Changes marked are as requested by H.R. 2821, a bill in the 110th Congress (as introduced).
Green text will be added by the proposed H.R. 2821 as introduced, Red text will be removed.
TITLE 17 > CHAPTER 1 > § 122

§ 122. Limitations on exclusive rights: Secondary transmissions by satellite carriers within local markets

(a) Secondary Transmissions of Television Broadcast Stations by Satellite Carriers.— A secondary transmission of a performance or display of a work embodied in a primary transmission of a television broadcast station into the station’s local market or adjacent market shall be subject to statutory licensing under this section if—

(b) Reporting Requirements.— (c) No Royalty Fee Required.— A satellite carrier whose secondary transmissions are subject to statutory licensing under subsection (a) shall have no royalty obligation for such secondary transmissions.

(d) Noncompliance With Reporting and Regulatory Requirements.— Notwithstanding subsection (a), the willful or repeated secondary transmission to the public by a satellite carrier into the local market or adjacent market of a television broadcast station of a primary transmission embodying a performance or display of a work made by that television broadcast station is actionable as an act of infringement under section 501, and is fully subject to the remedies provided under sections 502 through 506 and 509, if the satellite carrier has not complied with the reporting requirements of subsection (b) or with the rules, regulations, and authorizations of the Federal Communications Commission concerning the carriage of television broadcast signals.

(e) Willful Alterations.— Notwithstanding subsection (a), the secondary transmission to the public by a satellite carrier into the local market or adjacent market of a television broadcast station of a performance or display of a work embodied in a primary transmission made by that television broadcast station is actionable as an act of infringement under section 501, and is fully subject to the remedies provided by sections 502 through 506 and sections 509 and 510, if the content of the particular program in which the performance or display is embodied, or any commercial advertising or station announcement transmitted by the primary transmitter during, or immediately before or after, the transmission of such program, is in any way willfully altered by the satellite carrier through changes, deletions, or additions, or is combined with programming from any other broadcast signal.

(f) Violation of Territorial Restrictions on Statutory License for Television Broadcast Stations.—

(g) Burden of Proof.— In any action brought under subsection (f), the satellite carrier shall have the burden of proving that its secondary transmission of a primary transmission by a television broadcast station is made only to subscribers located within that station’s local market or adjacent market or subscribers being served in compliance with section 119 or a private licensing agreement.

(h) Geographic Limitations on Secondary Transmissions.— The statutory license created by this section shall apply to secondary transmissions to locations in the United States.

(i) Exclusivity With Respect to Secondary Transmissions of Broadcast Stations by Satellite to Members of the Public.— No provision of section 111 or any other law (other than this section and section 119) shall be construed to contain any authorization, exemption, or license through which secondary transmissions by satellite carriers of programming contained in a primary transmission made by a television broadcast station may be made without obtaining the consent of the copyright owner.

(j) Definitions.— In this section—

Title 17 §122 US Code based on current available at Cornell University Law School.
Summary of Changes - This grants satellite providers royalty free retransmissions into adjacent markets as long as the adjacent market receives their own locals.
Opinion - Adjacent Market is oddly defined. If one county of a station's market is located in another state does that allow the rebroadcast into any adjacent market in the other state (regardless of the state the station is in)? If so, a Chicago station has all of the Indianapolis market stretching hundreds of miles away as it's "adjacent market" but not the Milwaukee market a few miles north of the city of Chicago (since the markets do not cross the Wisconsin/Illinois state line). [SEE BELOW]
TITLE 47 > CHAPTER 5 > SUBCHAPTER III > Part I > § 325

§ 325. False, fraudulent, or unauthorized transmissions

(b) Consent to retransmission of broadcasting station signals

Title 47 §325 US Code based on current available at Cornell University Law School.
Summary of Changes - This adds retransmissions into adjacent markets to the list of exceptions that DO NOT require the station's permission to use their signal.
Opinion - A station could refuse carriage within their own market but still be carried in adjacent markets (or as a distant) without their permission.
TITLE 47 > CHAPTER 5 > SUBCHAPTER III > Part I > § 339

§ 339. Carriage of distant television stations by satellite carriers

(a) Provisions relating to carriage of distant signals

Title 47 §339 US Code based on current available at Cornell University Law School.
Summary of Changes - This allows for adjacent market signals without counting them against the two network signal limit.
Opinion - (B) was already poorly worded, it should have been "to households located in the local market or adjacent market." This paragraph relates to carriage to households, not markets.
In addition H.R. 2821 requires the following action to be taken by the FCC:
Illustrated:
To the left is a map of the area around Chicago.

The green area is the Chicago market ... inside this area stations in the Chicago market must give their permission (via consent to carry or a must carry request) to be aired.

The yellow areas represent markets matching the definition of "adjacent market". These markets cover portions of Iowa, Illinois, Indiana and Michigan. Under H.R. 2821 Chicago area stations could be aired anywhere in the yellow area without permission from the station, copyright payment or syndication/network blackout. (Carriage in each area would also require their local stations be carried on satellite.)

The red area is the Milwaukee WI market. It is not considered adjacent under the definition. Subscribers in this area would have to rely on § 119 "Significantly Viewed" carriage, if available.

The blue areas are two more close markets of interest.


Discussion at DBSTalk: H.R. 2821 Adjacent markets considered local