US Senator Orrin Hatch
June 17th, 2004   Media Contact(s): Margarita Tapia, 202/224-5225
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SATELLITE HOME VIEWER EXTENSION ACT REPORTED BY JUDICIARY COMMITTEE
 
Washington – Sen. Orrin G. Hatch (R-Utah), Chairman of the Senate Judiciary Committee, today announced that S. 2013, “The Satellite Home Viewer Extension Act,” was favorably reported to the full Senate by unanimous consent. Sen. Hatch issued the following statement:

“The Satellite Home Viewer Extension Act has strong bipartisan support. We have worked together to write a bill that appropriately balances the interests and desires of affected parties in the satellite and broadcasting industries, while advancing sound public policy and consumer choice. I also note that this is not just a bipartisan, but also a bicameral, effort. Those following the progress of this legislation will undoubtedly recognize the similarities between this bill and the one that the House Judiciary Committee will be marking up soon, and I commend Chairman Sensenbrenner and Chairman Smith for their work on this legislation in the House.

“In keeping with what some would term the hallmark of a fair deal, no one party got everything that they wanted in this bill, but I believe that the interested parties would be hard pressed to claim that it unfairly favors one party or industry at the expense of others. That being said, I will briefly outline the major provisions of the substitute amendment that was accepted today.

“First, this substitute amendment extends, for a period of five years, the distant signal compulsory license and grandfathering provisions contained in section 119 that are set to expire on December 31, 2004. Obviously, this extension is enormously important to the satellite carriers and to satellite subscribers, particularly those in markets where local-into-local service is not yet available.

“Second, this legislation provides for a binding arbitration proceeding to adjust the copyright royalty rates that are paid under the section 119 license. These rates have not been adjusted for five years, and given both inflation and changes in the cost of programming, it is clear that a rate adjustment is warranted. It should be noted that the rates reached in this proceeding will be automatically reduced by 45 percent for network stations and 30 percent for superstations to avoid any shock to subscribers.

“Third, the amendment permits royalty-free carriage of certain distant signals to subscribers in communities where those broadcast signals are “significantly viewed” over the air. This ability, which is already afforded cable providers, will provide greater competitive and regulatory parity between cable and satellite services.

“Fourth, this bill provides for a study to be conducted by the Copyright Office, in conjunction with the FCC, that will examine the several issues surrounding the policy underlying the cable and satellite statutory licenses and making recommendations as to any appropriate changes to or harmonization of these licenses.

“Finally, this amendment creates a limited statutory license that will allow permissive carriage of the signals of low power television stations subject to certain geographical and technical conditions. Again, this provision has been written so that it essentially mirrors a similar statutory license for the carriage of low power stations on cable systems. In particular, I would like to thank Senators Kohl and Feingold for their efforts on the low power issue.

“I am encouraged by the progress we have made on this bill, and I look forward to working with my colleagues on this Committee, as well as the Commerce Committee, as we move forward with this legislation on the floor.”

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