FCC Eases Restrictions on Foreign Ownership of TV & Radio Stations

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The Federal Communications Commission yesterday unanimously signalled a willingness to expand foreign ownership interests in tv and radio outlets, according to articles by the TVNewscheck.com and FoxBusiness.com Web sites.

The Communications Act of 1934 sets a 25 percent cap on foreign ownership of tv and radio stations, but allows the FCC discretion to boost the ownership percentage in certain instances.  The FCC's 5-0 vote yesterday indicated a greater likelihood the agency on a case-by-case basis would relax the 25 percent foreign ownership restriction where it deems to do so would be in the public interest.

Democrat and newly selected FCC Chair Tom Wheeler told FoxBusiness.com the vote will "encourage ownership diversity [and] expand localism."  The broadcasting watchdog's decision "potentially removes obstacles to new capital investment, which will support small business, minority and female broadcast ownership, and spur innovation."

The Coalition of Broadcast Investment was a driving force behind the FCC vote. The FCC already has already permitted higher levels of foreign investment in wireless providers. Foreigners still are not permitted under FCC rules to directly or wholly own broadcast licenses.

Federal Judge Enjoins Co.'s Streaming TV Stations' Programming

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U.S. District Court for the Southern District of New York Judge Naomi Reice Buchwald this week issued an injunction against Seattle-based ivi, Inc., preventing the Internet company from streaming programming of New York and Seattle television stations to its subscribers online and to mobile phones.

In the copyright infringement action, WPIX, Inc. et al. v. ivi, Inc. & Todd Weaver (Case No. 10-Civ-7415-(NRB)) Judge Buchwald enjoined the company from directly or indirectly infringing on the plaintiffs' exclusive rights under Sec. 106(1)-(5) of The U.S. Copyright Act [17 U.S.C. secs. 101-810] during the pendency of the litigation.  The defendant, which charges $4.99 a month to subscribers nationwide to stream content from television stations in New York and Seattle, argues it may do so as a "cable system" under the Copyright Act, yet contends it is not a "cable system" as defined by the Communications Act of 1934 [47 U.S.C. sec. 151 et seq.] as amended by the Telecommunications Act of 1996 [P.L. No. 104-104, 110 Stat. 56], which would require the four-year-old company to obtain re-transmission consent from the affected television stations.

Judge Buchwald did not seem impressed by the defendants' tightware-walking argument, ruling it was "extraordinarily unlikely that ivi ultimately will be deemed a cable system" under The Copyright Act. For additional information, read www.Newsroomlawblog.com.