Noncommercial Broadcasting

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  • The National Association of Broadcasters filed a Petition for Rulemaking asking the FCC to require that full-power television stations complete
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The Copyright Royalty Board this week published notice in the Federal Register that SoundExchange is auditing two broadcast companies who are streaming their signals online to assess compliance with the statutory music licenses provided by Sections 112 and 114 of the Copyright Act for the public performance of sound recordings and ephemeral copies made in the digital transmission process by commercial webcasters. A notice was published last month indicating an audit of five other broadcast companies.  Notices of audits are annual events.  But, as the number of broadcasters selected for audits this year is higher than in past years, we thought that we should republish some of the observations that we have made in the past about these audits. 

SoundExchange may conduct an audit of any licensee operating under the statutory licenses for which it collects royalties.  Such audits cover the prior three calendar years in order to verify that the correct royalty payments have been made (the notice issued this week audits the named broadcasters for 2022-2024, while the audits announced last month were filed in late 2024 and are for the years 2021-2023). The decision to audit a company is not necessarily any indication that SoundExchange considers something amiss with that company’s royalty payments – instead SoundExchange audits a cross-section of services each year (see our past articles about audits covering the spectrum of digital music companies who have been subject to these audits – here, here, here, here and here).  Continue Reading Copyright Royalty Board Announces SoundExchange Audits of Broadcast Companies Streaming Their Signals – How Do These Audits Work?

  • The US Court of Appeals for the Eighth Circuit has scheduled for March 19 the oral argument on the appeals
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  • Payola on broadcast stations suddenly was in the news this past week.  Early in the week, Senator Marsha Blackburn (R-TN)
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Last week, U.S. Senators Marsha Blackburn (R-Tenn.), Alex Padilla (D-Calif.), Thom Tillis (R-N.C.), and Cory Booker (D-N.J.) introduced the American Music Fairness Act (see their Press Release for more details), with a companion bill to follow in the House.  If adopted, this legislation would impose a new music royalty on over-the-air radio stations.  The royalty would be payable to SoundExchange for the public performance of sound recordings.  This means that the money collected would be paid to performing artists and record labels for the use of their recording of a song.  This new royalty would be in addition to the royalties paid by radio stations to composers and publishing companies through ASCAP, BMI, SESAC and GMR, which are paid for the performance of the musical composition – the words and music to a song. This new legislation is virtually identical to that introduced in the last Congress (see our article here), and is another in a string of similar bills introduced in Congress over the last decade.  See, for instance, our articles here, here, here and here on previous attempts to impose such a royalty.

As in the version of the bill introduced in the last Congress, in an attempt to rebut arguments that this royalty would impose an unreasonable financial burden on small broadcasters, the legislation proposes relatively low flat fees on small commercial and noncommercial radio stations, while the rates applicable to all other broadcasters would be determined by the Copyright Royalty Board – the same judges who set internet radio royalties payable to SoundExchange by webcasters, including broadcasters for their internet simulcasts.  Under the bill, the CRB would review rates every 5 years, just as they do for webcasting royalty rates.Continue Reading It’s Back!  American Music Fairness Act Proposing New Music Royalties for Over-the-Air Broadcasting Introduced in the New Congress

  • FCC Chairman Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to
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Yesterday, the new FCC Chairman Brendan Carr sent a letter to NPR and PBS announcing that he has asked the FCC’s Enforcement Bureau to launch an investigation into their advertising practices – suggesting without specifics that these entities had gone beyond the permitted underwriting announcements by airing prohibited advertisements for commercial products and services (Commissioner Starks and Gomez issued statements questioning the basis for this investigation).  While the Chairman’s letter was vague on specifics, and unclear as to whether there were specific listener or viewer complaints that triggered the investigation (which is how the FCC typically initiates an investigation into a broadcaster’s regulatory compliance ), the letter does suggest that all noncommercial broadcast stations, including all LPFM stations and other full-power stations not affiliated with NPR or PBS, should examine their practices to ensure that they comply with the FCC’s underwriting policies. 

What do these rules require?  Noncommercial stations can air acknowledgments of those making financial contributions to stations, but the identification of such sponsors must be limited – you can give their name, a general description of what their business is and where they are located, but such information must be provided in an objective, non-promotional manner. FCC standards prohibit calls to action (e.g., “visit this store,” “come on down”), inducements to buy (e.g., “we have a two for one special,” “mention the station and you’ll get a discount on all that you buy”), price information (e.g., “tickets only $29.99” or “this week, we have our end-of-year sale” or “10% senior discounts”) or qualitative claims (“the best pizza in town,” “quality merchandise and a friendly staff”).  We have written many articles on these issues (see, for instance, articles here, here and here) and the fines that have arisen when the rules were not followed.  Continue Reading As FCC Chairman Announces an Investigation into Alleged PBS and NPR Advertising, a Look at the Underwriting Requirements for All Noncommercial Broadcast Stations

  • The FCC released an Order increasing by an average of more than 17% its application fees, including those for broadcast
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2025 has begun – and everyone is speculating as to what the New Year will bring, particularly given the upcoming change in administration in the White House and at the FCC.  Yesterday, we published an article looking at some of the regulatory issues that we expect the FCC will address this year.  And we promised…

As 2024 comes to an end, 2025 is beginning to come into focus – a new year that will likely bring big changes to the Washington broadcast regulation scene with the inauguration of a new President and installation of a new FCC chair who has already promised to move forward with policies very different than those of the current administration (see our discussion here and here).  But while we are waiting for the big changes that may occur, there are many more mundane dates and issues to which broadcasters need to pay attention.  Let’s look at what is coming up in the next month.

Broadcasters need to remember that January 10 is the deadline for all full power and Class A TV stations, and full power AM and FM radio stations, both commercial and noncommercial, to upload to their Online Public Inspection Files their Quarterly Issues/Program lists for the fourth quarter of 2024.  The lists should identify the issues of importance to the station’s community and the programs that the station aired between October 1 and December 31, 2024, that addressed those issues.  These lists must be timely uploaded to your station’s OPIF, as the untimely uploads of these documents probably have resulted in more fines in the last decade than for any other FCC rule violation.  As you finalize your lists, do so carefully and accurately, as they are the only official records of how your station is serving the public and addressing the needs and interests of its community.  See our article here for more on the importance of the Quarterly Issues/Programs list obligation.Continue Reading January 2025 Regulatory Updates for Broadcasters – Quarterly Issues/Programs Lists, Children’s Television Programming Reporting, Expansion of Audio Description Requirements, Political Windows, and More