102 STAT. 3958 PUBLIC LAW 100-667—NOV. 16, 1988

(4) Section 801(bX3) of title 17, United States Code, is amended
by striking "and 116" and inserting ", 116, and 1190))".

(5) Section 804(d) of title 17, United States Code, is amended
by striking "sections 111 or 116" and inserting "section 111, 116,
or 119".

(6) The table of sections at the beginning of chapter 1 of title
17, United States Code, is amended by adding at the end the
following new item:

"119. Limitations on exclusive rights: Secondary transmissions of superstations and
network stations for private home viewing.".

SEC. 203. SYNDICATED EXCLUSIVITY; REPORT ON DISCRIMINATION.

Title VII of The Communications Act of 1934 (47 U.S.C. 601 et seq.)
is amended by adding at the end the following:

"SYNDICATED EXCLUSIVITY

47 use 612. "SEC. 712. (a) The Federal Communications Commission shall,

within 120 days after the effective date of the Satellite Home Viewer
Act of 1988, initiate a combined inquiry and rulemaking proceeding
for the purpose of—

(1) determining the feasibility of imposing syndicated
exclusivity rules with respect to the delivery of syndicated
programming (as defined by the Commission) for private home
viewing of secondary transmissions by satellite of broadcast
station signals similar to the rules issued by the Commission
with respect to syndicated exclusivity and cable television; and
"(2) adopting such rules if the Commission considers the
imposition of such rules to be feasible.

"(b) In the event that the Commission adopts such rules, any
willful and repeated secondary transmission made by a satellite
carrier to the public of a primary transmission embodying the
performance or display of a work which violates such Commission
rules shall be subject to the remedies, sanctions, and penalties
provided by title V and section 705 of this Act.

"DISCRIMINATION

47 USC 613. "SEC. 713. The Federal Communications Commission shall, within

1 year after the effective date of the Satellite Home Viewer Act of
1988, prepare and submit to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report on whether, and
the extent to which, there exists discrimination described in section
119(a)(6) of title 17, United States Code.".

SEC. 204. INQUIRY ON ENCRYPTION STANDARD.

Section 705 of the Communications Act of 1934 (47 U.S.C. 605) is
amended by adding at the end thereof the following:

"(f) Within 6 months after the date of enactment of the Satellite
Home Viewer Act of 1988, the Federal Communications Commission
shall initiate an inquiry concerning the need for a universal
encryption standard that permits decryption of satellite cable
programming intended for private viewing. In conducting such in-
quiry, the Commission shall take into account—

"(1) consumer costs and benefits of any such standard, includ-
ing consumer investment in equipment in operation;