March 2007

This couldn't possibly have anything to do with all the FCC items
below... the House Telecom Subcommittee is holding an oversight
hearing of the Commission this morning (see
http://www.benton.org/index.php?q=node/4700).

MEDIA OWNERSHIP
Viacom in $1 billion copyright suit versus Google, YouTube
YouTube's fate rests on decade-old copyright law
Clear Channel delays vote on $18.7 billion deal
Who Owns Your Local Media Outlets? It's Private

FCC AGENDA
FCC Media Ownership Hearing April 30 in Tampa
Martin Circulates Leased Must-Carry Proposal
FCC Aide: Martin Wants 30% Cable Cap
McSlarrow Fields Questions on Martin "Crusade"
FCC Recirculates NASA Petition
FCC Seeks to Refresh the Record on Lifeline and LinkUp
NCTA Request for Clarification of Franchise Fee Policy Dismissed

EMERGENCY COMMUNICATIONS
FCC cut study finding 911 flaws
9/11 Commission Bill Passes Senate

GOVERNMENT & COMMUNICATION
Bills Would Improve Access to Government Information
Telecoms Wait Nervously On $20 Billion Contract

QUICKLY -- Linking Ancient and Modern, A Worldwide Web of Worship;
Study: more songs downloaded, legally or not; Impact of information
technology touted; Digital TV war leaves blood on the carpet; The
Libby Verdict, And Its Fallout, Lead the News; Can an Ohio Radio
Station Reinvent Itself Yet Again?

MEDIA OWNERSHIP

VIACOM IN $1 BILLION COPYRIGHT SUIT VERSUS GOOGLE, YOUTUBE
[SOURCE: Reuters, AUTHOR: Kenneth Li and Michele Gershberg]
Viacom sued Google and its Internet video-sharing site YouTube for
more than $1 billion on Tuesday in the biggest challenge yet to the
Web search leader's strategy to dominate the online video market. The
lawsuit accuses Google and its popular online video unit of "massive
intentional copyright infringement" for allowing users to upload
popular shows, threatening ambitions to make YouTube a major
entertainment and advertising outlet. The legal challenge from
Viacom, home to the MTV and Comedy Central channels, also suggested a
wider battle between traditional and Internet media companies that
now compete for audiences and advertising dollars.
http://www.reuters.com/article/technologyNews/idUSWEN535120070313
* Public Knowledge statement: "Without commenting on the specific
allegations involved, we note that simply because material is
"unauthorized" does not make its use illegal. There are limitations
to copyright law, known as fair use, that do not require the
copyright owner's permission before use of a work. Many of the users
of YouTube who have posted short clips of main-stream media's works
have done so using their fair use rights, for reasons of criticism,
comment, education, and news reporting. We are confident YouTube and
Google will continue to take appropriate actions in accordance with
the safe-harbor provisions of the Digital Millennium Copyright Act
(DMCA). By a previous request of Viacom, YouTube has already removed
some 100,000 clips."
http://feeds.publicknowledge.org/~r/publicknowledge-main/~3/101398694/860
* Old Viacom doesn't get it, new CBS does
http://feeds.publicknowledge.org/~r/publicknowledge-main/~3/101424170/861
* Viacom Sues YouTube Over Copyright
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/13/AR200703...
* Viacom sues Google's YouTube in $1B copyright suit
http://www.usatoday.com/printedition/money/20070314/viacom14.art.htm
* Viacom files $1-billion suit over YouTube
http://www.latimes.com/news/printedition/front/la-fi-viacom14mar14,1,363...
* Viacom Sues Google Over Video Clips on Its Sharing Web Site
http://www.nytimes.com/2007/03/14/technology/14viacom.html
* Viacom vs. Google: Test of key online law
http://www.siliconvalley.com/mld/siliconvalley/16899987.htm
* Viacom v. Google Could Shape Digital Future
http://online.wsj.com/article/SB117379140954435400.html?mod=todays_us_ma...

YOUTUBE'S FATE RESTS ON DECADE-OLD COPYRIGHT LAW
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
Whether YouTube suffers the same fate as Napster may depend on the
wording of a nearly antique law written long before video-sharing Web
sites were envisioned. The law is, of course, the Digital Millennium
Copyright Act, or DMCA, which made its appearance in the U.S.
Congress in July 1997. Central to the question of Google's legal
liability is the phrasing of a densely worded portion -- Section 512
-- of the DMCA. Section 512's so-called safe harbor generally lets
hosting companies off the hook for legal liability, as long as they
don't turn a blind eye to copyright infringement and if they remove
infringing material when notified. YouTube does the second part
through a formal posted policy, and it prohibits uploads of
unauthorized videos more than 10 minutes in length. But what about
the safe harbor's first requirement of not ignoring massive
infringement? Viacom's complaint says, "YouTube has failed to employ
reasonable measures that could substantially reduce, or eliminate,
the massive amount of copyright infringement on the YouTube site from
which YouTube directly profits." (For its part, Google says it's
confident that YouTube has respected the legal rights of copyright
holders and predicts that the courts will agree.)
http://news.com.com/YouTubes+fate+rests+on+decade-old+copyright+law/2100...
* Google confident digital liability law protects it
http://www.reuters.com/article/technologyNews/idUSN1316411620070314

CLEAR CHANNEL DELAYS VOTE ON $18.7 BILLION DEAL
[SOURCE: Financial Times, AUTHOR: James Politi]
Clear Channel Communications on Tuesday delayed the vote on its
$18.7bn purchase by two private equity groups, giving the largest US
radio station chain an extra month to persuade skeptical investors to
support the controversial deal. Originally scheduled for next week,
the shareholder meeting to approve or reject the deal has now been
shifted to April 19 by a special committee of Clear Channel
directors. By shifting the date of the vote, Clear Channel is not
only giving itself more time, but is also potentially changing the
outlook for the vote from a tactical point of view. One person close
to the situation said that some 40 per cent of Clear Channel's
shareholder base has changed in recent months, with a number of
institutions opposing the deal, including Fidelity, selling their
stakes. The hope for Clear Channel is that the new investors,
primarily hedge funds and arbitrageurs, will be more supportive of
the transaction.
http://www.ft.com/cms/s/89133bdc-d1b5-11db-b921-000b5df10621.html
(requires subscription)

WHO OWNS YOUR LOCAL MEDIA OUTLETS? IT'S PRIVATE
[SOURCE: HearUsNow.org, AUTHOR: Bob Williams]
[Commentary] It is already hard enough to find out who really owns
your local media outlets, although it is a good bet that it is some
combination of huge conglomerates such as General Electric or Clear
Channel. Get ready for it to get a lot tougher. Private equity firms
have fallen in love with publicly-owned media properties and are
busily snatching up every one they can. That's a big problem because
private equity firms tend to be, well, private. The Federal
Communications Commission has specific rules limiting the number and
type of local media outlets that a single company or individual can
own. The FCC is supposed to keep careful track of who owns what to
make sure those rules aren't violated. With publicly-owned media
companies, the calculations are fairly straightforward. But in
limited partnerships or limited liability companies -- the corporate
structures favored by most private equity funds -- all partners
and/or members is considered an owner by the FCC. That can be a huge
headache for the big and active investors who populate the private
equity world, who regularly team up with many partners to buy and
sell things. Not to worry, says the Wilmer Hale law firm. The law
firm has just issued a new advice sheet for private equity fund
managers and investors on how to avoid being classified as the actual
owners of media outlets. Basically, it offers up a list of provisions
that can be adopted by a fund to ensure that a partner or member "is
exempt from ownership attribution" by the FCC.
http://www.consumersunion.org/blogs/hun/2007/03/who_owns_your_local_medi...
* PRIVATE EQUITY AND MEDIA OWNERSHIP
[SOURCE: WilmerHale]
Private equity firms are getting more and more involved in media
ownership. One private equity firm recently announced that it had
raised $12 billion for its latest fund for media and other
communications investments. This brief advises those forming private
equity funds of the FCC's crossownership rules.
http://www.wilmerhale.com/files/Publication/c2fa35c8-65d3-4063-b30b-0781...

FCC AGENDA

FCC MEDIA OWNERSHIP HEARING APRIL 30 IN TAMPA
[SOURCE: Federal Communications Commission]
The Federal Communications Commission today announced the fourth
public hearing on media ownership issues will be held in the
Tampa-St. Petersburg,
Florida, area in the afternoon and evening on Monday, April 30, 2007.
The hearing will provide an opportunity for those in the Tampa-St.
Petersburg area to
discuss media ownership, including specific issues facing that local
market. Further details will be released at a later date.
http://www.fcc.gov/tampa_hearing.pdf

MARTIN CIRCULATES LEASED MUST-CARRY PROPOSAL
[SOURCE: Broadcasting&Cable, AUTHOR: ]
FCC Chairman Kevin Martin Tuesday night distributed to the other
commissioners a proposal to give DTV multicast channels leased to
minorities and small businesses by TV broadcasters the same
must-carry rights as those stations get. Apparently the rule would
allow a broadcaster to lease a multicast stream to a designated
entry, with the "punch line" being that right to mandatory carriage.
The proposal would essentially create a new class of station by
proxy, with the same privileges, most notably carriage, and the same
public interest responsibilities. The FCC will next meet March 22 and
the agenda for the meeting will be released March 15.
http://www.broadcastingcable.com/article/CA6424097?title=Article&spacede...
* FCC's Martin Pushes for Digital Fix
http://www.law.com/jsp/article.jsp?id=1173703109064

FCC AIDE: MARTIN WANTS 30% CABLE CAP
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
A cable operator would be barred from serving more than 30% of pay
television subscribers under a proposal backed by Federal
Communications Commission Chairman Kevin Martin. The proposal puts
him at odds with Comcast, the nation's leading cable giant, which has
advocated elimination of a rigid ownership limit, citing
"revolutionary changes" in the video-programming-distribution market.
Chairman Martin has distributed his proposal as a possible item for
the March 22 FCC meeting. Chairman Martin's support for a 30% cap
shouldn't come as a surprise to the cable industry. Since taking
office in March 2005, he has complained about cable-rate increases
and the industry's refusal to provide programming on an a la carte
basis. He ordered his staff to reject a set-top-box wavier sought by
Comcast, which the MSO sought in an effort to transition its network
to digital-only in the most efficient manner economically. Now, he is
pushing for rules that would force cable carriage of additional
local-TV-station programming.
http://www.multichannel.com/article/CA6424112.html?display=Breaking+News
* FCC Chairman Wants To Establish Cable Cap
http://online.wsj.com/article/SB117384278214636476.html?mod=todays_us_ma...
* Proposed FCC rule would limit Comcast
http://www.latimes.com/business/printedition/la-fi-fcc14mar14,1,3271320....
* FCC Proposes Maintaining 30% Cable Cap
http://www.broadcastingcable.com/article/CA6423846?title=Article&spacede...

MCSLARROW FIELDS QUESTIONS ON MARTIN "CRUSADE"
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin appears to be on a one-man crusade against
cable, said an attendee at the Cable Television Public Affairs
Association forum in Washington, framing a question to National Cable
& Telecommunications Association President Kyle McSlarrow. McSlarrow
told his interviewer, CNN's Zain Verjee, that he was not really going
to address that, but then he did, sort of. McSlarrow gave credit to
the FCC for some deregulation on the video side and an important
decision on interconnection with telcos that helped cable, but he
also said Chairman Martin has "not been easy" to work with.
http://www.broadcastingcable.com/article/CA6423859?title=Article&spacede...

FCC RECIRCULATES NASA PETITION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC may be finally ready to grant a petition by
network-affiliated TV stations to get more control over their
airtime. An FCC source says that one of the dozens of items
circulated for commissioner's perusal this week is the long-standing
Network Affiliated Stations Alliance (NASA) petition calling for
changes to the network-affiliate relationship. An industry source
says it looks like the FCC gave stations "virtually everything." The
NASA petition, which has been kicking around the commission for
years, got new life back in 2004 after the Janet Jackson reveal
brought new legs to the issue of affiliates' ability to preempt
network programming. At Hill hearings on the Jackson incident, some
station owners argued that they did not have sufficient notice or
freedom to preempt network shows for content concerns and asked for
the FCC's help in giving them more control over their airtime.
http://www.broadcastingcable.com/article/CA6424130.html?display=Breaking...

FCC SEEKS TO REFRESH THE RECORD ON LIFELINE AND LINK-UP
[SOURCE: Federal Communications Commission]
The FCC's Wireline Competition Bureau (Bureau) seeks to refresh the
record on issues raised in the Further Notice of Proposed Rulemaking
in the Lifeline and Link-Up docket released in 2004. Because comments
on the issue were filed several years ago, the passage of time and
intervening developments may have rendered the records developed by
those commenters stale. Moreover, some issues raised by commenters
may have become moot or irrelevant in light of intervening
events. For these reasons, the Bureau requests that parties refresh
the record with any new information or arguments they believe to be
relevant to deciding the issues still pending. The refreshed record
will enable the Commission to undertake appropriate consideration of
the issue of how best to provide support through the Lifeline and
Link-Up programs to more low-income individuals and families. The
Bureau seems most interested in the income level of eligible
families. Comments in the proceeding will be due 30 days after this
notice is published in the Federal Register. (DA No. 07-1241). (Dkt
No 03-109) WCB. Contact: Erika Olsen at (202) 418-7400, TTY: (202) 418-0484
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-1241A1.doc
* In a similar request, the FCC seeks to refresh the record for
universal service support in "near reservation" areas.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-1239A1.doc

NCTA REQUEST FOR CLARIFICATION OF FRANCHISE FEE POLICY DISMISSED
[SOURCE: Federal Communications Commission]
In a Petition filed April 1, 1998, the National League of Cities;
National Association of Telecommunications Officers and Advisors; the
Cities of Ann Arbor, Michigan; Indianapolis, Indiana; Laredo Texas;
St. Louis, Missouri; and Tallahassee, Florida; Hillsborough County,
Florida; and the Southwestern Oakland County Cable Commission
("Petitioners") sought clarification and reconsideration of an
order issued by the Cable Services Bureau on March 2, 1998 in which
the Bureau ruled that cable operators may pass through to their
subscribers any franchise fee charges requested of cable operators by
their local franchising authorities as a result of the recalculation
of franchise fees pursuant to the Fifth Circuit Court of Appeals'
decision in Dallas v. FCC ("Dallas"). In this Order, we dismiss the
Petition on the grounds that the requested reconsideration is beyond
the scope of the Bureau order.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-07-1266A1.doc

EMERGENCY COMMUNICATIONS

FCC CUT STUDY FINDING 911 FLAWS
[SOURCE: USAToday, AUTHOR: Leslie Cauley]
Satellite-based emergency 911 technology often can't pinpoint the
location of cellphone users dialing 911 from homes, offices, sports
arenas and other indoor locations, a never-released report
commissioned by the Federal Communications Commission concluded last
year. More than 60% of wireless usage now takes place inside
buildings. The report's author, Dale Hatfield, found that the rush to
embrace wireless has only exacerbated the problem with the 911
service designed for mobile phones. So what happened? Hatfield's
report says the public never heard about his concerns because the FCC
decided to terminate the study a few days later. His report, details
of which were presented to FCC staff, was never finished or released.
He never presented the report directly to Chairman Kevin Martin or
the other commissioners. "(The study) was terminated," says Hatfield,
who performed the work on contract. He had formerly been the FCC's
chief technologist. He is currently chairman of the Commerce
Department's Spectrum Management Advisory Committee. Hatfield says
the unpublished report was supposed to be a follow-up to a 2003
report he did for the agency on the same subject.
http://www.usatoday.com/printedition/money/20070314/1b_wireless14.art.htm

9/11 COMMISSION BILL PASSES SENATE
[SOURCE: US Senate Commerce Committee]
The Senate passed legislation set to enact the recommendations of the
9/11 Commission. The legislation includes three bills authored and
unanimously approved by the Senate Commerce Committee, one relating
to interoperable emergency communications. The Interoperable
Emergency Communications Act, S. 385 gives the National
Telecommunications and Information Administration (NTIA) greater
direction regarding how to use the $1 billion interoperability fund
created by the Commerce Committee in the Deficit Reduction Act of 2005.
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...
* Senate Passes Bill Containing Proposals of 9/11 Panel
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/13/AR200703...

GOVERNMENT & COMMUNICATION

BILLS WOULD IMPROVE ACCESS TO GOVERNMENT INFORMATION
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
A bill has been introduced in the Senate to strengthen the Freedom of
Information Act. It is similar to one introduced last week in the
House and fast-tracked for a floor vote scheduled for today. The
Senate bill clarifies deadlines for responding to requests, imposes
consequences for missing those deadlines, clarifies that requests
also apply to outside contractors holding government documents, and
establishes a system for tracking requests through the system.
http://www.broadcastingcable.com/article/CA6424084?title=Article&spacede...

TELECOMS WAIT NERVOUSLY ON $20 BILLION CONTRACT
[SOURCE: Washington Post, AUTHOR: Kim Hart]
Executives from AT&T and other companies are anxiously awaiting the
General Services Administration's announcement of the largest
telecommunications contract ever awarded. The winner of the biggest
and most lucrative piece of the project, known as Networx Universal,
could be named as early as this week. The winner will be responsible
for upgrading phone lines, wireless networks and fire walls for the
federal government. In total, Networx is estimated to be worth $20
billion, though over time it could grow to $68 billion -- a sum that
has inspired much nail-biting among the companies vying for a piece
of it. In addition to AT&T, other main bidders -- including Verizon
Communications, Qwest Communications and Sprint Nextel -- have
assembled teams of companies to help them secure the 10-year deal.
Their proposals involve about 120 potential subcontractors, some of
whom have relocated their headquarters to the Washington area, beefed
up their workforces or built state-of-the-art facilities locally in
anticipation of a boost in business. The contract is part of one of
the most sweeping revamps of the federal government's technology
infrastructure in two decades. The overhaul will touch nearly
everything federal employees rely on, from BlackBerrys used by FBI
agents to databases used by public schools.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/13/AR200703...
(requires registration)

QUICKLY

LINKING ANCIENT AND MODERN, A WORLDWIDE WEB OF WORSHIP
[SOURCE: Washington Post, AUTHOR: Kevin Sullivan]
The Internet has become a hub of religious worship for millions of
people around the world. Christians, Muslims, Hindus, Jews,
Buddhists, Sikhs and people of other faiths turn regularly to Web
sites to pray, meditate and gather in "virtual" houses of worship
graphically designed to look like the real thing. Some sites offer
rites from baptism to confession to conversion to Judaism. For many
cyber-worshipers, online religious life conducted at home or in an
Internet cafe has replaced attendance at traditional churches,
temples, mosques and synagogues. Some are coming to religion for the
first time, in a setting they find as comfortable as their
grandparents found a church pew, while millions of people reared on
churchgoing are discovering new ways to worship.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/13/AR200703...
(requires registration)

STUDY: MORE SONGS DOWNLOADED, LEGALLY OR NOT
[SOURCE: Bloomberg News]
About 5 billion songs were downloaded illegally last year, far
outnumbering the more than 500 million purchased legally, market
researcher NPD Group said Tuesday. The number of U.S. households
participating in illegal file swapping rose 8% to 15 million, Port
Washington, N.Y.-based NPD said. The growth in the number of
households involved slowed from 2005. At the same time, legal online
purchases of music jumped 56% and the number of U.S. households
buying legally rose to 13 million, NPD said. The average user of
LimeWire, a major source of unauthorized sharing, downloaded 309
files last year, a 49% rise from 2005, the research firm said. About
70% of households that bought songs online used Apple Inc.'s iTunes,
NPD said. The average number of songs bought by each iTunes user fell 11%.
http://www.latimes.com/business/printedition/la-fi-music14mar14,1,518344...
(requires registration)

IMPACT OF INFORMATION TECHNOLOGY TOUTED
[SOURCE: MediaNews, AUTHOR: Frank Davies]
Leaders in information technology, touting IT's major boost to U.S.
economic growth, called on the federal government Tuesday to support
innovation and investment but avoid programs that compete with
businesses. The use of information technology was "the major driver"
of economic growth over the past decade, adding $2 trillion a year to
the economy, according to a report by the Information Technology and
Innovation Foundation. Fueled by "the phenomenal growth of computer
power" since 2000, the use of IT has given new tools to businesses
and improved productivity while controlling costs, said Rob Atkinson,
a researcher and government adviser who heads the IT Foundation. But
the full impact of the "IT revolution" has not been recognized by
government officials because of lingering skepticism from the dot-com
boom the late 1990s and the bust that followed, he added.
http://www.siliconvalley.com/mld/siliconvalley/16900025.htm

DIGITAL TV WAR LEAVES BLOOD ON THE CARPET
[SOURCE: Financial Times, AUTHOR: Andrew Edgecliffe-Johnson]
A look at the digital TV transition in England where analog TV
signals will be switched off in 18 months.
http://www.ft.com/cms/s/3af3fd8e-d1d2-11db-b921-000b5df10621.html
(requires subscription)

THE LIBBY VERDICT, AND ITS FALLOUT, LEAD THE NEWS
[SOURCE: Project for Excellence in Journalism, AUTHOR: Mark Jurkowitz]
Ever since President Bush announced his troop "surge" on January 10,
the war in Iraq has dominated the news as measured by PEJ's News
Coverage Index. Specifically, it was the fierce political debate over
strategy in Congress that has commanded the most attention. The
debate over the war has finished first or second in the Index's top
story list for eight straight weeks, from early January to early
March. But last week, even as Congressional Democrats fine-tuned
their anti-surge tactics, the policy debate slipped to its lowest
spot of the year, down into to fifth place (at 7%). Instead, two
events that offered different and relatively newer angles into the
contentious issues surrounding Iraq trumped the political argument
over what war strategy would best serve America's interests. One was
the Libby verdict. It was the biggest story last week, filling 13% of
the overall newshole from March 4 to March 9.
http://www.journalism.org/node/4515

CAN AN OHIO RADIO STATION REINVENT ITSELF YET AGAIN?
[SOURCE: Wall Street Journal, AUTHOR: Vauhini Vara vauhini.vara( at )wsj.com]
For 26 years, a tiny Ohio radio station called WOXY dodged regulatory
roadblocks by morphing from an old-school broadcaster into a Web-only
station. But with Webcasters facing higher royalties, WOXY's nine
lives may be running out.
http://online.wsj.com/article/SB117383873677436374.html?mod=todays_us_ma...
(requires subscription)
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