The FCC this week released a Public Notice announcing comment deadlines on rulemaking proposals relating to the FCC Biennial Ownership Reports. The first set of proposals deals with a Notice of Proposed Rulemaking issued earlier this month, proposing a series of changes to the process for filing these reports. The proposals include a requirement that the all persons with attributable interests in broadcast stations get a unique FCC Registration Number (an "FRN"), which will require filing their Social Security numbers with the FCC. The second proceeding is one released in 2009, but is only now being published in the Federal Register triggering the comment deadline. This proposal suggests that certain nonattributable owners be identified and reported on these Biennial Ownership Reports despite their nonattributable status. Comments on these proposals will be due on February 14, 2013, with reply comments due on March 1, 2013.

The Biennial Ownership report, in its current form, was initially adopted in 2009.  The new reports were to gather information not just about the ownership of broadcasters, but also about their race, ethnicity and gender, so that the FCC could get a better handle on the presence of minority owners in broadcasting.  The first report on the new form was to be filed in November 2009, but that deadline was pushed back to July 2010 when issues with the new form developed.  The second Biennial Ownership report was to have been filed by commercial stations in late 2011 (two years after the original date), and the next is due later this year.  The information in the first two reports was compiled into the information that formed the basis of the FCC’s December request for comments on the impact of proposed changes in the multiple ownership rules on minority ownership. 

Continue Reading FCC Seeks Comments on Biennial Ownership Report – Seeking Social Security Numbers From All Attributable Owners – and Some Who Are Not

With the league championship match-ups set, and the Super Bowl only 3 weeks away, broadcasters are once again getting ready for the onslaught of advertising opportunities that come with the big game. But, as we write every year at this time, broadcasters need to be extremely careful in using the term "Super Bowl" in any advertising by a sponsor who has not been authorized to use that term. Super Bowl is a trademarked term, meaning that its use, particularly for commercial purposes, is limited. Trademarked terms should not be used in commercial messages except by authorized advertisers. These advertisers have paid big bucks to be able to say that they are a Super Bowl sponsor. See this article from the New York Times about the pricing of Super Bowl advertising. As the NFL enforces its trademarks rigorously (so that they can get the big bucks from the official advertisers), don’t risk their use without official permission.

This does not prevent all discussions of the Super Bowl on the air. News reports about the game can still air, using the name of the game. DJs can still chat about who is going to win the Super Bowl. But don’t try to commercially exploit these terms (e.g. saying that you are "Springfield’s Super Bowl station") unless you really have really the rights to use the trademarked term. Be careful, as a cute promotional idea can end up costing your station far more than you intended.

Continue Reading Advertisers Beware – Remember That “Super Bowl” is a Protected Trademark That Can’t Be Used in a Commercial Without Permission

Last week, we wrote about the first step in the FCC’s processing of the remaining applications for FM translators filed way back in 2003.  The FCC has required that applicants who have more than one application pending in a market, or more than 50 applications pending nationwide, file an election as to which applications they will continue to pursue under the newly adopted application caps (3 applications per market and 70 nationwide, with no more than 50 applications in the Appendix A markets – the Top 150 markets and a handful of others in which there were a significant number of applications pending).  As we said in our article last week, the process is a complex one, as the Commission has established additional criteria that must be met for those desiring to prosecute more than 50 applications nationwide or more than one in a market.  Today, the FCC released a public notice that gives examples as to how its election process is supposed to work – giving details of what needs to be filed by applicants with specific numbers of applications pending from the 2003 window.  If you have applications still on file from that window, or are interested in such applications (e.g. for rebroadcasting an AM station or an FM HD-2 channel which new translators can retransmit), review this notice carefully before making your elections next week. 

Every year, about this time, I dust off the crystal ball to offer a look at the year ahead to see what Washington has in store for broadcasters. This year, like many in the recent past, Washington will consider important issues for both radio and TV, as well as issues affecting the growing on-line presence of broadcasters. The FCC, Congress, and other government agencies are never afraid to provide their views on what the industry should be doing but, unlike other members of the broadcasters’ audience, they can force broadcasters to pay attention to their views by way of new laws and regulations. And there is never a shortage of ideas from Washington as to how broadcasters should act. Some of the issues discussed below are perennials, coming back over and over again on my yearly list (often without resolution), while others are unique to this coming year.

Last week, we published a calendar of regulatory deadlines for broadcasters.  This article looks ahead, providing a preview of what other changes might be coming for broadcasters this year – but these are delivered with no guarantees that the issues listed will in fact bubble up to the top of the FCC’s long list of pending items, or that they will be resolved when we predict. But at least this gives you some warning of what might be coming your way this year. Issues unique to radio and TV, and those that could affect the broadcast industry generally, are addressed below.

General Broadcast Issues

 

There are numerous issues before the FCC that affect both radio and television broadcasters, some of which have been pending for many years and are ripe for resolution, while others are raised in proceedings that are just beginning. These include:

 

Multiple Ownership Rules Review: The FCC is very close to resolving its Quadrennial review of its multiple ownership proceeding, officially begun in 2011 with a Notice of Proposed Rulemaking. The rumors were that the FCC was ready to issue an order at the end of 2012 relaxing the rules against the cross-ownership of broadcast stations and newspapers, as well as the radio-television cross-interest prohibitions, while leaving most other rules in place. TV Joint Sales Agreements were also rumored to be part of the FCC’s considerations – perhaps making some or all of these agreements attributable. But even these modest changes in the rules are now on hold, while parties submit comments on the impact of any relaxation of the ownership rules on minority ownership. Still, we would expect that some decision on changes to the ownership rules should be expected at some point this year – probably early in the year. 

Continue Reading Gazing Into the Crystal Ball – What Washington Has In Store For Broadcasters in 2013

The full decision of the Copyright Royalty Board setting the royalty rates to be paid to SoundExchange by Sirius XM and Music Choice from 2013 through 2017 has now been released.  We wrote about the initial release of the summary of the decision before Christmas.  The final decision is interesting in many respects. First, it is the first decision to be released since two of the original three Copyright Royalty Judges left the bench. The decision, as released was actually two decisions – one signed by the new Chief Judge and an acting judge who filled in for Judge Wisniewski, the Board’s economic expert, when he had to retire for health reasons. The second decision, reaching the same result but based on different reasoning, was signed by the Board’s lone holdover, Judge Roberts, a long-time fixture at the Copyright Office before joining the Board. In addition, the decision seems to reject some premises that had long been used to justify royalty rates in other proceedings – and thus may give some insights on approaches to be used in the webcasting royalty proceeding that will begin in 2014 and conclude in 2015. The majority decision also, for the first time, gives at least some weight to direct licensing deals for the public performance of sound recordings by a noninteractive service. Finally, the decision provides explicitly for carve-outs from the established royalties for music on which no royalties need to be paid, including music that is directly licensed, and for pre-1972 sound recordings.

Before looking at the decision, it needs to be noted that these royalties are theoretically decided not just for Sirius XM and for Music Choice, but also for other services that fit into their class of service as defined by Sections 112 and 114 of the Copyright Act. Thus, the Music Choice decision applied theoretically to all "Preexisting Subscription Services" (or a "PSS") and the Sirius XM decision to all "preexisting satellite digital audio services" (or, as used in the decision, "SDARS" – satellite digital audio services). The "pre-existing language means that these services were either in existence or authorized by the FCC (for the SDARS services) at the time of the adoption of the Digital Millennium Copyright Act in 1998.  Of course, since 1998, all of Music Choices then-existing competitors in the cable audio business have gone out of business with one exception, and the second SDARS service – XM Radio – has merged with Sirius. So, effectively, these rates apply only to very few companies.

Continue Reading Full Text of Copyright Royalty Board Decision on Sirius XM and Music Choice Royalties Released – The Basics of the Decision

A recent article in the Chicago Tribune demonstrates that the FCC’s Equal Opportunities requirements, as embodied in Section 315 of the Communications Act, apply to candidates for state and local elective office as well as to those for Federal office. We have written before about this obligation of stations to provide Equal Opportunities (sometimes referred to as “Equal Time“) to all competing candidates for the same office, yet many stations seem to be confused about their obligations as they apply to state and local political races – such as a race for mayor. While the reasonable access provisions of the FCC rules (which we summarized here), require that stations must make available time to Federal candidates (and Federal candidates only) if they request advertising time for their campaigns, if stations voluntarily make time available to a state or local candidate, then equal opportunities apply to all of the competing candidates in that same state or local race. In the case written about in the Tribune, a former Chicago Bear, an on-air host of a sports program, was forced off the air when he decided to run for mayor of a Chicago suburb and his opponent indicated that he would seek equal time from the station if the candidate continued to do his program.

This case also demonstrates several other aspects of the political rules. First, the local election is not until April, yet the station recognized that the equal opportunities rule kicks in as soon as you have a legally qualified candidate – one who has filed the necessary paperwork to run for an office. The application of the equal opportunities rule is not limited to the 45 days before a primary or the 60 days before a general election (those windows apply only to the application of the lowest unit charges that have to be made available to candidates – state and local as well as Federal candidates). See our summary of the lowest unit charge obligations here.  Once a candidate is qualified, even outside of the “political window”, equal opportunities apply.

Continue Reading Sportscaster Running for Mayor In Chicago Suburb Taken Off the Air – Illustrating that the Equal Opportunities Rule Applies to State and Local Candidates

As we wrote last month, the FCC has issued an order attempting to resolve the remaining issues between FM translators from the 2003 FM translator window, whose processing has been frozen for over 5 years, and LPFM stations. As part of the Commission’s order, it decided that translator applicants would be limited to 3 applications in any "Appendix A market" – essentially the Top 150 Arbitron markets and a handful of other markets with high numbers of translator applicants – and 70 applications nationwide, of which at least 20 must be outside of the Appendix A markets. To move the processing of these applications forward, so that the FCC can get to its goal of clearing out the translator applications so that it can open a window for the filing of new LPFM applications in October, the FCC announced in a Public Notice released just before Christmas that translator applicants with applications pending that would be in excess of either the in-market cap of 3 application or the national cap of 70 applications, need to make elections as to which applications they will pursue during a window from January 10 through January 25. If only it were so simple.

The election is not a simple one – as it goes far beyond simply submitting a list of applications that an applicant seeks to prosecute. Instead, the applicant must meet the other criteria set out by the FCC in its order last month, and information demonstrating such compliance. For applicants seeking to prosecute more than 50 applications, or more than one application in any market, the applicant must show that each of the applications they are pursuing do not have 60 dbu overlap with any other application that they are pursuing, or with any translator authorization that they currently hold. For applicants seeking to prosecute more than 50 translator application (with those applications in excess of 50 having to be outside of the Appendix A markets), the applicant must also show that, at the transmitter site that they propose, there will be an opportunity at their proposed site for at least one LPFM station to operate on another frequency in the upcoming LPFM window. For those seeking to prosecute more than one application in an Appendix A market, the applicant must show that any additional applications will not preclude the use of LPFM opportunities identified through the use of the "grids" that the Commission adopted for measuring LPFM opportunities in their March order on this issue. These are not easy showings to make, so applicants looking to take advantage of these relaxations in the application caps need to get started on their engineering reviews immediately.

Continue Reading Processing of 2003 FM Translators Continues – January 25 Deadline to Select Applications to Meet Application Caps

As the ancient Mayans appear to have been wrong, and 2013 is indeed happening, we have once again published our broadcaster’s calendar to remind broadcasters of the dates that they need to keep on their radar to make sure that they remain in legal compliance in the coming year.  Like seemingly every year, it is a busy one, with ongoing radio and television license renewals still being filed and processed by the FCC, as well as the normal regulatory deadlines – EEO public file reports, quarterly programs/issues lists, children’s television reports, noncommercial ownership reports, regulatory fee filing deadlines, and children’s television reports. While not a major election year, there are at least two governor’s elections, several big city mayoral races, and several recently vacated Senate seats (including the Massachusetts seat that is not mentioned on the calendar as that soon-to-be vacant seat has only recently become evident), so there will be lowest unit rate issues to be considered in a number of states.  There are also special regulatory deadlines coming up this year, including new obligations for captioning of TV programming repurposed to the Internet, an FM auction in April (with filing deadlines in February), and a Low Power FM window expected in October.  We’ve also included in the calendar reminders about the filing dates for SoundExchange royalties for audio streaming. And don’t forget your obligations to ASCAP, BMI and SESAC, which are not included on the calendar.

While the calendar is not exhaustive, it gives the broadcaster a place to begin in planning their regulatory compliance for 2013.  Check out our broadcaster’s calendar, and be ready for the regulatory obligations in the year ahead.

The Copyright Royalty Board has announced the royalties that will be paid for the public performance of sound recordings by Sirius XM for the period 2013-2017. The decision also covers the "Preexisting Subscription Services", i.e. Music Choice in connection with its cable radio service delivered with listener’s cable television packages. The full text of the decision is not released yet, as the parties have an opportunity to request that certain portions be redacted to protect private business and competitive information. The parties can request such redactions through December 19, so the decision may be Christmas reading for many. However, the Board did announce the rates as follows:

Section 112 Rates: The Judges adopted the Parties’ Stipulation regarding the rates and terms for the Section 112 rates, which will require a minimum fee advance payment of $100,000 per year, with royalties accruing during the year recoupable against the advance. The parties agreed that the value of the royalties allocated to the Section 112 license holders is 5% of the total royalty obligation, with the remaining 95% going to the Section 114 license holders.

Section 114 Rates: The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Subscription Services for 2013-2017 are 8% of Gross Revenues for 2013 and 8.5% for 2014 through 2017.

The Judges determined that the appropriate Section 114(f)(1) rates for Preexisting Satellite Digital Audio Radio Services for 2013-2017 are 9% of Gross Revenues for 2013, 9.5% for 2014, 10.0% for 2015, 10.5% for 2016 and 11.0% for 2017.

Both decisions represent modest, incremental raises in the current rates (see the description of the last CRB decisions on satellite radio rates here, and on cable radio here).  These decisions are made under the 801(b) factors, from Section 801(b) of the Copyright Act, that Internet radio currently is seeking, through the Internet Radio Fairness Act ("IRFA"), to have applied to the decisions as to the royalties paid by webcasters (see our summary here). We will not know how the standard was applied in reaching the decision to raise rates, and what guidance this decision provides for webcasters and their rates, until the full decision is released (see our summary of the arguments of the parties in this case, here).

Continue Reading Copyright Royalty Board Releases New Rates for Sirius XM and Cable Radio – They are Going Up, Full Reasoning of the Decision to Come

The care and feeding of the broadcaster’s public file is a hot topic once again. For many years, the public file was often overlooked, being visited most often by competing broadcasters looking for dirt on their cross-town rivals, or by college journalism students assigned a project by their professor requiring the review of local stations’ files. But, with the debate that occurred earlier this year over the online public file for television stations, the file has received much publicity, being the subject of review and analysis in the popular and academic press, as well as in the broadcast trade journals. This week, the FCC issued a reminder about the obligations of a television broadcaster for complying with the public file rules (see that reminder here). In the past two weeks, I’ve conducted two seminars for broadcast groups on the public file obligations of stations. The first was a webinar for 20 state broadcast associations and their members, organized by the Michigan Association of Broadcasters. The PowerPoint slides used in that presentation are available here.

The slides set out information about the importance of the file, and provide some description of the required contents of the file, and the retention period for documents that need to be contained in the file. Radio stations have the obligation to place all of the required documents in their local, paper files and maintain them there for the appropriate period of time. TV stations, with the advent of the FCC-hosted public file (see one of our previous posts on the mechanics of the online file here), actually have a somewhat easier time in meeting some of their obligations – as the FCC itself will post to the file all documents that stations are required to file with the FCC – including renewal and technical applications, ownership reports, children’s television reports, coverage maps, the station license and the Public and Broadcasting procedure manual. Radio stations need to find all of these documents and manually place them into their files. TV stations need only upload other information that is not filed at the FCC – like Quarterly Issues Programs lists, annual EEO Public File Reports, and certifications as to the station’s compliance with the Children’s television commercial limits. Beyond these basics, in the seminars that I recently conducted, several other interesting questions were raised.

Continue Reading The Care and Feeding of the Broadcaster’s Public Inspection File – An FCC Reminder and a Compliance Seminar