§ 605.
(b)
Exceptions
The provisions of subsection (a) shall not apply to the interception or receipt by any individual, or the assisting (including the manufacture or sale) of such interception or receipt, of any satellite cable programming for private viewing if—
(1)
the programming involved is not encrypted; and
(2)
(A)
a marketing system is not established under which—
(i)
an agent or agents have been lawfully designated for the purpose of authorizing private viewing by individuals, and
(ii)
such authorization is available to the individual involved from the appropriate agent or agents; or
(B)
a marketing system described in subparagraph (A) is established and the individuals receiving such programming has obtained authorization for private viewing under that system.
(d)
Definitions
For purposes of this section—
(1)
the term “satellite cable programming” means video programming which is transmitted via satellite and which is primarily intended for the direct receipt by cable operators for their retransmission to cable subscribers;
(2)
the term “agent”, with respect to any person, includes an employee of such person;
(3)
the term “encrypt”, when used with respect to satellite cable programming, means to transmit such programming in a form whereby the aural and visual characteristics (or both) are modified or altered for the purpose of preventing the unauthorized receipt of such programming by persons without authorized equipment which is designed to eliminate the effects of such modification or alteration;
(4)
the term “private viewing” means the viewing for private use in an individual’s dwelling unit by means of equipment, owned or operated by such individual, capable of receiving satellite cable programming directly from a satellite;
(5)
the term “private financial gain” shall not include the gain resulting to any individual for the private use in such individual’s dwelling unit of any programming for which the individual has not obtained authorization for that use; and
(6)
the term “any person aggrieved” shall include any person with proprietary rights in the intercepted communication by wire or radio, including wholesale or retail distributors of satellite cable programming, and, in the case of a violation of paragraph (4) of subsection (e), shall also include any person engaged in the lawful manufacture, distribution, or sale of equipment necessary to authorize or receive satellite cable programming.
(e)
Penalties; civil actions; remedies; attorney’s fees and costs; computation of damages; regulation by State and local authorities
(1)
Any person who willfully violates subsection (a) shall be fined not more than $2,000 or imprisoned for not more than 6 months, or both.
(2)
Any person who violates subsection (a) willfully and for purposes of direct or indirect commercial advantage or private financial gain shall be fined not more than $50,000 or imprisoned for not more than 2 years, or both, for the first such conviction and shall be fined not more than $100,000 or imprisoned for not more than 5 years, or both, for any subsequent conviction.
(3)
(A)
Any person aggrieved by any violation of subsection (a) or paragraph (4) of this subsection may bring a civil action in a United States district court or in any other court of competent jurisdiction.
(B)
The court—
(i)
may grant temporary and final injunctions on such terms as it may deem reasonable to prevent or restrain violations of subsection (a);
(ii)
may award damages as described in subparagraph (C); and
(iii)
shall direct the recovery of full costs, including awarding reasonable attorneys’ fees to an aggrieved party who prevails.
(C)
(i)
Damages awarded by any court under this section shall be computed, at the election of the aggrieved party, in accordance with either of the following subclauses;
(I)
the party aggrieved may recover the actual damages suffered by him as a result of the violation and any profits of the violator that are attributable to the violation which are not taken into account in computing the actual damages; in determining the violator’s profits, the party aggrieved shall be required to prove only the violator’s gross revenue, and the violator shall be required to prove his deductible expenses and the elements of profit attributable to factors other than the violation; or
(II)
the party aggrieved may recover an award of statutory damages for each violation of subsection (a) involved in the action in a sum of not less than $1,000 or more than $10,000, as the court considers just, and for each violation of paragraph (4) of this subsection involved in the action an aggrieved party may recover statutory damages in a sum not less than $10,000, or more than $100,000, as the court considers just.
(ii)
In any case in which the court finds that the violation was committed willfully and for purposes of direct or indirect commercial advantage or private financial gain, the court in its discretion may increase the award of damages, whether actual or statutory, by an amount of not more than $100,000 for each violation of subsection (a).
(iii)
In any case where the court finds that the violator was not aware and had no reason to believe that his acts constituted a violation of this section, the court in its discretion may reduce the award of damages to a sum of not less than $250.
(4)
Any person who manufactures, assembles, modifies, imports, exports, sells, or distributes any electronic, mechanical, or other device or equipment, knowing or having reason to know that the device or equipment is primarily of assistance in the unauthorized decryption of satellite cable programming, or direct-to-home satellite services, or is intended for any other activity prohibited by subsection (a), shall be fined not more than $500,000 for each violation, or imprisoned for not more than 5 years for each violation, or both. For purposes of all penalties and remedies established for violations of this paragraph, the prohibited activity established herein as it applies to each such device shall be deemed a separate violation.
(5)
The penalties under this subsection shall be in addition to those prescribed under any other provision of this subchapter.
(6)
Nothing in this subsection shall prevent any State, or political subdivision thereof, from enacting or enforcing any laws with respect to the importation, sale, manufacture, or distribution of equipment by any person with the intent of its use to assist in the interception or receipt of radio communications prohibited by subsection (a).
(g)
Universal encryption standard
The 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 inquiry, the Commission shall take into account—
(1)
consumer costs and benefits of any such standard, including consumer investment in equipment in operation;
(2)
incorporation of technological enhancements, including advanced television formats;
(3)
whether any such standard would effectively prevent present and future unauthorized decryption of satellite cable programming;
(4)
the costs and benefits of any such standard on other authorized users of encrypted satellite cable programming, including cable systems and satellite master antenna television systems;
(5)
the effect of any such standard on competition in the manufacture of decryption equipment; and
(6)
the impact of the time delay associated with the Commission procedures necessary for establishment of such standards.
([June 19, 1934, ch. 652], title VII, § 705, formerly title VI, § 605, [48 Stat. 1103]; [Pub. L. 90–351, title III, § 803], June 19, 1968, [82 Stat. 223]; [Pub. L. 97–259, title I, § 126], Sept. 13, 1982, [96 Stat. 1099]; renumbered title VII, § 705, and amended [Pub. L. 98–549], §§ 5(a), 6(a), Oct. 30, 1984, [98 Stat. 2802], 2804; [Pub. L. 100–626, § 11], Nov. 7, 1988, [102 Stat. 3211]; [Pub. L. 100–667, title II], §§ 204, 205, Nov. 16, 1988, [102 Stat. 3958], 3959; [Pub. L. 103–414, title III], §§ 303(a)(25)–(28), 304(a)(15), Oct. 25, 1994, [108 Stat. 4295–4297]; [Pub. L. 104–104, title II, § 205(a)], Feb. 8, 1996, [110 Stat. 114].)