The FCC has asked for public comment on whether it should extend the online public inspection file obligation to radio, and also whether it should adopt an online public file obligation for cable television and satellite television operators.  The latter proposal originates in a recent petition by the Sunlight Foundation and two other public interest groups seeking an online political file for cable and satellite television providers.  Sunlight has been active in filing complaints with the FCC raising issues with the adequacy of television broadcaster’s online political files and their sponsorship disclosures (see our articles on the Sunlight Foundation’s recent filings here and here).  The extension of the online file obligation to radio had been proposed when the obligation was adopted for TV broadcasters (see our article here about the obligations for the TV online public file), but the FCC did not adopt the obligation, leaving that adoption for another day.  The FCC now asks for comments on whether that day has come, and radio broadcasters should be subject to the same obligations.  Comments are due August 28, and Reply comments are due September 8.

This proceeding appears to be just a preliminary request for comments, rather than a formal rulemaking seeking to establish rules for an online file for MVPD.  There are no specific rules proposed for what would be in an online public file for MVPDs, and the Public Notice indicates that the FCC staff has not yet determined if it has the resources to host an online public file for radio operators.  It is also worth noting that the FCC, in adopting the requirement for an online public file for TV stations, said that it would conduct a review of the process for TV stations before it adopted the rule for radio – a process that was begun over a year ago (see our post here), but has never been completed.  As we remarked when the Commission issued a reminder before the political file rules went into effect for small market TV stations, we were somewhat surprised that this effective date would occur before there was any resolution of that review.  But the online political file rule went into effect for small market TV with no resolution of the review of the effectiveness of the online file (see our reminder here), and now it looks like the FCC will begin the process of extending the requirement to radio.  Perhaps the proposal to extend the obligations to radio will prompt the review of the effectiveness of the online file before any extension is adopted.  This obligation will not be imposed overnight, as a formal rulemaking process will probably take at least a year, and probably more, to adopt final rules.  But the process of extending the public file rule to radio has begun, so broadcasters should be ready to file comments in this new and unexpected proceeding in just 3 weeks.  And cable and satellite television companies will be right there filing comments with the radio broadcasters.

The Commission has set the date for comments on it Further Notice of Proposed Rulemaking on certain aspects of the captioning of Online Video clips.  We recently summarized the FCC action setting up compliance deadlines for the captioning of video clips taken from programs that are shown on TV with captions, and then repurposed for online use.  While the Commission has already established the obligations for TV broadcasters to take these clips and caption them when shown online on the broadcaster’s own website or through its own app, there are still certain areas to which the rules have not yet been extended on which comments are sought. The Comment deadline is October 6, with replies due November 3 (see the full text of the FCC decision here, and the Federal Register publication of the comment dates here).  What is being considered?

Basically, questions are asked about three areas. The first is whether to require that clips be captioned when they are shown on third-party websites.  The current rules require that full programs shown on TV and repurposed to the Internet be captioned when shown on third-party sites, but the new rules for clips were not immediately extended that far, as the Commission seeks comments on the costs and difficulties that might exist in such an extension. Continue Reading Comment Dates Set for Rulemaking on the Required Captioning of Online Video Clips – What is Being Considered?

As we wrote in our previous articles on the music licensing issues being considered during this summer of copyright (here, here and here), one of the concerns driving many of the proposed reforms is the current demand of songwriters and publishing companies for a larger share of the music royalty pie.  In licensing the public performance of musical compositions, ASCAP and BMI represent the vast majority of songwriters, with SESAC representing far fewer writers (together ASCAP, BMI and SESAC are referred to as the “PROs,” the performing rights organizations).  ASCAP and BMI, having such a significant representation of musical compositions, have for over 50 years been subject to antitrust Consent Decrees that limit their operations and oversee the rates that they set for the use of their music.  Among the many requirements under the consent decree are those that obligate ASCAP and BMI to license all users of music who are similarly situated under the same rates and standards, and the oversight of a “rate court” to determine whether rates are reasonable whenever either of the PROs can’t agree on the amount of those rates with a class of music users.  In June, the US Department of Justice asked for public comment on several aspects of the consent decrees, and whether modifications of the decrees were called for.  Comments on the DOJ notice are due today.  Why was this proceeding started, and what is the DOJ looking at?

In two recent hearings examining music licensing, the motivations for ASCAP and BMI to seek changes in the consent decrees were discussed.  The first proceeding was a Copyright Office roundtable held in Nashville in June, in which I was a participant.  There, representatives of ASCAP discussed potential changes to the laws dealing with music licensing. The second was at the two part House Judiciary Committee hearing on music licensing held in late June.  ASCAP and BMI representatives in these forums suggested that there were several objectives in their seeking these reforms, and several specific changes that were requested in the Consent Decrees.  These include the following:

  • Replacing the rate court judges who determine rates when ASCAP or BMI don’t reach an agreement with a company that uses music (currently US Federal District Court Judges in the Southern District of NY) with an arbitration panel.
  • Instead of setting “reasonable rates” as required under the current consent decrees, the PROs request that a new standard be used to set rates – the willing buyer willing seller standard currently used in setting Internet radio sound recording performance royalty rates.
  • Allow publishers to withdraw some of their compositions from the PROs for licensing to certain classes of companies – specifically to withdraw so that the publishers can negotiate with digital media companies at rates that are not overseen by a rate court, while still leaving those same compositions with the PROs to collect from business establishment services (retail businesses that use “background” music) and potentially over the air radio stations – companies where there are lots of licensees who pay small amounts, making it difficult for anyone but a large, well-established company like ASCAP or BMI to pursue
  • Allow ASCAP and BMI to do more than simply license the public performance rights to music services – most likely allow them to provide reproduction and synch rights to the music that they license.
  • To impose interim royalties on any service that asks to be licensed, until an appropriate rate for that service can be set

What prompted this desire to change the consent decrees, and what will the DOJ be doing with the information it collects? Continue Reading The Summer of Copyright Part 4 – The Department of Justice Reviews the ASCAP and BMI Consent Decrees – What Should Broadcasters and Music Services Know?

Extensions of time were just announced in two proceedings affecting music licensing – one a Copyright Office proceeding studying music licensing generally, and another a Copyright Royalty Board proceeding on webcasting recordkeeping.  Only a week after announcing that it would take another round of comments on its music licensing study, the Copyright Office announced an extension of the due dates for those comments – moving the deadline to September 12.  The expressed reason was to allow participants to have more time to complete their comments.  Perhaps, it was also to await the posting of the transcripts of the roundtables held by the office across the country, where various parties had the opportunity to address many of the issues on which the Copyright Office now seeks comments. See our post here about the questions posed by the Copyright Office in this new round of comments, and our article here about the issues originally identified for comment at the start of this proceeding.

The Copyright Royalty Board has also extended the time to file Reply Comments in its recordkeeping proceeding (to be published in the Federal Register tomorrow, here).  That proceeding seeks to determine whether to change the information that webcasters need to report to SoundExchange about the songs that it plays.  The suggestions included the potential for requiring information about ISRC Codes as well as artist, song title and record label in connection with all the songs that are played on an Internet radio station.  We wrote about that proceeding here.  The new deadline for reply comments is September 5.  Get your comments ready for filing in these important proceedings. 

Time flies, and more regulatory requirements and comment deadlines in regulatory proceedings are upon us in the month of August.  The regular regulatory deadlines include license renewal for TV and LPTV stations in California, and EEO Public Inspection File yearly reports for stations in California, Illinois, North Carolina, South Carolina, and Wisconsin.  Noncommercial TV stations in California and North and South Carolina all have ownership reports on Form 323E due on the August 1, and noncommercial radio stations in Wisconsin and Illinois have ownership report obligations too.  We can also expect that the deadline for submission of Annual Regulatory Fees will be set this month but, as we have not yet heard about that date, the deadline for the fees to be paid may not be until sometime in September.

In addition to the regular filings, there are numerous proceedings in which various government agencies will be receiving comments in proceedings that could impact broadcasters.  Next Wednesday, August 6, the FCC will be taking comments on it Quadrennial Review of the multiple ownership rules. The issues to be considered include the TV ownership rules (including the question of how to deal with Shared Services Agreements) about which we wrote yesterday.  Also to be considered in the proceeding are questions about the radio ownership rules, and the cross-interest rules – including whether to change the newspaper-broadcast cross-ownership rules.  But the FCC is not the only one who will be receiving comments on issues that can affect broadcasters. Continue Reading August Regulatory Dates for Broadcasters – Renewals and EEO, and Comments on Multiple Ownership, Music Rights, New Class of FM, and Much More

Next week, on August 6, the FCC will be taking the initial comments on its Quadrennial Review of the multiple ownership rules – looking at what limitations should be placed on the ownership of broadcast stations by one individual or company.  As we have written, this Review follows the FCC’s resolution of the last Quadrennial Review, started in 2011, where the FCC made joint sales agreements between TV stations in the same market “attributable interests” – meaning that you can’t enter into a JSA unless you can own that station under the rules.  All of the other issues on the local ownership rules – including whether to change the rules setting the number of radio or TV stations that can be owned in a single market, and whether the rules against the same market cross-ownership of radio and TV stations, and of daily newspapers and broadcast stations should be modified – were pushed back to this new Review, which is not supposed to be finally decided for another two years.  While we wrote about some of the hidden nuggets in this proceeding in defining radio and TV markets here, let’s look a little deeper at some of the other issues involved in the review – today the local TV ownership rules.  In advance of next week’s comment deadline, there has already been much relevant regulatory action this past week – including the FCC’s approval of the Sinclair’s acquisition of the Allbritton TV stations (but only after Sinclair agreed to surrender to the FCC for cancellation TV stations licenses in two markets as its ownership of those stations would not be allowed under the current rules), and a GAO report addressing Shared Services Agreements between TV stations.

Currently, the FCC allows an owner to hold one TV license in a market, except in certain limited circumstances where two can be owned.  An ownership combination is allowed in the normal course only where there would be eight independently owned stations left in the market after the combination, and only where the combining stations are not both Top 4 stations in the market.  The Commission does also allow some combinations where one of the stations is “failing,” but that is looked at only on a case-by-case waiver basis.  Many broadcasters have argued that, particularly in small markets where there is insufficient revenue to support multiple fully competitive stations, greater consolidation should be allowed.  But the Commission has tentatively rejected that idea in its Notice of Proposed Rulemaking in the new Quadrennial Review.  Why?  Seemingly, small market consolidation was not favored on the simple theory that consolidation is bad, and on the hope that, if the FCC forbids consolidation (and stops any sort of sharing arrangement, like the JSAs that it has already prohibited, and the Shared Services Agreements that it has suggested in this proceeding need to be further limited), minorities and other new entrants will enter the market.  Both of this week’s events – the Sinclair acquisition and the GAO report, seem to cut against the FCC’s beliefs. Continue Reading Comments on Quadrennial Review of FCC’s Broadcast Ownership Rules due Next Week – Local TV Ownership Issues Highlighted By GAO Report and Sinclair Acquisition Approval

We’ve already written twice about the copyright issues being considered this summer before various agencies and branches of government – all dealing with music licensing issues (see our previous Summer of Copyright articles here and here).  The pattern continues, as the Copyright Office has now requested further comments on music licensing issues, following up on its roundtables held across the country during the month of June to discuss its music licensing inquiry begun in the spring (see our summary of the initial Copyright Office notice on its study, here).  In yesterday’s Federal Register, there is a notice asking a series of questions about specific issues that were raised in the roundtables which the Office apparently finds to be of significance.  Additional comments on these issues, and on any related issues affecting music licensing, are due on or before August 22.

What are the questions being asked by the Copyright Office, and what do they portend for its ultimate recommendations to Congress who, as we recently wrote, is itself considering music licensing issues and the potential for a comprehensive reform of music licensing in this country?  The areas in which the questions are being raised are not new ones, but instead continue the themes raised in other forums this summer.  They include questions as to how withdrawals of major publishers from the Performing Rights Organizations (ASCAP and BMI in particular) could affect those organizations.  We first wrote about potential publisher withdrawals and the impact that could have on music services back in 2011.  Also, on a related question, they ask why, when these organizations have collected record amounts of money in recent years, songwriters are complaining that they are economically struggling.  In addition, questions are asked about the procedures used by the Copyright Royalty Board in their rate-setting process and whether those procedures should be revised, how better identification of musical works and sound recordings could be adopted to make recordkeeping and royalty administration easier, how a system of setting mechanical royalties could work without a statutory license, and whether there are international licensing models that might be adaptable to the US market.  Some details below. Continue Reading The Summer of Copyright, Part 3 – The Copyright Office Requests Further Comments in its Inquiry on Music Royalties and Licensing

Public interest groups are actively watching broadcast political advertising which could make this a very interesting year for broadcasters.  The Sunlight Foundation, which only two months ago filed complaints against 11 television stations for alleged inadequacies in their online political files (see our summary here), has now filed two new complaints alleging that television stations violated FCC rules in recent elections by not identifying the true sponsor of political ads.  In each complaint, Sunlight alleged that ads were tagged as having been sponsored by Political Action Committees, but in each case the true sponsor who should have been identified was the wealthy individual who had contributed all of the funds to the PAC.  Sunlight’s press release about the complaints is available here, and contains links to the complaints themselves.  Is this complaint valid?

The complaint focuses on the language in Section 317 of the Communications Act which requires that when a station broadcasts any content and “consideration is directly or indirectly paid, or promised to or charged or accepted by, the station so broadcasting, from any person,” that person must be identified.  While it seems clear from FCC precedent that person does not mean individual person, as corporations or other legal entities can certainly be sponsors, the compliant submits that this situation is different.  Why?  Because, the petitioners argue, the PACs involved in these cases (one supporting a Republican candidate, the other supporting a Democrat) were effectively each an alter ego for a single individual who provided all the funds for the PAC.  But how is the TV station supposed to know? Continue Reading FCC Complaints Filed Against TV Stations for Not Identifying the True Sponsor of Political Ads

We wrote last week about the FCC’s determination of which applicants are to be preferred in several groups of mutually exclusive applications for new Low Power FM stations.  We warned full-power FM broadcasters to review the preferred applicants as broadcasters have 30 days from last week’s public notice to file petitions to deny against such LPFM applications citing interference concerns or other issues with those applications.  Now, a number of additional LPFM applications have been found by the FCC to be ready for grant, and broadcasters need to review these applications – and be prepared to review a steady stream of these applications, all with different petition to deny deadlines, over the next few months.  Where did these applications come from?

 In the rules for the LPFM window, the FCC decided that once it made determinations about tentative winners in mutually exclusive groups of applications, all LPFM applicants not selected (or those in ties) could file amendments to their applications seeking new channels – including major changes specifying brand new channels at different sites having no relation to the original application but for meeting the general requirements that the controlling parties in these applicants be local to the service area that they propose to serve.  As these amendments are processed on a first-come, first-serve basis, many LPFM applicants were apparently ready to go with amendments as soon as the list of tentative winners was released.  And these amendments have started to come out on public notices, announcing 30 day petition to deny deadlines (see, for instance, this list of Broadcast Applications released yesterday by the FCC, at pages 8-11). Continue Reading More LPFM Applications for Broadcasters to Review to Assess Potential Interference Issues, and New Petition to Deny Deadlines

The FCC fees that must be paid by commercial broadcasters when they file most applications with the Commission went up as of July 3.  See our article here about the July 3 effective date, and our article here about the adoption of the new higher fees.  The FCC yesterday released a full guide to those fees – setting out how much broadcasters must pay when seeking any particular action from the FCC (including applications for approvals of assignments and transfers, construction permits, STA requests, license renewal, new call letters and even when they file biennial ownership reports).  You can find that guide here.  It is a convenient guide to keep on hand for those times that you are preparing an FCC application and need to know what the required fee is for that application, the associated codes needed when submitting the fees, and other details of how to pay the fees associated with FCC applications.  If you don’t pay the fee, the application will not be processed.  So take note of the increased fees associated with broadcast applications.