Articles Posted in Cable/Satellite TV

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Today the Federal Communications Commission released its annual Public Notice setting the deadline for paying annual regulatory fees.  Payments can be made via the FCC’s Commission Registration System (CORES) beginning today through 11:59 p.m. Eastern Time on September 20, 2023.

In addition to marking this deadline on their calendars, broadcasters should note with some satisfaction that despite the FCC’s overall budget increasing by more than $8,000,000, regulatory fees for broadcasters decreased by between 5 and 8%.  That decrease results from years of effort by broadcasters’ state and national trade associations, who have repeatedly argued that the FCC’s methodology for allocating regulatory fees does not accurately reflect how the work of the FCC has changed since the regulatory fee regime was instituted more than 30 years ago.

The FCC’s fee-setting methodology divides its workforce into what it calls direct and indirect FTEs (“Full Time Employees” or “Full Time Equivalents”).  Direct FTEs are those who work directly for one of the four “core” licensing bureaus: the International Bureau, the Wireless Telecommunications Bureau, the Wireline Competition Bureau, and the Media Bureau.  (The core bureaus will be updated next year to reflect the creation of the new Space Bureau.)  Indirect FTEs are all other FTEs of the FCC, which are treated the same as FCC “overhead” (e.g., rent) in setting fees.

The FCC allocates its budget among the regulatees of each of the four core licensing bureaus in proportion to the number of direct FTEs working in that particular bureau.  Since the Media Bureau houses approximately 32% of all the direct FTEs, its regulatees, including broadcasters, have to pay 32% of all agency overhead (which includes indirect FTEs) as well.

In recent years, only about one-quarter of the agency’s total FTEs have been considered direct, while the remaining three-quarters are considered indirect.  As a result, the determination as to which regulatees must pay the lion’s share of the FCC’s total budget is based on the categorization of those relatively few direct FTEs.  This impact is further exacerbated by the existence of indirect FTEs that are housed outside of the four core licensing bureaus, but whose work benefits specific industries.  Since they do not work in one of the core bureaus, they are not treated as a direct cost of the industries their work actually benefits, but as just more FCC overhead to be paid for by broadcasters and other industries that do not benefit from their work.

So, what changed this year?  In response to an influx of comments the FCC received in response to a Notice of Inquiry and a Notice of Proposed Rulemaking, the FCC reexamined the work performed by FTEs in certain of its indirect bureaus and offices, including the Office of Economics and Analytics, the Office of General Counsel, and the Public Safety and Homeland Security Bureau.  Based on this review, the FCC reallocated a large number of these previously indirect FTEs to direct FTE status. Continue reading →

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The FCC released its Report and Order adopting the final amounts that regulatees must pay in annual regulatory fees for FY2022, and opened the filing window for making those payments. The window closes at 11:59 p.m. Eastern Time on September 28, 2022.

If paying the fees wasn’t challenging enough, as part of its continuing rollout of the Commission Registration System (CORES), the FCC has retired the familiar Fee Filer system that regulatees previously used to make these payments. As a result, regulatory fee payments must now be made through CORES, meaning that payors will have to contend with a new fee filing system for this year’s regulatory fees. Given the initial reactions of some that attempted to submit their regulatory fees since the window first opened, regulatees would be wise to start the process early, ensuring they have enough time to deal with the inevitable filing hiccups and still meet the September 28, 2022 deadline.

In the past, a party owing regulatory fees signed into the FCC’s Fee Filer system using the Federal Registration Number (FRN) of the licensee and the password established for that FRN. If a filer lost either the FRN or password they had used in prior years to pay the station’s fees, they could create a new account or reset the password on the spot to get their payments on file in a timely manner. The new filing system, however, uses a more cumbersome two-step process that is not conducive to overcoming last-minute issues involving a lost FRN or password, and has the potential to trip up those unaccustomed to it.

This is the same two-step process that broadcasters first had to navigate to file their Forms 1, 2 and 3 in the EAS Test Reporting System (ETRS) in connection with nationwide tests of the EAS, which we wrote about back in 2017. That two-step process proved difficult for many and prevented some broadcasters from timely making their required filings, so we are describing the individual steps in detail below. However, stations should also be aware that if their engineer or lawyer completed this process in connection with the ETRS filings in 2017, they may now be considered by the FCC’s system as the Administrator of the licensee’s FRN.  If so, they will need to be consulted to get the station’s regulatory fees on file this year.

To begin the process, the individual making the regulatory fee payment on behalf of the licensee must create a personal account in CORES here using their email address and a password of their choosing. This account is personal to the filer, not the licensee, and identifies who is making the filing on the licensee’s behalf.

Next, the filer must sign in to CORES here using that new account and choose the option to “Associate Username to FRN” on the main screen to be able to make filings under the licensee’s FRN. As noted, if someone else has already done this, that person will be the Administrator and must grant the “associate” request before the submission can proceed, delaying the regulatory fee filing until that person responds to a request to approve the association (assuming they respond at all if they have retired, departed, etc.).

Once the filer’s account is associated with the licensee’s FRN, the filer must sign into CORES and select the “Manage Existing FRNs/FRN Financial/Bill and Fees” option on the main screen.

On the next screen, they must select the “Regulatory Fee Manager” option.

Finally, they need to select the licensee’s FRN from a dropdown list of all FRNs associated with the account and click the “Find Assessments” button. The next screen should display the licensee’s name and a total fee due amount.

Licensees should click the link labeled “View” to see the details of what stations and fees are included in the total shown. Errors in importing prior year data are common, especially where a licensee has used multiple FRNs in the past, and early reports indicate that the system-generated fee totals are sometimes missing stations, putting those licensees at risk of interest and penalties if they do not add the missing stations/fees before filing. If fees or stations are missing, the licensee must click the button labeled “Add More Manually” to add the missing stations/fees. If all fees are accounted for, the filer clicks on the “Continue to Pay” button to complete the payment process.

As for the fee amounts themselves, broadcasters can review the Commission’s Media Services Regulatory Fees Factsheet summarizing the fees due in each Media Service category and look up the fees due for individual broadcast call signs here. The FCC notes that “[i]n some instances, it may be necessary to clear your browser before logging onto the website” to look up fees. Fees for authorizations in other services such as transmit earth stations can be found in the Factsheets for those services on the FCC’s regulatory fee page here. Information about seeking deferrals or exemptions from paying the fees (for those who might qualify) can be found here.

The bottom line is that broadcasters should act quickly to begin the FY2022 regulatory fee payment process because it will look very different from how it appeared in the past, and late or missed payments can incur significant interest and penalties.

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This advisory is directed to television stations with locally-produced programming whose signals were carried by at least one cable system located outside the station’s local service area or by a satellite provider that provided the station’s signal to at least one viewer outside the station’s local service area during 2021.  These stations may be eligible to file royalty claims for compensation with the United States Copyright Royalty Board.  These filings are due by August 1, 2022.

Under the federal Copyright Act, cable systems and satellite operators must pay license royalties to carry distant TV signals on their systems.  Ultimately, the Copyright Royalty Board divides the royalties among those copyright owners who claim shares of the royalty fund.  Stations that do not file claims by August 1, 2022 will not be able to collect royalties for carriage of their signals during 2021.  While claims are typically due July 31, that date falls on a Sunday this year.  Stations will therefore have until the first business day in August to file.

In order to file a cable royalty claim, a television station must have aired locally-produced programming of its own and had its signal carried outside of its local service area by at least one cable system in 2021.  Television stations with locally-produced programming whose signals were delivered to subscribers located outside the station’s Designated Market Area in 2021 by a satellite provider are also eligible to file royalty claims.  A station’s distant signal status should be evaluated and confirmed by communications counsel.

Cable and satellite claim forms can no longer be filed in paper form through mail or courier, and instead must be filed electronically via eCRB, the Copyright Royalty Board’s online filing system. Prior to filing electronically, claimants or their authorized representatives must register for an eCRB account.  First-time electronic filers should register for an account as soon as possible, as there is a multiple day waiting period between initial registration and when a user may submit claims.  Also, because accounts can become locked due to inactivity, filers who already have an eCRB account should confirm that their login credentials still work.

To submit claims, stations are required to supply the name and address of the filer and of the copyright owner, and must provide a general statement as to the nature of the copyrighted work (e.g., local news, sports broadcasts, specials, or other station-produced programming).  Claims must be submitted by 11:59 pm ET on August 1, and claimants should keep copies of all submissions and confirmations of delivery.

Please contact any of the group’s attorneys for assistance in determining whether your station qualifies to make a claim and in filing the claim itself.

A PDF version of this article can be found here.

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This advisory is directed to television stations with locally-produced programming whose signals were carried by at least one cable system located outside the station’s local service area or by a satellite provider that provided service to at least one viewer outside the station’s local service area during 2020. These stations may be eligible to file royalty claims for compensation with the United States Copyright Royalty Board. These filings are due by August 2, 2021.

Under the federal Copyright Act, cable systems and satellite operators must pay license royalties to carry distant TV signals on their systems. Ultimately, the Copyright Royalty Board divides the royalties among those copyright owners who claim shares of the royalty fund. Stations that do not file claims by August 2, 2021 will not be able to collect royalties for carriage of their signals during 2020. While claims are typically due July 31, that date falls on a Saturday this year. Stations will therefore have until the first business day in August to file.

In order to file a cable royalty claim, a television station must have aired locally-produced programming of its own and had its signal carried outside of its local service area by at least one cable system in 2020. Television stations with locally-produced programming whose signals were delivered to subscribers located outside the station’s Designated Market Area in 2020 by a satellite provider are also eligible to file royalty claims. A station’s distant signal status should be evaluated and confirmed by communications counsel.

Cable and satellite claim forms can no longer be filed in paper form through mail or courier, and instead must be filed electronically via eCRB, the Copyright Royalty Board’s online filing system. Prior to filing electronically, claimants or their authorized representatives must register for an eCRB account. First-time electronic filers should register for an account as soon as possible, as there is a multiple day waiting period between initial registration and when a user may submit claims. Also, because accounts can become locked due to inactivity, filers who already have an eCRB account should confirm that their login credentials still work.

To submit claims, stations are required to supply the name and address of the filer and of the copyright owner, and must provide a general statement as to the nature of the copyrighted work (e.g., local news, sports broadcasts, specials, or other station-produced programming). Claims must be submitted by 11:59 pm ET on August 2, and claimants should keep copies of all submissions and confirmations of delivery.

Please contact any of the group’s attorneys for assistance in determining whether your station qualifies to make a claim and in filing the claim itself.

A PDF version of this article can be found here.

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October 1, 2020 is the deadline for TV stations to (1) upload to their online Public Inspection Files their must-carry/retransmission consent carriage election statements for the three-year cycle covering January 1, 2021 to December 31, 2023, and (2) notify MVPDs of any changes to their election status.

As we previewed in May, the upcoming October 1 deadline marks the first under the FCC’s new electronic notice system, which replaces the previous requirement that eligible broadcasters mail paper notices to cable and satellite providers regarding carriage elections by October 1 every three years. This year, the FCC’s new procedures simplify this notification process.

Under the new approach, commercial TV stations must place statements electing either must-carry or retransmission consent in their online Public Inspection File by October 1 every third year.  A separate notice to MVPDs is only required when the station wishes to change the status it elected in the prior three-year cycle.  Similar to the obligation imposed on broadcasters (discussed in more detail here), the new rules require cable providers to maintain up-to-date contact information for carriage-related issues in the FCC’s Cable Operations and Licensing System (COALS) database (which the FCC makes available in the online Public Inspection Files of cable providers).  Satellite providers must place such information directly in their online Public Inspection File, making it easier for broadcasters to identify the appropriate contact for election notices.

To that end, stations opting to change their election with respect to any MVPD must send notice of the change to the e-mail address provided by the relevant MVPD, with a copy to the FCC at ElectionNotices@FCC.gov, and attach a copy of the election change notice to the election statement uploaded to the station’s online Public Inspection File.  In response, MVPDs are supposed to confirm receipt of the change notice.  The FCC has said that if broadcasters fail to receive such confirmation, and are unable to reach anyone at the phone number provided by the MVPD, the change notice will still be considered timely if placed in the station’s Public Inspection File, and the proper FCC e-mail address copied, by the October 1 deadline.

Similarly, the FCC simplified the election process for noncommercial educational (“NCE”) stations by eliminating the triennial election notice requirement after October 1, 2020.  As a result, once NCE stations place their election statements requesting carriage in their online Public Inspection File by the October 1, 2020 deadline, no further triennial notices will be required.  While separate carriage notification procedures were adopted for low power television stations and NCE translator stations that qualify for must-carry status, but which do not have a Public Inspection File, the FCC yesterday waived the carriage notice requirement with regard to NCE educational translators.  In doing so, it noted the unique challenges sending such notices would pose for these stations, as they merely rebroadcast rather than originate programming.

For veterans of the cumbersome certified mail approach previously used for many years, the new approach seems almost too easy.  If only that were true of all FCC rule changes.

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On July 30, 2020, the FCC released a Public Notice and Final Cost Category Schedule for the C-Band Relocation, and established August 31, 2020 as the deadline for C-Band earth station licensees to submit their lump sum election notices.  We discussed the Public Notice and Schedule here.

In response to a request from the Society of Broadcast Engineers, the FCC announced today that the deadline for submitting election notices will be extended until September 14, 2020.  The FCC still has under review a separate request by ACA Connects to stay the deadline entirely while the FCC reviews an Application for Review filed by that organization.

In the meantime, C-Band earth station licensees have an additional two weeks to consider their options.

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The FCC took another significant step in the C-Band reallocation process, releasing its Final Cost Category Schedule for Relocation Expenses of C-Band (3.7-4.2 GHz) satellite licensees. The Public Notice accompanying the cost schedule also established August 31, 2020 as the deadline for C-Band earth station licensees to elect whether they wish to receive a lump sum reallocation payment.

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This advisory is directed to television stations with locally-produced programming whose signals were carried by at least one cable system located outside the station’s local service area or by a satellite provider that provided service to at least one viewer outside the station’s local service area during 2019. These stations may be eligible to file royalty claims for compensation with the United States Copyright Royalty Board. These filings are due by July 31, 2020.

Under the federal Copyright Act, cable systems and satellite operators must pay license royalties to carry distant TV signals on their systems. Ultimately, the Copyright Royalty Board divides the royalties among those copyright owners who claim shares of the royalty fund. Stations that do not file claims by July 31, 2020 will not be able to collect royalties for carriage of their signals during 2019.

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As we noted in last week’s post, television stations eligible to file 2018 distant signal copyright royalty claims with the United States Copyright Royalty Board must do so by July 31, 2019.  While that due date still seems far away (especially to those accustomed to the FCC’s real-time electronic filing options) we remind filers to build in extra time well ahead of the end of the month.

Prior to filing electronically, eligible stations (i.e. stations with locally-produced programming whose signals were carried by at least one cable system located outside the station’s local service area or by a satellite provider that provided service to at least one viewer outside the station’s local service area during 2018) or their representatives must first request to register for an account with the Copyright Royalty Board’s online filing system (“eCRB”).  After submitting an initial registration request, filers should expect to wait at least 1-2 business days before receiving a verification email allowing them to activate their eCRB account.  Only then can filers begin submitting claims electronically.  As a result, e-filers who expect to register on July 31 or even the day or two leading up to that date will almost certainly miss the filing window.  To complicate matters further, July 27-28 is a weekend, which will not count toward the registration wait time.

To avoid missing the filing cutoff, our recommendation for e-filing should come as no surprise to longtime readers: register and file as soon as possible!  Claimants that are unable to file electronically must adhere to the Copyright Royalty Board’s strict delivery rules, which include a narrow daily window for hand delivery and prohibit the use of overnight delivery services like FedEx.  As a result, the best bet is to submit a registration request today and file electronically no later than Monday, July 29, leaving room to file a physical copy should the need arise for any reason.

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This advisory is directed to television stations with locally-produced programming whose signals were carried by at least one cable system located outside the station’s local service area or by a satellite provider that provided service to at least one viewer outside the station’s local service area during 2018. These stations may be eligible to file royalty claims for compensation with the United States Copyright Royalty Board. These filings are due by July 31, 2019.

Under the federal Copyright Act, cable systems and satellite operators must pay license royalties to carry distant TV signals on their systems. Ultimately, the Copyright Royalty Board divides the royalties among those copyright owners who claim shares of the royalty fund. Stations that do not file claims by the deadline will not be able to collect royalties for carriage of their signals during 2018.

In order to file a cable royalty claim, a television station must have aired locally-produced programming of its own and had its signal carried outside of its local service area by at least one cable system in 2018. Television stations with locally-produced programming whose signals were delivered to subscribers located outside the station’s Designated Market Area in 2018 by a satellite provider are also eligible to file royalty claims. A station’s distant signal status should be evaluated and confirmed by communications counsel.

Both the cable and satellite claim forms may be filed electronically or in paper form. Paper forms may be downloaded from https://www.crb.gov/cable; however, with the recent introduction of the Copyright Royalty Board’s new online filing system, eCRB, claimants are strongly encouraged to file claims online. Prior to filing electronically, claimants or their authorized representatives must register for an eCRB account at https://app.crb.gov. To submit claims, stations are required to supply the name and address for the filer and for the copyright owner, and must provide a general statement as to the nature of the copyrighted work (e.g., local news, sports broadcasts, specials, or other station-produced programming). Claimants should keep copies of all submissions and confirmations of delivery, including certified mail receipts.

Those filing paper forms should be aware that detailed rules as to how the claims must be addressed and delivered apply. Claims that are hand-delivered by a local Washington, D.C. commercial courier must be delivered between 8:30 a.m. and 5:30 p.m. (those hand-delivered by a private party must arrive by 5:00 p.m.). Claims may be sent by certified mail if they are properly addressed, postmarked by July 31, 2019, and include sufficient postage. Claims filed via eCRB must be submitted by 11:59 p.m. (EDT) on July 31. The Copyright Royalty Board will reject any claim filed prior to July 1, 2019 or after the deadline. Overnight delivery services such as Federal Express cannot be used. Stations filing paper claims should verify the proper procedures with communications counsel.

Please contact any of the group’s attorneys for assistance in determining whether your station qualifies to make a claim and in filing the claim itself.

A PDF version of this article can be found here.