arbitrary and capricious

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

Today’s post will be a bit more into the legal weeds than many of our articles, addressing the standards used by courts to review the decisions of administrative agencies like the FCC.  Last month, there was a Supreme Court argument in a case called Relentless, Inc. v. Department of Commerce that the popular press suggested was going to end the regulation of media companies.  Even the media trade press seemed to think that the decision could cut back on regulations that come from the FCC and other agencies.  As with much popular coverage of legal issues, the real-world impact of the case, while certainly significant in legal practice, is probably overstated.

The Relentless case challenges a judicial precedent in place since a 1984 decision in another case, Chevron [U.S.A.] Inc. v. NRDC, Inc.  The policy adopted in that case, referred to as the “Chevron Doctrine,” says that the courts will defer to the decision of an administrative agency interpreting an ambiguous Congressional statute unless the agency’s decision is arbitrary and capricious or contrary to law.  What that basically means is that, if a policy adopted by Congress is capable of many different interpretations, the Courts will defer to the interpretation of the expert agency that is supposed to enforce that statute, unless the interpretation cannot be squared with the language of the statute or the record before the agency.  We’ve written many times on this blog about this doctrine without necessarily identifying it by name, usually in connection with appeals of a Copyright Royalty Board or FCC decision and how difficult it is to convince a court to overturn these actions.Continue Reading What Does the Supreme Court’s Review of the Chevron Doctrine Mean for Media Companies Challenging Decisions of the FCC and Other Government Agencies? 

SoundExchange last week filed an appeal of the Copyright Royalty Board’s decision on webcasting royalties (a decision which we summarized here and here), as reported by a number of trade press articles. Most of these press reports did not note that this was not the only appeal filed. At least two other parties, IBS (Intercollegiate Broadcasting System – representing college and high school broadcasters) and the NRB-NMLC (National Religious Broadcasters Noncommercial Music License Committee – representing noncommercial religious broadcasters) also filed notices of appeal. So what is next now that these appeals have been filed?

The Notices of Appeal that were just submitted to the US Court of Appeals are just “notice” documents – filed to give notice to the other parties, the CRB and the court that these parties will pursue an appeal as they think that the CRB decision was not justified. No detail as to the substance of the appeal need be submitted at this time. Those details will be advanced when the parties file briefs setting out the specifics of their arguments challenging the CRB decision. The exact date for the submission of those briefs won’t be set for months, when the case makes its way onto the Courts docketing schedule. So don’t expect briefs to be filed until the Fall, with an oral argument before the Court to follow. The arguments are simply ones where lawyers for the parties get up before a three-judge panel and make brief presentations about the legal issues involved in the case (and answer the questions of the Judges). No new evidence is taken – at this point the proceeding is just one between lawyers, arguing as to whether the CRB decision was justified. What does the Court review?
Continue Reading Appeals Filed of Copyright Royalty Board Decision on Webcasting Royalties – What’s Next?