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David Oxenford represents broadcasting and digital media companies in connection with regulatory, transactional and intellectual property issues. He has represented broadcasters and webcasters before the Federal Communications Commission, the Copyright Royalty Board, courts and other government agencies for over 30 years.

This past week, both FCC Chairman Julius Genachowski and Commissioner Robert McDowell have announced that they are leaving the FCC in the near future. While their exact departure dates are uncertain, the press is already buzzing with anticipation about who will next lead the FCC, and who will take the place of Commissioner McDowell. The President gets to appoint the Chairman and new Commissioner, but his choices have to be approved by the US Senate. While there have from time to time in the past been delays in the approval process of new FCC Commissioners, with one Democrat and one Republican leaving, there is some speculation in Washington that the confirmation process can move forward in tandem, and hopefully without significant undue delay.

In the interim, the FCC can continue to do business with three Commissioners should the replacements not be confirmed before the departures.  But what will this change in the FCC mean for broadcasters? In short, the answer is that it is probably anyone’s guess. There is very little that can be discerned in advance about the impact of the selection of any Commissioner. Certainly, a new Chairman can have a significant impact in shaping the agenda pursued by the Commission, but one never knows exactly what that agenda will be until the Chairman takes his or her seat and starts to act. Sometimes the results are surprising as with the last Republican Chair who introduced many very regulatory proposals to govern broadcasting (see, for instance, the adoption of the Form 355 for television that, had it gone into effect, would have required detailed, voluminous reporting of all sorts of information about public interest programming by television stations; as well as still pending proceedings on sponsorship identification obligations and the initiation of a vigorous anti-indecency regime). Continue Reading FCC Chairman Genachowski and Commissioner McDowell To Leave the FCC – What’s Next for Broadcasters?

The FCC has upheld a fine issued to a radio station licensee for what it determined was a failure to disclose all the rules of a broadcast contest. The giveaway was of "the Ultimate Garage" and the FCC determined, in response to a complaint, that the station had failed to disclose all of the material rules of the contest on the air. In looking at the many issues cited by the Commission in support of the fine, some are ones that are similar to those in other cases that we’ve written about before, but some are ones that have not been disclosed in other recent FCC fines – including the requirement that stations broadcast the all of the material rules of the contest not just periodically throughout the course of the contest enough so that a reasonable listener will hear the rules, but also the material rules must be announced the first time that the contest is announced to the public. 

The Commission found that the licensee here had not disclosed, in either the first announcement about the contest or in enough of the other broadcast announcements that the contest was a "winner take all" contest – where the Ultimate Garage would be awarded to only a single winner. The broadcaster had promoted the contest in both live-read announcements and in a variety of recorded announcements. While certain of the recorded announcements made clear that there was but one garage to be given away, many of the other recorded announcements and the live read announcements tended to refer listeners to the full contest rules on the website, where the rules mistakenly talked about the possibility multiple winners. But that was not the only issue that the FCC saw in the station’s disclosures.Continue Reading Another $4000 FCC Fine for Radio Station that Fails to Disclose All Material Rules of a Broadcast Contest the First Time the Contest was Announced

We’ve written many times before about those big name events, like March Madness, the Olympics and the Super Bowl. Events that you and your advertisers are just dying to tie into your own local event – a sale, a party or maybe the introduction of some special new product or service. Well, like the Super Bowl, March Madness is a trademarked term, and you need to exercise care in its use. While the company that owns the trademark (a company partially owned by the NCAA) may not be as aggressive as the NFL or the Olympic Committees in protecting its rights, it can still be an issue should you start promoting your March Madness sale without permission and get caught.

When we wrote our usual warning about the use of the term "Super Bowl" in advertising earlier this year, I received one message asking if I worked for the NFL. A reader who obviously had trademark law experience complained that I was too cautious in urging broadcasters to avoid the use of the term Super Bowl in a commercial. The argument from the reader was that, if used in the right way, not to name an event but just to say something like – "buy a big screen TV so that can watch the Super Bowl, the Academy Awards and all the best television that is coming your way this year," your use of the term in a commercial could probably be justified should it be challenged. While that may be the case, making the distinction between this arguably permissible kind of use, and a more problematic use (like "come on down to Joe’s electronics for our Super Bowl Sale on big screen TVs") is a nuanced issue. By avoiding the trademarked term in advertising, and instead sticking with something more generic – like "it is tournament time again, and you can watch all the action with a new big screen TV from Joe’s Electronics" – avoids any of the issues that might arise if you use the trademarked term in your commercial.Continue Reading March Madness is A Trademarked Term Like the “Super Bowl” – Watch Your Advertising and Promotional Uses

In a Notice of Apparent Liability, the FCC proposed a $14,000 fine on a broadcaster for a series of violations with respect to its tower. The FCC found that the station failed to have the required lights on the tower operating after sunset on at least two days, failed to notify the FAA of the outage (so that the FAA could send out a NOTAM – a notice to "airmen" notifying them to beware of the unlit tower), and failed to properly register the tower when the current owner acquired the station from its previous owner. As the tower had been sold over 3 years prior to the inspection that discovered the tower lights being out, the FCC determined that the violations were particularly egregious, and upped the fine – which would have been $10,000 for a failure to have the lights operating, and $3000 for failing to update the Antenna Structure Registration ("ASR") by an additional $1000. As noted below, updating tower registrations is considered very important by the FCC as, in another recent decision, the FCC proposed a $6000 fine merely for the failure of a licensee to update a tower registration. 

The case also showed the importance of keeping accurate records of the observation of tower lights. While the FCC did not specifically fine the station owner for not logging the tower light inspections, it did note that there was confusion between the station owner and engineer as to who was inspecting the tower lights and how often they were being inspected, when first asked by the FCC inspector. While records were later provided by the licensee that supposedly showed that the tower lights were inspected on a daily basis, the records were inconsistent and seemed to contradict the observations of the FCC inspectors. What do the rules require?Continue Reading $14,000 FCC Fine for Tower Violations – Obstruction Light Out, No FAA Notification and Failure to Update Antenna Survey Registration to Report New Owner

In the last few weeks, the FCC has fined a number of broadcast stations for failing to keep up with their EAS obligations. In one case, a low power FM operator was fined $1750 for not having any EAS receiver installed at its station – and not knowing that it was required. LPFM stations must

Last week, the FCC Commissioners appeared before Congress for an "oversight hearing." In such hearings, Congressmen often raise many different issues that may be on their mind – everything from issues about the administration of the FCC to detailed policy issues. In the hearing before the Senate Commerce Committee last week, one issue arose that broadcasters should monitor carefully to see what develops. During the course of the hearing, the FCC Commissioners were asked why the FCC had not taken steps to make sure that the sponsors of political advertisements were disclosed on the air. While the FCC rules already require disclosure of the sponsor of any ad, and enhanced disclosure for political ads or other "issue ads" on matters of public importance, what were the Senators after in this line of inquiry? 

It appears that the Senators were asking the FCC to ask for more information about the source of the money used by political action groups to buy television advertising time on election issues – including the money used by PACs, SuperPACs and the other types of advocacy groups that spent so much money in the last election cycle, and are already beginning to run ads in states that have Senate races that are likely to be hotly contested in 2014. What do the FCC rules currently require?Continue Reading Making the Broadcaster the Source for the Disclosure of Political Spending? What the FCC’s Disclosure Rules Require and What Congress Might Want the FCC to Do

The next step in processing of the translators from the 2003 FM translator window is now upon us.  The FCC has asked for major market translator applications – those in the "Appendix A markets" (essentially the top 150 Arbitron markets and a few additional ones in which numerous translator applications were filed) and

Both radio and TV broadcasters either have recently completed the license renewal process, or will be doing so in the next few years. Many broadcasters think that, once their broadcast licenses are renewed, so too are all of the other communications licenses that are operated in connection with their station. While that may be true for broadcast auxiliary licenses, like Studio Transmitter Links and Remote Pickups, there are other FCC authorizations that are not covered by the broadcast license renewal process, and are also not covered by the applications on FCC Forms 314 and 315 for the sale of a broadcast station. If a broadcaster does not pay attention to the expiration dates for these nonbroadcast licenses, or forgets to separately file an application for permission to assign these licenses during a sale of their broadcast station, a fine like the $18,000 fine that was just issued to a radio broadcaster who forgot that earth station licenses are different from a main broadcast license or a broadcast auxiliary license, may occur.

In this case, the broadcaster sold its radio station in 2003, including in a list of auxiliary licenses in its FCC application for the sale of the station, the call letters of the earth station. While the FCC granted the assignment application with the statement that the seller was authorized to assign the station and all authorized auxiliaries, the Commission makes clear in this order that the sale of an earth station is not a broadcast auxiliary, but instead needs a separate authorization from the FCC’s International Bureau before it can be sold. As that authorization was not granted, when the buyer took control of the station (and earth station), it operated that earth station without FCC approval for almost 10 years – without seeking a renewal of the license in 2006 – until the new licensee finally discovered the error and applied for an STA and new license to cover its operations. The FCC determined that the length of the violation required an upward adjustment of the normal $10,000 fine for operating an unlicensed station.Continue Reading $18,000 FCC Fine for Operating Earth Station with Expired License Reminds Broadcasters That Not All of Their Licenses are Covered During the License Renewal or Assignment and Transfer Approval Process

In the digital world, it seems that everything is reinvented, and someone claims that they have a patent on that reinvention. In the last few weeks, we have seen news about patent claims asserted against radio broadcasters for their digital music storage systems, against public broadcasters for podcasts, and even against companies trying to comply with the FCC’s new guidelines for E-911 (emergency communications over wireless and VoIP networks) providers. These claims highlight that media companies and others in the communications industry have to be prepared for patent litigation almost as a cost of doing business – and need to consult with patent lawyers about strategies if they are faced with such claims, and consider the potential of concerted defenses with others similarly situated if the defense does not violate other laws (such as the antitrust laws). What claims have been raised recently?

Over the last two years, thousands of radio stations across the country have received letters claiming that their digital music storage systems violated a patent from a company called Mission Abstract Data. While the patents in question have a checkered history at the Patent Office – after being issued, they were reexamined and their basis questioned, with the Patent Office ultimately agreeing that the patents, as limited through the reexamination, were in fact valid. But that decision was itself challenged by equipment manufacturers whose music systems could infringe on the patent. That further reexamination is still underway.  Nevertheless, as that reexamination continues, the company that currently has rights to the patent, Digimedia, has sued four radio station owners in Texas claiming that they are violating these patents controlled by the company. These suits are in addition to a long-pending case against a number of large broadcasters, which has been stayed pending the outcome of the Patent Office reexamination (though the patent holder has asked that the stay be lifted – an argument to be considered later this month). Some observers have suggested that these new suits may be a precursor to other actions to try to convince reluctant broadcasters to take out a license rather than fight a lawsuit.Continue Reading More Patent Issues for Media Companies – Mission Abstract Data Patent Asserted in Law Suits Against 4 Radio Broadcasters, and a New Patent Claim Raised Against Podcasters, Including Public Broadcasters

The FCC has fined a Boston radio station $4000 for airing misleading announcements on the radio station as to the nature of the prize to be awarded in a station contest. In addition to an interesting set of facts in this case, the FCC’s decision also reviews several other recent decisions in explaining why it came to the decision it did as to the amount of the proposed fine. 

In this case, the contest was promoted on the air as an opportunity to win a choice of three cars. The "Cool, Hot or Green" contest announcements never revealed on the air that the winner in fact did not receive the car, but instead only a two year lease on the car, and only if the winner passed a credit check. Nor did the on-air announcements mention that full contest rules were available on the station’s website. While the written rules on the website made clear that the prize was merely a lease of the car, as has been the case in many recent decisions (see our summaries here and here), the Commission faulted the licensee for not broadcasting an accurate disclosure of these rules on the air. While the licensee argued that this was but a minor ambiguity in the rules, the FCC, reviewing some recent decisions, disagreed.Continue Reading $4000 FCC Fine for Radio Station’s Misleading Contest Announcements Provides Summary of Recent Decisions on Contest Rule Violations