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The Supreme Court decision in the Aereo case seemed to be the end of the line for the service that was retransmitting television stations signals without consent, as it found that the broadcasters were entitled to an injunction to force Aereo to cease the public performance of their signals without consent.  In fact, Aereo itself seemed to think so too, shutting off its service soon after the decision.  But in a move that was surprising to some, Aereo has apparently not thrown in the towel, and it is now back in Court with a two-pronged argument as to why its service is still viable (see its letter to the Court here).  First, it argues that, as the Supreme Court seemed to think that Aereo acted like a cable system and should be treated in the same manner as a cable system for purposes of determining whether its retransmission of a television stations signal was a public performance, it might as well be treated like a cable system for all purposes, and thus it should be entitled to carry the signals of TV stations pursuant to the statutory license granted to cable systems by Section 111 of the Copyright Act.  Second, it argues that, even if it does not qualify for treatment as a cable system, it should nevertheless be able to retransmit television signals – just not in real time, as the Aereo contends that the Court decision only prevented simultaneous and near simultaneous retransmissions of the television stations’ signals.  Offering once again a fearless prediction – I doubt these arguments will help Aereo any more than did their arguments before the Supreme Court.

Admittedly, their argument that they qualify as a cable system under the Copyright Act has some appeal.  In fact, as we noted in our summary of the oral argument before the Supreme Court, the Justices even asked why the company did not qualify as a cable company.  Section 111 of the Copyright Act defines a cable system as follows:

A “cable system” is a facility, located in any State, territory, trust territory, or possession of the United States, that in whole or in part receives signals transmitted or programs broadcast by one or more television broadcast stations licensed by the Federal Communications Commission, and makes secondary transmissions of such signals or programs by wires, cables, microwave, or other communications channels to subscribing members of the public who pay for such service.

That language is seemingly broad, covering not just what most of us think as a cable system (one that uses wires to transmit TV programming to the customer), as it talks expansively of “other communications channels” to deliver programming.  Of course, when satellite TV started, they were unsure of their status under this definition, and ended up getting a whole new section of the act to determine their ability to retransmit local TV signals to their subscribers.  But even if this section can be read expansively to cover Aereo, what does that get them?
Continue Reading Not Dead Yet – Aereo Tries To Reinvent Itself By Arguing that it is a Cable System Entitled to Carry Television Stations Pursuant to the Statutory License

July brings a number of new regulatory dates for broadcasters – including the effective dates of two new compliance obligations for small market TV stations, as well as numerous routine regulatory filing dates.  July 10 brings one deadline for all broadcast stations – it is the date by which your Quarterly Issues Programs lists, setting out the most important issues that faced your community in the last quarter and the programs that you broadcast to address those issues, need to be placed in the physical public inspection file of radio stations, and the online public file of TV broadcasters.

Full power TV and Class A TV stations by January 10 also need to have filed with the FCC their FCC Form 398 Children’s Television Reports, addressing the educational and informational programming directed to children that they broadcast.  Also, by that same date, they need to upload to their online public files records showing compliance with the limits on commercials during programming directed to children.  And there are other new obligations for smaller TV stations that are effective this month.
Continue Reading July Regulatory Dates for Broadcasters – New Captioning Obligations, Online Political File for Small TV Stations, Issues Programs List and Children’s Television Reports, and More

The Supreme Court decided the Aereo case (decision here) and, if I can brag a little, the decision was pretty much what we predicted here after the oral argument – a relatively narrow decision finding that there is a public performance of the broadcast television signals retransmitted by Aereo as part of their service.  The Court looked at the service, and concluded that it effectively does what a cable system does with broadcast television stations – it takes their signals off the air and transmits them to the public, and charges a fee for doing so.  The only meaningful difference with Aereo for purposes of the decision was that it did not get the broadcasters permission to retransmit their signals.  Because its performance of the television stations’ signals was not authorized, the Court concluded that the service had violated the rights of the copyright holders, and remanded the case to the lower courts to finalize decisions which will presumably stop the retransmission of station signals unless Aereo gets permission from the TV broadcasters.

The decision was a 6-3 vote of the Court, with the dissenters adopting Aereo’s position that it was not the service that was making the performance, but each individual user, and thus the performance was a private one for which no permission of the copyright holder is necessary (akin to turning on the TV and performing its programming to yourself in your living room, or singing to your family in the car).  The dissenters, led by Justice Scalia, looked at three principal reasons for their conclusions that the majority missed the boat – (1) The statutory provisions and legislative history cited by the majority did not support the decision; (2) Aereo’s technology is different from cable as it sends one signal to one individual when the individual asks for it, as opposed to a cable system which is always sending all the TV signals to its subscribers, and (3) There was no volitional conduct by Aereo to infringe on copyrights – all the conduct actually seeking any infringing content was that of the users (going so far as to suggest that, while Aereo may not have violated the public performance rights of the copyright holders, it might still be contributorily infringing on their copyrights by encouraging the infringement by users).  The majority dismissed these complaints, for many of the same reasons that we have written about before (as summarized below).
Continue Reading Supreme Court Finds Aereo Infringes on Broadcasters’ Public Performance Rights – Why the Court Got it Right

The Supreme Court heard the oral arguments in the Aereo case yesterday, it has received all the briefs, and now we all just wait for a decision – to probably be released late in June before the Court’s summer recess.  The transcript of yesterday’s oral argument has been released and is available here.  It makes for interesting reading, as the questions from the Court seemed to be dubious of Aereo’s claims that it can retransmit the signal of a broadcast television station over the Internet, to the public for a fee, without the consent of or any payment to the stations.  While dubious about the Aereo service, the Court was also concerned about the potential impact of any decision against Aereo on cloud services and even on other distributors of media content.  Lots of issues came up during the course of the argument, and it will be very interesting to see how the Court resolves these in its final decision.  Keep reading, and I’ll make my prediction. 

While Court arguments can never be relied on to predict the decision, they can at least provide insight into the questions that the Justices are considering.  One question that recurred throughout the argument was raised by Justice Sotomayor in the first question that was asked – why wasn’t Aereo a cable system under Copyright law, as it retransmits television programming to consumers for a fee?  Counsel for both parties contended that it was not a cable system, though neither gave an entirely satisfactory reason for that position.  The definition of a cable system in Section 111 of the Copyright Act, which governs the compulsory license granted to cable systems to retransmit over-the-air TV stations and all of the content that they broadcast, defines a “cable system” as:

a facility…that in whole or in part receives signals transmitted or broadcast by one or more television stations licensed by the Federal Communications Commission, and makes secondary transmissions of such signals by wires, cables, microwave or other communications channels to subscribing members of the public who pay for such service.

As the Justices said, this sure looks like what Aereo is doing.  As we have written before, the FCC is looking at whether an IP based video-programming service should be classified as a cable system.  It might well have been easier for the attorney representing the broadcasters to concede that Aereo was very much like a cable system, as if it was so classified, it would have proved the argument that they broadcasters were trying to make – that its retransmission of television programming was a public performance that required the permission of the broadcaster.
Continue Reading Supreme Court Hears Oral Argument in the Aereo Case – A Summary of the Issues and a Prediction

Aereo finally lost a court decision.  The US District Court in Utah released a well-reasoned decision finding that the service, by transmitting via the Internet over-the-air TV programming to subscribers without any consent from the TV stations or their program suppliers, violated the copyrights that the stations have in their programming.  Specifically, the Court found that the transmissions were public performances, the very issue to be determined later this year by the US Supreme Court when it considers the decision of the Second Circuit Court of Appeals in New York finding that no public performance was involved in the Aereo transmissions.  (See our summary of the NY decision here).  The Utah Court issued an injunction preventing Aereo from operating in Utah until the issue is decided by the Supreme Court. 

This is the first case that Aereo itself has lost, also winning a favorable decision from a District Court in Boston which essentially followed the Second Circuits reasoning (see our summary of the Boston decision here).  But the Aereo copycat service, FilmOn X, which presented essentially the same legal issues to Courts, has lost two decisions, one in California and one in Washington DC (see our summary of the DC decision here), both courts finding that the public performance right was implicated by Aereo’s transmissions.  Oral arguments in the Supreme Court are to be held in April, with a decision in the case expected before the Court adjourns for its summer recess in July.  Does this Utah decision serve as a preview of the upcoming Supreme Court decision?
Continue Reading Utah Court Enjoins Aereo Service – A Preview of the Supreme Court Decision? Could It Find Aereo to Violate Copyright Law Without Overturning the Cablevision Decision?

Social media and other digital platforms are playing a more and more important part of the business of traditional media companies.  In the last few weeks, I’ve participated in two seminars, looking at the legal issues that arise in these areas.  At the Winter Convention of the Wisconsin Broadcasters Association, I conducted a seminar outlining the legal issues that broadcasters need to consider in their digital media endeavors.  The slides from that presentation are available here.  We talked about many issues, some of which I write about regularly (e.g. music rights), and others that I will write about more in coming weeks, including privacy, online sponsorship attribution, user-generated content, and other issues that arise in the online world.  One issue that we spent a significant amount of time discussing was copyright – including specifically concerns that can arise when stations take content found on the Internet – pictures, videos, music or other creative works – and appropriate it for their websites or other digital properties, without bothering to get permission. 

Many broadcast employees, as well as many others throughout society, think that if something is on the Internet, it is there to be used by others, and no rights need to be obtained to use that material.  That is incorrect, and can get users into trouble.  In recent months, we have seen many lawsuits filed against broadcasters, including against some of the biggest broadcasters in the country, over improper use of photographs found on the Internet.  What often happens is that someone at a station is putting together some content for a station website – say the arrival in town of some band whose music the station plays.  Rather than calling the band’s management company or the concert promoter to get pictures to use in the article about the artist or the upcoming show, the station employee finds some picture on the Internet, copies it through a simple mouse click or two, and pastes it onto the station’s website.  A few months later, a cease and desist letter arrives, or worse, an immediate demand is made for a significant sum of money, claiming that the use of the photo infringed on the copyright of the photographer who took the pictures.  How can this be, asks the station employee?  When someone posts something in the Internet, isn’t it free for anyone to use?
Continue Reading Digital and Social Media Legal Issues for Broadcasters – Exercise Care in Using Internet Content on Your Digital Properties, And Why Fair Use is Not Always a Defense

We recently wrote about FCC issues that will be facing broadcasters in this new year.  While broadcasters will no doubt be busy keeping track of what the FCC is up to, they also need to have their eyes on other government agencies, as there are numerous issues that may come from Congress and the other regulatory agencies in DC that could affect their bottom lines.  So, with a watchful eye on the FCC for the issues we wrote about earlier in the month, what other issues should broadcasters be watching for from all of the other regulatory power centers in DC? 

While this is an election year, and that makes many big pieces of legislation unlikely, the discussions that occur in 2014 on these issues may pave the way for action late in the year, or in 2015 after the new Congress is in place and before the Presidential election in 2016 commands everyone’s attention.  Here are some of the issues of interest to broadcasters likely to be on the DC agenda in 2014:
Continue Reading What’s Up in Washington For Broadcasters in 2014? — Part 2, Issues beyond the FCC Including Ad Taxes, Music Royalties, Privacy Reforms, and More

The Supreme Court on Friday announced that is has decided to review the decision of a US Appeals Court in New York finding that the Aereo service of retransmitting over the Internet the signals of local television stations, without permission from or payment to those stations, was legal.  We wrote about the Second Circuit Court of Appeals decision in the Aereo case here.  The Supreme Court’s decision to hear the case, which may signal that the case will be decided before the Court adjourns its term in June, was supported not only by the television stations who had sought to block the Aereo service and the program suppliers to those television stations (including many of the sports leagues), but also by Aereo itself.  As Aereo and its copycat service FilmOn X were being sued in every jurisdiction where they started to do business, the desire to get a quick and final resolution of the legality of their services is a natural one.  This is especially true as the Courts have been reaching different decisions, as demonstrated by the two cases decided only a month apart, one in Boston finding Aereo to be legal, and one in DC finding FilmOn X to be infringing on the copyrights of the TV stations who brought the lawsuit.  So what issues will the Supreme Court be deciding?

One newspaper editorial, from the Los Angeles Times, has suggested that this is a Betamax case for the 21st century.  The Betamax case, officially known as Sony Corp. v Universal City Studios, was the case that declared the VCR to be legal, and found that its original manufacturer, Sony, was not contributorily infringing on the copyrights held by Universal and other studios that brought the case.  But that comparison really does not hold up, as the Betamax decision was premised on several findings that simply cannot be made here.  First, the Court in the Betamax case found that the VCR was not in and of itself an infringing service, as it had substantial legal uses.  In fact, there was testimony in the record that many copyright holders actually were not opposed to the use of a Betamax to copy their programs for time shifting and other purposes.  In the Aereo cases, copyright holders are for the most part universally opposed to the service and, other than retransmitting copyrighted programs without consent, there does not appear to be another use for the service.
Continue Reading Supreme Court Decides to Review Aereo – Why This is Not the New Betamax Case

A new month in a new year, and a number of new regulatory dates are upon us for broadcasters – and important dates for webcasters also fall in this month.  So now that the holidays are quickly becoming just a foggy memory, it is time to sharply focus on those regulatory obligations that you have to avoid legal issues as the year moves forward.  January 10 brings one deadline for all broadcast stations – it is a date by which your Quarterly Issues Programs lists, setting out the most important issues that faced your community in the last quarter of 2013 and the programs that you broadcast to address those issues, need to be placed in the physical public inspection file of radio stations, and the online public file of TV broadcasters.

Full power TV and Class A TV stations by January 10 also need to have filed with the FCC their FCC Form 398 Children’s Television Reports, addressing the educational and informational programming directed to children that they broadcast.  Also, by that same date, they need to upload to their online public files records showing compliance with the limits on commercials during programming directed to children.
Continue Reading January Regulatory Dates for Broadcasters and Webcasters – Children’s Television Reports, Quarterly Issues Programs List, Webcaster Elections and Minimum Fees, the Return of Lowest Unit Rates and More!

It is the beginning of another year – and a time to look ahead to look ahead at what broadcasters should expect from Washington in the coming year.  With so many issues on the table, we’ll divide the issues into two parts – talking about FCC issues today, and issues from Capitol Hill and elsewhere in Washington’s alphabet soup of regulatory agencies in the near future.  In addition, watch these pages for our calendar of regulatory deadlines for broadcasters in the next few days.

Each January, we publish a list of issues for the coming year, and it is not always the case that these issues make it to the top of various piles (literal or figurative) that sit in various offices at the FCC.  As set forth below, there are a number of FCC proceedings that remain open, and could be resolved this year.  But just as often, a good number of these issues sit unresolved to be included, once again, on our list of issues for next year.  While some issues are almost guaranteed to be considered, others are a crap shoot as to whether they will in fact bubble up to the top of the FCC’s long list of pending items. So this list should not be seen as a definitive list of what will be considered by the FCC this year, but instead as an alert as to what might be coming your way this year. Issues unique to radio and TV, and those that could affect the broadcast industry generally, are addressed below.
Continue Reading What’s Up in Washington For Broadcasters in 2014? — Part 1, FCC Issues