Articles Posted in Cable/Satellite TV

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This post 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 2024.  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, 2025.

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, 2025 will not be able to collect royalties for carriage of their owned programming outside their local service area during 2024.

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 2024.  Television stations with locally-produced programming whose signals were delivered to subscribers located outside the station’s Designated Market Area in 2024 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. Continue reading →

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The FCC’s rules require that all Emergency Alert System (EAS) Participants update their identifying information in the EAS Test Reporting System (ETRS) annually.  Accordingly, all EAS Participants must update and submit their ETRS Form One for 2024 by Friday, October 4, 2024.

For broadcasters, EAS Participants include full power radio and TV broadcast stations, low power FM stations, and Class D noncommercial educational FM stations.  Low power TV stations, unless they are operating as a TV translator station, must also submit a Form One.  Stations must file a Form One even if they are silent pursuant to a grant of Special Temporary Authority.

The following types of stations are exempt from this filing requirement:

  • TV translator stations
  • FM translator or booster stations that entirely rebroadcast the programming of a local broadcast radio station
  • Stations that operate as satellites or repeaters of a hub station (or common studio or control point if there is no hub station) and rebroadcast 100 percent of the programming of the hub station (or common studio or control point). Note that the hub station (or common studio or control point) must file a Form One.

While the FCC often ties the deadline for filing the annual Form One to the occurrence of a nationwide EAS test, the Federal Emergency Management Agency and FCC have not announced a national test this year.  As a result, the Form One must be filed independently to satisfy the annual filing obligation.  The most recent nationwide test was held October 4, 2023.  That test was largely successful, with nearly 97 percent of EAS Participants receiving the test message and about 94 percent of Participants successfully relaying the message.  These numbers represent a seven percent increase over the receipt and relay success rates reported for the 2021 test (the last nationwide test conducted prior to 2023).

Form One filers should review the FCC’s Public Notice concerning this filing requirement, as well as the FCC’s ETRS Form One Filing Guide and Frequently Asked Questions for information about using the ETRS, and consult their state’s EAS Plan before responding to the EAS operational area and monitoring assignments prompts.

Filers should be sure to have on hand the FCC username and password associated with the FCC Registration Number(s) (FRN) of the entity(ies) for which they are filing.  Users who have not previously created a username may do so by visiting the User Registration System.  Filers should visit the main ETRS page to file their Form One in advance of the October 4 deadline in case they encounter any filing portal errors and need time to resolve them before the deadline.

 

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Earlier this week, the FCC opened CORES to accept FY 2024 regulatory fee payments and announced a payment deadline of September 26, 2024.  Since that time, however, broadcasters have encountered a number of issues when trying to pay their fees.  The most common issues include:

  • Difficulty accessing the system
  • Assessment of inaccurate fees
  • Failure to assess fees for all stations associated with a licensee’s FRN
  • Stations being listed in incorrect service categories (e.g., a TV translator being listed as a full-power TV station, and vice versa)
  • Fee-exempt stations being listed as feeable

The FCC today acknowledged that incorrect population count information in particular is resulting in incorrect fee assessments for a significant number of AM and FM stations.  In response, the FCC has temporarily deactivated the fccfees.com lookup site and has also added the following notice on the CORES log-in page:

NOTICE: The FCC is continuing to do its due diligence to reevaluate the population count information for AM and FM broadcasters for FY 2024 regulatory fees. We expect to have this situation resolved early next week. In the meantime, we request that AM and FM broadcasters do not make any payments in CORES. Thank you for your patience.

Accordingly, AM and FM broadcasters should hold off on generating their fee reports or submitting regulatory fee payments to the FCC until this issue is resolved.  Other broadcasters would also be wise to pay close attention to the fees that CORES assesses for their stations to ensure that they do not under- or over-pay and that all stations are properly accounted for.  We recommend that you seek assistance from experienced FCC counsel if you encounter any of the issues listed above (or other system issues). As noted in our previous post, failure to pay in full can lead to significant interest and penalties (and efforts to recoup overpayments may be time consuming).

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Following last week’s adoption of the 2024 Regulatory Fee Report and Order, which we discussed here, the Federal Communications Commission today released its annual Public Notice setting 11:59 p.m. Eastern Time on September 26, 2024 as the payment deadline for fiscal year 2024 regulatory fees.  The FCC also opened  the online system for submitting those payments.

Note that the FCC’s old “Fee Filer” system has been retired and regulatory fees must now be paid via the FCC’s Commission Registration System (CORES).  Logging into CORES requires users to set up a personal account using an email and password of their choosing.  We have previously provided step-by-step instructions for how to do so here.  Additionally, in March 2024, CORES moved to a two-step login authentication process, whereby each time a user logs into CORES, the user will be prompted to request a six-digit verification code that will be emailed to the email address(es) associated with the username.  The user must then enter the code into CORES to finish the log-in process.

As this is still a fairly new process, we suggest logging in well before the payment deadline to ensure you are able to access the system and successfully pay your regulatory fees, as late or unpaid fees incur interest and are assessed a 25% penalty, and can put a licensee in “red light” status.  Stations that are unable to make their regulatory fee payment by the deadline or that need additional relief such as a payment plan or reduction/deferral of their fees should make those requests to the FCC as soon as possible.  The Commission released a separate Public Notice detailing the procedures to apply for such relief.

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Today, the Federal Communications Commission released its Report and Order setting this year’s annual regulatory fee amounts.  Payments will be made electronically via the FCC’s Commission Registration System (CORES), but the FCC has yet to announce the date the system will open or the date the fees are due.  Given that the fees must be collected before the end of this month, that announcement is expected very soon.

For fiscal year (FY) 2024, the FCC will be collecting a total of $390,192,000 to fund the FCC’s operations, the same amount as last year.  For the second year in a row, however, broadcasters will see a decrease in their regulatory fees.  As we noted in 2023, this decrease can be credited at least in part to the years-long effort by state broadcasters associations and the NAB to persuade the FCC to reevaluate its methodology for allocating regulatory fees and to expand the pool of entities that are charged regulatory fees.  These past few years have seen significant progress on the first initiative, resulting in this year’s reduced fees, but the battle to convince the FCC to expand its payor base (as dictated by the governing statute) continues.

For television stations, the FCC will use the same population-based methodology for FY 2024 as it used in FY 2023.  However, the FCC has adopted a fee of $.006598 per-person-served for FY 2024, which is a decrease from the $.007799 per-person-served used for FY 2023 TV regulatory fees.  Some additional shifts will be caused by FY 2024 fees being the first to incorporate 2020 U.S. Census data into these calculations.

Radio broadcasters will also see a decrease in their regulatory fees this year, with a reduction of approximately 5% across the board.  To determine the precise regulatory fees owed, broadcasters should consult Appendices C (Radio) and G (Television) at the end of the Report and Order.

Another change for FY 2024 is the elimination of the temporary relief measures that were adopted during the COVID-19 pandemic.  The FCC had provided relief to payors facing financial hardship as a result of the pandemic, including allowing regulatees in “red light” status (those already behind on regulatory fee or other payments to the FCC) to “request waiver, reduction, deferral, and/or installment payment of their FY 2023 regulatory fees, provided that those regulatees resolve all of the delinquent debt they owe to the Commission in advance of the Commission’s decision on their requests for relief.” Continue reading →

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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 2023. 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, 2024.

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • New Hampshire Presidential Primary Deepfake Robocalls Lead to Enforcement Action Against Call Originator
  • TV Broadcaster Faces $720,000 Fine for Failure to Negotiate Retransmission Consent in Good Faith
  • Statutory Maximum Penalty of $2,391,097 for Pirate Radio Operator

Telecommunications Company Accused of Originating Illegal Robocalls That Used President Biden’s Voice

A Michigan-based telecommunications company received a Notice of Suspected Illegal Traffic (“Notice”) from the FCC’s Enforcement Bureau accusing it of originating illegal robocall traffic related to the New Hampshire Presidential Primary election.

Two days before voting began in the Primary, New Hampshire residents believed to be potential Democratic voters began receiving calls purportedly from President Joe Biden telling them to “save” their vote for the November general election and not vote in the Primary.  The caller ID information indicated the call came from the spouse of a former state Democratic Party chair who was running a super PAC urging state Democrats to write in President Biden’s name in the Primary.  The call was not authorized by President Biden or his campaign or an authorized committee, nor did it include a legitimate message from the president but instead was a so-called deepfake using the President’s voice.  The caller ID information was spoofed.

Following widespread news reporting of the calls, the FCC investigated the matter together with the New Hampshire Attorney General, the Anti-Robocall Multistate Litigation Task Force and USTelecom’s Industry Traceback Group (“ITG”).  This group determined that the telecommunications company was the originating provider of the robocalls at issue, and the ITG provided identifying call data to the company for the suspect calls.  In response, the company identified another entity as the party that initiated the calls and told the ITG that it had warned the initiating entity as to the illegality of the calls.  According to the Notice, both the company and the apparent initiating entity have been previous subjects of illegal robocall investigations.

It is illegal under federal law to “knowingly transmit misleading or inaccurate caller identification information with the intent to defraud, cause harm, or wrongfully obtain anything of value” and the law requires originating providers to protect their networks by taking “affirmative, effective measures to prevent new and renewing customers from using its network to originate illegal calls, including knowing its customers and exercising due diligence in ensuring that its services are not used to originate illegal traffic.”  Failure by a provider to protect its network can lead to downstream providers permanently blocking all of the upstream provider’s traffic.  In this case, the FCC believed the caller knowingly transmitted misleading and inaccurate caller ID information to deceive and confuse call recipients and apparently intended to harm prospective voters by using the President’s voice to tell them to not participate in the Primary.  The company also signed the calls with A-Level Attestation, an authentication designation that signals to downstream providers that the company has a direct relationship with the customer and that the customer legitimately controls the phone number in the caller ID field.

Transmittal of the Notice triggered several obligations for the company, including that it investigate the illegal traffic identified by the FCC and block or cease accepting all of the illegal traffic within 14 days of the Notice if the company’s investigation determines that it was part of the call chain for the identified traffic or substantially similar traffic.  Failure to respond to the Notice or to comply with additional obligations could result in temporary or permanent blocking of all traffic from the company, removal of the company from the Robocall Mitigation Database, which would cause all intermediate and terminating providers to immediately cease accepting the company’s telephone traffic, and more.  The FCC also issued a Public Notice notifying all U.S.-based voice service providers of the suspected illegal traffic coming from the company and authorizing the providers, at their discretion, to block or cease accepting traffic from the company without liability under the Communications Act of 1934 if the company failed to effectively mitigate the illegal calls. Continue reading →

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If there was any doubt that the late-2023 confirmation of Anna Gomez as the fifth commissioner would bring a flurry of FCC activity in 2024, the FCC has laid those questions to rest. In addition to a $150,000 good faith NAL, $500,000 sponsorship ID consent decree, $26,000 EEO report NAL, and some public file NALs, the FCC this week released two Notices of Proposed Rulemaking of potential interest to broadcast licensees.

Continue reading →

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Pillsbury’s communications lawyers have published FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others.  This month’s issue includes:

  • Seven-Figure Fine Imposed on Pirate Radio Brothers
  • $25,000 Fine Proposed for Kansas Radio Station EEO Rule Violations
  • Satellite Company Enters $150,000 Consent Decree for Orbital Debris

FCC Affirms Largest-Ever Pirate Radio Fine

The FCC affirmed a $2,316,034 fine against two brothers operating a pirate radio station in Queens, New York.  The penalty followed a March 2023 Notice of Apparent Liability for Forfeiture (NAL), which we wrote about here.

In the NAL, the FCC set out the details of the brothers’ pirate radio activities, including that they had been illegally operating since 2008.  The Preventing Illegal Radio Abuse Through Enforcement Act (known as the PIRATE Act and enacted in 2020) expanded the FCC’s authority to take enforcement action against radio pirates, and the fine proposed in March was the first issued under the FCC’s newly-expanded authority.  Illegal broadcast operations can interfere with licensed communications and pose a danger to the public by interfering with licensed stations that carry public safety messages, including Emergency Alert System transmissions.

In this case, the FCC’s investigation documented 184 days of pirate broadcasts.  With a $20,000 base fine for each willful and knowing violation, plus upward adjustments for intentional conduct and a history of rule violations, the FCC arrived at a fine of $21,307,568, but then reduced it to the statutory maximum of $2,316,034.  The brothers are jointly and severally liable for the fine, which means that each brother is responsible for paying the full fine and the FCC can recover the total fine from either brother or both.  Payment of the penalty is due within 30 days of the release date of the Forfeiture Order.

Kansas Radio Licensees Face $25,000 Fine for EEO Violations

Two related radio companies, licensees of a combined nine Kansas radio stations, received an NAL for various violations of the FCC’s Equal Employment Opportunity (EEO) rules.  The NAL proposed a $25,000 fine.

The FCC’s EEO rules prohibit broadcasters from discriminating in hiring on the basis of race, color, religion, national origin, or gender and, in many cases, require broadcasters to conduct and document broad job vacancy recruitment efforts.  The nine stations are run by the same two principals and operate as two Station Employment Units.  A Station Employment Unit (SEU) is a “a station or a group of commonly owned stations in the same market that share at least one employee.”  The FCC Enforcement Bureau’s investigation into the SEUs’ EEO compliance appears to have stemmed from the FCC’s processing of the stations’ license renewal applications, during which FCC staff reviews a station’s compliance with the FCC’s various rules throughout the station’s license term. Continue reading →

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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 →