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David Oxenford

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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.

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Last week, the FCC issued several fines to noncommercial broadcasters who had underwriting announcements that sounded too commercial.  In these decisions, the Commission found that the stations had broadcast promotional announcements for commercial businesses – and those announcements did not conform to the FCC’s rules requiring that announcements acknowledging contributions to noncommercial stations cannot contain qualitative claims about the sponsor, nor can they contain "calls to action" suggesting that listeners patronize the sponsor.  These cases also raised an interesting issue in that the promotional announcements that exceeded FCC limits were not in programming produced by the station, but instead in programs produced by outside parties who received the compensation that led to the announcement.  The FCC found that there was liability for the spots that were too promotional even though the station itself had received no compensation for the airing of that spot.

The rules for underwriting announcements on noncommercial stations (including Low Power FM stations) limit these announcements to ones that identify sponsors, but do not overtly promote their businesses.   Underwriting announcements can identify the sponsor, say what the business of the sponsor is, and give a location (seemingly including a website address).  But the announcements cannot do anything that would specifically encourage patronage of the sponsor’s business.  They cannot contain a "call to action" (e.g. they cannot say "visit Joe’s hardware on Main Street" or "Call Mary’s Insurance Company today").  They cannot contain any qualitative statements about the sponsors products or services (e.g. they cannot say "delicious food", "the best service", or "a friendly and knowledgeable staff" ).  The underwriting announcements cannot contain price information about products sold by a sponsor.  In one of the cases decided this week, the Commission also stated that the announcements cannot be too long, as that in and of itself makes the spot seem overly promotional and was more than was necessary to identify the sponsor and the business that the sponsor was in.  The spot that was criticized was approximately 60 seconds in length. Continue Reading FCC Fines for Noncommercial Stations Having Underwriting Announcements That Were Too Commercial – Even Where the Station Received No Money

This week, an agreement by Republican Senator Kay Bailey Hutchison, the ranking minority member on the Senate Commerce Committee, to an extension of the DTV transition deadline from February 17 until June 12, was announced.  The delay has been requested so that issues about the distribution of the $40 government coupons to consumers to ease their purchase of converters to allow analog TVs to pick up digital signals so that they will continue to work after the transition date can be resolved; and so that there can be more targeted information about the transition delivered to groups that many feel may not have received the message about the transition. But Congressional Republicans have thus far blocked attempts by the Obama administration to delay the transition, so this agreement by Senator Hutchinson is viewed as a sign that the extension may very well be approved in the near term.  As the transition deadline is only weeks away, if Congress is going to act, it needs to do so immediately, or the effect of any delay will be negligible as the transition will have, for all practical purposes, already occurred.

Most broadcast stations have made plans for the transition – ordering the equipment, scheduling tower crews, coordinating the changes in frequencies with other stations in the same region that may be necessary to accommodate the digital operations.  In some cases, stations have already ceasing their analog broadcasting so that the new equipment necessary to accomplish the transition can be installed, or because these stations will be operating digitally on their analog frequency and have had to allow a tower crew or other engineering support to conduct the work necessary to allow the digital operations on the final channel to occur before the February deadline dates.  Given the limited number of such crews, not all of these final changes could happen on a single date, so stations have been changing to all digital operations now as the final date approaches.  Without Congressional action very soon, the transition will have, for the most part, already occurred.Continue Reading Senator Hutchison Announces Compromise on DTV Transition Delay Until June 12 – Why Congress Needs to Act Soon

On Thursday, the Obama administration appointed FCC Commissioner Michael Copps to be the Acting FCC Chairman until the administration selects its permanent Chairman, and that person is confirmed by the Senate.  As we’ve written, the rumors are that the permanent Chair will be Julius Genachowski, a former classmate of the President.  But, as far as we know (and according to the White House website’s list of appointments made so far), that appointment has not yet been formally made and sent to the Senate Commerce Committee for the initiation of hearings on the qualifications of the nominee.  Commissioner Copps is the most senior of the remaining three Commissioners (Democrat Jonathan Adelstein and Republican Robert McDowell being the other two remaining Commissioners), and has been an outspoken advocate of more stringent regulation of the public interest performance of broadcasters (see, for instance, our posts here and here).  What will his appointment as interim FCC chairman mean for broadcasters?

Initially, it would seem reasonable to assume that the Acting Chair will be principally occupied with the DTV transition, as least for the next few weeks, and perhaps longer if the pending legislation to delay the transition deadline until June 12 is adopted.  It would also seem reasonable to assume that the Commission, at least for the short term, will not be tackling major regulatory initiatives (like the localism proceeding), until the permanent FCC Chair has taken office.  One of the initial Executive Orders that was issued by the Obama administration was to freeze the actions of administrative executive agencies until the political appointments made by the administration have been confirmed and taken their places, so that the new administration is not saddled by regulations that don’t fit with its overall political agenda.  While many in DC believe that this order does not apply to an "independent agency" like the FCC (which technically does not report to the administration, but instead to Congress), it would be reasonable to assume that the spirit of the order would be followed by the FCC.Continue Reading Commissioner Michael Copps Named As Acting FCC Chairman – What Does It Mean for Broadcasters?

FCC Chairman Kevin Martin announced that he will be leaving the Commission on Tuesday as the new President is inaugurated, and thus will not be present at the FCC to set any last minute policy for the DTV transition.  In fact, if Martin had decided to stay for the end of the transition, he might well have had to stick around for a while, as there are bills making their way through Congress to delay the February 17 deadline for the transition to digital television.  Senator Rockefeller has introduced a bill that would extend the deadline to June 12, which Senate Republicans blocked last week, though it will reportedly be reintroduced this week.  At the same time, the three remaining Commissioners have all released letters that indicate that there are significant transition problems that need to be resolved before the transition deadline.  While there are those who wonder if the delay will really solve the problems that may exist – the movement is in the direction of a delay.

The letters from the Commissioners are most interesting.  First came a letter from Commissioner McDowell, not directed to Congress, but instead to Chairman Martin, publicly asking for information about the FCC’s DTV phone bank to answer questions from consumers about the transition.  According to the McDowell letter, he was unable to get information about the status of upgrades to the system to handle the expected influx of calls at the end of the transition.  McDowell also complained about calls that were not answered at all, or which had long wait times, when consumers called – wait times that often resulted in connections with a voicemail system.  And he raised questions about the failure of the phonebank to be open on weekends.  It has now been announced that IBM has been hired to man the phonebank, perhaps answering some of the questions Commissioner McDowell raised in his letter.Continue Reading Kevin Martin Departs as Congress Looks at June 12 DTV Transition Deadline – While Remaining Commissioners Write Letters About Transition Problems

The FCC last week issued a decision that should make Buyers think twice in determining how sales of broadcast stations are concluded – especially in the days of $325,000 potential fines for indecency violations.  In the case decided last week, the Commission concluded that the licensee of a broadcast station was liable for fines for violations…

The Corporation for Public Broadcasting and SoundExchange have reached an agreement on the Internet radio royalty rates applicable to stations funded by CPB.  While the actual agreement has not yet been made public, a summary has been released.  The deal will cover 450 public radio webcasters including CPB supported stations, NPR, NPR members, National Federation of Community Broadcasters members, American Public Media, the Public Radio Exchange, and Public Radio International stations.  All are covered by a flat fee payment of $1.85 million – apparently covering the full 5 years of the current royalty period, 2006-2010.  This deal is permitted as a result of the Webcaster Settlement Act (about which we wrote here), and will substitute for the rates decided by the Copyright Royalty Board back in 2007.

 The deal also requires that NPR drop its appeal of the CRB’s 2007 decision which is currently pending before the US Court of Appeals in Washington DC (see summary here and here), though that appeal will continue on issues raised by the other parties to the case unless they, too, reach a settlement.  CPB is also required to report to SoundExchange on the music used by its members.  In some reports, the deal is described as being based on "consumption" of music, and implies that, if music use by covered stations increases, then the royalties will increase.  It is not clear if this increase means that there will be an adjustment to the one time payment made by CPB, or if the increase will simply lead to adjustments in future royalty periods. Continue Reading SoundExchange and CPB Reach a Settlement on Webcasting Royalties – More Deals to Come?

The FCC’s has published in the Federal Register certain aspects of its November decision on closed captioning – most notably the Further Notice of Proposed Rulemaking asking if a broadcaster’s multicast streams should each count as a separate "channel" potentially exempt from closed captioning requirements if that channel doesn’t bring in more than $3 million…

The press was abuzz yesterday with the news that Julius Genachowski is apparently the pick of the Obama Administration for the position of FCC Chairman.  Mr. Genachowski was at the FCC during the Reed Hundt Administration, and has since worked in the private sector in the telecommunications industry, including work with Barry Diller and running a DC-based venture capital fund.  From the positive reactions that the appointment has received from all quarters, the choice would seem to be a great one.  But, in looking at some of the reactions, you have to question whether everyone has to be reading what they want to see into the new Commission.  For instance, while the NAB has praised the choice of Genachowski (stating  that he "has a keen intellect, a passion for public service, and a deep understanding of the important role that free and local broadcasting plays in American life"), so too did media-reform organization Free Press ("This moment calls for bold and immediate steps to spur competition, foster innovation and breathe new life into our communications sector. With his unique blend of business and governmental experience, Genachowski promises to provide the strong leadership we need.")  What will this appointment really mean for broadcasters?

In short – who knows?  When Kevin Martin was appointed Chairman of the FCC, few would have imagined that a former communications attorney, a person deeply involved in the Bush campaign, and a former staffer of FCC Commissioner Harold Furtchgott-Roth (perhaps the most free market Commissioner ever) would have supported sustained, wide-reaching inquiries into the underbrush of FCC regulation – e.g. localism, embedded advertising, indecency.  So we can’t really know what a Chairman will do until he does it.  The Washington Post and the Wall Street Journal both suggest that the new chairman will be focused on Internet issues, and may be less interested in indecency – but who knows?Continue Reading Julius Genachowski as New FCC Chair – What Will It Mean to Broadcasting’s Future?

Just after Christmas, the FCC gave a number of broadcasters the equivalent of coal in their stocking – fining six different licensees for violations of the FCC’s EEO rules.  The fines issued that day ranged between $7,000 and $20,000, and included penalties issued to major broadcasting companies including Fox and Cumulus.  Also included were fines against Urban Radio in New York City and Puerto Rico Public Broadcasting – demonstrating that the FCC’s EEO rules, adopted in late 2002 after previous rules were declared unconstitutional essentially on "reverse discrimination" grounds (as they encouraged broadcasters to make hiring decisions not based on qualifications but instead based on race or gender), are truly race and gender blind.  It would be logical to assume that Urban Radio and Puerto Rico Public Broadcasting both had significant numbers of minority-group members on their staffs but, as they could not demonstrate that they had complied with the new rules requirements to reach out to all groups in their communities (as opposed to just racial or gender focused groups), they were assessed fines.  Reporting conditions, requiring that the broadcasters regularly file reports with the FCC so that their EEO efforts can be monitored, were also imposed.  All of the decisions can be found on the FCC’s Daily Digest for that day, here.

The basis of all of these fines was the failure of the licensees to be able to demonstrate that they had "widely disseminated" information about all of their job openings.  The core of the 2002 EEO regulations was the requirement that licensees broadly disseminate notice about their job openings in such a way so as reach all of the significant groups within the community that the station serves.  The Commission was not looking to specifically force minority hiring, but instead to push for hiring from diverse sources.  The Commission wanted to push broadcasters to use recruitment sources beyond the existing broadcast community – so that hiring was not simply done by word of mouth or from within other professional broadcast circles.   Thus, the rules require that broadcasters use recruitment sources that reach out to various groups within their community and document those efforts. Continue Reading FCC Fines Multiple Broadcast Stations for EEO Violations – Fines Up to $20,000 Imposed

A day after the Obama transition team wrote to Congress suggesting that the DTV transition now scheduled for February 17 be delayed, there are indications that a bandwagon effect is beginning to develop in favor of such a delay.  Broadcasting and Cable magazine’s website reports that the four major TV networks have indicated that they support a delay in the transition if it will better serve their viewers, and that Senator Rockefeller has started drafting legislation to delay the transition.  The New York Times featured a guest editorial from two former FCC Chairmen – Republican Michael Powell and Democrat William Kennard – supporting the delay (and mentioning one of the same issues that we had mentioned the day before – the need for education of consumers about the need for different antennas to receive the digital signal).  But others are not so sure that a delay makes sense.

While the NY Times editorial may make it look like the delay request is a bipartisan effort, there are other indications that there is at least some evidence of partisan differences beginning to develop.  The NY Times today quotes Joe Barton, a senior Republican on the House Energy and Commerce Committee, as opposing a change.  Republican FCC Chairman Kevin Martin is quoted by the Associated Press as saying that the delay will confuse consumers, while Democratic Commissioner Jonathan Adelstein is quoted in the same article as being sympathetic to the postponement.  While the political groups are taking sides, many in industry seem reluctant to delay the transition date. Continue Reading More Evidence that a Digital Television Conversion Delay May Be On Its Way – But There is Opposition