Several recent broadcast trade press articles summarized a Public Notice released this past week by the FCC’s Media Bureau.  The Notice deals with the processing of certain broadcast applications when a licensee has a pending “remedial” petition for declaratory ruling seeking to correct noncompliance with the Commission’s foreign ownership rules.  The articles suggest that the Public Notice would have wide impact, and that several pending applications would be held up by the FCC’s new processing policy.  In fact, this decision is limited in its application only to broadcasters who, through no fault of their own, find that they no longer comply with the foreign ownership limits set out in Section 310(b) of the Communications Act and ask in a “remedial petition” for what is essentially retroactive approval of the foreign ownership that exceeds the 25% limit imposed on aggregate foreign interests (voting or equity) in companies that control broadcast licensees. 

The Public Notice does not deal with companies who ask for permission to have foreign ownership in excess of 25% in advance of those owners acquiring their interests.  In cases where a controlling interest in the company is proposed to be held by foreign owners who have not previously been approved by the Commission, specific FCC approval is required for that acquisition to occur through a forward-looking petition for declaratory ruling.  That is not a “remedial petition.”  Similarly, the Public Notice has no impact on companies that filed Petitions seeking approval for future changes in ownership that would exceed the 25% ownership threshold but would not involve a change in control.  Where a company is seeking advance approval for a non-controlling foreign interest in excess of 25%, the processing of currently pending applications by the company should not be impacted.