17 U.S.C. § 118 — Scope of exclusive rights: Use of certain

Page 106 TITLE 17—COPYRIGHTS [§ 116A 1 See References in Text note below. EFFECTIVE DATE Section effective Mar. 1, 1989, with any cause of ac- tion arising under this title before such date being gov- erned by provisions as in effect when cause of action arose, see section 13 of Pub. L. 100–568, set out as an Ef- fective Date of 1988 Amendment note under section 101 of this title. [§ 116A. Renumbered § 116] § 117. Limitations on exclusive rights: Computer programs (a) MAKING OF ADDITIONAL COPY OR ADAPTA- TION BY OWNER OF COPY.—Notwithstanding the provisions of section 106, it is not an infringe- ment for the owner of a copy of a computer pro- gram to make or authorize the making of an- other copy or adaptation of that computer pro- gram provided: (1) that such a new copy or adaptation is cre- ated as an essential step in the utilization of the computer program in conjunction with a machine and that it is used in no other man- ner, or (2) that such new copy or adaptation is for archival purposes only and that all archival copies are destroyed in the event that contin- ued possession of the computer program should cease to be rightful. (b) LEASE, SALE, OR OTHER TRANSFER OF ADDI- TIONAL COPY OR ADAPTATION.—Any exact copies prepared in accordance with the provisions of this section may be leased, sold, or otherwise transferred, along with the copy from which such copies were prepared, only as part of the lease, sale, or other transfer of all rights in the program. Adaptations so prepared may be trans- ferred only with the authorization of the copy- right owner. (c) MACHINE MAINTENANCE OR REPAIR.—Not- withstanding the provisions of section 106, it is not an infringement for the owner or lessee of a machine to make or authorize the making of a copy of a computer program if such copy is made solely by virtue of the activation of a ma- chine that lawfully contains an authorized copy of the computer program, for purposes only of maintenance or repair of that machine, if— (1) such new copy is used in no other manner and is destroyed immediately after the main- tenance or repair is completed; and (2) with respect to any computer program or part thereof that is not necessary for that ma- chine to be activated, such program or part thereof is not accessed or used other than to make such new copy by virtue of the activa- tion of the machine. (d) DEFINITIONS.—For purposes of this sec- tion— (1) the ‘‘maintenance’’ of a machine is the servicing of the machine in order to make it work in accordance with its original specifica- tions and any changes to those specifications authorized for that machine; and (2) the ‘‘repair’’ of a machine is the restoring of the machine to the state of working in ac- cordance with its original specifications and any changes to those specifications authorized for that machine. (Pub. L. 94–553, title I, § 101, Oct. 19, 1976, 90 Stat. 2565; Pub. L. 96–517, § 10(b), Dec. 12, 1980, 94 Stat. 3028; Pub. L. 105–304, title III, § 302, Oct. 28, 1998, 112 Stat. 2887.) HISTORICAL AND REVISION NOTES HOUSE REPORT NO. 94–1476 As the program for general revision of the copyright law has evolved, it has become increasingly apparent that in one major area the problems are not suffi- ciently developed for a definitive legislative solution. This is the area of computer uses of copyrighted works: the use of a work ‘‘in conjunction with automatic sys- tems capable of storing, processing, retrieving, or transferring information.’’ The Commission on New Technological Uses is, among other things, now en- gaged in making a thorough study of the emerging pat- terns in this field and it will, on the basis of its find- ings, recommend definitive copyright provisions to deal with the situation. Since it would be premature to change existing law on computer uses at present, the purpose of section 117 is to preserve the status quo. It is intended neither to cut off any rights that may now exist, nor to create new rights that might be denied under the Act of 1909 or under common law principles currently applicable. The provision deals only with the exclusive rights of a copyright owner with respect to computer uses, that is, the bundle of rights specified for other types of uses in section 106 and qualified in sections 107 through 116 and 118. With respect to the copyright-ability of com- puter programs, the ownership of copyrights in them, the term of protection, and the formal requirements of the remainder of the bill, the new statute would apply. Under section 117, an action for infringement of a copyrighted work by means of a computer would nec- essarily be a federal action brought under the new title 17. The court, in deciding the scope of exclusive rights in the computer area, would first need to determine the applicable law, whether State statutory or common law or the Act of 1909. Having determined what law was ap- plicable, its decision would depend upon its interpreta- tion of what that law was on the point on the day be- fore the effective date of the new statute. Editorial Notes AMENDMENTS 1998—Pub. L. 105–304 designated existing provisions as subsecs. (a) and (b), inserted headings, and added sub- secs. (c) and (d). 1980—Pub. L. 96–517 substituted provision respecting limitations on exclusive rights in connection with com- puter programs for prior provision enunciating scope of exclusive rights and use of the work in conjunction with computers and similar information systems and declaring owner of copyright in a work without any greater or lesser rights with respect to the use of the work in conjunction with automatic systems capable of storing, processing, retrieving, or transferring informa- tion, or in conjunction with any similar device, ma- chine, or process, than those afforded to works under the law, whether this title or the common law or stat- utes of a State, in effect on Dec. 31, 1977, as held appli- cable and construed by the court in an action brought under this title. § 118. Scope of exclusive rights: Use of certain works in connection with noncommercial broadcasting (a) The exclusive rights provided by section 106 shall, with respect to the works specified by subsection (b) and the activities specified by subsection (d),1 be subject to the conditions and limitations prescribed by this section. (b) Notwithstanding any provision of the anti- trust laws, any owners of copyright in published Page 107 TITLE 17—COPYRIGHTS § 118 nondramatic musical works and published pic- torial, graphic, and sculptural works and any public broadcasting entities, respectively, may negotiate and agree upon the terms and rates of royalty payments and the proportionate divi- sion of fees paid among various copyright own- ers, and may designate common agents to nego- tiate, agree to, pay, or receive payments. (1) Any owner of copyright in a work speci- fied in this subsection or any public broad- casting entity may submit to the Copyright Royalty Judges proposed licenses covering such activities with respect to such works. (2) License agreements voluntarily nego- tiated at any time between one or more copy- right owners and one or more public broad- casting entities shall be given effect in lieu of any determination by the Librarian of Con- gress or the Copyright Royalty Judges, if cop- ies of such agreements are filed with the Copy- right Royalty Judges within 30 days of execu- tion in accordance with regulations that the Copyright Royalty Judges shall issue. (3) Voluntary negotiation proceedings initi- ated pursuant to a petition filed under section 804(a) for the purpose of determining a sched- ule of terms and rates of royalty payments by public broadcasting entities to owners of copy- right in works specified by this subsection and the proportionate division of fees paid among various copyright owners shall cover the 5- year period beginning on January 1 of the sec- ond year following the year in which the peti- tion is filed. The parties to each negotiation proceeding shall bear their own costs. (4) In the absence of license agreements ne- gotiated under paragraph (2) or (3), the Copy- right Royalty Judges shall, pursuant to chap- ter 8, conduct a proceeding to determine and publish in the Federal Register a schedule of rates and terms which, subject to paragraph (2), shall be binding on all owners of copyright in works specified by this subsection and pub- lic broadcasting entities, regardless of wheth- er such copyright owners have submitted pro- posals to the Copyright Royalty Judges. In es- tablishing such rates and terms the Copyright Royalty Judges may consider the rates for comparable circumstances under voluntary li- cense agreements negotiated as provided in paragraph (2) or (3). The Copyright Royalty Judges shall also establish requirements by which copyright owners may receive reason- able notice of the use of their works under this section, and under which records of such use shall be kept by public broadcasting entities. (c) Subject to the terms of any voluntary li- cense agreements that have been negotiated as provided by subsection (b)(2) or (3), a public broadcasting entity may, upon compliance with the provisions of this section, including the rates and terms established by the Copyright Royalty Judges under subsection (b)(4), engage in the following activities with respect to pub- lished nondramatic musical works and published pictorial, graphic, and sculptural works: (1) performance or display of a work by or in the course of a transmission made by a non- commercial educational broadcast station re- ferred to in subsection (f); and (2) production of a transmission program, re- production of copies or phonorecords of such a transmission program, and distribution of such copies or phonorecords, where such pro- duction, reproduction, or distribution is made by a nonprofit institution or organization solely for the purpose of transmissions speci- fied in paragraph (1); and (3) the making of reproductions by a govern- mental body or a nonprofit institution of a transmission program simultaneously with its transmission as specified in paragraph (1), and the performance or display of the contents of such program under the conditions specified by paragraph (1) of section 110, but only if the reproductions are used for performances or displays for a period of no more than seven days from the date of the transmission speci- fied in paragraph (1), and are destroyed before or at the end of such period. No person sup- plying, in accordance with paragraph (2), a re- production of a transmission program to gov- ernmental bodies or nonprofit institutions under this paragraph shall have any liability as a result of failure of such body or institu- tion to destroy such reproduction: Provided, That it shall have notified such body or insti- tution of the requirement for such destruction pursuant to this paragraph: And provided fur- ther, That if such body or institution itself fails to destroy such reproduction it shall be deemed to have infringed. (d) Except as expressly provided in this sub- section, this section shall have no applicability to works other than those specified in sub- section (b). Owners of copyright in nondramatic literary works and public broadcasting entities may, during the course of voluntary negotia- tions, agree among themselves, respectively, as to the terms and rates of royalty payments without liability under the antitrust laws. Any such terms and rates of royalty payments shall be effective upon filing with the Copyright Roy- alty Judges, in accordance with regulations that the Copyright Royalty Judges shall prescribe as provided in section 803(b)(6). (e) Nothing in this section shall be construed to permit, beyond the limits of fair use as pro- vided by section 107, the unauthorized drama- tization of a nondramatic musical work, the production of a transmission program drawn to any substantial extent from a published com- pilation of pictorial, graphic, or sculptural works, or the unauthorized use of any portion of an audiovisual work. (f) As used in this section, the term ‘‘public broadcasting entity’’ means a noncommercial educational broadcast station as defined in sec- tion 397 of title 47 and any nonprofit institution or organization engaged in the activities de- scribed in paragraph (2) of subsection (c). (Pub. L. 94–553, title I, § 101, Oct. 19, 1976, 90 Stat. 2565; Pub. L. 103–198, § 4, Dec. 17, 1993, 107 Stat. 2309; Pub. L. 106–44, § 1(g)(3), Aug. 5, 1999, 113 Stat. 222; Pub. L. 107–273, div. C, title III, § 13210(7), Nov. 2, 2002, 116 Stat. 1909; Pub. L. 108–419, § 5(f), Nov. 30, 2004, 118 Stat. 2365; Pub. L. 109–303, § 4(d), Oct. 6, 2006, 120 Stat. 1482.) HISTORICAL AND REVISION NOTES HOUSE REPORT NO. 94–1476 General Background. During its consideration of revi- sion legislation in 1975, the Senate Judiciary Com- Page 108 TITLE 17—COPYRIGHTS § 118 mittee adopted an amendment offered by Senator Charles McC. Mathias. The amendment, now section 118 of the Senate bill [this section], grants to public broad- casting a compulsory license for use of nondramatic literary and musical works, as well as pictorial, graph- ic, and sculptural works, subject to payment of reason- able royalty fees to be set by the Copyright Royalty Tribunal established by that bill. The Mathias amend- ment requires that public broadcasters, at periodic in- tervals, file a notice with the Copyright Office con- taining information required by the Register of Copy- rights and deposit a statement of account and the total royalty fees for the period covered by the statement. In July of each year all persons having a claim to such fees are to file their claims with the Register of Copy- rights. If no controversy exists, the Register would dis- tribute the royalties to the various copyright owners and their agents after deducting reasonable adminis- trative costs; controversies are to be settled by the Tri- bunal. On July 10, 1975, the House Subcommittee heard tes- timony on the Mathias amendment from representa- tives of public broadcasters, authors, publishers, and music performing rights societies. The public broad- casters pointed to Congressional concern for the devel- opment of their activities as evidenced by the Public Broadcasting Act [47 U.S.C. 390 et seq.]. They urged that a compulsory license was essential to assure pub- lic broadcasting broad access to copyrighted materials at reasonable royalties and without administratively cumbersome and costly ‘‘clearance’’ problems that would impair the vitality of their operations. The oppo- nents of the amendment argued that the nature of pub- lic broadcasting has changed significantly in the past decade, to the extent that it now competes with com- mercial broadcasting as a national entertainment and cultural medium. They asserted that the performing rights society arrangements under which copyrighted music is licensed for performance removed any problem in clearing music for broadcasting, and that voluntary agreements could adequately resolve the copyright problems feared by public broadcasters, at less expense and burden than the compulsory license, for synchroni- zation and literary rights. The authors of literary works stressed that a compulsory licensing system would deny them the fundamental right to control the use of their works and protect their reputation in a major communications medium. General Policy Considerations. The Committee is cog- nizant of the intent of Congress, in enacting the Public Broadcasting Act on November 7, 1967 [47 U.S.C. 390 et seq.], that encouragement and support of noncommer- cial broadcasting is in the public interest. It is also aware that public broadcasting may encounter prob- lems not confronted by commercial broadcasting enter- prises, due to such factors as the special nature of pro- gramming, repeated use of programs, and, of course, limited financial resources. Thus, the Committee deter- mined that the nature of public broadcasting does war- rant special treatment in certain areas. However, the Committee did not feel that the broad compulsory li- cense provided in the Senate bill is necessary to the continued successful operation of public broadcasting. In addition, the Committee believes that the system provided in the Senate bill for the deposit of royalty fees with the Copyright Office for distribution to claim- ants, and the resolution of disputes over such distribu- tion by a statutory tribunal, can be replaced by pay- ments directly between the parties, without the inter- vention of government machinery and its attendant ad- ministrative costs. In general, the Committee amended the public broad- casting provisions of the Senate bill toward attainment of the objective clearly stated in the Report of the Sen- ate Judiciary Committee, namely, that copyright own- ers and public broadcasters be encouraged to reach vol- untary private agreements. Procedures. Not later than thirty days following the publication by the President of the notice announcing the initial appointments to the Copyright Royalty Commission (specified in Chapter 8 [§ 801 et seq. of this title]), the Chairman of the Commission is to publish notice in the Federal Register of the initiation of pro- ceedings to determine ‘‘reasonable terms and rates’’ for certain uses of published nondramatic musical works and published pictorial, graphic and sculptural works, during a period ending on December 31, 1982. Copyright owners and public broadcasting entities that do not reach voluntary agreement are bound by the terms and rates established by the Commission, which are to be published in the Federal Register with- in six months of the notice of initiation of proceedings. During the period between the effective date of the Act [Jan. 1, 1978] and the publication of the rates and terms, the Committee has preserved the status quo by pro- viding, in section 118(b)(4), that the Act does not afford to copyright owners or public broadcasting entities any greater or lesser rights with respect to the relevant uses of nondramatic musical works and pictorial, graphic, and sculptural works than those afforded under the law in effect on December 31, 1977. License agreements that have been voluntarily nego- tiated supersede, as between the parties to the agree- ment, the terms and rates established by the Commis- sion, provided that copies of the agreements are prop- erly filed with the Copyright Office within 30 days of execution. Under clause (2) of section 118(b), the agree- ments may be negotiated ‘‘at any time’’—whether be- fore, during, or after determinations by the Commis- sion. Under section 118(c), the procedures for the Commis- sion’s establishing such rates and terms are to be re- peated in the last half of 1982 and every five years thereafter. Establishment of Reasonable Terms and Rates. In es- tablishing reasonable terms and rates for public broad- casting use of the specified works, the Commission, under clause (b)(1) of section 118 is to consider pro- posals timely submitted to it, as well as ‘‘any other rel- evant information’’, including that put forward for its consideration ‘‘by any interested party.’’ The Committee does not intend that owners of copy- righted material be required to subsidize public broad- casting. It is intended that the Commission assure a fair return to copyright owners without unfairly bur- dening public broadcasters. Section 118(b)(3) provides that ‘‘the Commission may consider the rates for com- parable circumstances under voluntary license agree- ments.’’ The Commission is also expected to consider both the general public interest in encouraging the growth and development of public broadcasting, and the ‘‘promotion of science and the useful arts’’ through the encouragement of musical and artistic creation. The Committee anticipates that the ‘‘terms’’ estab- lished by the Commission shall include provisions as to acceptable methods of payment of royalties by public broadcasting entities to copyright owners. For exam- ple, where the whereabouts of the copyright owner may not be readily known, the terms should specify the na- ture of the obligation of the public broadcasting entity to locate the owner, or to set aside or otherwise assure payment of appropriate royalties, should he or she ap- pear and make a claim. Section 118(b)(3) requires the Commission ‘‘to establish requirements by which copy- right owners may receive reasonable notice of the use of their works.’’ The Committee intends that these re- quirements shall not impose undue hardships on public broadcasting entities and, in the above illustration, shall provide for the specific termination of any period during which the public broadcasting entity is required to set aside payments. It is expected that, in some cases, especially in the area of pictorial, graphic, and sculptural works, the whereabouts of the owners of copyright may not be known and they may never ap- pear to claim payment of royalties. The Commission is also to establish record keeping requirements for public broadcasting entities in order to facilitate the identification, calculation, allocation and payment of claims and royalties. Works Affected. Under sections 118(b) and (e) of the Committee’s amendment, the establishment of rates Page 109 TITLE 17—COPYRIGHTS § 118 and terms by the Copyright Royalty Commission per- tains only to the use of published nondramatic musical works, and published pictorial, graphic, and sculptural works. As under the Senate bill; rights in plays, operas, ballet and other stage presentations, motion pictures, and other audiovisual works are not affected. Section 118(f) is intended to make clear that this sec- tion does not permit unauthorized use, beyond the lim- its of section 107, of individual frames from a filmstrip or any other portion of any audiovisual work. Addition- ally, the application of this section to pictorial, graph- ic, and sculptural works does not extend to the produc- tion of transmission programs drawn to any substan- tial extent from a compilation of such works. The Committee also concluded that the performance of nondramatic literary works should not be subject to Commission determination. It was particularly con- cerned that a compulsory license for literary works would result in loss of control by authors over the use of their work in violation of basic principles of artistic and creative freedom. It is recognized that copyright not only provides compensation to authors, but also protection as to how and where their works are used. The Committee was assured by representatives of au- thors and publishers that licensing arrangements for readings from their books, poems, and other works on public broadcasting programs for reasonable compensa- tion and under reasonable safeguards for authors’ rights could be worked out in private negotiation. The Committee strongly urges the parties to work toward mutually acceptable licenses; to facilitate their nego- tiations and aid in the possible establishment of clear- ance mechanisms and rates, the Committee’s amend- ment provides the parties, in section 118(e)(1), with an appropriately limited exemption from the antitrust laws [15 U.S.C. 1 et seq.]. The Committee has also provided, in paragraph (2) of clause (e), that on January 3, 1980, the Register of Copyrights, after consultation with the interested par- ties, shall submit a report to Congress on the extent to which voluntary licensing arrangements have been reached with respect to public broadcast use of nondra- matic literary works, and present legislative or other recommendations, if warranted. The use of copyrighted sound recordings in edu- cational television and radio programs distributed by or through public broadcasting entities is governed by section 114 and is discussed in connection with that sec- tion. Activities Affected. Section 118(d) specifies the activi- ties which may be engaged in by public broadcasting entities under terms and rates established by the Com- mission. These include the performance or display of published nondramatic musical works, and of published pictorial, graphic, and sculptural works, in the course of transmissions by noncommercial educational broad- cast stations; and the production, reproduction, and distribution of transmission programs including such works by nonprofit organizations for the purpose of such transmissions. It is the intent of the Committee that ‘‘interconnection’’ activities serving as a tech- nical adjunct to such transmissions, such as the use of satellites or microwave equipment, be included within the specified activities. Paragraph (3) of clause (d) also includes the reproduc- tion, simultaneously with transmission, of public broadcasting programs by governmental bodies or non- profit institutions, and the performance or display of the contents of the reproduction under the conditions of section 110(1). However, the reproduction so made must be destroyed at the end of seven days from the transmission. This limited provision for unauthorized simultaneous or off-the-air reproduction is limited to nondramatic musical works and pictorial, graphic and sculptural works included in public broadcasting transmissions. It does not extend to other works included in the trans- missions, or to the entire transmission program. It is the intent of the Committee that schools be per- mitted to engage in off-the-air reproduction to the ex- tent and under the conditions provided in [section] 118(d)(3); however, in the event a public broadcasting station or producer makes the reproduction and dis- tributes a copy to the school, the station or producer will not be held liable for the school’s failure to destroy the reproduction, provided it has given notice of the re- quirement of destruction. In such a case the school itself, although it did not engage in the act of reproduc- tion, is deemed an infringer fully subject to the rem- edies provided in Chapter 5 of the Act [§ 501 et seq. of this title]. The establishment of standards for adequate notice under this provision should be considered by the Commission. Section 118(f) makes it clear that the rights of per- formance and other activities specified in subsection (d) do not extend to the unauthorized dramatization of a nondramatic musical work. Editorial Notes REFERENCES IN TEXT Subsection (d), referred to in subsec. (a), was redesig- nated as subsection (c) of this section by Pub. L. 108–419, § 5(f)(2), Nov. 30, 2004, 118 Stat. 2366. AMENDMENTS 2006—Subsec. (b)(3). Pub. L. 109–303, § 4(d)(1), sub- stituted ‘‘owners of copyright in works’’ for ‘‘copyright owners in works’’. Subsec. (c). Pub. L. 109–303, § 4(d)(2), substituted ‘‘es- tablished by the Copyright Royalty Judges under sub- section (b)(4), engage’’ for ‘‘established by the Copy- right Royalty Judges under subsection (b)(4), to the ex- tent that they were accepted by the Librarian of Con- gress, engage’’ in introductory provisions and ‘‘(f)’’ for ‘‘(g)’’ in par. (1). 2004—Subsec. (b)(1). Pub. L. 108–419, § 5(f)(1)(A), sub- stituted ‘‘Copyright Royalty Judges’’ for ‘‘Librarian of Congress’’ in first sentence and struck out at end ‘‘The Librarian of Congress shall proceed on the basis of the proposals submitted as well as any other relevant infor- mation. The Librarian of Congress shall permit any in- terested party to submit information relevant to such proceedings.’’ Subsec. (b)(2). Pub. L. 108–419, § 5(f)(1)(B), substituted ‘‘Librarian of Congress or the Copyright Royalty Judges, if copies of such agreements are filed with the Copyright Royalty Judges within 30 days of execution in accordance with regulations that the Copyright Roy- alty Judges shall issue’’ for ‘‘Librarian of Congress: Provided, That copies of such agreements are filed in the Copyright Office within thirty days of execution in accordance with regulations that the Register of Copy- rights shall prescribe’’. Subsec. (b)(3), (4). Pub. L. 108–419, § 5(f)(1)(C), added pars. (3) and (4), redesignated second and third sen- tences of former par. (3) as second and third sentences of par. (4), substituted ‘‘Copyright Royalty Judges’’ for ‘‘copyright arbitration royalty panel’’ and ‘‘paragraph (2) or (3)’’ for ‘‘paragraph (2)’’ in second sentence of par. (4), substituted ‘‘Copyright Royalty Judges’’ for ‘‘Li- brarian of Congress’’ in last sentence of par. (4), and struck out ‘‘(3) In the absence of license agreements ne- gotiated under paragraph (2), the Librarian of Congress shall, pursuant to chapter 8, convene a copyright arbi- tration royalty panel to determine and publish in the Federal Register a schedule of rates and terms which, subject to paragraph (2), shall be binding on all owners of copyright in works specified by this subsection and public broadcasting entities, regardless of whether such copyright owners have submitted proposals to the Li- brarian of Congress.’’ Subsec. (c). Pub. L. 108–419, § 5(f)(3)(C), which directed substitution of ‘‘the Copyright Royalty Judges under subsection (b)(3), to the extent that they were accepted by the Librarian of Congress’’ for ‘‘a copyright arbitra- tion royalty panel under subsection (b)(3)’’ in introduc- tory provisions, was executed before the amendment by Pub. L. 108–419, § 5(f)(3)(B), to reflect the probable in- tent of Congress. See below. Page 110 TITLE 17—COPYRIGHTS § 119 Pub. L. 108–419, § 5(f)(3)(B), substituted ‘‘(b)(4)’’ for ‘‘(b)(3)’’ in introductory provisions. See above. Pub. L. 108–419, § 5(f)(3)(A), substituted ‘‘(b)(2) or (3)’’ for ‘‘(b)(2)’’ in introductory provisions. Pub. L. 108–419, § 5(f)(2), redesignated subsec. (d) as (c) and struck out former subsec. (c) which read as follows: ‘‘The initial procedure specified in subsection (b) shall be repeated and concluded between June 30 and Decem- ber 31, 1997, and at five-year intervals thereafter, in ac- cordance with regulations that the Librarian of Con- gress shall prescribe.’’ Subsec. (d). Pub. L. 108–419, § 5(f)(2), (4), redesignated subsec. (e) as (d) and substituted ‘‘with the Copyright Royalty Judges’’ for ‘‘in the Copyright Office’’ and ‘‘Copyright Royalty Judges shall prescribe as provided in section 803(b)(6)’’ for ‘‘Register of Copyrights shall prescribe’’. Former subsec. (d) redesignated (c). Subsec. (e). Pub. L. 108–419, § 5(f)(2), redesignated sub- sec. (f) as (e). Former subsec. (e) redesignated (d). Subsec. (f). Pub. L. 108–419, § 5(f)(2), (5), redesignated subsec. (g) as (f) and substituted ‘‘(c)’’ for ‘‘(d)’’. Former subsec. (f) redesignated (e). Subsec. (g). Pub. L. 108–419, § 5(f)(2), redesignated sub- sec. (g) as (f). 2002—Subsec. (b)(1). Pub. L. 107–273 struck out ‘‘to it’’ after ‘‘proposals submitted’’ in second sentence. 1999—Subsec. (e). Pub. L. 106–44 struck out ‘‘(1)’’ be- fore ‘‘Owners of’’ and struck out par. (2) which read as follows: ‘‘On January 3, 1980, the Register of Copy- rights, after consulting with authors and other owners of copyright in nondramatic literary works and their representatives, and with public broadcasting entities and their representatives, shall submit to the Congress a report setting forth the extent to which voluntary li- censing arrangements have been reached with respect to the use of nondramatic literary works by such broadcast stations. The report should also describe any problems that may have arisen, and present legislative or other recommendations, if warranted.’’ 1993—Subsec. (b). Pub. L. 103–198, § 4(1)(A), (B), struck out first two sentences which read as follows: ‘‘Not later than thirty days after the Copyright Royalty Tri- bunal has been constituted in accordance with section 802, the Chairman of the Tribunal shall cause notice to be published in the Federal Register of the initiation of proceedings for the purpose of determining reasonable terms and rates of royalty payments for the activities specified by subsection (d) with respect to published nondramatic musical works and published pictorial, graphic, and sculptural works during a period begin- ning as provided in clause (3) of this subsection and ending on December 31, 1982. Copyright owners and pub- lic broadcasting entities shall negotiate in good faith and cooperate fully with the Tribunal in an effort to reach reasonable and expeditious results.’’, and in third sentence substituted ‘‘published nondramatic musical works and published pictorial, graphic, and sculptural works’’ for ‘‘works specified by this subsection’’. Subsec. (b)(1). Pub. L. 103–198, § 4(1)(C), struck out ‘‘, within one hundred and twenty days after publica- tion of the notice specified in this subsection,’’ after ‘‘broadcasting entity may’’ and substituted ‘‘Librarian of Congress’’ for ‘‘Copyright Royalty Tribunal’’ wher- ever appearing. Subsec. (b)(2). Pub. L. 103–198, § 4(1)(D), substituted ‘‘Librarian of Congress’’ for ‘‘Tribunal’’. Subsec. (b)(3). Pub. L. 103–198, § 4(1)(E)(ii), (iii), in sec- ond sentence, substituted ‘‘copyright arbitration roy- alty panel’’ for ‘‘Copyright Royalty Tribunal’’ and ‘‘paragraph (2)’’ for ‘‘clause (2) of this subsection’’, and in last sentence, substituted ‘‘Librarian of Congress’’ for ‘‘Copyright Royalty Tribunal’’. Pub. L. 103–198, § 4(1)(E)(i), substituted first sentence for former first sentence which read as follows: ‘‘Within six months, but not earlier than one hundred and twen- ty days, from the date of publication of the notice spec- ified in this subsection the Copyright Royalty Tribunal shall make a determination and publish in the Federal Register a schedule of rates and terms which, subject to clause (2) of this subsection, shall be binding on all owners of copyright in works specified by this sub- section and public broadcasting entities, regardless of whether or not such copyright owners and public broad- casting entities have submitted proposals to the Tri- bunal.’’ Subsec. (b)(4). Pub. L. 103–198, § 4(1)(F), struck out par. (4) which read as follows: ‘‘With respect to the pe- riod beginning on the effective date of this title and ending on the date of publication of such rates and terms, this title shall not afford to owners of copyright or public broadcasting entities any greater or lesser rights with respect to the activities specified in sub- section (d) as applied to works specified in this sub- section than those afforded under the law in effect on December 31, 1977, as held applicable and construed by a court in an action brought under this title.’’ Subsec. (c). Pub. L. 103–198, § 4(2), substituted ‘‘1997’’ for ‘‘1982’’ and ‘‘Librarian of Congress’’ for ‘‘Copyright Royalty Tribunal’’. Subsec. (d). Pub. L. 103–198, § 4(3), in introductory pro- visions, struck out ‘‘to the transitional provisions of subsection (b)(4), and’’ after ‘‘Subject’’ and substituted ‘‘a copyright arbitration royalty panel’’ for ‘‘the Copy- right Royalty Tribunal’’, and in pars. (2) and (3), sub- stituted ‘‘paragraph’’ for ‘‘clause’’ wherever appearing. Subsec. (g). Pub. L. 103–198, § 4(4), substituted ‘‘para- graph’’ for ‘‘clause’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–303 effective as if included in the Copyright Royalty and Distribution Reform Act of 2004, Pub. L. 108–419, see section 6 of Pub. L. 109–303, set out as a note under section 111 of this title. EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–419 effective 6 months after Nov. 30, 2004, subject to transition provisions, see section 6 of Pub. L. 108–419, set out as an Effective Date; Transition Provisions note under section 801 of this title. EFFECTIVE DATE Section effective Oct. 19, 1976, see section 102 of Pub. L. 94–553, set out as a note preceding section 101 of this title. § 119. Limitations on exclusive rights: Secondary transmissions of distant television program- ming by satellite (a) SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.— (1) NON-NETWORK STATIONS.—Subject to the provisions of paragraphs (3), (4), and (6) of this subsection and section 114(d), secondary trans- missions of a performance or display of a work embodied in a primary transmission made by a non-network station shall be subject to stat- utory licensing under this section if the sec- ondary transmission is made by a satellite carrier to the public for private home viewing or for viewing in a commercial establishment, with regard to secondary transmissions the satellite carrier is in compliance with the rules, regulations, or authorizations of the Federal Communications Commission gov- erning the carriage of television broadcast sta- tion signals, and the carrier makes a direct or indirect charge for each retransmission serv- ice to each subscriber receiving the secondary transmission or to a distributor that has con- tracted with the carrier for direct or indirect delivery of the secondary transmission to the public for private home viewing or for viewing in a commercial establishment.