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The online public inspection file for radio is moving closer to reality at an unusually fast pace.  Yesterday, the FCC issued a Notice of Proposed Rulemaking, seeking to expand the online public file requirements that now apply to broadcast TV stations to radio (see our summary of the obligations here, and a presentation that we did on those requirements, here).  The rulemaking proposal also looks to adopt online public file obligations for cable systems, satellite television systems, and Sirius XM.  Comments will be due 30 days after the NPRM is published in the Federal Register. 

The NPRM proposes a phased-in approach to these obligations for radio.  It would first require the online public files only for stations in the top 50 Nielsen (formerly Arbitron) markets which employ five or more full-time employees.  The Commission chose these stations to begin the process, reasoning that they are subject to the EEO rules and would thus have EEO reporting obligations (which are already online for most station, albeit on their own station websites), and would have more resources to meet any obligation that the rule imposes.  The Top 50 markets were also the starting point for the roll out of these obligations for TV stations, and are likely also in areas where there is significant political broadcasting activity.  The NPRM asks whether a six month period to implement the new requirements from the effective date of any set of new rules would be appropriate.
Continue Reading Online Public File for Radio – and Satellite and Cable – Moves Closer to Reality – FCC Issues Formal Notice of Proposed Rulemaking

The FCC issued a Forfeiture Order this week, fining a station $7000 for violations of the main studio rule. The facts of the case were set out in a Notice of Apparent Liability issued back in February, where the licensee had claimed that its studio was in a location that was shared with another broadcaster …

In a case decided last week, the FCC decided to clarify its policies on typos in FCC applications for radio stations.  While one might not think that a typo is such a big idea, in connection with FCC application filing windows, when multiple applicants may be seeking the same frequency or channel in …

In 2011, licensees of FM translators who wanted to move those translators to areas where there was a need for their service thought that the FCC had done a great thing by authorizing the use of the “Mattoon” waiver (see our article here).  The Mattoon waiver allowed the processing of an FCC application to move the location of a translator as a minor change (meaning that it could be filed at any time, rather than having to wait for a window for the filing of major changes and new translator applications – the last of which opened in 2003) if the current and proposed interfering and protected contours of the stations overlapped.  Without the waiver, the rules deem a minor change to occur only when the protected 60 dbu contour of the station from the proposed and exiting sites overlap, allowing much smaller moves. But, as we have written before, the FCC now seems to be backing off the use of these waivers, and two recent decisions raise the question of whether the policy is doomed (as the Commission proposed in its AM improvement proposals, which we summarized here).

The use of the waiver in many cases eliminated the need for multiple “hops” of translators to get them from existing locations to the sites at which a broadcaster wanted to use them to provide service.  These hops would move the translator from the locations at which it was licensed to a new site, only to file another application as soon as the initial move was granted to move the translator yet again to get them to the location where a broadcaster wanted to use them to provide service.  In some cases, multiple intermediate hops were necessary to move the translator to the site at which its use was ultimately desired.  The Mattoon waiver allowed many site moves to be accomplished through a single application rather than requiring multiple hops, each of which cost the broadcaster time and money in filing multiple applications and in actually building the translator at multiple sites, and also saved the FCC the time and effort to process each of the applications necessary to approve these intermediate stops for the translator. 
Continue Reading The End of the Mattoon Waiver? – FCC Decisions Confirming Its Use Only for the Rebroadcast of AM Stations and Prohibiting Intermediate Site Changes

The FCC on Friday proposed to amend its rules governing contests conducted by broadcast stations by allowing the required disclosure of the material terms of the contest on the Internet, as an option for broadcasters in lieu of the current requirement that these disclosures be made by broadcasting them on-the-air a reasonable number of times.  But the proposed rule change is not as simple as one would think, with the FCC asking about whether a number of specific obligations should be attached to any online disclosures, even potentially adding the requirement that the full URL for the online disclosure be made every time a contest is mentioned on the air, not simply a reasonable number of times as required under the current rules.  So just what is the FCC proposing, and what is the big issue here?

The rule governing the conduct of broadcaster’s contests, Section 73.1216, covers contests conducted by broadcasters over-the-air.  It does not cover contests by broadcasters that are exclusively conducted online (though, as we wrote here, if the contest is announced on the air, even if primarily conducted online, all the required on-air disclosures apply).  It does not cover contests conducted by third-parties that are broadcast on the air (so contests conducted by an advertiser are not covered by this rule).  The current rule, in addition to requiring that the contest be conducted fairly and in accordance with the rules adopted for the contest, requires that the “material rules” be broadcast on the air on a regular basis so that listeners know what they might win, how to play the contest, and how the winner is selected.  It is this requirement, that the material rules be broadcast on the station, that has led to problems in the past, and thus prompted the proposed changes advanced on Friday.
Continue Reading FCC Proposes To Amend Rules Governing Broadcast Contests – Suggests Allowing Disclosure of Material Terms of the Contest on the Internet

Since our note Friday about November regulatory dates for broadcasters, it’s become clear that the FCC will be acting on two more matters of interest to broadcasters – particularly radio broadcasters though each have some implications for TV as well.  First, as we hinted at the end of our article on Friday (the rumors that we had heard having now been confirmed), Chairman Wheeler has circulated a draft Notice of Proposed Rulemaking on the expansion of the online public file to radio (as well as cable and satellite).  And, secondly, the FCC has announced that, at its open meeting on November 21, it will open a rulemaking to modernize the disclosure rules for on-air contests conducted by broadcasters – rules which have resulted in FCC fines over the last few years.

The fact that the online public file proposal for radio has now matured into a Notice of Proposed Rulemaking is confirmed by the FCC’s list of Items on Circulation (basically, draft orders that the Commissioners currently have in front of them for review and voting), which now lists that item near the top of its list.  See the list of Items on Circulation, here: http://www.fcc.gov/fcc-items-circulation.  While most folks in radio knew that the day would come when their public files might be required to go online, the speed with which the FCC now seems to be acting is what is most surprising, as it was only a bit over two months ago that the FCC took comments on whether or not to even consider that proposal (see our article here).  But, with lightning speed, the order appears to be moving forward.  How fast will it be implemented?
Continue Reading Formal Proceedings to Begin to Revise Rules for Broadcasters’ On-Air Contests and Expand the Online Public File Obligations to Radio, Cable and Satellite

SESAC is the one major performing rights organization whose rates have not, until now, been subject to judicial review as part of an antitrust consent decree.  Perhaps because of that fact, broadcast stations have often complained about the rates they charge for the music that they license, as there is currently no cap on what SESAC can charge, and there is no requirement that SESAC treat all similar licensees in the same way.  In fact, because of this dissatisfaction, both the TV and Radio Music License Committees have filed antitrust suits against SESAC seeking relief from the rates they charge.  In a settlement announced this past week, the Television Music Licensing Committee has entered into a settlement by which SESAC will pay the TVMLC $58.5 million and agree that, over the next 20 years, SESAC will negotiate license agreements with TVMLC.  Under the agreement, if rates can’t be reached as a result of negotiations, SESAC and the TVMLC would submit to an arbitration process to arrive at the appropriate rates.  The full settlement can be found on the TVMLC website, here. 

Under the terms of the settlement, commercial TV stations (except for those owned by Univision, which appear to have opted out of the class of stations covered by the TVMLC settlement) will have their SESAC obligations covered for the rest of this year and next, including website SESAC music use and use in digital multichannel programming.  In 2015, TVMLC will negotiate with SESAC over rates for the period from 2016-2019.  If no rates are agreed to by the parties, an arbitration panel will set the rates.  The same process will continue for 4 year periods through 2035, as long as ASCAP and BMI are also subject to either rate court or arbitration review of the rates charged by those organizations.  While the Department of Justice is reviewing the ASCAP and BMI consent decrees that require rate court review of royalty rates charged by these groups (see our article here), it appears that they are not asking for an end to all rate review.  Instead, they are asking that the review be done by an arbitration panel, not the US District Court that currently reviews such rates.  So it would appear likely that the “out” in the deal would not give SESAC an escape from this agreement to be bound by arbitration any time soon.
Continue Reading TV Music Licensing Committee Settles Antitrust Action with SESAC over Music Licensing Rates and Terms – Radio Watches and Wonders if It Can Get a Similar Deal

In a case that has been watched by many AM licensees and debated at a number of broadcast conferences in the last few years, the FCC on Friday denied the “Tell City waiver,” by which the licensee of an AM station in Indiana sought to buy an FM translator in Kentucky and move it to Indiana, on a non-adjacent channel, and use it to rebroadcast their AM station.  This sought to expand the “Mattoon waiver” (about which we have written many times including articles here and here) which effectively changed the definition of a “minor change” for an FM translator that could be approved in a single application, without waiting for any sort of translator filing window. 

The current rules define a minor change as one where the translator’s 1 mv/m service contour at both the current and proposed sites overlap.  The Mattoon waiver treated applications as minor changes where the service contours did not overlap – as long as the interfering contour of the translator at one site overlapped with the protected contour of the station at the other site – essentially meaning that a translator could not exist at both the current and proposed sites without prohibited interference.  The Tell City waiver would have eliminated even that connection between the present and proposed sites for the translator – allowing essentially a move of any FM translator from one place to another, and from one frequency to another, regardless of whether the new location had any connection with the original site.  That attempt to stretch the definition of a minor change led the Commission’s Media Bureau to deny the request.
Continue Reading FCC Denies “Tell City Waiver” to Move Translator to Distant Non-Adjacent Channel to Rebroadcast AM Station

Right as everyone was preparing to leave town for the long weekend, the FCC issued its Report and Order on the regulatory fees for 2014, and also issued a Public Notice setting the deadline for paying those fees as 11:59 PM on September 23.  For broadcasters, the FCC also issued a Mass Media Fee Filing Guide providing details on the fee filing process, and provided a fee “look-up” tool on the Commission’s website to see what the fees are for a particular station.  The FCC adopted all the fees for broadcast stations as proposed in its Notice of Proposed Rulemaking (about which we wrote here) with the minor exception of its fees for TV stations, where there were very slight adjustments in the amounts to be paid.  The fees for all categories of broadcasters are provided at the end of this article. 

There are a couple of new wrinkles in the fee filings for broadcasters for this year.  First, there will be no more no more checks or other paper forms of payment.  All payments must be made electronically, through wire transfers, electronic payments, or with a credit card.  If you send a check, it will be returned, and you will be assessed a late fee if the electronic payment is not made by the 23rd.
Continue Reading FCC Regulatory Fees Due On or Before September 23 – What’s New for This Year’s Fees?

It’s come to our attention that the FCC’s Media Bureau has recently been granting applications for changes in the transmitter sites of FM translators to be used for AM stations with conditions on the subsequent use of that translator.  The conditions seem to be added to the construction permits granted to applicants who filed an application for a site change and relied on the Mattoon waiver (see our discussion of that waiver here) to expedite the relocation to the new transmitter site.  The condition requires that the translator be used only with the AM station for a period of 4 years.

A similar condition was proposed in connection with the FCC’s proceeding on AM improvements, where the FCC proposed to open a window for the filing of applications for new translators, but to limit the applicants to AM licensees who want to use those translators to rebroadcast their AM station (see our summary of the proposal for a translator window for AM station owners here).  Obviously, that proposal for an AM-only window for translator applicants has not been adopted, and there has been some objection to the proposal to permanent tie any translator granted as a result of that window to the AM station that initially asks for it.  For instance, some comments suggest that a translator be allowed to change primary stations if the primary station is moved to another AM in the same market owned by the same company, or that it be allowed to be transferred should the AM station cease operations (as there will no doubt be some AMs that may not be able to survive even with an FM translator).  But, in the new condition now being added to translator moves granted pursuant to a Mattoon waiver, any such limitation is not provided.
Continue Reading New Conditions on Mattoon Waivers for FM Translators Used for AM Stations – Mandatory Rebroadcast of AM on the Translator for 4 Years