ly prevailing industry practices.

(2) to make determinations concerning the adjustment of copyright
royalty rates in section 111 solely in accordance with the following
provisions:

(A) The rates established by section 111(d)(2)(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
enactment of this Act: Provided, That if the average rates charged
cable system subscribers 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)(2)(B) shall be permitted: And provided further, That no increase
in the royalty fee shall be permitted based on any reduction in the
average number of distant signal equivalents per subscriber. The
Commission may consider all factors relating to the maintenance of such
level of payments including, as an extenuating factor, whether the
cable industry has been restrained by subscriber rate regulating
authorities from increasing the rates for the basic service of
providing 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)(2)(B) may be adjusted to insure 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 following an amendment of Federal Communications Commission
rules and regulations, the Copyright Royalty Tribunal shall consider,
among other factors, the economic impact on copyright owners and users:
Provided, That no adjustment in royalty rates shall be made under this
subclause with respect to any distant signal equivalent or fraction
thereof represented by (i) carriage of a signal of the same type (that
is, independent, network, or noncommercial educational) substituted for
such permitted signal, or (ii) a television