January 2014

Verizon's McAdam: Regulators would demand spectrum sales for merger of Sprint, T-Mobile

A merger deal that results in the US mobile market having only three national operators rather than four might be approved, but only if the parties involved divest some of their spectrum holdings, predicted Verizon CEO Lowell McAdam. He said past regulatory regimes have focused on ensuring the existence of four national operators, and there appears to be escalating competition among the current market leaders. "I think they [regulators] are beginning to see some of the things that they were hoping to see out of four, and my guess is that they're going to want to play that hand out," McAdam said.

The FCC sports blackout rule -- round two

Sens John McCain (R-AZ) and Richard Blumenthal (D-CT) emphasize that the key to ending private, contractual blackouts is to place conditions on sports league antitrust exemptions.

In Blumenthal’s summary of the legislation, it rightfully notes (as does the Federal Communications Commission itself) that the FCC sports blackout rule is not really the one that most annoys fans. Rather it is the private contracts made between leagues and telecasters that prevent locals from watching a game that not enough fans actually attend. The solution the senators provide is to condition the leagues’ antitrust exemptions upon limiting or removing these total blackout provisions from their private contracts. What are the antitrust exemptions mentioned by the Senators? There are two (1) the Sports Broadcast Act (the “SBA”) and (2) the judicially created MLB antitrust exemption. The thought is that if the leagues are forced to either provide local games (at least on the Internet) or face losing the benefits of the SBA they’ll choose the former. The problem for local fans is that the senators are likely wrong -- the empirical evidence shows that the SBA is just not that important to the leagues.

600 MHz Auction Proposal Seeks Middle Ground on License Area Size

The best structure for the upcoming 600 MHz voluntary broadcast spectrum auction would use a two-step process that would focus first on metro areas, followed by a rural auction, argues a new paper penned by NERA Economic Consulting. The paper titled “Local and Regional Licensing for the US 600 MHz Band” was commissioned by NTCA- The Rural Broadband Association and the Rural Wireless Association, and has been filed with the Federal Communications Commission.

Parents Television Council Blasts TV, Movie Industries Over Ratings Systems

The Parents Television Council took aim at the television and movie industries, calling for a complete overhaul of the industries’ ratings systems and blasting the industries’ lack of progress in reducing media violence.

The media watchdog organization claimed that the industries’ ratings systems are tainted by “inaccuracies and inconsistencies,” with PTC president Tim Winter adding that the industries have “done nothing” to reduce media violence since media executives met with Vice President Joe Biden a year ago. “In one year, the industry has done nothing to reduce media violence, and new research shows the networks routinely assign age ratings for horrifically violent content on broadcast TV deeming it appropriate for children. Movies are no better, as new research found that PG-13 rated films contain as much violence as R-rated films,” Winter said. Citing its own research, the PTC claimed that television shows rated TV-14 on broadcast television have “similar levels and types of violence” as cable shows rated TV-MA.

Gigabit Squared co-founder and former president resigns amid questions over Seattle deal

The co-founder and former president of Gigabit Squared is ending his involvement in the operations of the Cincinnati (OH) company amid questions over unpaid bills and a lost contract with the city of Seattle. Mark Ansboury is in the process of separating himself from the company -- a process complicated by the fact that he has a stake in Gigabit Squared -- but that he has left the operations side of the business over strategic differences. Ansboury had apparently stepped down as the president sometime in August according to a December article in Geekwire to become a general manager, but he told me that he is resigning that role too. “I am no longer with GB2. I am resigning over strategic differences and am pursing other projects.”

Seattle's fiber-network deal with Gigabit Squared is dead

Seattle Mayor Ed Murray has declared the city’s deal with startup broadband company Gigabit Squared dead. In fact, the city’s deal with the company may have been doomed before Murray was even elected.

Gigabit Squared’s unpaid bills totaling $52,250 for work the city's employees have already done on the project, have been sent to the city’s lawyers, who will decide whether to send them to collections, according to the city's IT director Erin Devoto. He said Gigabit has not built anything yet and the only work that's been done has been by city employees who put together research and reports for Gigabit. Gigabit paid $2,500 of the $54,750 bill for city employees' work last year, but has not paid the rest, Devoto said. Mayor Murray has stated he’s seeking other companies with a “more realistic financing mechanism” to lease the fiber and move forward with the program.

Time Warner Cable Loses 215,000 TV Customers in Fourth Quarter

Time Warner Cable lost 215,000 video subscribers in the fourth quarter amid competition with phone carriers and the challenge of convincing younger consumers to pay for TV. The defections brought Time Warner Cable’s customer losses for the year to about 825,000, up from 530,000 in 2012. The company added 55,000 high-speed Internet subscribers and 15,000 phone users in the fourth quarter, Chief Financial Officer Artie Minson said

France fines Google over privacy violations and makes it put a notice on its site

The French data protection authority CNIL has fined Google €150,000 ($204,000) over its unified privacy policy, which regulators believe violates European privacy law.

CNIL said Google’s merging of its various services’ privacy policies into a unified policy was in itself legal, but the way in which it implemented that unified policy was not legal. Specifically, the regulator said, Google did not inform its users enough about how their data would be mixed and matched between the various services, such as Gmail and Google Maps, nor why this data was being combined in this way (hint: advertising). If this sounds familiar, that’s because it’s almost exactly what the Dutch regulator and a Berlin court said in November. The European Union data protection authorities are coordinating their anti-Google efforts -- Spain became the first to levy a fine last month, relieving the company of $1.2 million.

Today's Headline 01.08.2014

"Have you guys ever done karaoke? The rule in karaoke is that when someone sucks -- go next."
-- T-Mobile CEO John Legere

Silicon Flatirons
University of Colorado Law School
Tuesday, May 13, 2014
1:30 - 6:30 PM
http://siliconflatirons.com/events.php?id=1455

The digital age raises complex challenges for copyright law and policy. During the past few years, new conflicts have emerged between copyright holders and those developing new technology. These conflicts will influence the future of television, which is facing a series of pressures similar to those that have disrupted a range of information industries (newspapers, music, land-line telephone service, etc.). In particular, the "cord-cutting" trend—in which a host of new technology services are providing access to copyrighted programming over the Internet—has been described as a potential death knell for traditional TV.

A series of lawsuits brought in recent years, including the Cablevision remote DVR case, the DISH Hopper litigation, and the cases against Aereo and FilmOn, highlight the conflict and promise to shape copyright law in important ways. Most notably, these cases raise critical questions about two important lines of copyright doctrine—the public versus private performance distinction, and the fair use defense. From a business perspective, the cases will influence not only the future of the TV marketplace, but also the dynamics of paid-advertising and emerging business models.

This conference will bring together a series of leading scholars, practitioners, and business executives to discuss the copyright law issues and their business implications. The first panel will address competing interpretations of how the Copyright Act treats "individualized transmission systems"—that is, systems ranging from traditional video on demand to Internet video websites to remote-DVRs, all of which maintain a dedicated/unique transmission for each user. In such systems, how should courts draw the statutory distinction between public and private performances? Is the dedicated transmission enough, as Aereo argues, to make every such transmission "private"? What implications does the ultimate ruling on this issue have for the emergence of cloud computing, an issue that some (such as Cablevision) have highlighted as a core concern?

The second panel will discuss the concept of "copying" TV programming and when the fair use defense applies, starting with the question of what constitutes "volition" for purposes of making a copy. The panel will also discuss the question of how far fair use should extend. To what extent does the law authorize copying beyond the time-shifting permitted under the Sony/Betamax case? Does it permit place shifting/space shifting? Does it permit recording entire blocks of programming and playing them back without advertising, as argued by DISH in the Hopper litigation? Finally, does the customer's fair use right depend on whether the transmission path used for time-shifted viewing is the same one the customer could have used to watch the program live (as in the original Sony case)?

The final panel will place the above issues into the relevant business context, asking about their impact on the TV marketplace. To the extent that more devices are able to copy TV programs and allow viewers to have control over where, how, and when they watch them, what impact will that have on the economics of the video programming industry? To the extent that advertising is avoided through such technologies, what alternative business models can subsidize the creation of content? And to the extent that free "over-the-air" TV becomes free "over-the-Internet" TV, what impact will that have?

Welcome and Introduction
1:30pm - 1:45pm
Phil Weiser, Dean
University of Colorado Law School
Executive Director
Silicon Flatirons Center

The Private v. Public Performance Question
1:45pm - 2:55pm

Break 2:55pm - 3:10pm

Copying and Fair Use
3:10pm - 4:10pm

Break 4:10pm - 4:25pm

The Overall Business Context
4:25pm - 5:35pm

Reception
Sponsored by Cablevision 5:35pm - 6:30pm