Third Circuit Reaffirms Rejection of FCC's "Fleeting Images" Policy, Reverses Super Bowl Fine

The Third Circuit Court of Appeals today issued its decision in the case dealing with the FCC's fine for the Janet Jackson "clothing malfunction" Super Bowl incident.  The Court once again rejected the FCC decision - essentially upholding a 2008 decision that had found the FCC's indecency fine to be an arbitrary departure from prior precedent.  The Court found that the Commission had a policy of not finding a "fleeting image" actionable, and the Commission did not explain why it was changing its policy, or even acknowledge that it was in fact changing policy. The 2008 decision had been remanded to the Third Circuit by the Supreme Court after the Court's decision on the Golden Globes case (see our summary here and here), dealing with "fleeting expletives", to determine if the Supreme Court's decision had any impact on this case.  In today's decision, the Court also found that a fine cannot be imposed on a party who did not know that the conduct in which it was engaging could lead to a fine.  Bob Corn-Revere and Ronnie London from our firm litigated this case, and have written a much more detailed explanation of the Court's decision.  That explanation can be found here.  The full Third Circuit decision can be found here

Janet Jackson Case Sent Back to Court of Appeals - Could There Be An Even Greater Impact on Broadcast Regulation?

In light of the recent decision upholding the FCC's right to sanction licensees for violations of the FCC's Indecency rules for "fleeting expletives" in the Golden Globes and Billboard music awards, i.e. isolated profanity on the airwaves, the Supreme Court also remanded the Janet Jackson case to the Court of Appeals.  The one sentence remand (see page 2 of the list of orders) was so that the Court of Appeals could consider the impact of the fleeting expletives case on the Court of Appeals decision throwing out the FCC's fine on CBS for the fleeting glimpse of Jackson's breast during the Super Bowl half-time program.  The Third Circuit Court of Appeals that heard the Janet Jackson case had reached a decision very similar to the Second Circuit's decision in the Golden Globes case - finding that the FCC had not justified its departure from a policy of not fining stations for fleeting instances of prohibited speech or pictures, where the words or pictures were isolated and their broadcast was not planned by the station.  Given that the Supreme Court has remanded the case to the Court of Appeals, the lower court will now need to consider the same constitutional issue that the Second Circuit will consider in the Golden Globes case - while the FCC may not have violated administrative procedures in justifying its actions, are the FCC's indecency rules so vague and enforced in such a haphazard manner that they chill free speech or are otherwise unconstitutional?  Based on an analysis of the various concurring and dissenting opinions in the Golden Globes case, the Supreme Court might well decide the constitutionality issue against the FCC.  Could the final ruling in these cases have an impact far beyond the indecency question?

Two of the Davis Wright Tremaine attorneys involved in some of the indecency cases have written this memo, summarizing the Supreme Court decision in the Golden Globes case - pointing out how Justice Thomas seemed to imply that the constitutional basis of the FCC decision was suspect - even though he sided with the majority in finding that the FCC was justified in its administrative decision to find violations.  Justice Thomas seems ready to come down against the FCC on the constitutional issue were it to be squarely presented, questioning whether the Red Lion decision, justifying lesser First Amendment protections for broadcasters than other media outlets based on frequency scarcity, has continuing vitality.  Were this precept underlying the regulation of broadcast content to be undermined, the justification for much FCC content regulation could be in doubt.

Should the scarcity doctrine underlying the justification for allowing the FCC to treat broadcasters differently from other media fall, a decision in one of the indecency cases could have a broad impact on many of the other content regulations that are either already in place or are in the works - including the proposed localism rules, the potential resurrection of the Fairness Doctrine and perhaps even political broadcasting rules.  Yet some fear that such a broad decision could also erode certain benefits that broadcasters have received from being considered public trustees - such as the freedom from spectrum fees, cable carriage rights and some of the FCC policies that have the effect of limiting the movement of stations which, in some cases, may reduce competition.  Yet, through the years, many of those protections have eroded, and others are justified by the service that broadcasters provide - whether or not the Red Lion doctrine still applies.  Broadcasters may be willing to accept the trade off in order to be free of the kinds of content regulation that have hobbled them for so long - and which threaten to become more onerous under a new FCC (see, for instance, our post on the suggestion for a shorter license renewal term to allow for more review of a broadcaster's "public interest" performance). 

This issue could become very important to broadcasters as the indecency issue continues to unfold in this Janet Jackson case and many of the other indecency cases now pending before the Courts. 

 

Congress Tries to Overturn Second Circuit While Third Circuit Hears Janet Jackson Indecency Case, and "The War" Is Censored

This week, legislation was introduced in the House of Representatives to make a single use of an expletive on a broadcast station subject to sanctions from the FCC.  This parallels legislation that was introduced in the Senate this summer, about which we wrote, here.  The point of this legislation is to overturn the decision of the US Court of Appeals for the Second Circuit which held that the FCC could not levy indecency fines on stations for airing a single isolated "fleeting expletive". As we wrote when the Senate Bill was introduced, the Second Circuit decision overturning the FCC's fines was technically based, not on constitutional issues, but instead on the fact that the FCC had not rationally defended the distinctions that it made as to when to impose fines for the use of an expletive, and when to allow the use of the expletives without sanction (as in the airing of Saving Private Ryan).  The Court also faulted the Commission for not providing guidelines as to what was indecent and what was that were clear enough to alert a broadcaster as to what was permitted and what was not.  When a decision is based on an administrative failure to rationally justify its decision, Congress can pass a law providing that justification.  Here, that would give the FCC permission to fine a broadcaster for the use of a single expletive.  If the decision was constitutionally based, finding that the regulation of the use of fleeting expletives was unconstitutional, then the ability of Congress to pass a law permitting FCC action that the Court found was unconstitutional is severely limited.

However, while not basing the decision on constitutional grounds, the Second Circuit decision did go out of its way to question the constitutionality of the FCC's indecency enforcement, but deciding that it did not need to decide the issue of constitutionality as it had already thrown out the FCC fines.  While the Second Circuit passed on that issue, another court may well reach the constitutional question in the near future.  On September 11, the Third Circuit, the same Court which invalidated many of the FCC's 2003 liberalized multiple ownership rules, heard arguments on the FCC's $550,000 fine imposed on the CBS owned-and-operated television stations for the Janet Jackson breast-baring Super Bowl incident.   CBS, represented by an attorney from our firm, argued that the FCC's indecency rules are unconstitutional.  The Court seemed engaged in the issue, according to press reports, asking many questions.  As the briefs have been filed and the arguments made, the Court decision could come at any time.  Sometimes these decisions can be released quickly, though at other times the final decision can take many months to be written.  Broadcasters will have to wait for this further clarification.

In the interim, broadcasters are not clear on how to apply FCC rules.  In last week's Emmy Awards, Fox used a tape delay, cutting out several uses of words that those monitoring its programs felt could be of concern.  This week, with PBS' airing of The War, the Ken Burns series on World War II, the issue again arises.  In the series, interviewees define the origins of the word "SNAFU" by using the FCC-prohibited "F-word," and use expletives in three other instances.  Because the Second Circuit decision may still be appealed to the Supreme Court, and as the Third Circuit has not yet ruled, several PBS stations have been concerned about the use of these words.  Thus, PBS is reportedly distributing both edited and unedited versions of the programs, leaving the decision as to which should be run in the hands of the local stations. 

The concern over The War highlights the ambiguity and concern over the vagueness of the FCC's standards.  As mentioned above, the FCC has given a  pass twice to the unedited airing of Saving Private Ryan.  One would think that, if a fictional movie about World War II could use the prohibited words, then a PBS documentary about the same subject would be on safe ground using them.  However, when the FCC decided to fine PBS for using these words in its documentary The Blues, where they were seemingly an appropriate part of the narrative of the story being told, stations didn't know where the lines are to be drawn, hence the concern over The War.  Hopefully, the Third Circuit will soon shed more light on the subject but, until then, we may be forced to sit through dead air during the Emmies, The War and other programming.