, ii
Why Having a Statutory License Is Important
Most television broadcasts contain copyrighted programming.
Without a statutory license, a satellite carrier that scrambles
the signal of a broadcast station and retransmits the signal
to subscribers for a fee either has to negotiate licenses for all
copyrighted programming it retransmits or risk substantial
civil (or, in some cases, criminal) liability for multiple acts of
copyright infringement.
Who Can Use the Section 119 Statutory License
Under the statute, the retransmission of a non-network station
is subject to statutory licensing only if it is made by a satellite
carrier to the public for private home viewing or for viewing in
a commercial establishment and the carrier makes a direct or
indirect charge to the subscriber or to a distributor of the
non-network station.
e retransmission of a network station is subject to
statutory licensing under the same circumstances with the
additional requirement that the carrier must retransmit the
network station only to unserved households and the carrier
must provide local-into-local service to all DMAs (designated
market areas).
If a satellite carrier has contracted with a distributor to
market the carrier’s retransmission service to the viewing
public or otherwise act as an agent of the carrier, it is still the
responsibility of the satellite carrier (and not the distributor)
to obtain a statutory license for the retransmission service. If a
cable system engages in distributorship activities on behalf of a
satellite carrier, the cable system or distributor should segregate
the subscription fees collected on behalf of the satellite carrier
from those collected from cable subscribers pursuant to the
section 111 cable statutory license. e cable system should
only report in its section 111 statements of account the number
of cable subscribers served and the amount of gross receipts
collected pursuant to section 111 and should pay only royalties
pursuant to the requirements of section 111.
Definitions
• A satellite carrier is defined as “an entity that uses the
facilities of a satellite or satellite service licensed by the
Federal Communications Commission and operates in
the Fixed Satellite Service under part 25 of title 47 of
the Code of Federal Regulations or the Direct Broadcast
Satellite Service under part 100 of title 47 of the Code of
Federal Regulations, to establish and operate a channel of
communications for point-to-multipoint distribution of
television station signals, and that owns or leases a capacity
or service on a satellite in order to provide such point-to-
multipoint distribution, except to the extent that such entity
provides such distribution pursuant to tari under the
Communications Act of 1934, other than for private home
viewing pursuant to this Section [119].”
• A non-network station is defined as “a television station,
other than a network station, licensed by the Federal
Communications Commission that is secondarily
transmitted by a satellite carrier.”
• Private home viewing is defined as “the viewing, for
private use in a household by means of satellite reception
equipment which is operated by an individual in that
household and which serves only such household, of a
secondary transmission delivered by a satellite carrier of a
primary transmission of a television station licensed by the
Federal Communications Commission.”
• A commercial establishment means an “establishment used
for commercial purposes, such as a bar, restaurant, private
office, fitness club, oil rig, retail store, bank or other
financial institution, supermarket, automobile or boat
dealership, or any other establishment with a common
business area;” and “does not include a multiunit permanent
or temporary dwelling where private home viewing occurs,
such as a hotel, dormitory, hospital, apartment,
condominium, or prison.”
• A subscriber is defined as “a person or entity that receives
a secondary transmission service from a satellite carrier
and pays a fee for the service, directly or indirectly, to the
satellite carrier or to a distributor.”
• Subscribe means to “elect to become a subscriber.”
• Per subscriber per month means “each subscriber
subscribing to the station in question, or to a package
including such station, on the last day of a given month.”
• A network station is defined as “(a) a television station
licensed by the Federal Communications Commission,
including any translator station or terrestrial satellite station
that rebroadcasts all or substantially all of the programming
broadcast by a network station, that is owned or operated
by, or affiliated with, one or more of the television networks
in the United States which oer an interconnected program
service on a regular basis for 15 or more hours per week to
at least 25 of its affiliated television licensees in 10 or more
States; or (b) a noncommercial educational broadcast
station (as defined in section 397 of the Communications
Act of 1934).”
• A distributor is defined as “an entity which contracts to
distribute secondary transmissions from a satellite carrier
and, either as a single channel or in a package with other
programming, provides the secondary transmission either
directly to individual subscribers or indirectly through
other program distribution entities in accordance with the
provisions of this Section [119].”
• e term unserved household means a household that
(A) is a recreational vehicle as dened in regulations of the
Secretary of Housing and Urban Development under
section 3282.8 of title 24, Code of Federal Regulations;
or a commercial motor truck under regulations of the
Secretary of Transportation under section 383.5 of title
49, Code of Federal Regulations; or
(B) is a subscriber located in a short market.