October 2004

Check local listings for tonight's debate. For upcoming media policy
events, see http://www.benton.org/calendar.htm

MEDIA & ELECTIONS
Boycott Call Grows Over Plan to Air Anti-Kerry Film
Sinclair and Double Standards
Sinclair's Partisan Ploy Cries Out for Equal Time
Sinclair Plays Fast and Loose with the News
Sinclair's Hatchet Job on Kerry
Viacom Issue-Ad Rejection Draws Protest
Kerry Campaign Goes Positive

INDECENCY
Smut, Sats, DTV Unresolved
FOX Violation of Indecency Rule for "Married By America"
Howard Stern and the Future of Media Censorship

QUICKLY
Alcohol Ads Up; Youth Drinking Flat
LPTV Facing 'Spectrum Fights' During DTV Transition
The Role of Radio Sawa In Mideast Questioned
NCTA Opposes Tougher Captioning Enforcement
Supreme Court Declines to Review FCC's Phone Competition Rules
Temporary Suspension Of Schools And Libraries/Rural Health Care Funding
Commitments
A Laptop in Every Locker
Broadband Policy -- Who has a Better Plan?
EFF Challenges Secret Government Order to Shut Down Media Websites
FTC Files First Spyware Case Following CDT Complaint

MEDIA & ELECTIONS

BOYCOTT CALL GROWS OVER PLAN TO AIR ANTI-KERRY FILM
The Federal Elections Commission and the Federal Communications Commission
are unlikely to rule on the legality of airing "Stolen Honor" before its
scheduled showing next week, a call for a boycott of Sinclair advertisers
may already be having some effect. Democrats are urging supporters to call
Sinclair stations and their advertisers to complain about Sinclair's plans
for a preelection screening. A handful of local companies, in cities
including Minneapolis and Columbus, Ohio, have pulled their ads from the
local Sinclair stations. One, Baltimore-based Sylvan Learning Center,
released a statement saying the company was "a nonpartisan organization."
It added, "Our advertising strategy is designed to reach our customers and
is in no way supportive of any political party or agenda."
[SOURCE: Los Angeles Times, AUTHOR: Elizabeth Jensen]
http://www.latimes.com/news/printedition/asection/la-na-sinclair13oct13,...
(requires registration)

SINCLAIR AND DOUBLE STANDARDS
[Editorial] The WSJ takes issue with the reaction to Sinclair's move to air
"Stolen Honor," accusing Democrats of censorship and comparing Sinclair's
editorial decision with that of the Philadelphia Inquirer, the St. Louis
Post-Dispatch, the Oregonian, the Portland (Maine) Press Herald, the
Atlanta-Journal Constitution, the Seattle Post-Intelligencer, the
Philadelphia Daily News, the Seattle Times, the Arizona Daily Star, the
Detroit Free Press, the New London Day, and -- living up to its name -- the
Lone Star Iconoclast of President Bush's hometown of Crawford, Texas -- all
of which have endorsed Sen Kerry. "We haven't done the math," the editorial
reads, "but surely the combined impact of these "in-kind contributions"
reaches millions of potential voters who aren't likely to read another
editorial endorsing Mr. Bush. By contrast, Sinclair's 42-minute documentary
is airing on the company's 62 stations, which reach 24% of U.S.
households." The editorial ends by comparing Sinclair's decision to
*broadcast* "Stolen Honor" while Michael Moore works to make "Fahrenheit
9/11" available on pay-per-view the night before the election. "We look
forward to reading the Senators' follow-up letter to the FCC on this abuse
of the airwaves," the editorial ends. [Although Headlines readers know,
cable operators aren't considered public trustees of the airwaves -- using
cable and all -- as broadcasters are.]
[SOURCE: Wall Street Journal, AUTHOR: Wall Street Journal Editorial Staff]
http://online.wsj.com/article/0,,SB109763076928843802,00.html?mod=todays...
(requires subscription)

SINCLAIR'S PARTISAN PLOY CRIES OUT FOR EQUAL TIME
[Commentary] Sinclair's obvious attempt to affect the election by
broadcasting the film is exactly the sort of use of public
airwaves to promote station owners' private political agendas that federal
regulations have always been designed to prevent. "American thought and
American politics will be largely at the mercy of those who operate these
stations," Rep. Luther Johnson warned at the time of the passage of the
Radio Act of 1927. With growing numbers of stations controlled by chains
like Sinclair -- which controls more television licenses than any other
operator-- these
concerns are more relevant than ever. If Sinclair wants to give more
exposure to "Stolen Honor," it can do so fairly by providing equal time for
an examination of the same subject from an opposing perspective. The
documentary "Going Upriver: The Long War of John Kerry," a positive account
of Kerry's service in Vietnam and his
anti-war activism upon his return, would seem to be an ideal candidate. The
Chicago Tribune (10/1/04) called it "almost essential viewing... that
anyone who intends to vote this November should make every effort to see."
FAIR is asking readers to contact Sinclair and ask it to air "Going
Upriver" as well as "Stolen Honor.
Sinclair Contact Info -- Phone: 410-568-1500 E-mail: comments( at )sbgi.net
[SOURCE: FAIR]
http://www.fair.org/

SINCLAIR PLAYS FAST AND LOOSE WITH THE NEWS
[Commentary] The anti-Kerry documentary Sinclair plans to run on its
stations is a publicity stunt masquerading as journalism. This is
"political service" journalism at its worst. In the film, Kerry is
described to viewers as "a willing accomplice" for "enemy propagandists."
Billing this film as news, however, carries certain key advantages for
Sinclair. As a news program, the film, which will be run commercial-free,
may be exempt from federal regulations that require equal time for Senator
Kerry's campaign to respond. Instead, the Kerry camp is calling on
supporters to boycott Sinclair advertisers and demonstrate against its
stations, while a group of Democratic senators -- including Kerry's mentor,
Senator Edward Kennedy, are asking the FCC to investigate Sinclair's
broadcast plans, charging that the documentary is not news, but really a
political advertisement favoring Kerry's opponent, President Bush.
[SOURCE: MediaChannel.org]
http://www.mediachannel.org/views/dissector/affalert277.shtml

SINCLAIR'S HATCHET JOB ON KERRY
[Commentary] Think who owns and makes the media doesn't matter? Consider
Sinclair's order to its owned affiliates to air an alleged "documentary"
that is nothing more than a hatchet job on John Kerry. At CCVM, we're a
nonpartisan nonprofit. But what this episode clearly points up is that
television needs more voices owning stations and more voices producing
programming. It doesn't matter whether they are liberal or conservative, as
long as there are more, so that a Sinclair isn't able to monopolize the
public airwaves in the communities it is supposed to serve in the public
interest.
[SOURCE: Center for Creative Voices in Media]
(www.creativevoices.us)

VIACOM ISSUE-AD REJECTION DRAWS PROTEST
Viacom is making news in this election again -- this time refusing to run
ads aimed at getting young voters to participate in the democratic process.
The Let Us Decide Coalition says that it had a $115,000 buy booked on
Comedy Central for the first ad in a planned $750,000 combined local and
national cable and broadcast campaign, only to have it rejected by Viacom
Oct. 1, citing its standing policy against issue advertising. The ads ask
young voters to compare policies of the two candidates--like minimum
wage--and then decide who to vote for, with the current administration
clearly suffering in the comparison. The Coalition contends that Viacom has
a near monopoly hold on young viewers through its cable networks Comedy
Central, VH1, BET and various MTVs. The Coalition also says it will be more
expensive to reproduce that $115,000 buy going market-to-market, as they
have had to do with the campaign, with the first of three ads launching
Monday night. The group is responding by urging a boycott of Viacom
advertisers and starting an online and phone campaign targeted at Viacom
executives.
Earlier this year, Viacom refused an anti-Bush ad from MoveOn.org during
the Super Bowl.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471155.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
Additional coverage --
*Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A28103-2004Oct12.html

KERRY CAMPAIGN GOES POSITIVE
According to a new report from Nielsen Monitor Plus and the University of
Wisconsin Advertising Project, the presidential campaigns of Sen Kerry and
President Bush continue to narrow their advertising buys to key toss-up
states. According to the study, 87% of all presidential ads aired in the
top 50 markets, although they represent just 27% of the country. In other
words, says the study, "the need for campaigns to focus their finite
advertising budgets on the few states still in contention has left over 70%
of the potential voters largely or completely out of the main way that
presidential campaigns are communicating their message."
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471245.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
For more information about the report see --
Press Release
http://polisci.wisc.edu/tvadvertising/Press_Releases/Press_Release_PDFs/...
Project home page
http://polisci.wisc.edu/tvadvertising/Index.htm

INDECENCY

SMUT, SATS, DTV UNRESOLVED
Nothing makes democracy safe for the world like Congress going home. Don't
you fret, however, there will be plenty of work for our lame ducks after
the election. On the agenda will be 1) the digital television transition
and the return of spectrum used for analog TV for emergency services; 2)
increasing fines for broadcasting indecent content; and 3) extending the
satellite TV providers' right to import broadcast network programming to
households that can't receive an acceptable analog version from their local
affiliates. The House and Senate seem far apart on spectrum reclamation.
The House passed a non-binding "sense of Congress" [insert your own joke
here] calling on the government to reclaim all TV stations' analog channels
by the end of 2006. At present that spectrum will not be reclaimed until
85% of households have the equipment necessary to receive digital TV
signals. The House passed a bill raising fines for indecency and requiring
FCC action within nine months of a complaint being filed. The Senate is
still working on similar legislation. The House is also waiting on the
Senate to pass a satellite TV bill. The current legislation expires
December 31 and could result in a big bunch of DBS subscribers losing
access to some important bowl games on New Year's Day.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA471489.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

FOX VIOLATION OF INDECENCY RULE FOR "MARRIED BY AMERICA"
The FCC issued a Notice of Apparent Liability for Forfeiture against
various Fox Television Network affiliates for airing indecent material
during an April 7, 2003 episode of the "Married By America" program. The
Commission proposed a forfeiture in the amount of $7,000 for each station
that broadcast the program. The Commission found that the episode, which
aired prior to 10:00 p.m., a time when children were likely to be in the
audience, involved depictions of sexual activity and was patently
offensive. The total is a $1.18 million fine against 169 Fox Television
Network stations. The offending material focused on the Las Vegas bachelor
and bachelorette parties for two couples featuring strippers and sexual
situations. Scenes included party-goers licking whipped cream from
strippers' bodies and a man on all fours in his underwear getting spanked
by two strippers. Fox argued that the scenes were not indecent because
sexual organs were pixilated and because the scenes were fleeting.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253053A1.doc
[SOURCE: Broadcasting&Cable]
http://www.broadcastingcable.com/article/CA471564.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See the FCC order at:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-242A1.doc
Additional coverage --
* Washington Post
One Hollywood executive who works in reality television and agreed to talk
only anonymously said viewers have more power to shield their children from
scheduled television shows than they do from unexpected commercials for
R-rated movies or promotions for local news shows that tout "20 dead, five
raped, coming up at 11. The FCC is wasting time, and they should recognize
that as adults we can be responsible for our children. They should monitor
things we don't have control over," the executive said. "It's a Fox show,
and people should know what they're getting themselves into."
http://www.washingtonpost.com/wp-dyn/articles/A28197-2004Oct12.html
* LA Times
http://www.latimes.com/business/printedition/la-fi-fox13oct13,1,6473419....
* USA Today:
http://www.usatoday.com/printedition/money/20041013/foxfcc13.art.htm
* New York Times
http://www.nytimes.com/2004/10/13/business/media/13fox.html

HOWARD STERN AND THE FUTURE OF MEDIA CENSORSHIP
[Commentary] Anyone who cares about the First Amendment and press freedom
should find chilling that policymakers are proposing regulation of the
underlying business practices or ownership structures of the press, the
content the press airs, and even the newsgathering methods and practices
they utilize. While we can be glad that the Internet and cyberspace have
thus far been able to evade government controls, a two-tier system of First
Amendment freedom is neither sensible nor sustainable. Is it fair, for
example, that CBS.com gets the gold standard of press freedom while CBS
television or radio gets second-class citizenship rights in terms of First
Amendment protections? If CBS airs a clip on its stations deemed "indecent"
by just three of the five FCC regulators, they get fined. But if that same
clip is broadcast on the 'Net, those regulators can't touch it. Does that
make any sense? At some point in the near future the illogical regulatory
distinction between traditional broadcast and new media will be challenged
in the courts. It will force the constitutional question of whether
government can and should censor the media in the future.
[SOURCE: Cato Institute, AUTHOR: Adam Thierer]
http://www.cato.org/tech/tk/041011-tk.html

QUICKLY

ALCOHOL ADS UP; YOUTH DRINKING FLAT
The Center on Alcohol Marketing and Youth has released a study that finds
that alcohol advertising has exploded in recent years -- with cable TV
leading the way -- and that the alcohol industry has a long way to go to
fulfill its promise to reduce the number of such ads in programming with
significant youth viewership.
See the Center's report at http://camy.org/. You can also check what
alcohol ads appeared during programs aired in your area using the Center's
interactive data tool.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA471011.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

LPTV FACING 'SPECTRUM FIGHTS' DURING DTV TRANSITION
At the Community Broadcasters Association convention, FCC Media Bureau
Chief Engineer Keith Larson said Low Power Television stations (LPTV) face
"spectrum fights down the road" because they use "beach front property"
spectrum coveted by wireless, fixed wireless and unlicensed spectrum
industries. LPTV is threatened particularly by demands for wireless
spectrum after the DTV transition, Larson said, because LPTV stations --
unlike full-power broadcasters -- aren't guaranteed a channel allocation or
freedom from interference. "If wireless companies take all the channels
surrendered [by broadcasters after the transition] you are in a very bleak
position," warned Larson. Although LPTV got 80% of what it wanted in a
recent FCC order on the digital TV conversion, stations would still like to
get more protection and must-carry rights on cable.
[SOURCE: Communications Daily, AUTHOR: Michael Feazel]
(Not available online)

THE ROLE OF RADIO SAWA IN MIDEAST QUESTIONED
Radio Sawa, an Arab-language pop music and news station funded by the U.S.
government and touted by the Bush administration as a success in reaching
out to the Arab world, has failed to meet its mandate of promoting
democracy and pro-American attitudes, according to a draft report prepared
by the State Department's inspector general. The report credited Radio Sawa
with attracting a large audience in key Middle East countries but said the
station, which has an annual budget of $22 million, has been so preoccupied
with building an audience through its music that it has failed to
adequately measure whether it is influencing minds. The report also
questioned the validity of some research given to Congress by the
Broadcasting Board of Governors, Radio Sawa's parent, to demonstrate its
success.
[SOURCE: Washington Post, AUTHOR: Glenn Kessler]
http://www.washingtonpost.com/wp-dyn/articles/A28031-2004Oct12.html
(requires registration)

NCTA OPPOSES TOUGHER CAPTIONING ENFORCEMENT
In July, Telecommunications for the Deaf and other groups asked the FCC to
maintain a database with updated captioning contact information for
programmers and to create a complaint form that viewers could submit when
compliance problems are discovered. The FCC has been phasing in
closed-captioning quotas. As of Jan. 1, broadcasters and cable operators
were required to caption at least 1,350 hours of new English-language
programming per quarter. All English-language programming except for news
and other exempt shows must be captioned beginning Jan. 1, 2006. But the
National Cable & Telecommunications Association came out against the
stronger closed-captioning rules sought by advocates for the deaf. Most
complaints about closed-captioning are caused by "technical glitches" that
"fall short of demonstrating a problem that warrants significant changes in
the rules," NCTA says.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA470932.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

SUPREME COURT DECLINES TO REVIEW FCC'S PHONE COMPETITION RULES
In an expected move, the Supreme Court rejected an appeal to reverse a
decision by the U.S. Appeals Court, D.C., that vacated much of the FCC's
phone competition rules, including the FCC's decision to delegate review to
state commissions. Neither the Bush Administration nor the FCC supported
the appeal. The FCC is working on crafting new rules -- perhaps by the end
of the year.
[SOURCE: Communications Daily, AUTHOR: Susan Polyakova]
(Not available online)

TEMPORARY SUSPENSION OF SCHOOLS AND LIBRARIES/RURAL HEALTH CARE FUNDING
COMMITMENTS
The FCC directed the Universal Service Administrative Company (USAC), the
administrator of the Schools and Libraries (E-rate) and Rural Health Care
Universal Service Support Mechanisms, to change USAC's accounting
methodology by October 1, 2004 to the same methodology that the Federal
Government uses. Among other things, we were informed that this required
USAC to change the rules that we use to account for various financial
transactions, including funding commitments in those programs. The
accounting changes were not intended to have any impact on the way in which
we administer the programs themselves. USAC has sufficient funds on hand to
cover all FCDLs it has issued; however, we cannot issue any new funding
commitments until additional unobligated funds are made available. At this
time, and as some prior FCDLs expire, we expect to be able to issue some
funding commitments in the E-rate and Rural Health Care programs by late
November 2004. USAC is working very closely with the FCC to resolve issues
as quickly as possible, including the priority of commitments to be issued
as we become able to issue new FCDLs.
[SOURCE: Universal Service Administrative Company Notice]
http://www.universalservice.org/new/2004.asp#101204

A LAPTOP IN EVERY LOCKER
With colleges incorporating computers into instruction, and with many
employers assuming that applicants have computer experience, it might be
just a matter of time before computers become as elemental to high school
as backpacks or calculators. Laptop programs have sprung up in Henrico and
Roanoke (VA) counties and across the state of Maine. Many private schools
require students to have personal computers, although students are
generally expected to pay for them. This article focuses on the only high
school in the Alexandria (VA) district which reserved $1.4 million of its
annual budget to lease, insure and administer computers for each student.
The computers would have cost about $1,600 each if students had bought them
individually. "It gives us the ability to level the playing field," said
John Crites, head of technical support for the Alexandria school district.
"If one kid has a computer at home and is able to make graphics and pie
charts and another kid has to draw the graphics and pie charts, the way
their papers come out is going to differ."
[SOURCE: Washington Post, AUTHOR: Tara Bahrampour]
http://www.washingtonpost.com/wp-dyn/articles/A28050-2004Oct12.html
(requires registration)

BROADBAND POLICY -- WHO HAS A BETTER PLAN?
[Commentary] Although they have not gotten to address the issue much in the
campaign, Sen Kerry and President Bush differ in their approaches to
expanding access to broadband Internet service. Sen Kerry emphasizes tax
incentives, advocating a 10% tax credit for companies that invest in
today's technology in rural and inner-city areas. And he proposes a 20% tax
credit for investments anywhere for what he calls next-generation broadband
that will make available much faster speeds than those delivered presently
by telephone-company-provided DSL and cable-company-provided modem
services. Kerry estimates the cost of the tax credits over five years at $2
billion. President Bush does not mention broadband tax credits, choosing
instead, on the tax front, to highlight his opposition to allowing states
and localities to tax broadband services. Most significantly, he
underscores the relationship between regulation and investment in new
networks. For example, in April, Bush stated: "Broadband is going to spread
because it's going to make sense for private sector companies to spread it
so long as the regulatory burden is reduced-in other words, so long as
policy at the government level encourages people to invest, not discourages
investment."
Hopefully, the candidates' very different regulatory philosophies -- one
relying on less regulation and the other more on government financial
support -- will usher in a broader debate about the need to update our
communications laws with a meaningful set of regulatory reforms appropriate
for the digital age.
[SOURCE: Progress and Freedom Foundation, AUTHOR: Randolph J. May]
http://www.pff.org/issues-pubs/opinion/041011broadbandpolicy.html

EFF CHALLENGES SECRET GOVERNMENT ORDER TO SHUT DOWN MEDIA WEBSITES
The Electronic Frontier Foundation (EFF) is representing a coalition of
independent Internet journalists whose websites were shut down on Thursday,
October 7, when their servers were seized by the FBI. The two servers,
which were located in the United Kingdom and managed by San Antonio-based
Rackspace Managed Hosting, hosted Indymedia's Internet radio station and
more than 20 Indymedia websites, as well as several email lists. The
seizure was in response to a "Commissioner's Subpoena" issued at the
request of a foreign government. Citing a gag order, Rackspace has provided
no further details. An FBI spokesperson has confirmed that the subpoena was
issued at the request of Italian and Swiss authorities. Earlier this month,
the FBI made informal requests to both Rackspace and Indymedia to remove an
Indymedia news story that included photos of undercover Swiss investigators
posing as anti-globalization activists.
[SOURCE: Electronic Frontier Foundation Press Release]
http://www.eff.org/news/archives/2004_10.php#001992
For more info see http://indymedia.org/en/static/fbi
See also --
APC condemns "arbitrary" seizure of IndyMedia web servers by US and
European law enforcers
APC condemns the actions by US and European law enforcement agencies to
seize independent online news service Indymedia's web servers, which has
led to the closure of more than 21 of the more than 140 Indymedia web sites
worldwide since October 7. None of the agencies involved has admitted or
provided reasons for the seizure though Rackspace, the company which
provided web hosting for the sites and handed the servers over to law
enforcers, said in a statement that their action was "in compliance with a
court order pursuant to a Mutual Legal Assistance Treaty (MLAT)". MLAT
establishes procedures for countries to assist each other in investigations
regarding international terrorism, kidnapping and money laundering and so
using it to remove an independent news source would appear to be an abuse.
[SOURCE: Association for Progressive Communications Press Release]
http://www.apc.org/english/news/index.shtml?x=26809

FTC FILES FIRST SPYWARE CASE FOLLOWING CDT COMPLAINT
The Federal Trade Commission filed suit in the District Court of New
Hampshire on Thursday against Seismic Entertainment and a former
self-styled "Spam King," Sanford Wallace, taking up a complaint filed by
CDT last February. CDT's complaint highlighted browser hijacking and
deceptive advertising run by Seismic advertising, and CDT subsequently
documented forced installations caused by a Seismic website. The FTC's suit
mentions these and other actions as reasons for its suit.
[SOURCE: Center for Democracy and Technology]
(http://www.cdt.org)
Additional coverage --
*Washington Post
http://www.washingtonpost.com/wp-dyn/articles/A28179-2004Oct12.html
* New York Times
http://www.nytimes.com/2004/10/13/technology/13spy.html
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Check local listing for tonight's debate. For upcoming media policy events,=
=20
see http://www.benton.org/calendar.htm

MONDAY IS COLUMBUS DAY, WE WILL BE BACK TUESDAY OCTOBER 12.

TODAY'S QUESTION: Do you think there's a link between media ownership=20
concentration and indecent broadcast content?

FCC PROCEEDINGS
Tell the FCC What You Think About Local Media!
FCC Open Meeting Agenda: Three Broadband Items,
No Mention of Broadcaster Disclosure Rules

DIGITAL TV
Senate Passes Bill With 2008 Digital Conversion for Some Stations
Children's Advocates Ask Congress to End FCC's DTV Campaign

BROADCASTING
Senate Committee Drops Media Provisions From Pentagon Bill
Stern's Move to Satellite Radio Is a Signal Event
Building a 21st Century Radio
NBC to Delay NASCAR
Burns Wants FTC to Oversee TV Ratings Fairness

INTERNET
Burns Vows to Maintain =91Critical' Internet Funding for Schools
E-rate Funds Could Resume Soon, FCC Chief Says
Internet Tax Moratorium Could be Renewed in House
House Passes Second Anti-Spyware Bill

QUICKLY
Performers Bear Brunt of Reality TV and Runaway Production Trends
Grant Opportunity for Massachusetts Community and Faith-Based Organizations
Debating For Ratings

FCC PROCEEDINGS

TELL THE FCC WHAT YOU THINK ABOUT LOCAL MEDIA
The FCC has initiated a proceeding to evaluate whether broadcasters are=20
serving local needs. Now is a good time to put down on paper how you think=
=20
local issues are being covered and submit it to the FCC. When you are done,=
=20
you can submit these to the FCC either via mail or via the Internet. In=20
addition, if you don't want to write something long, you can send a simple=
=20
email to the FCC. The Media Access Project, a public interest law firm in=20
Washington, has published a guide for communicating with the FCC.
[SOURCE: Media Access Project]
http://www.mediaaccess.org/programs/diversity/TELLTHEFCC.pdf

FCC OPEN MEETING AGENDA: THREE BROADBAND ITEMS, NO MENTION OF BROADCASTER=20
DISCLOSURE RULES
The FCC released the agenda for its October 14 open meeting. The Commission=
=20
will consider: 1) rules for providing broadband Internet access of power=20
lines, 2) making additional spectrum available for advanced wireless=20
services, 3) broadband unbundling obligations and 4) payphone compensation=
=20
rates.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252981A1.doc

DIGITAL TV

SENATE PASSES BILL WITH 2008 DIGITAL CONVERSION DEADLINE FOR SOME STATIONS
The Senate overwhelmingly passed (96-2) intelligence reform legislation=20
(S-2845) on Wednesday that included a 2008 deadline for broadcasters to=20
vacate the portions of the 700 MHz spectrum reserved for public safety. The=
=20
House has also passed intelligence reform legislation, but it does not=20
include provisions concerning spectrum for public safety. House Commerce=20
Committee Chairman Barton (R-TX) has said he'd prefer dealing with the=20
digital TV conversion with a comprehensive bill in the next Congress.
[SOURCE: Communications Daily, AUTHOR: Terry Lane]
(Not available online)

CHILDREN'S ADVOCATES ASK CONGRESS TO END FCC'S DTV CAMPAIGN
=93Television is a major public health problem. It is a factor in many=20
diseases, syndromes and unhealthy habits, including obesity, type 2=20
diabetes, violence, aggression, attention deficit/hyperactivity disorder,=20
poor fitness and smoking,=94 says a coalition of children's groups, so the=
=20
FCC should not be in the business of encouraging consumers to buy expensive=
=20
new digital TV sets. They have asked Congress to cut off funding for the=20
FCC's digital television education campaign. Among the coalition members=20
are Mothering magazine, Action Coalition for Media Education and Harvard=20
Medical School.
[SOURCE: Communications Daily]
(Not available online)
See also --
Digital TV Effort Sends Wrong Signal, Group Says
[SOURCE: Los Angeles Times, AUTHOR:Alex Pham]
http://www.latimes.com/business/printedition/la-fi-dtv8oct08,1,2964399.s...
?coll=3Dla-headlines-pe-business
(requires registration)

BROADCASTING

SENATE COMMITTEE DROPS MEDIA PROVISIONS FROM PENTAGON BILL
Provisions that would have boosted fines for broadcasting indecent=20
programming have been stripped from the Department of Defense authorization=
=20
bill that Members of Congress hope to pass by the end of the week.=20
Media-related amendments became too controversial and risked passage of the=
=20
DoD bill. According to the sources, the lawmakers made their move after=20
Sen. Byron Dorgan (D-ND) made clear he would fight to include a=20
controversial provision in the package that would bar the FCC from relaxing=
=20
its media ownership rules. Said Barry Piatt, a spokesman for Sen. Dorgan,=20
"If their choice was to protect conglomerates who are buying up everything=
=20
rather than to protect children from indecency, it's a pretty poor choice,=
=20
and they're the ones who made it."
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=3D6476
Indecency Fine Boost a Bust
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA470105.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)
See additional coverage in --
Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A16587-2004Oct7.html

STERN'S MOVE TO SATELLITE RADIO IS A SIGNAL EVENT
Howard Stern's move to satellite radio is 16 months off, but analysts are=20
already wondering what it will mean for the radio business. Here's one=20
view: "What did it mean to late-night TV when Johnny Carson left?" said=20
David J. Field, chief executive of Entercom Communications, which owns 100=
=20
radio stations. "The reality is, that was not the demise of late-night TV."=
=20
But other see similarities between the evolution of radio from AM to FM.=20
Until the late 1960s, AM was king and FM was a backwater. Station owners=20
who had both AM and FM signals put their high-profile deejays and music on=
=20
the AM stations and used the FM signals for brokered programming -- selling=
=20
time to advertisers -- or simply handed them over to youthful underground=20
deejays to play music. FM was not considered a viable revenue-maker and=20
station owners largely ignored them. But rock music started sounding=20
better. On AM, Jimi Hendrix was tinny. On static-free FM, he was a=20
revelation. Young listeners began streaming to FM stations and owners=20
realized they could be profitable. Owners of AM stations, satisfied with=20
their profits, were afraid to take the risks necessary to compete with the=
=20
growing FM industry. Eventually, almost all music left AM for FM. AM=20
stations struggled until the '80s, when Rush Limbaugh's show caught on and=
=20
AM stations thrived with talk formats. Many worry that broadcast radio will=
=20
lose its best programming to satellite radio. In part, Mr. Stern's=20
departure is fueled by a desire to get out from under FCC indecency=
regulation.
[SOURCE: Washington Post, AUTHOR: Frank Ahrens]
http://www.washingtonpost.com/wp-dyn/articles/A16113-2004Oct7.html
(requires registration)
Additional coverage:
* Wall Street Journal
Howard Stern's decision to leave Viacom for Sirius Satellite Radio=20
reinforces broadcast radio's low standing with investors.
http://online.wsj.com/article/0,,SB109718083800039552,00.html?mod=3Dtoda...
s_money_and_investing

BUILDING A 21ST CENTURY RADIO
How does broadcast radio compete with satellite? Go digital, of course.=20
"Radio cannot remain the only analog player in a digital world," said=20
National Association of Broadcasters CEO Edward Fritts, in a keynote speech=
=20
at the industry's annual convention in San Diego this week. "This industry=
=20
has always been a business filled with risk-takers. But in my view, the=20
real risk is for those unwilling to embrace the promise of HD (digital)=20
Radio." A move to digital radio broadcasting will offer improved reception,=
=20
as well as on-demand programming and time-shifting which allow listeners to=
=20
pause, rewind and record live broadcasts. By the end of the year, there=20
could be anywhere from 2,000 to 2,500 stations licensed or committed to=20
move over to digital.
[SOURCE: C-Net|News.com, AUTHOR: John Borland & Evan Hansen ]
http://news.com.com/Building+a+21st+century+radio/2100-1025_3-5402054.ht...
ag=3Dnl

NBC TO DELAY NASCAR
In the wake of Dale Earnhardt Jr's "utterance" last weekend, NBC has=20
decided to institute a five-second delay for its National Association for=20
Stock Car Auto Racing coverage beginning with Sunday's Banquet 400 race=20
from Kansas City Speedway. NBC already delays all its live award=20
show broadcasts in the wake of the FCC crackdown on indecency, including=20
the finding that Bono's use of the F-word on an NBC telecast was indecent.=
=20
The Parent's Television Council has announced it is likely to file a=20
complaint concerning the Earnhardt S-Word.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA469956.html?display=3DBreakin...
ws&referral=3DSUPP
(free access for Benton's Headlines subscribers)

BURNS WANTS FTC TO OVERSEE TV RATINGS FAIRNESS
Sen. Conrad Burns (R-MT) wants the Federal Trade Commission to "ensure that=
=20
the television ratings industry is run fairly and in the best interest of=20
the public" and has asked the FTC to see whether existing statutes give it=
=20
that jurisdictional authority.
[SOURCE: TVWeek, AUTHOR: Michele Greppi]
http://www.tvweek.com/news.cms?newsId=3D6474

INTERNET

BURNS VOWS TO MAINTAIN 'CRITICAL' INTERNET FUNDING FOR SCHOOLS
With the E-rate payments of 34 schools and libraries in Montana stopped=20
because of the FCC moratorium started in August, Sen Conrad Burns (R-MT)=20
has vowed to maintain but fix the program. "We can fix this fraudulent=20
abuse,'' Sen Burns said. "They should be reported and action taken on the=20
people that abuse the program. This investigation should move forward. If=20
there is abuse, let's get after it, but don't close the payments and=20
penalize the schools that have benefited from following the rules.'' Burns=
=20
other senators are angry that as part of an effort to rein in the program=20
federal officials have halted payments to schools, libraries and health=20
centers. Sen Burns helped create the E-Rate program when he and other=20
lawmakers were writing the Telecommunications Act of 1996. The program is=20
an expanded version of the basic universal service program that is intended=
=20
to guarantee that all Americans have telephone service.
[SOURCE: Independent Record, AUTHOR: Ted Monoson]
http://www.helenair.com/articles/2004/10/06/montana/a06100604_01.txt

E-RATE FUNDS COULD RESUME SOON, FCC CHIEF SAYS
Money to wire schools and libraries to the Internet and help fund rural=20
health care should resume flowing within weeks, FCC Chairman Michael Powell=
=20
said on Wednesday, a day after lawmakers attacked the agency for stopping=20
funds. "We are working on this 24 hours a day and I want to assure you that=
=20
were moving aggressively to get those funding commitments going again,"=20
Chairman Powell said. He added that the Commission had no choice but to=20
stop new funding while they made sure the E-Rate program, administered by=20
the Universal Service Administrative Company, complied with government=20
accounting standards. Despite Powell's pledge that the money would flow=20
again soon, a spokesman for USAC said that under current rules, requests=20
would far outstrip available funds. "We will have more commitments to issue=
=20
than money in the bank," USAC spokesman Mel Blackwell said. "We would have=
=20
to wait until we collect more money." Democrats at the FCC attacked Powell=
=20
for not informing them about the accounting issue or his decision to halt=20
the funds.
[SOURCE: Reuters, AUTHOR: Jeremy Pelofsky]
http://www.reuters.com/financeNewsArticle.jhtml?type=3DbondsNews&storyID...
432205

INTERNET TAX MORATORIUM COULD BE RENEWED IN HOUSE
House Judiciary Committee Chairman Sensenbrenner (R-WI) is leading a late=20
charge to extend the Internet tax moratorium through November 1, 2007. But=
=20
the effort is meeting resistance from groups representing local tax=20
authorities. The strategy appears to be to attach the Internet tax language=
=20
to a spending bill. Lawmakers hope o pass a bill the Senate approved in=20
April so it could then go right to President Bush to become law.
[SOURCE: Communications Daily, AUTHOR: Patrick Ross]
(Not available online)

HOUSE PASSES SECOND ANTI-SPYWARE BILL
The U.S. House of Representatives on Thursday unanimously passed a second=20
bill targeting perpetrators of computer "spyware" that hides in users'=20
computers and monitors their activities. The House voted 415 to 0 to=20
stiffen jail sentences for those who use secret surveillance programs to=20
steal credit-card numbers or commit other crimes. The vote came two days=20
after House lawmakers approved a separate bill that establishes=20
multimillion dollar fines for spyware perpetrators. Backers expect to=20
combine the two bills with another spyware bill pending in the Senate,=20
though time is running short in the legislative year.
[SOURCE: Reuters, AUTHOR: Andy Sullivan]
http://www.reuters.com/newsArticle.jhtml;jsessionid=3DQQXWHRBNBBPFUCRBAE...
Y?type=3DtechnologyNews&storyID=3D6443392
Also see --
* Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A16600-2004Oct7.html
* Los Angeles Times
The Federal Trade Commission filed the first case against software=20
companies accused of infecting computers with intrusive "spyware" and then=
=20
trying to sell people the solution.
http://www.latimes.com/business/printedition/la-fi-rup8.10oct08,1,659181...
ory?coll=3Dla-headlines-pe-business

QUICKLY

PERFORMERS BEAR BRUNT OF REALITY TV AND RUNAWAY PRODUCTION TRENDS
While the overall trend of declining U.S. television and theatrical roles=20
appears to be losing steam, new employment statistics released by Screen=20
Actors Guild (SAG) strongly indicates that actors are bearing the brunt of=
=20
today=92s trend toward more reality programming and runaway production. The=
=20
data, gathered from producers in accordance with SAG=92s collective=20
bargaining agreement, indicates a 1.6% overall decline in TV and theatrical=
=20
member roles in 2003 over 2002. This drop is far more modest than in recent=
=20
years (6.5% in 2002 and 9.3% in 2001) with much of the loss concentrated in=
=20
lead roles for Asian and Latino male lead roles in primetime, which=20
declined 35% and 31% respectively from 2002 to 2003. =93Although we have=20
certainly seen some encouraging signs in this latest data, particularly for=
=20
Native Americans and African-Americans, for many other performers the news=
=20
is not as good,=94 said SAG President Melissa Gilbert. =93We are=
particularly=20
concerned to note the decline in lead roles for Latino and Asian male=20
actors. It=92s been clear for some time that reality television and runaway=
=20
production are having an adverse impact on the number of opportunities=20
available to working actors. Overall, this data ought to be a wake-up call=
=20
to the industry. There is still significant work left to do to increase the=
=20
opportunities for many groups.=94 Latino performers were cast in 10.5=
percent=20
less roles in 2003. This 5.4 percent share of all roles is far below the=20
Latino community=92s 13.7 percent representation in the U.S. population.=20
Asian/Pacific Islanders represent 3.8 percent of the American population,=20
yet continue to secure only 2.5 percent of all TV/theatrical roles. Male=20
Asian leads cast in episodic television were hardest hit =AD declining from=
=20
104 lead roles in the 2002 data to 61 in 2003. Women also continue to be=20
significantly under-represented on television and in the movies.
Links to data at the URL below.
[SOURCE: Screen Actors Guild Press Release]
http://www.sag.org/sagWebApp/application?origin=3Dpage1.jsp&event=3Dbea....
al.framework.internal.refresh&pageid=3DHidden&contentUrl=3D/NewsAndAnnouncem=
ents/announcementLander.jsp&cp=3Dnull&announcementPage=3D/Content/Public/cas=
tingdatareports.htm

GRANT OPPORTUNITY FOR MASSACHUSETTS COMMUNITY AND FAITH-BASED ORGANIZATIONS
$750,000 Total Available for Use of Technology to Serve At-Risk Youth and=20
Homeless Populations
Program and development staff from Massachusetts community- and faith-based=
=20
organizations interested in developing, expanding, and enhancing the=20
capacity of community programs that provide technology skills to homeless=20
individuals and/or at-risk youth are encouraged to attend a free=20
teleconference workshop on the Connections for Tomorrow grants program=20
(http://www.ctcnet.org/c4t/grants).
CONTACT: Tara Kumar/CTCNet, 617-354-0825 x13, tkumar( at )ctcnet.org

DEBATING FOR RATINGS
TV stations will rake in a record $1.5 billion from campaign ads, while=20
offering less and less substantive coverage. Since they are laughing all=20
the way to the bank, why not have a laugh at their expense? See the short=20
video at the URL below.
[SOURCE: Free Press]
http://www.debatingforratings.com
--------------------------------------------------------------
Thanks for reading. Have a great weekend. See ya Tuesday morning.

What do you think -- Cards vs Yankees?
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service=20
provided by the Benton Foundation (www.benton.org). Posted Monday through=20
Friday, this service provides updates on important industry developments,=20
policy issues, and other related news events. While the summaries are=20
factually accurate, their often informal tone does not always represent the=
=20
tone of the original articles. Headlines are compiled by Kevin Taglang=20
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

The FCC is holding a symposium today on the educational potential of
broadband and the US Chamber of Commerce will release a report calling for
telecom regulation certainty. For upcoming media policy events, see
http://www.benton.org/calendar.htm

TODAY'S QUESTION: This wonk's ears perked when Sen Edwards ended the debate
with the image of his father learning math on TV. Is instructional
programming something we should expect of broadcasting today and in the
digital future?

MEDIA POLICY
Ensign Announces Deal to Raise Cap on Indecency Violations, Includes
Penalties for Performers
The New Language of NASCAR
Peacock Proudly Defends WRC
Comcast: Multicasting's Hurdles 'Insurmountable'
FCC Takes Flak Over Flag
News Corp. Might Buy All of Fox
Viacom Gets Stake in Spanish Broadcasting
Radio Goes Digital

TELECOM POLICY
Accounting Issues Emerge as Latest E-Rate Crisis
Phone Group Head Resigns After Uproar
Seventh Circuit: Modem-Fee Case to State Court

QUICKLY
Political Groups Are Big Spenders
Is the PC a Political Machine?
House Approves Spyware Legislation
Federal Court to Rehear Email Privacy Case
USTA Lays Out Key Principles for Telecom Industry Wholesale Rules
Taxation of Online Sales
Position Available: FAIR
Congrats to APC's Karen Banks

MEDIA POLICY

ENSIGN ANNOUNCES DEAL TO RAISE CAP ON INDECENCY VIOLATIONS, INCLUDES
PENALTIES FOR PERFORMERS
On Tuesday, Sen John Ensign (R-NV) announced that he and other leading
lawmakers had cut a major legislative deal to raise the cap on indecency
fines to $500,000 -- and clear the way for the FCC to force on-air
performers to pay the penalties for their off-color utterances. The bill
would also sets timelines for FCC action on indecency complaints, require
the FCC to report annually to Congress on its indecency efforts and calls
for the National Association of Broadcasters to establish a family-viewing
policy. These provisions will be part of the defense spending authorization
bill in conference committee now. Sen Ensign's announcement is a turnaround
from efforts earlier in the day to strip any non-defense-related provisions
from the bill (see story below). In theory, he is responding to quick
pressure applied by the Parents Television Council which has been pushing
for the indecency legislation. Stripped from the bill were provisions to
extend indecency prohibitions to violent broadcast and cable programming
and end FCC efforts to relax agency media ownership rules.
[SOURCE: Current, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6455
FCC Indecency-Fine Boost in Jeopardy
Nevada Republican Senator John Ensign has sent a letter to Armed Services
Committee Chairman John Warner (R-VA) and ranking member Carl Levin (D-MI)
saying that extraneous and controversial provisions regarding media
ownership limits and cable indecency could jeopardize agreement on a
defense spending authorization bill tied up in a House-Senate conference.
The bill includes an amendment, offered by Sen Sam Brownback (R-KS), that
would increase fines for indecent broadcast content. That provision has
bi-partisan support. But additional provisions would permanently throw out
the FCC's June 2, 2003 ownership revamp and creating a violence safe harbor
on broadcast outlets. Sen Ensign believes these provisions jeopardize a
compromise on the defense bill before the current Congressional session
ends Oct. 8.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468484.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

THE NEW LANGUAGE OF NASCAR
Moments after he won Sunday's race at Talladega Superspeedway in Alabama,
Dale Earnhardt Jr was asked by an NBC reporter about the significance of
the victory. In a fit of self-deprecating glee, Earnhardt recalled the
memory of his legendary father, Dale Earnhardt, who was killed in the 2001
Daytona 500, declaring, "It don't mean [expletive] right now. Daddy's won
here 10 times." NASCAR officials countered yesterday by slapping Earnhardt
with a $10,000 fine and docking him 25 points toward the season's
championship, dropping him from first to second in the standings with seven
races to go. NASCAR's response illuminates the lingering effects of Janet
Jackson's breast-baring halftime show during the National Football League's
Super Bowl, which resulted in more than a half-million complaints and a
record $550,000 FCC fine against 20 CBS-owned stations.
[SOURCE: Washington Post, AUTHOR: Liz Clarke and Dan Steinberg]
http://www.washingtonpost.com/wp-dyn/articles/A8141-2004Oct5.html
(requires registration)

PEACOCK PROUDLY DEFENDS WRC
NBC has asked the Federal Communications Commission to reject the Parent's
Television Council's petition to deny the license renewal of its WRC-TV
Washington, D.C., arguing that the station's record of service to the
community should not be trumped by "a series of unadjudicated (or
dismissed) allegations that certain dialogue within a few of the station's
programs was actionably indecent." NBC argues that it was unaware of
"virtually all" of the referenced complaints, and takes that lack of FCC
notification as evidence that none made a prima facie case for indecency,
"never mind any sort of claim sufficient to raise a material and
substantial question as to the station's extensive and outstanding record
of broadcasting in the public interest." On a broader point, says NBC, "a
single individual should not be able to deny millions of satisfied viewers
a continuation of the station's long-standing and exemplary service because
of that person's complaints about a handful of episodes during more than a
half-decade of television programming. Among that service NBC sites helping
lead the transition to digital TV, Equal Employment Opportunity community
outreach, local news and other locally produced programming, educational
kids shows, Public Service Announcements and top-quality entertainment.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468478.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

COMCAST: MULTICASTING'S HURDLES 'INSURMOUNTABLE'
In a meeting last week with several FCC officials, including Media Bureau
Chief Kenneth Ferree, Comcast reiterated the cable giant's position that
requiring cable systems to carry every digital service beamed by local TV
stations -- know as multicast must-carry -- would face "insurmountable"
legal hurdles because of constitutional issues. Chief Ferree has said his
staff has concluded that the FCC's ruling that TV stations were entitled to
carriage of a single programming service was incorrect and that law permits
an interpretation of the 1992 Cable Act that would support a
multicast-carriage mandate. The FCC is moving to resolve the issue by the
end of this year. Comcast argues that a multicast mandate would frustrate
its ability to select programming services most desired by subscribers and
also noted that it is seeking technology that would allow it to reallocate
surplus bandwidth that becomes available when digital-TV stations alternate
between HDTV and less-bit-intensive standard-definition formats. "Thus, to
be denied this flexibility by the [FCC], through a rule that requires the
carriage of multiple program streams for a single broadcaster, would
represent an even greater intrusion on the editorial discretion and the
reasonable investment-backed expectations of the cable operator than a rule
that requires the carriage of a single HDTV programming stream per
broadcaster," Comcast said.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA469126.html?display=Breaking+News
(requires subscription)

FCC TAKES FLAK OVER FLAG
Public Knowledge, Consumer's Union, Consumer Federation of America, and a
number of library associations have filed a petition with the DC Court of
Appeals arguing that the FCC had no authority to adopted the broadcast-flag
digital-distribution protection regime for over-the-air digital TV.
Although they concede the FCC has authority over the DTV transmissions,
they argue that the flag does not come into play until after the
transmission is received. "The Broadcast Flag resembles an assertion of FCC
jurisdiction over an entire automobile simply because the car contains a
satellite radio receiver," they argued in the brief. The groups fear the
flag will put undue limitations on copying devices including TiVos, digital
VCRs, iPods, and cell phones. "This is a crucial case that will determine
how much control the government and Hollywood will have over current and
future digital media devices," said Public Knowledge President Gigi Sohn.
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
http://www.broadcastingcable.com/article/CA468967.html?display=Breaking+...
(free access for Benton's Headlines subscribers)
See a Press Release from Public Knowledge at:
http://www.publicknowledge.org/content/press-releases/press_release.2004...
See a Press Release from the Electronic Frontier Foundation:
http://www.eff.org/news/archives/2004_10.php#001968

NEWS CORP MAY BUY ALL OF FOX
News Corp may buy out the 18% of its Fox Entertainment Group unit it
doesn't already own, News Chairman Rupert Murdoch told an investors
conference. Fox owns some of News Corp's most valuable US businesses and
the move to buy Fox may be a major reason for the proposed shift in News
Corp.'s corporate domicile from Australia to the US. Murdoch believes the
deal could be done for about $5 billion. News Corp isn't likely to buy full
ownership of either DirecTV Group, its 34%-owned satellite-TV arm in the
US, or its 35%-owned UK satellite arm, British Sky Broadcasting Group,
Murdoch said. BSkyB would be too expensive, while a DirecTV buyout isn't
possible because of a tax-related agreement with DirecTV's former
controlling shareholder, General Motors.
[SOURCE: Wall Street Journal, AUTHOR: Martin Peers martin.peers( at )wsj.com]
http://online.wsj.com/article/0,,SB109701720828337204,00.html?mod=todays...
(requires subscription)

VIACOM GETS STAKE IN SPANISH BROADCASTING
Viacom has purchased a 10% stake in Spanish Broadcasting System (SBS) in
exchange for in exchange for Viacom's Infinity Broadcasting unit merging an
FM station in San Francisco with SBS, creating what Viacom and SBS describe
as the single most powerful Spanish-language radio station in the market.
Beyond the station deal, the two companies also agreed to join forces to
target Hispanic consumers through television, radio and outdoor advertising
throughout the United States. Analyst David Joyce viewed the transaction as
a positive for Viacom, providing the company with an entry into a "highly
coveted broadcasting subsector."
[SOURCE: TVWeek, AUTHOR: Jay Sherman]
http://www.tvweek.com/news.cms?newsId=6448
Coverage also in --
Wall Street Journal
http://online.wsj.com/article/0,,SB109699936181036705,00.html?mod=todays...
(requires subscription)

RADIO GOES DIGITAL
Like TV, radio is going digital. Nearly 140 stations in the U.S. are
broadcasting digital radio, and an additional 70 are expected to convert by
year's end. A digital FM station has a crisper, cleaner sound approaching
that of a compact disc. When digitized, even AM radio, which is prone to
signal interference, sounds as good as a conventional FM station does
today. Because digital transmission is more efficient than analog, stations
that convert to digital can squeeze two digital channels and an analog
channel on the same frequency. That means a station could have two digital
channels broadcasting different music in the same frequency. National
Public Radio, for instance, is considering a jazz channel that could reside
on an alternative channel. Stations also could use the additional channels
to send messages to listeners, says Robert Struble, chief executive of
iBiquity Digital, which developed the official U.S. standard for digital
radio in 2002. Mr. Struble predicts many stations will beam breaking news
or traffic information in text scrolling across a car radio's LCD screen.
[SOURCE: Wall Street Journal, AUTHOR: Gary McWilliams
gary.mcwilliams( at )wsj.com]
http://online.wsj.com/article/0,,SB109702174476337406,00.html?mod=todays...
(requires subscription)
'TiVo' for Your Radio
Walt Mossberg reviews a new device that aims to do for radio what TiVo did
for television.
http://online.wsj.com/article/0,,SB109701902050037291,00.html?mod=todays...

TELECOM POLICY

ACCOUNTING ISSUES EMERGE AS LATEST E-RATE CRISIS
The Senate Commerce Committee held a hearing on the E-rate Tuesday and an
accounting convention broke out. The Universal Service Administrative
Corporation explained to Senators that it had lost $4.6 million due to an
accounting change that required the company to have more cash on hand --
USAC needed to sell some assets and paid significant penalties. The changes
may also force the FCC to raise the contribution factors for telecos from
8.7% to 10% -- which could help trigger Congressional reform of how
universal service funds are collected as constituents may start complaining
about higher phone bills. [Unfortunately for Republicans, they don't have
Al Gore to kick around for this anymore.] USAC also confirmed that it froze
the E-rate program in August and does not plan to make new funding
commitments until late November at the earliest. Committee Chairman John
McCain (R-AZ) proposed an additional hearing after the election.
[SOURCE: Communications Daily, AUTHOR: Howard Buskirk]
(Not available online)
See additional coverage:
Internet Grants Cut, and F.C.C. Scolded
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/10/06/technology/06net.html
(requires registration)

PHONE GROUP HEAD RESIGNS AFTER UPROAR
John D. Windhausen Jr., president of the Association for Local
Telecommunication Services (know as ALTS which represents competitors of
the large regional telephone companies), resigned yesterday after an
internal memo was accidentally filed at the FCC and made available over the
Internet. The document starkly characterized the policy positions of FCC
members and lawmakers and described the need for the association to hire,
for $120,000 a year, a "heavyweight Republican [lobbyist] that can navigate
between the FCC chairman and the White House." The document, written by
Windhausen and presented recently to chief executives of his member
companies, was posted on the FCC Web site only briefly last week but was
there long enough to have been downloaded by communications lobbyists and
lawyers. It is now the talk of telecom insiders. Details of a lobbying
strategy -- and lobbyists' assessments of the officials they lobby -- are
usually top secret. Lawmakers and regulators exhibit a strong distaste for
any hint that interest groups are working to manipulate them, even though
that is precisely what lobbyists regularly do.
[SOURCE: Washington Post, AUTHOR: Jeffrey H. Birnbaum and Christopher Stern]
http://www.washingtonpost.com/wp-dyn/articles/A9726-2004Oct5.html
(requires registration)

SEVENTH CIRCUIT: MODEM-FEE CASE TO STATE COURT
The U.S Court of Appeals for the Seventh Circuit in Chicago on Friday ruled
that cable-modem litigation between the city of Chicago, Comcast Corp. and
other cable companies belongs in state court as a contract dispute. By
returning the case to state court, the Seventh Circuit panel did not give
Chicago the green light to collect cable-modem franchise fees. The city
still has to persuade a state court that its cable-franchise agreement
requires Comcast to pay the fees despite the FCC's classification of
cable-modem service as an interstate information service. After the FCC's
cable-modem-classification ruling in March 2002, cable operators stopping
paying cable-modem franchise fees. Some MSOs said they had to cease
payments because they feared class-action suits brought by subscribers.
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
http://www.multichannel.com/article/CA468474.html?display=Breaking+News
(requires subscription)

QUICKLY

POLITICAL GROUPS ARE BIG SPENDERS
Political parties, political action committees and independent groups spent
more than $60 million in September on advertising to influence the
presidential race. The unprecedented level of spending comes in a campaign
in which every fundraising record has been broken. See who's spending how
much at the URL below.
[SOURCE: Los Angeles Times, AUTHOR:Lisa Getter]
http://www.latimes.com/news/printedition/asection/la-na-money6oct06,1,64...
(requires registration)

IS THE PC A POLITICAL MACHINE?
As the presidential race turns red hot in the weeks leading up to Nov. 2,
political Web sites are popping up faster than political leaflets rolling
off the presses. Read about some examples at the URL below.
[SOURCE: C-Net|News.com, AUTHOR: Dawn Kawamoto]
http://news.com.com/Is+the+PC+a+political+machine/2100-1028_3-5397598.ht...

HOUSE APPROVES SPYWARE LEGISLATION
By a 399-1 vote, House members approved legislation prohibiting "taking
control" of a computer, surreptitiously modifying a Web browser's home
page, or disabling antivirus software without proper authorization. The Spy
Act would also create a complicated set of rules governing software capable
of transmitting information across the Internet. It would give the Federal
Trade Commission authority to police violations of the law and to levy
fines of up to $3 million in the most pernicious cases. A similar bill is
pending in the Senate. The lone "Nay" was cast by Rep Ron Paul (R-TX) a
vocal libertarian who frequently says the federal government should not be
policing the Internet.
[SOURCE: C|Net/News.com, AUTHOR: Declan McCullagh]
http://news.com.com/House+approves+spyware+legislation/2100-1028_3-53978...

FEDERAL COURT TO REHEAR EMAIL PRIVACY CASE
A federal court of appeals has announced it will rehear its earlier
decision that the wiretap laws do not apply to real-time interception of
email. CDT and three other organizations had urged the court to reconsider
its ruling in an amicus brief arguing that the original appeals court
decision potentially created a loophole for law enforcement and ISP access
to email.
[SOURCE: Center for Democracy and Technology]
http://www.cdt.org
There's more at the Electronic Privacy Information Center
http://www.epic.org/

USTA LAYS OUT KEY PRINCIPLES FOR TELECOM INDUSTRY WHOLESALE RULES
USTA filed comments with the FCC laying out three key principles for the
Commission to follow it its proceeding on wholesale rules: 1) the rules
must advance facilities-based competition; 2) the rules must be narrowly
tailored to avoid harming competition; and the new rules should provide
certainty and be effective immediately. USTA said, "The courts have
invalidated the FCC's approach three times in the past eight years. Yet,
each of these court rulings has provided the FCC with clear guidance
regarding what would constitute lawful unbundling rules. As a whole, these
decisions require the FCC to take into account real competition in various
markets and to compel unbundling only where competitors cannot compete
without access to certain incumbent local exchange carrier ("ILEC")
facilities. It should be absolutely clear now that the Commission is
required to follow the guidance of the courts in order to create lawful
unbundling rules."
[SOURCE: United States Telecom Association Press Release]
http://www.usta.org/news_releases.php?urh=home.news.nr2004_1005

TAXATION OF ONLINE SALES: COMPETING WITH THE STREAMLINED SALES TAX PROJECT
The Progress and Freedom Foundation released a new report Monday on the
Streamlined Sales Tax Project (SSTP), multi-state compact to harmonize
elements of state taxation. With the growth of e-commerce, state
governments have become increasingly concerned about the potential loss of
sales and use tax remissions on remote purchases by their residents.
[SOURCE: Progress and Freedom Foundation]
http://www.pff.org/news/news/2004/100404sstp.html
The Progress & Freedom Foundation is a market-oriented think tank that
studies the digital revolution and its implications for public policy.

FAIR is looking for a Development Director.
http://www.fair.org/posting.html

The Association for Progressive Communication's Karen Banks Wins Anita Borg
Award for Social Impact
The award recognizes significant and sustained contributions in technology.
http://www.apc.org/english/news/index.shtml?x=26581

CORRECTION: The Technology Opportunities Program can now be found online at
http://www.ntia.doc.gov/top/
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------

Two events today at the FCC: the launch of a public education campaign on
digital television (see story below) and a meeting of the Advisory
Committee on Diversity for Communications. For these and other upcoming
media policy events, see http://www.benton.org/calendar.htm

TELEVISION
Watchdogs Protest Exclusion From FCC DTV Transition Campaign
Station Renewals Held Up
Static Over Bandwidth
Five-Minute Warning on Indecency
Italy's TV Plan Worries Critics

RADIO
Clear Channel's Ad-Trim Plans Irk Some Clients
The Broad Reach of Satellite Radio

COMMUNICATIONS & ELECTIONS
Presidential Candidates Spend Little Time on Tech Issues
Online Political Ads
Big Four Lo$e Debates

TELECOM
Internet Grants to Schools Halted as the FCC Tightens the Rules
For Cingular, Now Comes the Hard Part

INTELLECTUAL PROPERTY/SPYWARE
U.S. Prepares to Crack Down On Intellectual-Property Piracy
California Law Seen as First Salvo in Spyware Fight

TELEVISION

WATCHDOGS PROTEST EXCLUSION FROM FCC DTV TRANSITION CAMPAIGN
In a letter to FCC Chairman Michael Powell, members of the Public Interest,
Public Airwaves Coalition [which includes the Benton Foundation] criticized
plans for a launch of a public education campaign concerning digital
television because there are no plans to address outstanding public
interest concerns. "A public education campaign that fails to include the
public perspective and the public interest is a charade," said the group.
The watchdog groups said they will be setting up a table outside the
agency's headquarters building to "focus attention on the FCC's continuing
failure to address the need for specific, quantifiable public interest
obligations for broadcasters." A spokesperson for Chairman Powell responded
to the groups concerns by saying, ""How is complaining about a public
education campaign in the public interest?"
For more on PIPA Coalition see http://www.mediachannel.org/new/
[SOURCE: TVWeek, AUTHOR: Doug Halonen]
http://www.tvweek.com/news.cms?newsId=6429
For more on the FCC's event see:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-252835A1.doc
See also:
Activists Knock Powell HD Powwow
http://www.broadcastingcable.com/article/CA457777.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

STATION RENEWALS HELD UP
Because of outstanding complaints, mainly for indecency, three-quarters of
the TV stations in Washington (DC), Maryland, Virginia and West Virginia
may have to wait until next year to get their licenses renewed. The four
states are the first of 18 blocks of TV licenses the FCC must renew through
2007. The industry is watching the first group closely. The current renewal
cycle is first since the Congress greatly relaxed renewal requirements in
1996, but opponents of media consolidation and other activists are vowing
to fight renewals of stations they believe are not providing appropriate
programming to children or otherwise living up to public interest obligations.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA457950.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

STATIC OVER BANDWIDTH
For almost 50 years, TV stations have had a valuable slice of the airwaves
almost entirely to themselves. Soon, however, their gated community could
become considerably less exclusive. By summer 2005, the FCC plans to issue
rules permitting unlicensed use of vacant TV channels for connecting to
high-speed networks, transmitting e-mails and linking up home offices.
Despite a promise from FCC staff not to allow interference with TV the fine
print of the FCC's proposal could pose some threats. The threat of
interference is particularly worrisome because of the switch to digital
transmission. Traditional analog transmissions are reasonably tolerant of
interference and often absorb signal conflicts with little more than some
snow or ghosting on the viewers' screens. Digital pictures, however, can be
completely obliterated by even a small amount of interference.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA458080.html?display=Washingto...
(free access for Benton's Headlines subscribers)

FIVE-MINUTE WARNING ON INDECENCY
In the wake of the FCC's Sept. 22 proposed $550,000 fine against CBS for
the Super Bowl halftime show, the Commissioners appear to be requiring that
stations prepare to cut out any unwanted surprises. In its decision, the
FCC said CBS's five-second delay-long enough to expunge cursing or other
inappropriate audio-wasn't enough of a precaution. Although the FCC decided
that affiliates not owned by CBS had no chance of predicting Jackson's
antics and wouldn't be fined this time, they can't expect similar leniency
in the future. "We urge each licensee to take reasonable precautions in the
future, such as employing such delay technology to independently prescreen
the network feed to prevent the broadcast of indecent programming over its
licensed station," the FCC declared in its order.
[SOURCE: Broadcasting&Cable, AUTHOR: Bill McConnell]
http://www.broadcastingcable.com/article/CA458093.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

ITALY'S TV PLAN WORRIES CRITICS
Think media ownership concentration is bad in the US? One company owns
three TV channels in Italy accounting for a 44% share of Italy's TV market.
44.9% of the market goes to RAI, the state-owned broadcaster. Problem is
that one company and the government are headed by the same man, Silvio
Berlusconi, the media tycoon turned politician. Now Berlusconi wants to
sell off at least 20% of RAI by March. Apart from meeting resistance from
opposition politicians, the plan infuriates left-leaning intellectuals and
disturbs some experts on competition policy who say the privatization may
tighten the Berlusconi empire's grip on Italy's TV market.
[SOURCE: Los Angeles Times, AUTHOR:Tony Barber, Financial Times]
http://www.latimes.com/business/printedition/la-ft-italy4oct04,1,1416887...
(requires registration)

RADIO

CLEAR CHANNEL'S AD-TRIM PLANS IRK SOME CLIENTS
Earlier this year, the nation's largest owner of radio stations, Clear
Channel, announced that it would to persuade advertisers to cut their
standard 60-second spots in half while restricting ad time to 15 minutes or
less per hour and never letting more than six ads air in a row. In short,
the company thought radio listeners were tuning out because of advertising
clutter. But advertisers don't like the plan which they call "Giving you
less, charging you more." In the radio industry, a 30-second spot typically
costs about 80% of the price of a 60-second pitch: Advertisers usually
figure they might as well spend the extra cash and get a full minute. And
advertisers, it turns out, don't like having to cram their message into
half the time they're used to.
[SOURCE: Wall Street Journal, AUTHOR: Sarah McBride sarah.mcbride( at )wsj.com ]
http://online.wsj.com/article/0,,SB109684363342334801,00.html?mod=todays...
(requires subscription)

THE BROAD REACH OF SATELLITE RADIO
Satellite radio is trying to win subscribers by hiring the personalities
who have a hard time on broadcast radio. One competitive advantage
satellite radio has over conventional radio is that, because it charges
listeners a fee, much like cable television, under federal regulations it
is subject to looser rules than stations that are free. The rapper Eminem
cited looser federal restrictions as a reason he agreed to be the host of
shows on Sirius to begin later this year. Gregg Hughes (the Opie of the
shock-jock duo) and Anthony Cumia also said they were attracted to
satellite radio by the less restrictive rules. The freedom could help the
companies win more subscribers more quickly, analysts said. The two
satellite companies still play a relatively small role in radio. They
currently have about 3.1 million subscribers between them, a tiny fraction
of the more than 200 million listeners who tune into conventional radio
stations every day. "The paid platform now has an advantage," said Blair
Levin, a managing director at Legg Mason, who served as chief of staff at
the FCC from 1993 to 1997. "To the extent that there are greater
restrictions, certain kinds of programming will migrate" to satellite
providers.
[SOURCE: New York Times, AUTHOR: Sabrina Tavernise]
http://www.nytimes.com/2004/10/04/technology/04radio.html
(requires registration)

COMMUNICATIONS & ELECTIONS

PRESIDENTIAL CANDIDATES SPEND LITTLE TIME ON TECH ISSUES
[Commentary] In a campaign dominated by war and the economy, Gillmor does
not expect discussion on technology issues, but feels they are still
important. He faults the Bush Administration as the US has fallen behind in
extending broadband and credits the FCC for good spectrum policy, but poor
competition policy. Chairman Powell, Gillmor writes, has carried water for
the mass-media industry as a whole, pushing ahead with rules that make it
easier for already giant media companies to become even bigger. Sen Kerry
has been an outspoken critic of these rules changes and voted to maintain
the old media ownership rules. Gillmor concludes: "Bush's tenure has not
been an overall positive for communications policy, though there have been
some useful initiatives. If a Kerry administration followed through on its
stated positions, we could do considerably better."
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
http://www.mercurynews.com/mld/mercurynews/business/technology/9825169.htm

ONLINE POLITICAL ADS
The presidential candidates, national political parties, and advocacy
groups ("527s") spent a combined total of only $2.66 million for
advertisements on the web between January and August of 2004. That is less
than half of what the John Kerry campaign raised in contributions from the
Internet in a single day: $5.7 million on July 29, the day Kerry gave his
nomination acceptance speech. According to a new Pew Internet & American
Life Project study, the Kerry campaign has outspent the Bush campaign by a
3:1 margin: $1.3 million to $419,000. The Republican National Committee
has spent $487,000; the Democratic National Committee, $257,000. Advocacy
groups have spent $184,000 combined, with $104,000 by the MoveOn.org Voter
Fund.
[SOURCE: Pew Internet & American Life Project Press Release]
http://www.pewinternet.org/
See coverage in --
WashPost: http://www.washingtonpost.com/wp-dyn/articles/A4446-2004Oct3.html

BIG FOUR LO$E DEBATES
B&C offers estimates for how much broadcast networks "lost" by airing the
first presidential debate on Thursday night from 9 to 11 p.m. According to
Brad Adgate of Horizon Media, that's when networks collect 30%-40% of all
prime time revenue. Industry estimates suggest that by forgoing The
Apprentice and ER, NBC probably gave away $32.5 million. CBS's CSI and
Without a Trace could have netted $20.1 million. And ABC's Life As We Know
It and Primetime Thursday might have landed $5.2 million. Fox sacrificed
$3.6 million for Tru Calling. The total: $61.4 million. [Or just over 6% of
what will be spent on political ads this election year.]
[SOURCE: Broadcasting&Cable, AUTHOR: Joel Meyer]
http://www.broadcastingcable.com/article/CA458061.html?display=Breaking+...
(free access for Benton's Headlines subscribers)

TELECOM

INTERNET GRANTS TO SCHOOLS HALTED AS THE FCC TIGHTENS THE RULES
Public libraries and schools around the nation have suddenly stopped
receiving any new grants from the E-Rate program that is wrestling with new
rules on how it spends $2.25 billion each year to provide high-speed
Internet and telephone service. The moratorium began two months ago, with
no notice, and may last for months, causing significant hardships at
schools and libraries, say state officials and executives at the company
that runs the program. The suspension came after the FCC, in consultation
with the White House, imposed tighter spending rules that commission
officials say will make it easier to detect fraud and waste in the program.
As much as $1 billion in grants the states say they expected to receive by
the end of the year may be affected, one official estimate says. That has
led state administrators to either take money from other educational
programs or postpone paying their phone and Internet companies. The tighter
spending rules also forced the Universal Service Administrative Company,
the nonprofit group that runs the program under the commission's oversight,
to hastily liquidate more than $3 billion in investments last week. The
sale generated a loss, but officials said they had not yet calculated the
amount. And the changes are expected to lead to higher charge imposed on
telephone companies - and passed on to consumers - later this year or early
next year. The increase may be necessary, senior officials at the universal
service company said, because of a cash squeeze created by the tighter
spending rules and an FCC decision over the last nine months to reduce the
phone companies' contributions to the E-rate program.
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
http://www.nytimes.com/2004/10/04/business/media/04fcc.html
(requires registration)
The Senate Commerce Committee will be discussing the E-rate program
tomorrow. See
http://commerce.senate.gov/hearings/witnesslist.cfm?id=1330

FOR CINGULAR, NOW COMES THE HARD PART
BusinessWeek reports that Cingular and AT&T Wireless merger will receive
Department of Justice approval as early as this week and approval from the
FCC some weeks after. The combined company will be the No. 1 U.S.
wireless-service provider. Both outfits have been working over the past
month to get regulatory approval. In September, Cingular sold its messaging
unit and swapped some wireless operations with service provider Triton PCS.
AT&T Wireless sold its stakes in service providers Eurotel Bratislava and
Rogers Wireless. Additional divestitures of wireless spectrum and,
possibly, pieces of AT&T Wireless's network might be required, but analysts
believe they would likely be relatively minor.
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
http://www.businessweek.com/technology/content/oct2004/tc20040101_2244_t...
In a related story, AT&T Primps Books As Phone Industry Girds for
Takeovers, the Wall Street Journal reports that the nation's biggest
telephone companies are preparing for another round of acquisitions. The
three companies identified as possible buyers are BellSouth, SBC and
Verizon while the companies on the block seem to be AT&T and MCI.
http://online.wsj.com/article/0,,SB109684504837134841,00.html?mod=todays...
(requires subscription)

INTELLECTUAL PROPERTY/SPYWARE

U.S. PREPARES TO CRACK DOWN ON INTELLECTUAL-PROPERTY PIRACY
Attorney General John Ashcroft, Commerce Secretary Don Evans and U.S. Trade
Representative Robert Zoellick, and senior officials from the Department of
Homeland Security announce today a coordinated crackdown on the theft of
U.S. intellectual property, such as pirated compact discs and knockoff auto
parts, which U.S. officials say amounts to about 7% of global trade. Called
the Strategy Targeting Organized Piracy, or Stop, the effort consists of
immediate steps to be taken by federal agencies, together with legal and
administrative changes to be made in coming months.
[SOURCE: Wall Street Journal, AUTHOR: Neil King Jr. neil.king( at )wsj.com]
http://online.wsj.com/article/0,,SB109684335731934784,00.html?mod=todays...
(requires subscription)
Here's links to related stories:
* LATimes: Firms to Address Piracy Locks
Sony, Samsung, Royal Philips Electronics and Panasonic have agreed to
develop a framework for digital rights management that will work with a
variety of devices and services
http://www.latimes.com/business/printedition/la-fi-drm4oct04,1,3952021.s...
Same story covered by News.com
http://news.com.com/Tech+powers+seek+antipiracy+accord/2100-1025_3-53943...
* WSJ: New File-Swapping Software Limits Sharers to a Select Few
Grouper Networks has developed software that lets people share music,
movies, photos and other digital data on their computers with small groups
of users, limited to no more than 30 people.
http://online.wsj.com/article/0,,SB109684670650734905,00.html?mod=todays...
(requires subscription)

CALIFORNIA LAW SEEN AS FIRST SALVO IN SPYWARE FIGHT
California's pioneering law aimed at cracking down on spyware -- signed
this week to curb the software that hides on computers and secretly follows
users around the Web -- is only a partial step toward protecting consumers.
Critics say the law targets only the most egregious offenders, while
failing to address pop-up ads and other spyware-related problems.
[SOURCE: Reuters, AUTHOR: Lisa Baertlein]
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=6394532
For more on spyware see:
What's Lurking In Your PC?
http://www.businessweek.com/technology/content/sep2004/tc20040927_6762.htm
--------------------------------------------------------------
Communications-related Headlines is a free online news summary service
provided by the Benton Foundation (www.benton.org). Posted Monday through
Friday, this service provides updates on important industry developments,
policy issues, and other related news events. While the summaries are
factually accurate, their often informal tone does not always represent the
tone of the original articles. Headlines are compiled by Kevin Taglang
(headlines( at )benton.org) -- we welcome your comments.
--------------------------------------------------------------