The FCC yesterday announced a consent decree with Media General by which Media General agreed to pay a $700,000 “settlement payment” to the US Treasury to settle the investigation of its attempts to enforce the provisions of a Joint Sales Agreement with Schurz Communications.  Media General had tried to enforce the JSA when Schurz tried to terminate that agreement in order to sell its station to Gray Television.  Media General tried to get an injunction from a state court seeking to stop the sale, continue the JSA, and prevent Schurz or Gray from putting the station into the incentive auction.  As we wrote here when the case first arose, the FCC wrote to the court, contending that the injunction would not only violate the conditions placed on the sale by the FCC (that the Schurz station be sold before the Gray deal could close) but, more importantly for the general broadcast community, that the restrictions on the sale of the station, and its participation in the incentive auction, were improper restrictions on the control rights of the licensee.  Essentially, the FCC was saying the licensee’s right to sell the spectrum it had was not one that could be conveyed to a third party.  The FCC even stated its intention to initiate a proceeding to determine whether Media General’s FCC licenses should be revoked.

What we wrote when the case came out, and what we wonder now, is what the FCC considers the degree to which a licensee’s ability to sell its spectrum can be limited by contract or agreement.  Yesterday’s release provides no guidance, as it was simply a settlement agreement.  The consent decree recites what the FCC was initially concerned with, but Media General did not admit any liability, and the consent decree does not reach any conclusion as to the actual basis of the settlement payment.  So it is conceivable that the FCC was actually only worried about the attempts by Media General to require that the station be kept and the JSA stay in place, even though the FCC ordered that it end.  It may not have been a case dealing principally with control at all, but instead one dealing with grandfathered JSAs and whether those JSAs can stay in place after the sale of one of the television stations involved in the arrangement.  Otherwise, if the case was really about putting limits on the degree to which contracts can limit the ability of a licensee to sell its station, that issue could have had much broader implications than the FCC may have intended.
Continue Reading $700,000 to Be Paid By Media General to End Inquiry on its Attempts to Enforce a JSA – What are the Limits on the Enforceability of a Contractual Restriction on an FCC Licensee’s Sale of its Station?

Over the last several months, we have written about the risks of publishing ads or engaging in promotional activities that refer to the SUPER BOWL® or MARCH MADNESS® without first asking the NFL or the NCAA, respectively, for permission to use those marks.  With millions of viewers about to tune into the OLYMPIC® games in Rio this August, we similarly remind our readers that any Olympic trademarks, symbols or other branded content should not be used in advertising and marketing campaigns across any media platforms (on-air, websites, social media sites, in hashtags, apps, etc.) except by authorized advertisers.  And, for the reasons we discuss below, dealing with these marks deserve an Olympic-size dollop of caution.

We’ve written before (here and here) how Olympic sponsors pay big bucks for the rights to sponsor the Olympics, and to get exclusivity to associate their brands with the games. Thus, the sponsors guard their territory carefully, as do the Olympic organizations whose ability to stage the games is dependent on such sponsorship.  Numerous small businesses, nonprofits, and even individuals have been on the receiving end of cease and desist letters, including, for example, a knitting group that used the term RAVELYMPICS for a knitting competition, a charcuterie in Portland named OLYMPIC PROVISIONS, and a Philadelphia sub shop named OLYMPIC GYRO.
Continue Reading Avoiding Olympic Hassles – Trademark and Other Legal Protections Limit the Use of Olympics, Paralympics and Related Terms in Advertising, Marketing, and Promotions

New FAA rules for drones were recently approved, and the rules may provide more opportunities for broadcasters to get in the game.  Emilie de Lozier from my firm offers these thoughts:

Broadcasters, prepare for takeoff later this summer.  The Federal Aviation Administration recently finalized rules to broadly permit the commercial operation of small unmanned aircraft systems (“sUAS”) – or drones – provided certain requirements are met.  The new rules are in many cases more permissive than the existing regulatory framework, but some potential pitfalls remain.  Rest assured, we are here to help you navigate the complexities of this new regime.  Below we provide a high-level discussion of the new rules and their effect on broadcasters’ future sUAS operations to support newsgathering.

We previously wrote about the FAA rulemaking to develop these rules here.  As a quick refresher, in 2012, Congress directed the FAA to develop a plan for incorporating drones into the national airspace.  In the meantime, the FAA created an exemption process pursuant to Section 333 of the FAA Modernization and Reform Act of 2012 to authorize commercial UAS operations on a case-by-case basis.  The FAA has granted more than 5,000 exemption requests to date, including for newsgathering purposes, and thousands of these requests remain pending.  (If your petition is among those pending, you should monitor your petition docket for a status update from the FAA in the coming weeks.)  The new rules are intended to minimize the need for parties, including broadcasters, to seek such exemptions.
Continue Reading FAA Clears Small Drones for Takeoff: What You Need to Know

While TV broadcasters can enjoy an incentive auction respite in July as attention shifts to the “forward auction” where we will see whether wireless carriers come up with enough money to fund the $86,422,558,704 (plus $1.75 billion for repacking costs, plus auction-related administrative costs) needed for the buyout of TV stations who agreed to surrender their spectrum, radio broadcasters will get some of their own attention as, at the end of the month, the second window for the filing of 250-mile waiver applications opens for Class A and B AM stations. We wrote about these waivers here, which allow an AM licensee to acquire an FM translator and file an application to move it up to 250 miles and operate it on any commercial frequency that does not create interference in their market. That window for Class A and B AM stations opens July 29 and runs through October 31 (and remains open for any other AM that has not already filed one of these waivers in the first window which opened back in January).

In addition to the AM window, there are routine filing deadlines for all TV stations – required to file their FCC Form 398 Children’s Television Reports by the 11th of the month (because the 10th of July is a Sunday) demonstrating the educational and informational programming they broadcast directed to children. By the 10th television stations also need to upload information into their online public files to demonstrate compliance with the limits on commercial time in children’s programs.
Continue Reading July Regulatory Dates for Broadcasters – FM Translators for Class A and B AMs; Quarterly Issue Programs and Children’s Television Reports; Comments on EAS, Letters from the Public and Regulatory Fees, Cable Royalty Claims; and More

One week to go to the effective date for the online public inspection file for commercial radio stations in the Top 50 radio markets that are part of employment units with 5 or more full-time employees.  Two weeks ago, I conducted a webinar for 19 state broadcast associations on what goes into that file

Last week, we posted a reminder about the obligations for stations to provide equal opportunities for competing candidates to buy time on broadcast stations, and also talked about how the equal time provisions do not apply to bona fide news and news interview programs. Almost immediately, I received several questions about on-air employees who decide to run for political office, and how they are treated for purposes of the equal opportunities rule. Having an on-air employee who runs for political office – whether it is a federal, state or local office – does give rise for equal opportunities for competing candidates whenever that employee’s recognizable voice or picture appears on the air, even if the personality never mentions his or her candidacy on the air, and even if they appear in what is otherwise an exempt program (e.g. a newscaster who runs for office triggers equal time when he delivers the news even though a candidate’s appearance as a subject of that news program would be exempt). Stations need to take precautions to avoid the potential for owing significant amounts of free time to competing candidates, where those candidates can present any political message – if they request it within 7 days of the personality’s appearance on the air.

We have written about this issue many times before, including coverage of when well-known local or national personalities have contemplated runs for office – see our stories here, here and here. In 2010, we wrote an article that provided a discussion of this issue, which remains valid today. An edited version of that article is below.
Continue Reading Equal Opportunities – What to Do With the On-Air Employee who Runs for Political Office

Pirate radio is still a problem. While pirate radio was much in the news a decade ago, and was even glamorized in movies, the popular perception may be that it has disappeared. In fact, particularly in major urban areas, it is still a major issue – causing interference to licensed broadcast stations and even, at times, to non-broadcast communications facilities. The FCC yesterday upheld a previously issued $15,000 fine to an operator of an illegal station in Florida, rejecting arguments that the community service provided on the station should mitigate the fine. The FCC, from time to time, releases this sort of fine, yet these stations keep popping up. A number of Commissioners have recognized the gravity of the issue, and that recognition caused the FCC to last month issue an Enforcement Advisory, warning operators that unauthorized broadcasting is illegal, suggesting that the public turn in those who operate pirate stations, and warning those who support pirate radio (e.g. landlords and advertisers) that their support could “expose them to FCC enforcement or other legal actions.” What is the reality of this actually happening?

A few states, including New Jersey and Florida, have passed criminal statutes making pirate radio illegal, but such enforcement, in the few cases that I have dealt with in those states, has tended to be a low enforcement priority for state authorities. Most defer to the FCC, given their perceived expertise in this area. Thus, there has been a recognition that the FCC needs to do more to combat pirate radio, particularly in urban centers like New York where the problem has been particularly acute. I had the privilege of interviewing FCC Commissioner Michael O’Rielly at the Oklahoma Association of Broadcasters convention the week before last. The Commissioner has been an outspoken advocate of more pirate radio enforcement. In addition to early support for public education on the issue, including the issuance of the Enforcement Advisory, the Commissioner suggested that additional Congressional action may be necessary to give the FCC more enforcement tools to really bring pressure to bear on pirate radio operators and those who support them. What tools are needed?
Continue Reading Combatting Pirate Radio – What Can the FCC Do?

A Washington Post article published this weekend was titled “Is there anything you can’t say on TV anymore? It’s complicated.” And, it really is. The Post article presents a very good overview on the status of the FCC’s indecency rules. What will happen with those rules has been a matter of conjecture for several years, ever since the Supreme Court threw out the fines that the FCC had imposed for fleeting expletives that had slipped out in the Golden Globes and other awards programs, a case that also had the effect of negating that other fine for a “slip,” the notorious Janet Jackson clothing malfunction during her Super Bowl performance. Other than a well-publicized $325,000 fine on a Roanoke TV station for a short but very explicit image that slipped into the corner of a news report on a porn star turned first responder (see our article here on the Roanoke case), the FCC has been largely quiet on the indecency front since it launched a post-Supreme court proceeding to determine how they should amend their rules in light of the Court’s decision (see our summary here).

As we wrote when comments were filed in that proceeding, it drew much attention, with many commenters fearing that the FCC would back away from all indecency regulation on broadcast TV. In an election year like this one, don’t expect in the near future to see any definitive answers as to what is indecent and what is not. Neither political party wants to be tagged with being pro-smut by one side of the political spectrum, or anti-First Amendment expression by the other. But the Post article raises other very interesting questions about the difference in legal treatment between cable and broadcast programming, especially when so many viewers hooked up to some cable or satellite service don’t really understand the difference between cable network programming and that from broadcast sources.
Continue Reading Looking at the FCC’s Indecency Rules – Does Anyone Know What’s Prohibited and What’s Permitted?

Last week was a busy one for the FCC, with decisions or proposals on a number of issues that can affect broadcasters, including changes to the EAS rules and proposals for the expansion of video description – the requirements that TV stations carry a certain amount of programming that is accompanied by audio descriptions to explain the visual action to TV station viewers who are blind or otherwise visually impaired. Today, we’ll look at the proposals for expanding the required amount of “video description” required by TV stations.

Under current FCC rules, television stations affiliated with ABC, CBS, Fox and NBC and which are located in the Top 60 US TV markets must carry a minimum of 50 hours of video programming per quarter that is described by accompanying audio descriptions of the on-air visual action. These descriptions are usually broadcast on the station’s secondary audio programming (“SAP”) channel, often used for foreign language translations of programming. These SAP channels are also used for the required audio transmission of video alert warnings that occur outside of news programs (see our article about that requirement for emergency information, like video crawls during entertainment programming, to be translated into audio and broadcast on these SAP channels, here and here). Qualifying programming must either be in prime time or programming addressed to children. The rules also require that TV stations in all markets pass through network programming with such audio descriptions if those stations are technically able to do so. The FCC notes that, given the requirement for emergency information on SAP channels, all TV stations should now have that ability to pass through network programming with audio description of the video programming. The FCC now proposes to further expand the obligations of TV broadcasters to do audio descriptions of video programming that they air.
Continue Reading FCC Proposes Expansion of Requirements for TV Stations and MVPDs to Provide Audio Description of Video Programming

April brings the whole panoply of routine regulatory dates – from the need to prepare EEO Public File and Noncommercial Ownership Reports in some states, to Quarterly Issues Programs lists for all full-power broadcast stations and Quarterly Children’s Television Programming Reports for all TV stations.  So let’s look at some of the specific dates that broadcasters need to remember this coming month.

On the first of the month, EEO Public Inspection File Reports should be placed in the Public Inspection files of all stations in employment units with five or more full-time employees in the following states: Delaware, Indiana, Kentucky, Pennsylvania, Tennessee and Texas.  In addition, EEO Mid-Term Reports on FCC Form 397 need to be submitted to the FCC by radio stations that are part of employment units of 11 or more full-time employees in Kentucky, Tennessee and Indiana.  For more on the EEO Mid Term Report, see our article here.
Continue Reading April Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports and Much More