Subsection (C) provides in clause (1) for compulsory licensing of secondary tegnum eg
primary transmission by an FCC licensed broadcast facuity upen nompiance with the
ship and quarterly payment provisions of subseton (d) and (A the primary transmissi
B. where the rat e sip
aufà, and the secondary transmission is permis te un 1er FCC LES
Ca serv e area as prenor hout by the FCC of the primary tratam
* in part, within the
C where carrage of sigrais cumprising the secondary trasm 35 in 15 perm gate unger t
Clause 2 of subsection ici provides that notwithstanding the compulsory icer se
transmis OS

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converts the Copyright Law into an enforcement law for FCC rules by which broadcasters could com finually harass cable operators with vexatious litigation on any pretext of carnage of signais not per mitted by the FCC rules It is sut” fed that this is not a proper function of Copyright Law The

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fing from the scope of the compulsory cave this matter to the Commission and the

The meaning of subsection ib is clearer if considered after c
an exemption to both jai and ic) This sect in provides that n.'w
master antenna teaching carriers
is. w but sect
ance with FCC rules

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the secondary transmis on is not made for reception of public at large b.

- ømhers of the public (pay Tv)

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Subsection (gyrty provides for notice of ownership of the cable system a' 1 may he Poured to the Off e of Copyright one month before the se vites fid je,st in the Office of Copyright day tas on a quarterly bass in a A a statement of account specify ng sout eatin the gartery ya'y based or a sidig fer en lage scale ut gross race, is from subsenters, f es ut proving secundary tra smssor of primary braj last transmitters The s Quarterly gross receipts of up to $4 base: ra 5a X, myrthy rate

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2pm N to the rate base may be ex, a *v* *** may a 'pa1y twe Latar the rate in [rease) Th the American Arbitration Association prescribe that is not set aside in Cuess w

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Case 1 of subse "id; provides procedures for the distribution of toya ty fees deg« s ted with the Rey star of Copy: U''S

S. Petrum eruntang Setinting of primary transmm 55 A
a J

The set.

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Copyright or other license to transmit or perform that work shall for purposes of nstituting an action be treated as a legal or beneficial owner if such secondary transmiss un occurs within the juca service area of that television station

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Section 802 requires the Register of Copyrights to give notice on July 1, 1975 of proceed? IȘT review royalty rates prescribed by Sections 111, 114 and 115 During the year 1982 and every *** as thereafter, petitions for adjustment of the rates may be filed

Section 803 If the Register of Copyrights determines that there is a controversy on tambor fees or gives notice of significant interest of a petition under Section 802, he shall request the Ame a Arbitration Association to submit three names to which objections can be filed. If no ubiect it will constitute a panel of the Tribunal to function as the Tribunal If objections to mambert að un founded additional names shall be requested and the Tribunal then constituted. There snipras appeal to the Courts Three arbitrators unskilled in this area will effectually contro rates and he an

base

Section 806 provides for a report of a Tribunal decision to the Senate and House and Sent provides that if either House resolution, within 90 days, does not favor the der sich abatan effective If no resolution of disapproval is passed the Tribunal decision sha: become effectar Section 809 does not provide for any judicial review of the Tribunals decisions ne royal i

SUMMARY

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In brief Section 106 makes cable television systems when performing as a r fully liable as an infringer when distributing copyrighted programs on sigra s rece vect team to ass stations Exceptions from liability are provided for master artenna teaching or netry t common and other carriers and nonprofit co-ops CATV is g ven a compulsory cense and other signals authorized by the FCC

Nevertheless it is an infringement if carriage of a signal is not permissibile yn tør k appropriate notice is not filed with the Office of Copyright. This provision is a real kvejen her kne Give copyright protection and penalties both civil, criminal and injunctive to the broadcaster if CAT D accident or otherwise fails to nonduplicate a network or syndicated signal or in any signal not permitted by the FCC rules in addition over the air carriage of pay TV unless cleared by the owner of the copyright QUERY May the broadcaster near programs – not - he can only sue

A sliding scale of across-the-board fees is prescribed on basic services, wh with the Office of Copyright quarterly. A hearing will be held in 1975 to c

the rates to be paid to insure a reasonable royalty tee whatever that is Na Saare, es only the sujective idea of the three arb trators will prevail unless disapprovers with Jays by of Congress There is no Court appeal to test whether the record supports the award

Stiff civil and criminal penalties are provided for infringements Broadlasters h treated as a beneficial owner within their local service area for purposes of instituting an fringement

AC pyright Royalty Tribunal is forment Panels of the Tribuna, are app Arttutor ely. The rates power bed in Sector 11tg it and the rate base tas wil be reviewed in 1975 and ayari in 1ähe arid every five years Thermaller to assure the reasc natuệ f、yà 1y fee

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THE PUBLIC SHOULD NOT PAY A COPYRIGHT FEE VIA CATV
mar that the Register of CCpyrights makes his whole case
́harges its subsorbers and makes a profit and failure

{e th¥ !auf I a、A* damage tha

TelePrompTer Corp.

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The fact that 、 ATV makes a profit by assisting the TV stat on to de ver is

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gated in serve and for which then pyr ** ·wner has been pad has no beari
Cyrunt (ATV services keeps the copyright owner hur est by de ver ng treng
* be 'as been paid in fet ruary 1965 in my remarks before the inter
Ses Six ety I stated

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At the present time a sponsor who buys a program usuà y pays the
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