Page:United States Statutes at Large Volume 118.djvu/2372

 118 STAT. 2342 PUBLIC LAW 108–419—NOV. 30, 2004 ‘‘(B) To afford the copyright owner a fair return for his or her creative work and the copyright user a fair income under existing economic conditions. ‘‘(C) To reflect the relative roles of the copyright owner and the copyright user in the product made available to the public with respect to relative creative contribution, technological contribution, capital investment, cost, risk, and contribution to the opening of new markets for creative expression and media for their communication. ‘‘(D) To minimize any disruptive impact on the struc ture of the industries involved and on generally prevailing industry practices. ‘‘(2) To make determinations concerning the adjustment of the copyright royalty rates under section 111 solely in accord ance with the following provisions: ‘‘(A) The rates established by section 111(d)(1)(B) may be adjusted to reflect— ‘‘(i) national monetary inflation or deflation; or ‘‘(ii) changes in the average rates charged cable subscribers for the basic service of providing secondary transmissions to maintain the real constant dollar level of the royalty fee per subscriber which existed as of the date of October 19, 1976, except that— ‘‘(I) if the average rates charged cable system sub scribers for the basic service of providing secondary transmissions are changed so that the average rates exceed national monetary inflation, no change in the rates established by section 111(d)(1)(B) shall be per mitted; and ‘‘(II) no increase in the royalty fee shall be per mitted based on any reduction in the average number of distant signal equivalents per subscriber. The Copyright Royalty Judges may consider all factors relating to the maintenance of such level of payments, including, as an extenuating factor, whether the industry has been restrained by subscriber rate regulating authori ties from increasing the rates for the basic service of pro viding secondary transmissions. ‘‘(B) In the event that the rules and regulations of the Federal Communications Commission are amended at any time after April 15, 1976, to permit the carriage by cable systems of additional television broadcast signals beyond the local service area of the primary transmitters of such signals, the royalty rates established by section 111(d)(1)(B) may be adjusted to ensure that the rates for the additional distant signal equivalents resulting from such carriage are reasonable in the light of the changes effected by the amendment to such rules and regulations. In determining the reasonableness of rates proposed fol lowing an amendment of Federal Communications Commis sion rules and regulations, the Copyright Royalty Judges shall consider, among other factors, the economic impact on copyright owners and users; except that no adjustment in royalty rates shall be made under this subparagraph with respect to any distant signal equivalent or fraction thereof represented by—

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