SATELLITE HOME VIEWER COPYRIGHT ACT HEARINGS BEFORE THE SUBCOMMITTEE ON COUETS, CIVIL LIBERTIES, AND THE ADMINISTRATION OF JUSTICE OF THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDREDTH CONGRESS FIRST AND SECOND SESSIONS ON H.R. 2848 SATELLITE HOME VIEWER COPYRIGHT ACT NOVEMBER 19, 1987, AND JANUARY 27, 1988 Serial No. 89 ffo ft /od- $67 Printed for the use of the Committee on the Judiciary SATEUITE HOME VIEWER COPYRIGHT ACT HEARINGS BEFORE THE SUBCOMMITTEE ON COURTS, CIVIL LIBERTIES, AND THE ADMINISTRATION OF JUSTICE OF THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDREDTH CONGRESS FIRST AND SECOND SESSIONS ON H.R. 2848 SATELLITE HOME VIEWER COPYRIGHT ACT NOVEMBER 19, 1987, AND JANUARY 27, 1988 Serial No. 89 Printed for the use of the Committee on the Judiciary U S GOVERNMENT PRINTING OFFICE 89-491 =; WASHINGTON 1989 For sale by the Superintendent of Documents, Congressional Sales Office U S Government Printing Office, Washington, DC 20402 COMMITTEE ON THE JUDICIARY PETER W RODINO, JR , New Jersey, Chairman JACK BROOKS, Texas HAMILTON FISH, JR , New York ROBERT W KASTENMEIER, Wisconsin CARLOS J MOORHEAD, California DON EDWARDS, California HENRY J HYDE, Illinois JOHN CONYERS, JR , Michigan DAN LUNGREN, California ROMANO L MAZZOLI, Kentucky F JAMES SENSENBRENNER, JH, WILLIAM J HUGHES, New Jersey Wisconsin MIKE SYNAR, Oklahoma BILL McCOLLUM, Florida PATRICIA SCHROEDER, Colorado E CLAY SHAW, JR , Florida DAN GLICKMAN, Kansas GEORGE W GEKAS, Pennsylvania BARNEY FRANK, Massachusetts MICHAEL DEWINE, Ohio GEO W CROCKETT, JR , Michigan WILLIAM E DANNEMEYER, California CHARLES E SCHUMER, New York PATRICK L SWINDALL, Georgia BRUCE A MORRISON, Connecticut HOWARD COBLE, North Carolina EDWARD F FEIGHAN, Ohio D FRENCH SLAUGHTER, JR , Virginia LAWRENCE J SMITH, Florida LAMAR S SMITH, Texas HOWARD L BERMAN, California RICK BOUCHER, Virginia HARLEY O STAGGERS, JR , West Virginia JOHN BRYANT, Texas BENJAMIN L CARDIN, Maryland M ELAINE MIELKE, General Counsel i ARTHUR P EVDRES, JR , Staff Director ALAN F COFFEY, JR , Associate Counsel SUBCOMMITTEE ON COURTS, CIVIL LIBERTIES, AND THE ADMINISTRATION OF JUSTICE ROBERT W KASTENMEIER, Wisconsin, Chairman MIKE SYNAR, Oklahoma CARLOS J MOORHEAD, California PATRICIA SCHROEDER, Colorado HENRY J HYDE, Illinois GEO W CROCKETT JR , Michigan DAN LUNGREN, California BRUCE A MORRISON, Connecticut MICHAEL DEWINE, Pennsylvania HOWARD L BERMAN, California HOWARD COBLE, North Carolina RICK BOUCHER, Virginia D FRENCH SLAUGHTER JR , Virginia JOHN BRYANT, Texas BENJAMIN L CARDIN, Maryland MICHAEL J REMINGTON, Chief Counsel DAVID W BEIER, Counsel VIRGINIA E SLOAN, Counsel SUSAN L COSKEY, Counsel THOMAS E MOONEY, Associate Counsel JOSEPH V WOLFE, Associate Counsel (II) CONTENTS HEARINGS HELD Page November 19, 1987 1 January 27, 1988 173 TEXT OF BILL H R 2848, 100th Congress, 1st Session (1987) 2 WITNESSES Bergland, Bob, Executive Vice President, National Rural Electric Cooperative Association 300 Prepared statement 302 Bliss, Roy L, Executive Vice President and Chief Operating Officer, United Video, Inc, on behalf of United Video, Inc, Southern Satellite Systems, Inc , and Eastern Microwave, Inc 96 Prepared statement 136 Boggs, Timothy A, Vice President, Public Affairs, Warner Communications Inc , on behalf of the Motion Picture Association of America 48 Prepared statement 52 Brown, Richard L (Rick), Home Satellite Television Association 300 Prepared statement 320 Ellison, Mark C , Vice President of Government Affairs and General Counsel, Satellite Broadcasting and Communications Association of America 96 Prepared statement with supplement 98 McCauley, Brian, President, Netlink USA 206 Prepared statement 246 Malara, Anthony C, Vice President, Affiliate Relations and Distribution, CBS Television Network, accompanied by Phillip Jones, CBS Television Network Advisory Board, and Vice President and General Manager, KCTV, Kansas City, Missouri 206 Prepared statement 238 Medress, Mark F , Vice President for New Business Opportunities, Video Cipher Division, General Instrument Corporation 23 Prepared statement 30 Metzger, Mary C (Kazie), President, Satellite Broadcast Networks (SBN) 96 Prepared statement 158 Mooney, James P, President, National Cable Television Association 48 Prepared statement 70 Oman, Ralph, Register of Copyrights, Library of Congress, accompanied by Dorothy Schrader, General Counsel, Copyright Office, and Andrea Zizzi, Senior Attorney, Copyright Office 174 Prepared statement 177 Padden, Preston R , President, Association of Independent Television Associa­ tions, Inc 206 Prepared statement with attachments 264 Phillips, Bob, Chief Executive Officer, National Rural Telecommunications Cooperative 300 Prepared statement 308 Rogers, Thomas S, Vice President, Policy Planning and Business Develop­ ment, National Broadcasting Company, Inc 206 Prepared statement 209 w Seethaler, Al, Chairman, Satellite Committee, NBC Television Affiliate Board, and Vice President and General Manager, KUTV, Salt Lake City, P"«e Utah 206 Prepared statement 217 Sherman, Charles E, Chairman, Government Relations Committee, ABC Tel­ evision Affiliates Association, and President and General Manager, WHOI- TV, Peoria, Illinois 206 Prepared statement 224 WITNESSES (IN ORDER OF APPEARANCE) NOVEMBER 19, 1987 Mark Medress 23 Timothy A Boggs 48 James P Mooney 48 MarkC Ellison 96 RoyL Bliss 96 MaryC (Kazie) Metzger 96 JANUARY 27, 1988 Ralph Oman 174 Thomas S Rogers 206 Al Seethaler 206 Charles E Sherman 206 Anthony C Malara 206 Brian McCauley 206 Preston R Padden 206 Bob Bergland 300 Bob Phillips 300 Richard L (Rick) Brown 300 ADDITIONAL MATERIALS Statement of Bertram W Carp, Vice President for Government Affairs, Turner Broadcastmg System, November 19, 1987 85 Memo from Mark C Ellison to All Interested Parties re Satellite Television Subscription Systems 111 Information from Kazie Metzger (H R 2848, Q & A) 145 Statement of Capital Cities/ABC, Inc , January 27, 1988 232 Statement of Dr William Duhamel, President, Duhamel Broadcastmg Enter­ prises, on behalf of 97 television stations, with attachment, January 27, 1988 339 ADDITIONAL STATEMENTS Letter from Norman L Hoge, General Manager, Cornhusker Public Power District, to the Honorable Peter W Rodrno, Jr, with attachment, Septem­ ber 3, 1987 353 Letter from V C Dawson, President, K-SAT Broadcasting Inc , to the Honora­ ble Robert W Kastenmeier, with attachments, November 9, 1987 355 Letter from the Honorable Jim Ohn, a Representative in Congress from the State of Virginia, to Congressman Robert W Kastenmeier, November 20, 1987 376 Dear Colleague from the Honorable Jim Ohn, March 16, 1988 377 Letter from Bertram W Carp, Vice President for Government Affairs, Turner Broadcasting System, Inc, to the Honorable Robert W Kastenmeier, No­ vember 20, 1987 378 Letter from Shaun M Sheehan, Tribune Broadcasting Company, to the Hon­ orable Robert W Kastenmeier, with attachments, November 20, 1987 380 Letter from Francis J DeRosa, Staff Vice President and Group Counsel, General Electric Company, to the Honorable Robert W Kastenmeier, De­ cember 23, 1987 403 Letter from the Honorable John Hiler, a Representative m Congress from the State of Indiana, to the Honorable Robert W Kastenmeier, January 26, 1988 405 Prepared testimony of Chet Grochoski, Counsel, Brown, Finn & Nietert, on behalf of the Amway Corporation, January 27, 1988 406 Letter from Edward O Fntts, President & CEO, National Association of Page Broadcasters, to the Honorable Robert W Kastenmeier, Januuary 28, 1988 415 Prepared statement of A Philip Corvo, Executive Director, NATPE Interna­ tional 418 Letter from Leslie A Taylor, Director, Government Affairs, GTE, to the Honorable Robert W Kastenmeier, February 1, 1988 422 Letter from William M Barnard, Esq , Kenkel, Barnard & Edmundson, to the Honorable Robert W Kastenmeier, February 3, 1988 424 Letter from Robert Thomson, Vice President, Government Affairs, TCI Tele- Communications, Inc, to the Honorable Robert W Kastenmeier, February 4, 1988 426 Letter from Bill Noble, Satellite Country, to Congressman Robert W Kasten­ meier, March 16,1988 429 Letter from Michael E Brunner, Executive Vice President, National Tele­ phone Cooperative Association, to the Honorable Robert W Kastenmeier, May 6, 1988 430 Letter from the Honorable J Roy Rowland, a Representative in Congress from the State of Georgia, to the Honorable Robert W Kastenmeier, with attachment, April 8, 1988 431 APPENDIXES APPENDIX I —LEGISLATIVE MATERIALS 1 H REP NO 100-887, Part 1 433 2 H REP NO 100-887, Part 2 479 3 PUB L NO 100—667, Title II 523 APPENDIX II —FURTHER MATERIALS BY WITNESSES 1 By Dr Mark Medress, General Instrument Corporation 549 a A History of General Instrument Corporation 549 b VideoCipher Division, May 1987 553 c VideoCipher II 2500R Satellite Receiver (picture and description) 559 d VideoCipher Secure Television Scrambling Systems, November 15, 1987 561 e VideoCipher II 2500R Satellite Receiver Installation and Operation (manual) 578 2 By Timothy A Boggs, Motion Picture Association of America 614 a Letter from Timothy A Boggs, Vice President, Public Affaire, Warner Communications Inc , to the Honorable Robert W Kastenmeier, July 7, 1988 614 b Letter from Kathy Zebrowski, Vice President for Congressional Affairs and Special Counsel, Motion Picture Association of America, Inc, to the Honorable Robert Kastenmeier, August 12, 1988, with attached letter from Kathy Zebrowski to the Honorable Edward Markey, August 12, 1988 615 3 By Mark C Ellison, Vice President of Government Affairs