This past week’s political news seemed to be all about Donald Trump and his possible run for the Presidency – and his plans to announce his intent to run on the season finale of The Apprentice.  When, a week ago, we wrote about the President declaring his candidacy, there was little interest in our post, and there seemed to be little news attention in general to that announcement.  But when Donald Trump started making noise about his possible Presidential run, and his plans to announce his intent on the season finale of The Apprentice in May, our phones started ringing, asking how can he do that?  My partner David Silverman was quoted in a Huffington Post article, while my analysis was misunderstood in a Hollywood Reporter legal blog (see why I was misunderstood below).  But the question remains – can Trump continue on The Apprentice while signaling his interest in running for President?

In fact, there is no FCC rule that prohibits a broadcaster from giving airtime to a political candidate on any kind of program, as long as they are willing to provide equal time to opposing candidates.  There may be other legal issues involved in giving time to a candidate as it may in effect be a deemed a campaign contribution to the candidate (an issue apparently for PACs as well, as explained by that legal scholar Steven Colbert, here), but the FCC’s equal time rules don’t prohibit the appearance of a candidate on an entertainment program, they only demand that the stations that broadcast the program give equal amounts of time to opposing candidates who ask for it – if the opponents ask for it within 7 days of the candidate’s appearance.  And that is often the first issue – will the opposing candidate ask for it?  None of the Republicans asked when cable networks continued to run episodes of Law and Order featuring Fred Thompson, even after Thompson declared his candidacy for the Republican nomination.  Nor did other candidates request time after there was a parade of candidate appearances on Saturday Night Live during the last election (see our post on this pattern of candidates passing on their equal time rights).  But would a Trump declaration of a candidacy on The Apprentice even face that minimal risk?  Probably not.

Continue Reading Donald Trump May Declare Presidential Candidacy on The Apprentice – FCC Legal Issues?

The FCC has granted a one week extension for reply comments in the proceeding looking to take many of the preliminary steps toward incentive auctions by which the FCC would reclaim parts of television spectrum for use by wireless broadband companies.  Comments are now due on April 25.  We wrote about the many issues in this proceeding, here.  Issues include the sharing of channels by independent television stations, whether stations that share spectrum are entitled to must carry rights under governing law, and how the FCC can change the digital television operational rules to make the use of VHF frequencies, where stations operating on those channels have experienced severe technical issues after the digital transition, more friendly for digital operations if the television spectrum needs to be repacked so that contiguous portions of the UHF band can be auctioned to wireless companies.

The extension was requested by a number of broadcast groups, partially based on the fact that the NAB Convention in Las Vegas has just concluded, and that there was much discussion at the Convention on the topic – including much discussion from FCC officials.  The broadcast community wanted the opportunity to respond to digest and respond to these discussions, thus the need for the brief extension.  This remains a very hot issue, with the FCC officials who attended the NAB Conference clearly pushing the agenda advanced in the Broadband Plan to reclaim some of the television spectrum for wireless uses.  Thus, these replay comments are very important, as they may set the stage for the incentive auctions and possible repacking of the television spectrum that may follow. 

As broadcasters pursue their digital future, new legal issues arise to greet their entry into the on-line world and to add to the challenges posed by the new media. Over the last few years, we’ve have written extensively about music rights and their impact on webcasters, broadcasters, and other digital media companies. We’ve talked about patent law issues that have faced digital media companies. And we’ve discussed other content issues, like FTC online sponsorship disclosure requirements, that have arisen from time to time. But the one issue that now seems poised to dominate the legal conversation in coming months (or years) is that of privacy. This past week, we saw Pandora announce that it has received a subpoena from a Federal grand jury in connection with an investigation into the use of information collected from various mobile apps, and whether users of these apps were aware of the use of their private information. Other companies apparently received this same request.  This investigation is but the tip of the iceberg on privacy issues facing media companies operating in the digital world – challenges coming from the courts and from legislative and administrative initiatives in Washington.

Everyone knows that one of the great benefits of the Internet and the many services available on-line and through mobile apps, is the ability to personalize so as to provide a unique listening or viewing experience for every user. Instead of being limited to the linear programming that a broadcast service provides to all users at the same time, users can tailor their digital media experience to give them what they want and, as wireless broadband penetration increases through smart phones and other devices, almost whenever they want it. In some cases, the costs of providing an individualized service, because of bandwidth needs, royalties and license fees and for other reasons, the cost per each additional listener is often higher than that incurred by the traditional media. And online users thus far have been unwilling to tolerate the commercial advertising load that a traditional media experience might provide. To meet these higher marginal costs, and the lower spot loads, many digital media companies have looked to personalization of advertising to allow for higher advertising rates on the theory that advertising will be more efficient if you can guarantee that it will be targeted to reach its intended audience – geographical, demographic or based on expressed interests. As digital media companies have sought to refine the targeting available through their advertising, privacy issues have arisen.

Continue Reading Pandora Gets Subpoena About Mobile App – Privacy, the Next Big Issue for Digital Media Companies

[Update – 4/9/2011.  Based on the announcement late last night, the Federal government will not be closing on Monday.  But the agreement that was reached yesterday still needs to be documented and voted on by the House and Senate.  But, barring an unforeseen breakdown in the deal, these shutdown instructions can be shelved – at least temporarily.  Congress will be voting on an authorization to extend the Federal debt limit in the next month or so, and will have to approve a fiscal year 2012 budget before the end of the current budget year on September 30.  Plenty of possibilities to have to dust off these instructions for use at a later date]

The FCC has just released its plans for an Orderly Shutdown in the event that there is no agreement for funding the government  passed by Congress by midnight tonight.  As set forth in that plan, FCC employees would arrive at work on Monday for purposes of securing their work premises.  Except for a few essential employees, all others would be furloughed, and thus have to turn around and go home.  They would not be able to perform any official functions.  The FCC’s plan states that the work that could not be performed includes:

Consumer complaint and inquiry phone lines cannot be answered; consumer protection and local competition enforcement must cease; licensing services, including broadcast, wireless, and wireline, must cease; management of radio spectrum and the creation of new opportunities for competitive technologies and services for the American public must be suspended; and equipment authorizations, including those bringing new electronic devices to American consumers, cannot be provided.

Thus, it appears that, if the government shuts down, there will be no filings of pleadings or applications permitted.  Travel by government employees would also stop – which may have an impact on events such as next week’s NAB Convention where several FCC employees are scheduled to appear.  The plan does make clear that the Chairman is exempt from any furlough, but whether he can travel or speak to the public, or do other nonessential duties, remains to be seen.  We will update this entry as more information becomes available – if indeed the government does shut down at midnight tonight. 

With the President declaring his candidacy for reelection in 2012, broadcasters thoughts may be turning to that election and the expected flood of money that may come into the political process.  But visions of next year’s elections should not be distracting broadcasters from their current political broadcasting obligations.  I’ve received many calls this year about whether broadcasters need to provide lowest unit rates to candidates in the races that are going on in 2011 – including many municipal elections and some special elections to fill various political posts.  As we have written before, if a station decides to sell time to a political candidate in a local race, that sale must be at the lowest unit charge for the class of time sold during the 45 days before a primary and the 60 days before the general election.  While state and local candidates need not be afforded the "reasonable access" that applies to Federal candidates, that merely means that stations do not need to sell these candidates any advertising time at all, or that stations may limit the purchase by state and local candidates to only the dayparts during which the station has more inventory.  But once the time is sold to one candidate in a race, most other political rules – including lowest unit charges, equal opportunities and the no censorship rule, all apply to the local candidate’s spots.

With the President now filing to become a candidate, and many Republican candidates likely to be filing soon, what obligations are imposed on stations?  For the most part, there is no effect on the rates to be charged to candidates or their campaign committees – those rates only become effective 45 days before the primaries – so the lowest unit charges for Presidential campaigns likely will not kick in until very late this year, or early next, for the early Presidential primaries and caucuses in states like Iowa and New Hampshire. But, as candidates become legally qualified, there will be reasonable access and equal opportunities obligations that will arise.  Candidates for President can request reasonable access to all classes and dayparts – even outside the 45 and 60 day windows before a primary and general election, respectively.  In the case of a Presidential campaign, a candidate becomes legally qualified in all states once he has become legally qualified in 10 states. There may be few Democrats who are to likely to challenge the President, so equal opportunities will most likely be a major issue only on the Republican side.  And, as we’ve written before, the FCC has determined that most interview programs where the content is under station control – even those that have little news value on the normal day – are deemed "news interview programs" exempt from equal time rules.  Thus, equal time is normally only an issue in making sure that all candidates have equal opportunities to buy spot time, and in those rare circumstances where a candidate appears on a purely entertainment program (e.g. as a character on a scripted TV show) or where the candidate is themselves a host of a broadcast program – and usually stations ensure that the candidates are long gone from hosting programs once they formally declare that they are running for a political office

Continue Reading President Obama Declares Candidacy – What Political Broadcasting Rules Should Broadcasters Be Considering Now?

The FCC has released the comment dates for its draft rules setting out when Environmental Assessments are needed to formally evaluate the environmental impact of the construction and major alteration of communications towers.  We wrote about these draft rules here, and described their history –  growing out of concerns by conservation groups about the effects of communications towers on migratory birds.  Comments on the Commission’s Draft rules are due on May 5. 

The FCC has granted an extension of time to submit comments in its proceeding to re-institute video description rules for television programming.  Comments are now due April 28th, and Reply Comments are due by May 27th.  A copy of the FCC’s recent Order extending the deadline is available here.  As we wrote about earlier (here), this rule making proceeding seeks to reinstate the Commission’s prior video description rules with certain modifications, as required by the Twenty-First Century Communications and Video Accessibility Act of 2010 (the CVAA). The proposed rules would require large market broadcast affiliates of the top four national networks and most cable operators and DBS providers to provide programming with audio narrated descriptions of a television program’s key visual elements beginning as soon as first quarter 2012.  Davis Wright Tremaine previously summarized the Act in our earlier advisory available here.

In addition, the FCC also just granted an extension of time to file comments in a related proceeding that seeks to implement other aspects of the CVAA.  That proceeding, addressing accessibility of equipment and Advanced Communications Services, was also initiated in early March and shares a similar timetable for promulgating rules as the video description proceeding.  Accordingly, the FCC did not grant the full 30-day extension sought by the parties, but rather has granted a two week extension of time for comments.  Comments are now due on April 25, and replies on May 23 in that proceeding.  Groups including the National Federation for the Blind and the Consumer Electronic Association requested a month-long extension in the comment date but, as Congress has required that these rules go into effect at the beginning of 2012, the Commission felt that it could only justify a two week extension and still be able to meet the statutory deadline.  So have those comments ready by April 25. 

The FCC has announced another round of EEO audits – looking at the compliance with the FCC’s EEO rules and policies of several hundred radio and TV stations across the country.  Those stations selected for the audit (see the list here) must provide the FCC with the last two year’s public inspection file reports, plus all records maintained by the selected stations that back up the data reported in the annual reports.  The full list of the documents that must be produced is contained in the FCC’s letter that went out to stations who were selected (a copy of that letter is available here).  In the FCC’s Public Notice  announcing the audit, the FCC emphasized that stations need to post the most recent EEO public file report on their websites, and this requirement was also included in the audit letter.  The FCC emphasized that station’s who do not meet this obligation (which the FCC can check from their desks in Washington) are subject to fines.  Responses to the audits are due by May 9, 2011.

EEO is again important to the FCC.  We wrote about the recent reminders about the advertising nondiscrimination clauses that broadcasters must include in their advertising contracts.  Broadcasters will also need to report on their EEO compliance at license renewal time – and license renewals are coming up for all stations across the country in the next 4 years – beginning with radio stations in Maryland, DC, Virginia and West Virginia in June (see our advisory on Preparing for the License Renewal, here).  And, as we reported in December, the FCC has been fining stations for less than complete EEO efforts.  So be prepared.  For further information about a licensee’s EEO obligations, see our advisory setting out the basics of the FCC’s EEO rules and our most recent advisory on the requirements for the annual EEO public inspection file report. 

The Commission’s recent Notice of Proposed Rule Making exploring possible changes to the television retransmission consent rules has now been published in the Federal Register setting the date for Comments as May 27th, with Reply Comments due by June 27.  As we wrote about recently (here), the FCC has commenced a rule making to consider revising its rules governing the interaction and negotiations between cable operators and broadcasters regarding carriage of local broadcast television stations.  Among other things, the NPRM seeks input on strengthening the good faith negotiation rules, changes to the notice requirements to require advance notice to consumers of carriage changes, and input on the potential benefits and harms of eliminating the Commission’s network non-duplication and syndicated exclusivity rules.  Again, interested parties have until May 27th to file comments with the Commission either in paper or through the FCC’s Electronic Comment Filing System.  Reply Comments will be due by June 27th. 

The question of the environmental impact of the construction or significant alteration of a communications tower has been a matter of controversy for quite some time.  Three years ago, when conservation groups challenged the FCC’s procedures on the approval of towers and the consideration of the impact that such towers have on migratory birds, the US Court of Appeals ordered the FCC to include more public participation in the determination of whether those towers required detailed environmental studies ( an "environmental assessment" or an "EA") before they could be built.  This week, the FCC sought comments on their Draft Environmental Notice Requirements and Interim Procedures for its Antenna Registration Program.  These rules propose:

  • That, before an Antenna Structure Registration ("ASR") is issued by the FCC, any applicant must first give public notice of the construction in a local newspaper or other local media source.  The proposal will also be listed on the FCC’s website.  These notices are to allow the public to comment on the proposal.   
  •  If an EA is required, the FCC will process that assessment before the filing of the ASR
  • An EA will preliminarily be required for all requests for an ASR for towers of more than 450 feet to determine its impact on migratory birds, though the FCC may modify this requirement after further study.

This proposal is somewhat tracks the proposed requirements for an EA that were set out in a settlement agreement between many affected parties, including conservation groups, the NAB and CTIA – an agreement about which we wrote here.  That agreement, while conclusively requiring an EA for towers of over 450 feet, stated that towers between 351 and 450 feet would be dealt with on a case-by-case basis, and left open the question of whether an EA would be required for towers of 350 feet or less. 

Continue Reading FCC Requests Comments on Draft Requirements for Environmental Assessments of the Impact of Tower Construction – Including The Effect on Migratory Birds