1. Monthly archive
  2. June 2012

June 2012

High Court gives FCC ‘green light’ to sanction television indecency

The Supreme Court’s decision to duck a call on the federal government’s power to police the airwaves for “indecent” content effectively hands that power to the Federal Communications Commission, according to lawmakers and conservatives reacting to the ruling.

They said the FCC will now face pressure from Congress and advocacy groups to go through that backlog of complaints and start cracking down on stations. Family Research Council President Tony Perkins said the court gave the FCC a “green light" to resume sanctioning stations. “The public airways are just that—public,” he said. “The networks using them have a moral duty to the American public to responsibly provide content that is acceptable for all viewers.” Dan Isett, director of public policy for the Parents Television Council, said in an interview that the FCC should start fining stations for indecent content as soon as possible. “The court did not strip the FCC of the authority to do anything,” Isett said, adding that the next step is for the commission to review the backlog of complaints. “There's bipartisan agreement on this,” said Andrew Schwartzman, a telecommunications lawyer who represented artists opposed to the indecency fines. “Everyone on the Hill wants the FCC to take a hard line.” But it is unclear how eager FCC Chairman Julius Genachowski will be to crusade for tough decency standards.

Supreme Court Kicks the Indecency Can Down the Road

[Commentary] On a pragmatic level, the Supreme Court's ruling seems to indicate that the appropriate "notice" on fleeting indecencies didn't occur until the Federal Communications Commission announced its decision to begin prosecuting such indecencies in a 2004 case involving NBC and the Golden Globes Awards. As a result, broadcast stations facing indecency complaints (and delayed license renewals) for allegations of fleeting indecency should see those complaints dismissed by the FCC as long as the program at issue aired before the 2004 Golden Globes decision.

Unfortunately, stations facing indecency complaints for programs aired after that 2004 decision may find that the Court ruling is irrelevant to them. In fact, the Court went out of its way to make clear that it was not ruling on any issue but the "vagueness" in the FCC's treatment of fleeting indecencies caused by the lack of notice of its change in enforcement policy. The Court's ruling therefore appears to be little more than a "reset" in which, with the limited exception of parties accused of airing fleeting indecency prior to 2004, broadcast stations find themselves in the exact same position as before this litigation started many years ago: unsure as to what content is or is not permissible, and with no additional guidance from the courts as to where the FCC may permissibly draw that line.

Sidley Austin's Carter Phillips, the attorney who won FCC v. Fox

A Q&A with Sidley Austin partner Carter Phillips who represented Fox in FCC vs Fox.

Following the oral arguments, he said the Supreme Court was unlikely to throw out the Federal Communications Commission's indecency rules completely and more likely to deliver a narrow decision. He was right. Bachman asked Phillips how he interpreted the Supreme Court's decision that found the FCC's rules were too vague because they failed to give broadcasters fair notice of what can air on TV. He says, “I think eventually the court will hold that the idea of bureaucrats serving as censors is flatly inconsistent with the First Amendment.”

The State of Broadband Internet Access in Kansas City

Using the Internet isn’t just about checking email and social networking. Access to broadband—and knowing how to use it—has become essential when it comes to jobs, education, business and much more.

The web provides a wealth of information and services for Internet users, and people who aren’t online are, simply put, at a huge disadvantage. From a policy standpoint, we can try and address these issues by encouraging policies that will make computers and Internet access more affordable, and promote digital literacy initiatives. But a lot of outreach and education needs to take place on a community level. And that’s why this morning we’ve joined representatives from amazing local nonprofits, schools, libraries, city governments and other community experts in a discussion about how to take action and get Kansas Citians online using broadband Internet access. We’ll post the video of our discussion here as soon as it’s ready. The Google Fiber project is about making the web better and faster—but it’s also about making the Internet more accessible for people throughout Kansas City. Digital inclusion here is a priority for Google, and it’s clear that it’s also a priority for community nonprofits and the local governments.

US Military Hunts for Safe Smartphones for Soldiers

The military has long needed computers that are tough enough on the outside to withstand the rough and tumble of the battlefield. Now, with the proliferation of smartphones and tablets in the hands of soldiers, those devices also have to be strong on the inside.

They are loaded with contacts, location information and all kinds of military-grade applications, so it can be deadly for a soldier to lose a mobile device or have its data leak out unwittingly. The Defense Advanced Research Projects Agency has now assigned Invincea, a company based in Fairfax (VA), to fortify Android-based phones and tablets so they are safe in soldiers’ hands. The $21 million grant to the company is a window into how pervasive networked technologies have become in the military – and the market that has opened up to secure them.

Domain Wheeling and Dealing

Entrepreneurs and big companies are battling one another for the rights to manage hot new Web address endings, including .app, .home and .book. Some gathered in Prague, where they may decide to team up and pursue a contested domain together or duke it out.

The meeting is the second of three that the Internet Corporation for Assigned Names and Numbers (ICANN) holds annually in different regions of the globe. The meetings, which are free and open to the public, offer participants a chance to air their opinions about the Internet, ask questions and receive updates from ICANN about the organization itself. But at this weekend's meeting, many of those seeking the rights to contested domains say they intend to meet with their competitors. Some hope to discuss teaming up to reach arrangements where one party might agree to withdraw an application so that another technically would have the rights to manage the name in question. But they would work together to manage the name and share profits if ICANN were to later approve the remaining application. It is also possible that some domain seekers will offer to pay their rivals to back out entirely. ICANN, which awards domains based on applicants' qualifications and plans for using the domains, is expected to begin evaluating the applications next month. It is unclear when selections will be announced, according to Michele Jourdan, a spokeswoman for the nonprofit.

Facebook's $1 billion bid for Instagram to be investigated by the UK Office of Fair Trading

The UK’s Office of Fair Trading (OFT) is to investigate Facebook's $1 billion bid for Instagram, because it is concerned the giant social network might choke off picture uploads to other sites from the app, or else restrict other apps' ability to upload to it.

The UK competition regulator has asked for comments from interested parties, and given them until 5 July – just two weeks away – to respond. The OFT aims first to decide whether it has jurisdiction over the takeover, and will then determine whether to drop its investigation if it does not or cannot see any harmful effects, or to either seek undertakings from the two companies or refer the entire bid to the UK Competition Commission, by 23 August. The OFT has jurisdiction under the 2002 Enterprise Act if two or more enterprises merge to create one with an annual turnover in the UK of more than £70m, or a 25% share of a market is created or enhanced. Facebook has not yet released data about its revenues in the UK, and it is also unclear what share of the UK photo upload market it might have.

While the OFT investigation might derail the takeover, Facebook may initially be more concerned about the ongoing investigation in the US of the same deal by the Federal Trade Commission, which is looking at the same questions as the OFT – namely, whether the takeover might cut off future competition that had been planned by Instagram.

The Right to Be Forgotten

Soon, citizens around the world may have the ability to selectively delete themselves from the Internet.

At the beginning of this year, Viviane Reding, the European commissioner for justice, fundamental rights, and citizenship, proposed codifying a sweeping version of the right to be forgotten in European data-protection law. The proposal is being strenuously resisted by Facebook and by Google, which could be liable for up to 1 percent of its $37.9 billion annual income if it fails to remove photos or other data that people post about themselves and later think better of, even if the data have been broadly shared. But the right to be forgotten also gives people the right to demand the removal of embarrassing information that others post about them, regardless of its source, unless Google or Facebook can prove to a European regulator that the information is part of a legitimate journalistic, literary, or artistic exercise. This would transform Facebook and Google from neutral platforms into global censors and would clash directly with the principle, embedded in U.S. free-speech law, that people can’t be restricted from publishing embarrassing but truthful information. As a result, the right to be forgotten may precipitate the Internet Age’s most dramatic conflict between European conceptions of privacy and American conceptions of free speech.

June 22, 2012 (Supreme Court overturns indecency fines)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for FRIDAY, JUNE 22, 2012

Third Annual Conference on Internet Search and Innovation http://benton.org/calendar/2012-06-22/
… AND NEXT WEEK -- http://benton.org/calendar/2012-06-24--P1W/


COMMUNITY MEDIA
   Public Media Policy, Spectrum Policy, and Rethinking Public Interest Obligations for the 21st Century - research
   CPB report to Congress on alternative funding finds no viable substitute for federal support
   Libraries, patrons, and e-books - research

TELEVISION/RADIO
   Supreme Court overturns indecency fines against Fox, ABC
   Void for Vagueness - editorial
   Can You Say That on TV? Broadcasters Aren’t Sure - analysis
   After Supreme Court ruling, FCC must give clear indecency standards - editorial
   Nielsen: Cable Commands 70 Percent of Prime-Time GRPs [links to web]
   Comcast: VOD ad impressions set to increase “tenfold” [links to web]
   Hulu CEO talks the future of TV – Personalization [links to web]
   CBS Takes On ESPN Radio [links to web]

INTERNET/BROADBAND
   Governments not brave enough to capture $1.4 trillion broadband opportunity – analyst
   Report: More than 600 Million Broadband Subscribers Worldwide
   Connecting Rural America

SPECTRUM/WIRELESS
   "Spectrum Crunch" Is a Lie - analysis
   Motorola proposes way to end patent war with Microsoft
   Verizon launches 46 new 4G LTE markets [links to web]
   Put the smartphone down: It'll be okay [links to web]

OWNERSHIP
   Senator chides music exec for evading questions
   Level of Music Label Power Is Debated in Senate Hearing
   Texas Sues Google to Get at “Privileged” Documents

ADVERTISING/MARKETING
   Verizon Wireless Expands Marketing Rollouts With Comcast, TWC
   Facebook will change ad service to settle lawsuit
   Clear Channel on Prowl for Acquisitions [links to web]
   Bill Clinton urges ad industry to address social issues

PRIVACY
   FTC Commissioner Blasts Microsoft Do Not Track Browser
   EU-U.S. Data Privacy and Protection Agreement - press release
   Let's Get Real About Privacy And Ads - op-ed [links to web]

CONTENT
   Netflix may have to provide closed captions online
   Libraries, patrons, and e-books - research
   Apple Announcements Dominate the Blogosphere - research [links to web]
   When Web Addresses Are Discovery Engines [links to web]
   Donuts applies for way more than a dozen domain names [links to web]
   Study: Paid Content Viewing on Tablets, Mobile Phones Increased From 2011 [links to web]
   Penguin brings e-books back to NYC libraries in 1-year pilot program [links to web]

TELECOM
   AT&T fighting FCC over special access
   Call Me, Pay Fee - op-ed

HEALTH
   EHR Adoption Rate Exceeds Expectations [links to web]
   White House holds private town hall meeting on health IT progress [links to web]

POLICYMAKERS
   Commerce Secretary Bryson Resigns - press release [links to web]

STORIES FROM ABROAD
   Cyberwar, Syrian Style
   EU-U.S. Data Privacy and Protection Agreement - press release
   News Corp directors 'allowed hacking cover up'
   Verizon and AT&T statement regarding France's attempt to regulate Internet peering and transit agreements - press release [links to web]

MORE ONLINE
   Apple’s Retail Workers Are Said To Get Pay Increases [links to web]

back to top

COMMUNITY MEDIA

NEW AMERICA FOUNDATION REPORT
[SOURCE: New America Foundation, AUTHOR: Benjamin Lennett, Tom Glaisyer, Sascha Meinrath]
The New America Foundation's Open Technology Institute released a report with recommendations to reform spectrum policy to better support public media in their efforts to provide quality news, journalism, education, arts, and civic information. The proposals include:
Supplementing ill-enforced public interest obligations on commercial broadcasters with spectrum license fees that could support multi-platform public media
Supplanting one-time spectrum auctions with annual fees to sustain public media
Requiring spectrum licensees for mobile broadband to adhere to non-discrimination rules for Internet content, applications, and services
Requiring spectrum licenses for mobile broadband to adhere to universal service requirements
Increasing the diversity of wireless providers in local communities
Facilitating community and locally owned wireless broadband infrastructure via unlicensed and opportunistic access to spectrum.
benton.org/node/126499 | New America Foundation | Columbia Journalism Review
Recommend this Headline
back to top


ALTERNATIVE PUBCASTING FUNDING
[SOURCE: Current, AUTHOR: ]
If Congress were to zero-out federal appropriations to public broadcasting, 54 public television stations in 19 states and 76 public radio stations in 38 states would be at "high risk" of shutting down, the Corporation for Public Broadcasting (CPB) reported in "Alternative Sources of Funding for Public Broadcasting Stations," a comprehensive revenue analysis produced by Booz & Company and delivered to Capitol Hill June 20. Lawmakers requested the research paper in December 2011 when they approved CPB's fiscal 2014 advance appropriation for $445 million. The report identifies five new or alternative funding options for public media — TV advertising, radio advertising, retransmission consent fees, paid digital subscriptions and digital game publishing — but says none of these offer "a realistic opportunity to generate significant positive net revenue that could replace the current amount of federal funding that CPB receives." "A shift from a noncommercial model to a commercial advertising model," the report says, "would have dramatically negative consequences for many of the communities that public broadcasters serve. In the absence of federal funding, there are small urban stations, small-market stations, rural stations and stations that serve diverse communities that will likely fail because they do not have the capacity to either shift to a commercial model or raise the revenue to replace the loss of CPB funding."
benton.org/node/126461 | Current | see CPB paper
Recommend this Headline
back to top


LIBRARIES, PATRONS, AND E-BOOKS
[SOURCE: Pew Internet & American Life Project, AUTHOR: Kathryn Zickuhr, Lee Rainie, Kristen Purcell, Mary Madden, Joanna Brenner]
12% of readers of e-books borrowed an e-book from the library in the past year. But a majority of Americans do not know that this service is provided by their local library. Most e-book borrowers say libraries are very important to them and their families and they are heavy readers in all formats, including books they bought and books lent to them. E-book borrowers say they read an average (the mean number) of 29 books in the past year, compared with 23 books for readers who do not borrow e-books from a library. Perhaps more striking, the median (midpoint) figures for books reportedly read are 20 in the past year by e-book borrowers and 12 by non-borrowers. But most in the broader public, not just e-book readers, are generally not aware they can borrow e-books from libraries. We asked all those ages 16 and older if they know whether they can borrow e-books from their library and 62% said they did not know if their library offered that service. Some 22% say they know that their library does lend out e-books, and 14% say they know their library does not lend out e-books. These findings are striking because more than three-quarters of the nation’s public libraries lend e-books.
benton.org/node/126537 | Pew Internet & American Life Project
Recommend this Headline
back to top

TELEVISION

SUPREME COURT OVERTURNS INDECENCY FINES
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
The Supreme Court struck down the Federal Communications Commission's (FCC) fines of ABC and Fox for broadcasting "indecent" content. But the ruling was narrow. The court unanimously found that the fines were illegal because the FCC failed to give fair notice that fleeting expletives and momentary nudity were considered indecent. The court said the enforcement was unconstitutionally "vague." But the court did not address whether fines over indecent content violate the First Amendment's free speech protections. Although the ruling was unanimous, Justices Ruth Bader Ginsburg and Clarence Thomas issued a separate opinion saying the court should have reversed FCC v. Pacifica and struck down the indecency fines. Broadcasters had urged the court to strike down the FCC's entire indecency enforcement system as a violation of the First Amendment, but the court declined to overturn its 1978 decision in FCC v. Pacifica, which upheld the constitutionality of policing speech on the airwaves. In a statement, Robert McDowell, a Republican commissioner on the FCC, urged his agency to "expeditiously implement the Court’s decision to put an end to years of litigation and uncertainty regarding the Commission’s regulation of indecent content on America’s airwaves." "We owe it to the American public and the broadcast licensees involved to carry out our statutory duties with all deliberate speed," he said.
benton.org/node/126478 | Hill, The | Broadcasting & Cable | The Wrap | CommLawBlog | NPR | WSJ | LATimes | FCC Commissioner McDowell | read the decision | Chairman Genachowski | Commissioner Clyburn | Commissioner Rosenworcel | Commissioner Pai | B&C - reaction | Reps Upton and Walden | Chairman Rockefeller
Recommend this Headline
back to top


VOID FOR VAGUENESS
[SOURCE: New York Times, AUTHOR: Editorial staff]
[Commentary] Writing the majority opinion, Justice Anthony Kennedy said the Federal Communications Commission’s standards were too vague and thus violated the broadcasters’ Fifth Amendment due process rights. The narrow ruling did not address a broader issue: the government’s continued authority to regulate “indecent but not obscene” material on television. That was established in a 1978 Supreme Court case allowing the government to prohibit “indecent” speech (which the First Amendment protects) during hours when children are likely to be watching or hearing the broadcast. Justice Ruth Bader Ginsburg, who voted with the majority but wrote a brief separate opinion, argued that the pervasiveness of the Internet demands that the 1978 decision be revisited. She is right. The Supreme Court strongly hinted that the FCC should “modify its current indecency policy” in light of the public interest and to meet constitutional requirements. The FCC should take that suggestion immediately.
benton.org/node/126534 | New York Times
Recommend this Headline
back to top


CAN YOU SAY THAT ON TV?
[SOURCE: New York Times, AUTHOR: Edward Wyatt]
Imagine a world where it would be OK to use particularly foul language in an e-mail sent from your smartphone, but where you would be fined if you uttered the same words during a phone call. That is in essence the world that television and radio broadcasters continue to occupy today, after the Supreme Court unanimously refused to wade into the dispute over whether the First Amendment should apply to 21st-century communications in the same, compartmentalized way that the court commanded in the 20th. In that world, cable programmers can say and display just about anything they want and not run afoul of the Federal Communications Commission’s indecency standards, because the FCC does not regulate cable television. Television broadcasters, however — ABC, NBC, CBS, FOX, MyNetwork, Univision and a passel of independent channels — are bound by rules under which curse words or nudity, however fleeting, can subject them to penalties. Broadcasters have little real grasp of what is allowed and what is not. Similarly, the public has no idea what to expect; the next time Cher appears on a live awards show, should adult viewers cover the ears of their 8-year-olds, or can they depend on the broadcasters to censor indecent content?
benton.org/node/126533 | New York Times
Recommend this Headline
back to top


CLEAER INDECENCY STANDARDS
[SOURCE: The Christian Science Monitor, AUTHOR: Editorial staff]
[Commentary] The US Supreme Court took the wise step of affirming the federal government’s ability to regulate indecency in the public airwaves. But to protect free speech, the justices also insisted that TV broadcasters deserve “fair notice” on what is considered indecent. The 8-to-0 decision overturns hefty fines imposed on Fox and ABC for their airing of “fleeting expletives” and momentary nudity during broadcasts a decade ago. And it pushes the Federal Communications Commission (FCC) to now come up with new – and less vague – standards. Those new rules need to satisfy a public interest in safeguarding children in the home while also meeting a constitutional requirement to provide enough clarity so that broadcasters don’t censor themselves simply out of fear. This is a fine line to walk. The FCC has its work cut out for it. Defining indecency is as troublesome as knowing how to regulate it with fairness. No doubt courts will revisit any new FCC rules. But for now the court has struck the right balance between vice on TV and the vice of legal vagueness.
benton.org/node/126531 | Christian Science Monitor, The
Recommend this Headline
back to top

INTERNET/BROADBAND

$1.4 TRILLION BROADBAND OPPORTUNITY
[SOURCE: Total Telecom, AUTHOR: Mary Lennighan]
Governments globally could be missing out on tax revenues worth $1.4 trillion per year as a result of their lack of action when it comes to driving the rollout of fixed broadband networks, one analyst predicted. "[There is] a $6.9 trillion per year increase in GDP that we're not getting because we don't have broadband everywhere," said Oliver Johnson, CEO of Point Topic, speaking at CommunicAsia. That translates into $1.4 trillion in lost tax revenues for governments, he explained, the equivalent of seven complete space shuttle programs, 150 hadron colliders, or 614 Manchester Uniteds. But there is a reason that many governments are not pushing the broadband agenda, despite the huge potential revenue increase. "They don't understand it," said Johnson, explaining that many politicians, including former U.K. prime minister Tony Blair, are known to prefer not to use computers. "They are not brave enough to make that decision," he said.
benton.org/node/126497 | Total Telecom
Recommend this Headline
back to top


600 MILLION BROADBAND SUBSCRIBERS
[SOURCE: telecompetitor, AUTHOR: Andrew Burger]
Marking a major milestone, there are now more than 600 million broadband service subscribers around the world, according to latest figures from The Broadband Forum and Point Topic. The 600-million mark was reached in 1Q this year, which indicates that broadband subscriber growth is accelerating. The global broadband subscriber lines grew by more than 100 million in less than 18 months, 20% of total new additions. Global broadband lines increased 16.12 million in 1Q, the two organizations estimate, a 2.7% quarterly and 11.48% annual increase. Results also showed Asia, China in particular, leading IPTV as well as broadband subscriber growth.
benton.org/node/126492 | telecompetitor
Recommend this Headline
back to top


CONNECTING RURAL AMERICA
[SOURCE: Governing, AUTHOR: Jessica Mulholland]
Universal Service Fund reform is aimed at helping connect every American to high-speed Internet by the end of the decade, just as the fund did for telephone service in the 20th century, according to the FCC. The next step in the process came on April 25, when the FCC officially launched the new Connect America Fund (CAF), a reform that will be dole out $300 million to both large and small telephone companies that agree by July 24 to “strict accountability measures and buildout requirements," wrote Sharon Gillett, chief of the FCC’s Wireline Competition Bureau. After the July 24 deadline — in areas where incumbents decline to make this commitment — local exchange carriers, including cable, wireless and satellite companies, will have opportunities to compete for Connect America Fund funding, the FCC says, as part of a “reverse auction.” Small phone companies that have aggressively built out fiber-optic networks and expanded their high-speed Internet access worry that the shift from USF to CAF may force them to slow these expansions. And some small towns have community fiber networks that are ineligible for CAF support.
benton.org/node/126495 | Governing
Recommend this Headline
back to top

SPECTRUM/WIRELESS

SPECTRUM CRUNCH IS A LIE
[SOURCE: Motley Fool, AUTHOR: Andrew Marder]
Wireless providers are rallying around the cry of "spectrum crunch," or the notion that America will soon run out of available broadband capacity as increasingly popular smartphones, tablets, and other mobile devices drain the airwaves. The problem is: That's not entirely true. Carriers have made it sound like more spectrum is the only solution to our growing mobile-phone usage, but there's another way to fill the air. Companies are already developing technology to alleviate the strain of smartphones on the system, and one of them is going to hit the jackpot.
benton.org/node/126493 | Motley Fool
Recommend this Headline
back to top


MOTOROLA-MICROSOFT
[SOURCE: ars technica, AUTHOR: Megan Geuss]
Google's Motorola Mobility unit has made offers to Microsoft in hopes of settling a pair of contentious patent infringement suits in which Motorola's smartphones were using Microsoft's patented ActiveSync software, while Microsoft's Xbox 360 was using Motorola's patented video compression system. Motorola offered to pay 33 cents to Microsoft for every smartphone it ships with ActiveSync software in order to avoid an import ban from the International Trade Commission. ActiveSync was developed by Microsoft to push e-mail and other notifications to smartphones, and in 2010 Microsoft sued the phone company (then unaffiliated with Google) for infringement. At the time Microsoft specifically accused the Droid 2 and the Charm of infringing patents. Motorola has also offered an olive branch of sorts to Microsoft, lowering its demands for licensing fees on the proprietary video compression software found on devices running Windows to 50 cents per unit that uses the software. In addition, Motorola is asking for 2.5 percent of the retail price on each Xbox 360.
benton.org/node/126469 | Ars Technica
Recommend this Headline
back to top

OWNERSHIP

UNIVERSAL-EMI HEARING
[SOURCE: The Hill, AUTHOR: Brendan Sasso]
The chief executives of Universal Music Group and EMI defended their planned merger during a hearing of the Senate Judiciary Committee’s subcommittee on Antitrust, Competition Policy and Consumer Rights. Senators pressed Lucian Grainge, the CEO of Universal, to address concerns that the deal will stifle competition in the music industry and concentrate power in the hands of a single "super major" label. Grainge repeatedly argued that his company has an incentive to sell its music to as broad an audience as possible. Subcommittee Chairman Herb Kohl (D-Wis.) said he had heard Grainge is a smart and tough executive. "You don't seem to answer questions," Kohl said, "which is part of your smartness and your toughness." Gigi Sohn, president of advocacy group Public Knowledge, noted that a combined Universal-EMI would have accounted for 51 of the Billboard Hot 100 songs in 2011, and said consumers would ignore any new online service that didn't offer that host of popular artists.
benton.org/node/126513 | Hill, The
Recommend this Headline
back to top


UNIVERSAL-EMI DEBATE
[SOURCE: New York Times, AUTHOR: Ben Sisario]
Is the music industry like other businesses, and thus subject to concerns about market concentration, or is it an anomaly in which nothing matters but hits? That was one of the central questions at a Senate hearing about a proposed $1.9 billion deal in which the Universal Music Group would acquire the record labels of EMI, giving Universal — already the world’s largest music company — control of the recordings of the Beatles, the Beach Boys and Katy Perry. “In almost all industries, reducing the number of competitors from four to three expands the market power of the remaining companies and increases the risk of higher prices,” asked Senate Antitrust Subcommittee Chairman Herb Kohl (D-WI). “Why shouldn’t these same principles apply to the music business?” Universal, a division of the French conglomerate Vivendi, says its investment will reinvigorate EMI, which was hurt by a disastrous private equity deal. Opponents worry that Universal, which would gain a 40 percent market share as a result of the deal, would assume undue influence over digital music services that depend on the labels for licenses.
benton.org/node/126527 | New York Times | WSJ | FT
Recommend this Headline
back to top


TEXAS WANTS GOOGLE DOCS
[SOURCE: Wall Street Journal, AUTHOR: John Paczkowski]
When the Texas attorney general’s office first opened its investigation into Google’s business practices, the search behemoth promised to cooperate. But two years later, it appears to have fallen short of that pledge. This week, Texas AG Greg Abbott (R) filed a civil suit against Google demanding the company hand over a bunch of documents it has allegedly been withholding from Abbott’s office. Evidently Google has, on a number of occasions, either redacted documentation or refused outright to turn documents over, claiming attorney-client privilege. But according to Abbott, many of the documents at issue aren’t protected because they either A) weren’t sent to an actual attorney, or B) didn’t request a legal review.
benton.org/node/126518 | Wall Street Journal | The Hill | Reuters
Recommend this Headline
back to top

ADVERTISING/MARKETING

MARKETING ROLLOUTS
[SOURCE: Multichannel News, AUTHOR: Todd Spangler]
Comcast and Time Warner Cable are proceeding apace with their co-marketing deals with Verizon Wireless, with Comcast and the carrier launching bundle promotions in 10 more states and TWC and Verizon Wireless widening the offers in five states. Comcast and Verizon Wireless said they are expanding their joint offers to several cities across Alabama, Arkansas, Georgia, Indiana, Kentucky, Louisiana, Michigan, Mississippi, South Carolina and Tennessee. Previously the companies introduced the marketing program in Atlanta, Chicago, Colorado, Kansas City, Minneapolis-St. Paul, Portland, Ore., Salt Lake City, San Francisco and Seattle. Time Warner Cable and the wireless carrier are launching special offers in Alabama, Wisconsin, North and South Carolina and Northeast Ohio, following prior rollouts in Cincinnati and Columbus, Ohio; Kansas City, Kan.; and Raleigh, N.C.
benton.org/node/126507 | Multichannel News | telecompetitor
Recommend this Headline
back to top


FACEBOOK SETTLEMENT
[SOURCE: Reuters, AUTHOR: Dan Levine]
Facebook has agreed to allow users more control over how their personal information is used in its "Sponsored Stories" ad feature, part of a deal to resolve litigation against the social networking company. The value to Facebook members resulting from the changes is about $103 million, in the opinion of one economist hired by the plaintiffs. But the amount Facebook will actually pay to settle the case is just over $20 million, according to court documents. A "Sponsored Story" is an advertisement that appears on a member's Facebook page and generally consists of another friend's name, profile picture and an assertion that the person "likes" the advertiser. Under the terms of a settlement agreement , Facebook members will be able to control which content can be used for Sponsored Stories. Facebook agreed to maintain these changes and other new disclosures for at least two years, according to court documents. Attorneys for the plaintiffs say the changes to "Sponsored Stories" are worth $103.2 million, based on an economist's analysis of the revenue each ad brings to Facebook. Those figures were redacted in the court documents.
benton.org/node/126512 | Reuters
Recommend this Headline
back to top


ADS AND SOCIAL ISSUES
[SOURCE: USAToday, AUTHOR: Laura Petrecca]
President Bill Clinton challenged an audience filled with advertising, marketing and media industry employees to use their professional skills to address social, economic and climate problems from around the globe. "The communicators will have a profound influence on how the next 20 or 30 years will turn out," he said. Speaking at a seminar in Cannes sponsored by Latin American ad agency Grupo ABC, Clinton urged those in the audience to collaborate and brainstorm with each other to solve issues such as global warming and the vast economic disparities among various populations.
benton.org/node/126516 | USAToday | AdWeek
Recommend this Headline
back to top

PRIVACY

COMMISSIONER ROSCH CRITICIZES MICROSOFT
[SOURCE: AdWeek, AUTHOR: Katy Bachman]
In a letter to the World Wide Web Consortium Tracking Protection Working Group, Federal Trade Commission member J. Thomas Rosch criticized Microsoft's default Do Not Track setting on its new browser, lending his support to the Internet ad community's assertion that the feature departs from industry consensus and limits consumer choice. The default setting does not give consumers choice, Commissioner Rosch argued in his letter. "To the contrary, Microsoft's default DNT setting means that Microsoft, not consumers, will be exercising choice as to what signal the browser will send," he wrote. Rosch's letter also took issue with a letter sent to the World Wide Web Consortium from Reps. Ed Markey (D-MA) and Joe Barton (R-TX), co-chairs of the Congressional Bipartisan Privacy Caucus, who embraced the default approach as the suggested standard for the industry. The duo, who were copied on Rosch's letter, advocate that DNT should mean both do not collect and target. Because Microsoft's default DNT browser departs from the Internet ad industry's consensus, the community is likely not to honor the signal that Microsoft's browser would send.
benton.org/node/126472 | AdWeek
Recommend this Headline
back to top

CONTENT

NETFLIX AND CAPTIONS
[SOURCE: San Francisco Chronicle, AUTHOR: Bob Egelko]
U.S. District Judge Michael Ponsor of Springfield (MA) has taken a step toward requiring Netflix to provide closed-captioning for the deaf on its video-streaming website, ruling that federal disability laws cover businesses that serve their customers online. Netflix is the dominant provider of movies and TV programs on the Internet, with more than 20 million subscribers. The National Association for the Deaf accused the company of violating the law by withholding closed-captioning from most of the videos on its "Watch Instantly" on-demand website. Netflix sought to dismiss the suit, arguing that the Americans with Disabilities Act requires accommodations for the disabled only in stores and other physical structures - an argument accepted in the past by some courts. Judge Ponsor said the law prohibits discrimination in any venue, including the Internet.
benton.org/node/126525 | San Francisco Chronicle
Recommend this Headline
back to top

TELECOM

SPECIAL ACCESS FIGHT
[SOURCE: Politico, AUTHOR: Eliza Krigman]
AT&T is girding for another regulatory battle with the Federal Communications Commission — this time over special access regulations. Special access isn’t as high-profile as fights between AT&T and the Federal Communications Commission over other issues, such as net neutrality regulations or the telecom company’s failed bid to acquire T-Mobile USA. But it makes for another bitter dispute between AT&T and the FCC, one that could wind up in court. The agency has until June 25 to vote on an order that will affect how much carriers such as AT&T can charge for access to key broadband infrastructure. An order circulating at the FCC would deny AT&T’s petition for regulatory relief and suspend the mechanisms that provide a pathway out of price controls on special access, according to Thomas Jones of the NoChokePoints coalition. The coalition represents competitive carriers and associations that rely on special access lines including Sprint, Cricket and the CCIA. AT&T wants relief from special access price caps it is subject to in the San Francisco and San Antonio markets. The FCC’s prospective order — which AT&T could challenge in court — would take the country in the wrong direction, AT&T argues.
benton.org/node/126530 | Politico
Recommend this Headline
back to top


CALL ME, PAY ME
[SOURCE: New York Times, AUTHOR: James Rule]
[Commentary] Political candidates and organizations are exempted from the National Do Not Call Registry, created by Congress in 2003. A simple, low-tech regulatory change could shift the advantage decisively back in the direction of privacy. All telephone service providers should be required to offer every subscriber the option of accepting only “bonded” calls. To complete a call to a subscriber electing this option, the caller would have to show willingness and ability to compensate the recipient — should the latter designate the call a nuisance. Before calls to these numbers could be completed, a message would state the amount of the potential charge. A few seconds after the connection is established, the recipient would have the option of terminating the call and charging the caller by pressing a keypad button. Phone customers choosing this option could specify the amount that callers would place at risk. And they could maintain lists of favored callers, from whom calls would be accepted without risk of penalty. These might include relatives, friends, organizations from which communications are particularly welcome or parties from whom a callback has been specifically requested.
benton.org/node/126528 | New York Times
Recommend this Headline
back to top

STORIES FROM ABROAD

CYBERWAR
[SOURCE: Fast Company, AUTHOR: Neal Ungerleider]
Syrian rebels and Tibetan rights activists were the targets of two major cyberwarfare attacks in the past week--both of which used novel methods. Syrian opposition members were attacked by a Skype trojan that allowed outsiders to spy on their computers, while Tibetan activists were hit by a spoofed European Union email that hid malware on their systems. The two attacks happened within days of each other, and highlight an unfortunate truth. Just as mail bombs were used in prior conflicts to silent dissidents, cyberattacks are being used in 2012. In the Tibetan attack, over 80 prominent activists in the Tibetan rights community received an email that appeared to be a copy of a June 14 European Parliament resolution on Tibetan self-immolations--a legitimate document. However, the email came from an unknown organization called the “Tibetan Welfareoffice” and was written in broken English.
benton.org/node/126466 | Fast Company
Recommend this Headline
back to top


DATA PRIVACY AGREEMENT
[SOURCE: Department of Justice, AUTHOR: Press release]
Attorney General Eric Holder and European Commission Vice-President Viviane Reding issued the following statement following the EU-U.S. Justice and Home Affairs Ministerial meeting in Copenhagen:
"We reiterate our determination to finalize negotiations on a comprehensive EU-U.S. data privacy and protection agreement that provides a high level of privacy protection for all individuals and thereby facilitates the exchange of data needed to fight crime and terrorism, as announced at the November 2011 summit by our Presidents. Such an agreement will allow for even closer transatlantic cooperation in the fight against crime and terrorism, through the mutual recognition of a high level of protection afforded equally to citizens of both the United States and the European Union, and will thus facilitate any subsequent agreements concerning the sharing of a specific set of personal data.
Negotiations have taken place at a steady rhythm since they began in March 2011 and progress has been achieved on a number of provisions. These include important principles such as data security, transparency of data processing or use, accountability, maintaining the quality and integrity of information and the existence of effective authorities ensuring data protection oversight. We are likewise continuing our work on a number of domains such as purpose limitation, retention of personal data, and effective administrative and judicial redress.
In view of our common objective to achieve mutual recognition, we will continue to make all efforts to come to a conclusion on these key points. To this end, we agree to take stock of progress during the EU-U.S. Justice and Home Affairs Ministerial meeting in 2013, and to consider next steps to ensure the continued rapid advancement of the negotiations."
benton.org/node/126445 | Department of Justice
Recommend this Headline
back to top


ALLOWED HACKING COVER UP
[SOURCE: The Telegraph, AUTHOR: Katherine Rushton,]
Amalgamated Bank, the Central Laborers’ Pension Fund and the New Orleans Employees’ Retirement System are suing the board of Rupert Murdoch’s media empire for “disregarding” its duties to shareholders. The trio of shareholders claim the board’s priority was to ensure it was not “at odds” with Murdoch, News Corp’s chairman and chief executive. The directors, including chief operating officer Chase Carey, deputy chief operating officer James Murdoch, and Viet Dinh, who is overseeing the internal investigations into phone hacking, “intentionally” accepted “absurd” protestations that it was the work of a single rogue reporter, according to papers lodged in a Delaware court. The shareholders also accused News Corp of setting up the Management and Standards Committee, its internal inquiry into phone hacking and bribery formerly headed by Murdoch’s general counsel Joel Klein, as a figleaf for more robust investigations. Klein stepped down from that role earlier this week.
benton.org/node/126458 | Telegraph, The
Recommend this Headline
back to top

Libraries, patrons, and e-books

12% of readers of e-books borrowed an e-book from the library in the past year. But a majority of Americans do not know that this service is provided by their local library.

Most e-book borrowers say libraries are very important to them and their families and they are heavy readers in all formats, including books they bought and books lent to them. E-book borrowers say they read an average (the mean number) of 29 books in the past year, compared with 23 books for readers who do not borrow e-books from a library. Perhaps more striking, the median (midpoint) figures for books reportedly read are 20 in the past year by e-book borrowers and 12 by non-borrowers. But most in the broader public, not just e-book readers, are generally not aware they can borrow e-books from libraries. We asked all those ages 16 and older if they know whether they can borrow e-books from their library and 62% said they did not know if their library offered that service. Some 22% say they know that their library does lend out e-books, and 14% say they know their library does not lend out e-books. These findings are striking because more than three-quarters of the nation’s public libraries lend e-books.

© 1994-2024 Benton Institute for Broadband & Society. All Rights Reserved.