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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.

The Newspaper Broadcast Cross-Ownership Rule is Finally Dead – And More Ownership Rule Changes – Including for Radio – Are to be Considered

Last Friday, the FCC took two actions on broadcast ownership resulting from the recent Supreme Court decision (about which we wrote here) upholding changes to the ownership rules that the FCC adopted in 2017.  Those 2017 changes (summarized here) and any additional changes to the rules, including changes to the radio ownership rules that have not been substantially reviewed since 1996, have been held up by the 2019 decision of the Court of Appeals for the Third Circuit.  That Court reversed the FCC’s 2017 decision which had relaxed many ownership rules, notably including the abolition of the newspaper-broadcast cross-ownership rule and some of the local television ownership restrictions.

The Third Circuit found that the FCC had done an inadequate job of assessing the impact of the 2017 changes (and past ownership changes) on the diversity of broadcast ownership.  Until such a historical review could be conducted, all FCC ownership proceedings were put on hold.  This hold was finally lifted by the Supreme Court’s decision reversing the Third Circuit and reinstating the 2017 FCC decision.  On Friday, the FCC issued an Order that formally reinstated the rules that had been overturned by the Third Circuit and also took some tentative steps toward restarting its regular review of broadcast ownership rules, including the local radio ownership rules that were largely unaffected by the 2017 FCC rule changes.  The FCC issued a Public Notice that asked for an update on comments they filed on the 2018 Quadrennial Review of the ownership rules (see our article here) in 2019.
Continue Reading FCC Implements Supreme Court Order Reinstating 2017 Ownership Rule Changes, and Asks for Updating of Record of 2018 Quadrennial Review

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • Because of the Supreme Court’s decision earlier this year upholding the Commission’s 2017 relaxation of certain media ownership rules, the

According to press reports (see this story in Verge and this one in the Washington Post), Facebook will end its policy of not subjecting posts by elected officials to the same level of scrutiny by its Oversight Board that it applies to other users of its platform.  Facebook’s announced policy has been that the newsworthiness of posts by politicians and elected officials was such that it outweighed Facebook’s uniform application of its Community Standards – though it did make exceptions for calls to violence and questions of election integrity, and where posts linked to other offending content.  Just a year ago, there were calls for Facebook to take more aggressive steps to police misinformation on its platforms. These calls grew out of the debate over the need to revise Section 230 of the Communications Decency Act which insulates online platforms from liability for posts by unrelated parties on those platforms (see our article here on Section 230). Last year, we compared Facebook’s policy with the laws that apply to other communications platforms, including broadcasters and cable companies.  In light of the potential change in Facebook’s policy, we thought it would be worth revisiting that analysis now.  Here is what we wrote last year:

[In January 2020], the New York Times ran an article seemingly critical of Facebook for not rejecting ads  from political candidates that contained false statements of fact.  We have already written that this policy of Facebook matches the policy that Congress has imposed on broadcast stations and local cable franchisees who sell time to political candidates – they cannot refuse an ad from a candidate’s authorized campaign committee based on its content – even if it is false or even defamatory (see our posts here and here for more on the FCC’s “no censorship” rule that applies to broadcasting and local cable systems).  As this Times article again raises this issue, we thought that we should again provide a brief recap of the rules that apply to broadcast and local cable political ad sales, and contrast these rules to those that currently apply to online advertising.
Continue Reading Reports that Facebook Will End Policy of Not Censoring Politician’s Posts – How Other Communications Platforms are Regulated on Political Speech

Low Power FM is back in the news this week.  As we noted a week ago in our summary of FCC regulatory actions, a Petition for Rulemaking has been filed by REC Networks asking that the maximum authorized power for LPFM stations be raised from 100 to 250 watts.  The hope among LPFM advocates is that an increase in power will allow such stations to increase service in their communities.  REC asks that this proposal be adopted based entirely on mileage separation rules (i.e., how far these stations would have to be spaced from other stations operating on the same or an adjacent channel), even while recognizing that, in some cases, the mileage separations could create interference to existing FM stations or FM translators.  This is just an initial proposal asking the FCC to start a rulemaking to further consider this power increase.  Comments on this proposal are due June 21, 2021.

In addition, in an article published last week, Acting FCC Chairwoman Rosenworcel set out the items to be considered on the agenda for the FCC’s June monthly open meeting.  One of the items to be considered is a review of two petitions for reconsideration of the FCC’s 2020 Order which changed some of the technical rules for LPFM stations (see our article here).  In announcing this draft reconsideration action, the Chairwoman stated that the resolution of these technical issues would bring the FCC one step closer to opening a window for the filing of applications for new LPFM stations. The last such window was in 2013.  While no dates have been provided, in previous announcements, the FCC has indicated that this window would follow the noncommercial FM window that is scheduled for November of this year.
Continue Reading Low Power FM Back In Front of FCC – Another Proposal to Raise Power and Word of a New Filing Window

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • New rules went into effect on May 24 that are designed to give broadcast TV stations greater flexibility in the

As the calendar flips to June, pandemic restrictions across the country continue to loosen, and we inch closer to summer.  Broadcasters could be forgiven for not having regulatory dates and deadlines on the top of their minds.  There are, however, many important dates and deadlines to keep track of during June – we provide details of some of them below.  As always, be sure to stay in touch with your FCC counsel for the dates and deadlines applicable to your operations.

Radio stations in ArizonaIdahoNevadaNew MexicoUtah, and Wyoming and television stations in Michigan and Ohio should be putting the final touches on their license renewal applications, which are due by June 1.  See our article, here, about preparing for license renewal.  These stations must also file with the FCC a Broadcast EEO Program Report (Form 2100, Schedule 396) and, if they are part of a station employment unit (a station or a group of commonly owned stations in the same market that share at least one employee) with 5 or more full-time employees, upload to their public file and post on their station website a link to their Annual EEO Public Inspection File report covering their hiring and employment outreach activities for the twelve months from June 1, 2020 to May 31, 2021.
Continue Reading June Regulatory Dates for Broadcasters: License Renewal and EEO Filings, Comments and Replies, Auction Upfront Payments, Streaming Rates Announcement, and More

The Copyright Royalty Board decision on the rates to be paid in the next 5 years by webcasters, including broadcasters who simulcast their programming on the internet, to SoundExchange for the digital public performance of sound recordings is supposed to be released by June 14.  These royalties are collected by SoundExchange from noninteractive webcasters (see our articles here, here and here on the difference between interactive and non-interactive webcasters) and are distributed to the artists who perform on recordings and to the copyright holders of those recordings – usually the record labels.  The CRB sets these rates in 5-year increments.  The rates at issue in the current proceeding are for 2021-2025.  As we wrote here and here, these rates would normally have been determined before the end of the last rate period at the end of 2020 but, as the trial to determine the rates was postponed by the pandemic, the CRB has been given to June 14 to announce the new royalties, presumably to be made retroactive to January 1.

The proposals made in this proceeding vary widely.  SoundExchange and its associated record labels are arguing that the rates should substantially increase, from their current level of $.0018 per performance (per song per listener – see our article here) for nonsubscription streams to rates of $.0028 per performance for 2021, with cost of living increases each succeeding year.  For subscription webcasting, SoundExchange proposes that the rates increase from $.0024 to $.0031.  In these cases, each party makes arguments as to what a willing buyer and willing seller would pay in a marketplace transaction for such rights.  The parties introduce expert witnesses to testify as to what that rate would be, usually by looking at other similar marketplace transactions.  To arrive at its proposed rates, SoundExchange introduced experts who looked at the market price for the use of music by interactive services.  These prices are set by direct negotiations.  From those prices, the experts attempted to calculate an appropriate adjustment to remove the value of the interactivity to determine the rates that a noninteractive service would pay.  This proposed increase in royalties was, of course, countered by representatives of the services who will pay the royalties to SoundExchange.
Continue Reading Copyright Royalty Board Decision on Webcasting Royalties Expected by June 14 – What Will the Streaming Rates for 2021-2025 Be?

Here are some of the regulatory developments of significance to broadcasters from the last week, with links to where you can go to find more information as to how these actions may affect your operations.

  • The FCC asked for public comment on a proposal to increase from 100 to 250 watts the maximum power allowed

Under the Twenty-First Century Communications and Video Accessibility Act of 2010 (commonly called the CVAA), the FCC has adopted many rules designed to enhance accessibility to broadcast communications, particularly those provided by television broadcasters.  In a recent Public Notice, the FCC asked for comments as to how the implementation of the CVAA has

There can be no doubt that local newspapers have been significantly impacted over the last two decades by the ascent of the Internet.  And, as we have written before (see, for instance, our article here), digital media has also had a significant impact on the local revenues of broadcasters, who also have traditionally specialized in covering local events.  To study the effect of the decline in local news sources, legislation has been introduced in both the House and Senate to create a government committee to look at various aspects of this issue. The “Future of Local News Committee” would include individuals appointed by the majority and minority in the House and Senate, as well as individuals selected by the Corporation for Public Broadcasting, The National Endowment for the Humanities, and the US Agency for Global Media.  Each appointee is to be someone experienced in some aspect of local media.  The committee would have one year to deliver a report to Congress.

What would they study?  The legislation suggests that the committee would have broad investigatory powers to review how the change in local media has affected local communities.  The bill’s preface includes language stating that over 2000 newspapers have gone out of business since 2004, and that of the 6,700 remaining, 1000 could be classified as “ghost newspapers” whose staffs have been so reduced that they cannot effectively cover local events.  The bill also cites a Pew Research study that shows that local newsroom employees at newspapers, broadcast outlets and digital sources dropped 25% from 2008-2018.  Perhaps most startling is the statement that newspapers alone lost more than $35,000,000,000 in revenue between 2004 and 2018.  All these factors, and many others cited in the bill, are alleged to show that local media can no longer effectively cover local events.
Continue Reading Does Local News Need Government Assistance to Survive – Legislation Proposed to Set Up Commission to Study the Impact of Changes in Local Media on Local Communities