Articles Posted in National Security

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Time moves slowly in the regulatory universe, at least until you are facing a deadline.  It was in 2022 that I first wrote about the then-upcoming September 15, 2022 deadline for broadcasters to disclose whether all content “aired pursuant to the lease of time on the station” had a “foreign governmental entity” behind it, in which case the broadcaster needed to disclose that foreign sponsorship both on-air and in the station’s Public Inspection File.  The task was made more difficult by the broad definition of a foreign governmental entity, which included not just foreign governments, but “foreign political parties, agents of foreign principals, and United States-based foreign media outlets.”

The part of the rule requiring broadcasters to independently investigate whether those leasing airtime were foreign governmental entities was overturned by the courts in July 2022, but that didn’t prevent the remainder of the rule from going into effect in 2022.  The remainder (as summarized by the FCC) included:

(1) Inform the lessee of the foreign sponsorship disclosure requirement.
(2) Ask the lessee whether it falls into any of the categories that would qualify it as a “foreign governmental entity.”
(3) Ask the lessee whether it knows if any individual/entity further back in the chain of
producing/distributing the programming to be aired qualifies as a foreign governmental entity and has provided some type of inducement to air the programming.
(4) Memorialize the above-listed inquiries and retain such memorialization in its records for the remainder of the license term or for one year, whichever is longer.

The FCC, unwilling to settle for 4/5 of the apple and obviously stung by the court’s rebuke, altered the rule in June 2024 to sidestep the court’s ruling.  Since the court had found that the FCC lacked statutory authority to compel broadcasters to obtain sponsorship information from anyone other than their employees and program sponsors, the FCC amended the rule to require that either (1) the broadcaster and the sponsor execute separate certifications “reflecting the communications and inquiries required under the existing rules,” or (2) the broadcaster “ask their lessees for screenshots of lessees’ search results of two federal government websites [DOJ’s FARA website and the FCC’s U.S.-based foreign media outlets reports].”  In other words, the FCC’s maneuver was that if it was beyond its authority to make broadcasters conduct due diligence searches of those two government websites, it wasn’t beyond its authority to demand broadcasters still conduct due diligence research by asking their content providers/sponsors to search those same two websites and provide the search results to the broadcaster.

It’s an onerous requirement given that broadcasters have no legal right to demand anything of their content providers/sponsors, and those same providers can simply elect to take their business to literally every other form of media without facing such regulatory hurdles.  While unwelcome, it was still largely manageable because the FCC in adopting the original rule had made clear that a lease of airtime did not include “traditional, short-form advertising,” and leases of blocks of airtime on broadcast stations are relatively rare compared to traditional ad sales.

Unfortunately, in the later June 2024 Order, the FCC “clarified” the rule to make clear that it “will not apply to sales of advertising for commercial goods and services to the extent that such programming would not otherwise be subject to the general sponsorship disclosure rules, as set forth in section 73.1212(f) of our rules.”  So it would apply to ads that are not for “commercial goods and services.”  That includes ads for nonprofits and ads that don’t fit within Section 73.1212(f).  One example of an ad that is not for a commercial product or service is a U.S. Navy recruiting ad, meaning that broadcasters would need to collect certifications/proof that the U.S. Navy is not a representative of a foreign government before airing its recruiting ads.

The Order then plunged the regulatory dagger deeper, explicitly stating that the rule would apply to the airing of paid Public Service Announcements (PSAs) and all political advertising unless placed by a candidate.  The sheer volume of political ads and the pace at which they are changed in the months leading up to an election is staggering, with ample FCC Political File disclosure requirements already bedeviling stations trying to handle that workload.  The notion of demanding yet more information and documentation from a political advertiser adds to the burden on station employees while giving political advertisers one more reason to take their advertising elsewhere, where they will face none of those regulatory headaches.  And let’s be honest; some advertisers will be absolutely offended by the mere suggestion that they could be connected to a foreign government.

Because no one could figure out how to make such a labor and paperwork-intensive process work in the real world, and because the paperwork requirements had to be approved by the Office of Management and Budget before they could go into effect, the FCC originally announced the amended rule would go into effect a year later, on June 10, 2025.  Then, late in the day on June 10, 2025, the FCC announced an extension of the compliance deadline to December 8, 2025.  Announcing extensions for what appeared to many to be a fundamentally unworkable rule became a running feature here on CommLawCenter.

So I was not entirely surprised to find myself writing on December 5, 2025, one business day before the next deadline, that the FCC had just announced a further extension of the deadline to June 7, 2026.  That post ended with the hopeful message that the FCC might “use this added time to streamline these rather unwieldy requirements before next June.”

That proved partially prophetic.  This time around the FCC didn’t wait until the last minute to announce its plans regarding when broadcasters must come into compliance with the amended foreign sponsorship rule.  While today’s FCC Public Notice emphasized that the deadline for complying with the amended foreign sponsorship rule remains June 7, 2026, it announced that it is suspending the compliance deadline for advertisements and paid PSAs for “two years or until further public notice, whichever comes first.”

More important than the two-year extension is the reason given for it: “this delay of the advertisement and paid PSA regulation is necessary for the Commission to evaluate the costs and burdens associated with these requirements to ensure that there is sufficient offsetting public benefit.”  In other words, the FCC is reassessing whether the burden imposed by expanding the “diligence” requirement to advertising and paid PSAs makes any sense given the substantial burdens involved and the lack of any record evidence demonstrating that broadcast advertisements are being used as undisclosed propaganda tools by foreign governments.

That doesn’t mean that the non-diligence parts of the rule don’t still apply to advertisements and paid PSAs.  While broadcasters won’t be required to provide certifications or government database search results demonstrating that an ad sponsor is not connected to a foreign government, if the broadcaster has actual knowledge that the sponsor is connected to a foreign government, it must still ensure the ad includes an on-air disclosure of that fact, and place a record of it in its Public Inspection File.

So the next time you see a “Visit Scandinavia” ad that portrays Scandinavia as a pleasant place to visit, don’t fall for it.  That’s just what the Scandinavian governments want you to think.

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Pillsbury’s communications lawyers have published the 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:

  • FCC Warns New York Property Owners Over Pirate Radio Broadcasts
  • New Jersey AM Radio Station Cited for Tower, Power, and EAS Violations
  • FCC Targets Covered List Entity Over Equipment Authorization Violations

FCC Issues Notices to Three NY Property Owners Over Pirate Radio Activities on Their Premises

The FCC’s Enforcement Bureau issued Notices of Illegal Pirate Radio Broadcasting (Notices) to three property owners in New York following investigations into unlicensed FM broadcasts.  The Enforcement Bureau’s New York field office initiated the investigations after receiving complaints about unauthorized radio operations.  In each instance, agents used direction-finding techniques to confirm that the transmissions were emanating from the identified properties.

FCC records indicated that no license had been issued for a broadcast station to operate at those locations and frequencies, and the Enforcement Bureau determined that the signals were too powerful to qualify for any exemptions applicable to extremely low-powered devices.

Under Section 511 of the Communications Act, the FCC may impose significant fines not only on the pirate operators, but also on property owners who permit such activity on their premises.  The Notices warn that property owners can face fines of up to $2,453,218 if the FCC determines that they continue to allow unauthorized transmissions to occur on their properties.

The Notices direct the property owners to respond within ten business days providing evidence that the unauthorized broadcasts have ceased.  They also request that the property owners identify the individual(s) responsible for the pirate radio operations.

The Enforcement Bureau added that even if the property owners do not respond, the FCC may determine that it has sufficient knowledge of the pirate radio activity to support enforcement actions that could result in “significant financial penalties.”

FCC Pursues New Jersey AM Station for Tower, Power and EAS Violations

The FCC’s Enforcement Bureau issued a Notice of Violation (NOV) to the owner of a New Jersey AM radio station with several Pennsylvania transmission towers for multiple rule violations.  The NOV states that agents from the FCC’s New York field office inspected the station and its associated towers on two occasions in May and August 2025 and identified numerous rule violations.

According to the NOV, the agents found that the towers lacked lighting required by their Antenna Structure Registrations (ASR).  Section 17.23 of the FCC’s Rules requires that towers be painted and lighted in accordance with their registration.   The structures’ ASRs required a red beacon at the top level and two side marker lights at the one-third and two-thirds levels.  While each structure displayed a red beacon at the top, none of the required side marker lights were operational. Continue reading →

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Pillsbury’s communications lawyers have published the 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:

  • Satellite Communications Company Resolves Team Telecom Agreement Violations Through $175,000 Consent Decree
  • Michigan AM Station Cited for Tower and Other Violations
  • Five LPFM Applications Dismissed for Failing to Meet Localism Requirements

$175,000 Consent Decree for Satellite Communications Company’s Team Telecom Compliance Failures

The FCC’s Enforcement Bureau entered into a Consent Decree with a provider of satellite communications services to resolve an investigation into violations involving its international Section 214 and earth station authorizations.  The Consent Decree represents the first time a grantee has agreed to a financial penalty for violating a Team Telecom mitigation agreement.

Grant of the authorizations had been expressly conditioned on the company’s ongoing compliance with a Team Telecom mitigation agreement.  Team Telecom is an interagency group led by the Departments of Justice (DOJ), Homeland Security, and Defense.  It reviews foreign involvement in U.S. telecommunications transactions for national security and law enforcement concerns.  When Team Telecom identifies potential risks resulting from foreign involvement in a proposed transaction, it may recommend that the FCC not approve the transaction, or enter into a mitigation agreement with the applicant designed to ameliorate those concerns.

Where an applicant enters into a mitigation agreement, Team Telecom will typically inform the FCC that it does not object to the proposed transaction so long as the approval is conditioned upon continuing compliance with the mitigation agreement. The FCC then makes an independent decision as to whether to grant the requested authorization, but tends to defer to Team Telecom’s judgment regarding matters of foreign involvement, including as to whether the grant should be conditioned on compliance with a Team Telecom mitigation agreement.

The investigation at the core of this Consent Decree stemmed from a May 2024 referral by the DOJ, which received a notification from the company requesting approval to permit several foreign employees to have access to the company’s U.S. communications infrastructure and customer information.  The mitigation agreement required that the company submit foreign employee access requests to DOJ at least 30 days prior to permitting access.  The DOJ’s review of this request led to a finding that the company had already provided access to numerous foreign employees without first notifying the DOJ.

After the DOJ referred the alleged violation to the FCC, the FCC’s Enforcement Bureau commenced an investigation which concluded that the company had failed to notify the DOJ before giving 186 foreign employees access to the company’s U.S. communications infrastructure and customer information.  The FCC concluded that the failure stemmed from the company’s inadequate screening procedures.  Although all 186 employees were later cleared by the DOJ, the requests were submitted only after the investigation commenced.

To resolve the matter, the company entered into a Consent Decree in which it admitted the facts surrounding the violations and agreed to implement new policies and procedures to prevent a recurrence.  These include designating a compliance officer, creating formal operating procedures to prevent future violations, distributing a compliance manual to relevant staff, and conducting regular employee compliance training.  The company also agreed to submit regular compliance reports to the FCC over the next three years and promptly notify the FCC of any future violations.  Finally, it agreed to make a $175,000 voluntary contribution to the U.S. Treasury.

FCC Issues Notice of Violation to Michigan AM Station for Multiple Tower and Other Rule Violations

The FCC’s Enforcement Bureau issued a Notice of Violation (NOV) to the owner of a Michigan AM radio station for multiple rule violations.  The NOV notes that agents from the FCC’s Columbia and Chicago field offices had inspected the radio station and tower sites on two separate days in February 2025 and once again in September 2025, finding multiple rule violations. Continue reading →

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On Thursday, August 7, the Federal Communications Commission (“FCC” or “Commission”) held its monthly Open Meeting, where it considered items spanning several industries, including broadcasting, satellite communications, and public safety, among others.  The expansive agenda reflected the Commission’s full court press on agency-wide regulatory streamlining, system modernization, and expansion of nationwide connectivity initiatives.  Below are high-level summaries of the items the Commission considered and adopted as part of the August meeting:

NEPA Review Modernization

The Commission adopted a Notice of Proposed Rulemaking (NPRM) to re-examine its environmental review procedures in accordance with the National Environmental Policy Act (NEPA) as amended in 2023, and to ensure such procedures are clear, facilitate greater and faster infrastructure deployment, and accelerate the federal permitting process.  To advance these objectives, the NPRM seeks comment on whether and how to revise the FCC’s rules to align with the updated definition of a “major federal action,” update or replace the Commission’s longstanding categorical exclusions, and streamline review timelines for environmental assessments and impact statements.  The NPRM further inquires whether geographic-area licenses and other Commission actions should trigger NEPA obligations and seeks comment on  proposed changes to related rules under the National Historic Preservation Act.

  • Comments on the NPRM are due by September 18, 2025; Reply Comments are due by October 3, 2025.

Streamlining Space Bureau Reviews

The Commission adopted a Second Report and Order (Order) in its Expediting Initial Processing of Satellite and Earth Station Applications proceeding, which focuses on further expediting processing of applications and removing certain regulatory barriers to modifying systems following authorization.  The Order facilitates the expansion of ground station as a service (GSaaS) by allowing operators to apply for baseline earth station licenses without pre-identified satellite points of communication and by streamlining the process by which operators can add or remove satellite points of communication to an existing earth station authorization.  Significantly, the Order also expands the types of modifications that will not require prior FCC approval, giving more post-authorization flexibility to space and earth station operators.  The Order also eliminates the paper copy retention rule, aligns renewal timelines across earth stations, geostationary, and non-geostationary satellite applications, adds a 30-day shot clock for certain renewals, and permits market access grantees to request special temporary access.

  • Except for those rules subject to the Paperwork Reduction Act, the Order will become effective on September 26, 2025.

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Pillsbury’s communications lawyers have published the 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:

  • TV Group Owner Enters $222,500 Consent Decree Over Pornographic Broadcast Hack
  • Kentucky Radio Station License Revoked Over Unpaid Regulatory Fees
  • FCC Threatens Chinese Telecom Provider With Fines for Failure to Fully Respond to FCC Inquiries

Pornography on Background Monitor During Newscast Leads to Costly Consent Decree

A group owner of TV stations entered into a Consent Decree with the FCC’s Enforcement Bureau to resolve an investigation into the broadcast of indecent material during a 6 p.m. newscast.

Section 73.3999 of the FCC’s Rules prohibits the broadcast of obscene material at any time and prohibits the broadcast of indecent material between 6:00 a.m. and 10:00 p.m., primarily to protect children from being exposed to inappropriate content.

After receiving a complaint about pornographic material appearing during a weather report in October 2021, the FCC sent a Letter of Inquiry (LOI) to the station’s licensee in November 2021.   The licensee’s parent company responded to the LOI and confirmed that the material aired for approximately 13 seconds on a monitor which was visible behind the weatherperson during the weather segment.  The broadcaster explained that the accidental airing of the material, which was aired without the station’s prior knowledge or involvement, was caused by an unauthorized third party who exploited a wireless screencasting feature of the on-set monitor to display the content.  The legacy wireless network had been installed prior to the licensee’s acquisition of the station and, as was discovered after the incident, it lacked password protection.

Upon spotting the material displayed on the monitor, the station promptly switched to a full-screen weather graphic to end the broadcast of the material, issued an on-air apology, and conducted an internal investigation which included working with local law enforcement to identify the party responsible for transmitting the material to the monitor.  The broadcaster reported that the content did not pass through the station’s normal production systems and attributed the breach to unauthorized access via the unsecured legacy wireless network.  Upon discovering that the monitor had a screencasting capability that had been exploited, the broadcaster subsequently disabled screencasting capabilities for all monitors located at its stations, deactivated the vulnerable network, and took the added step of removing all wireless components from its existing monitors and any newly acquired monitors at all of its stations.

Despite the police’s inability to determine who was responsible for exploiting the previously unknown wireless capability of the monitor, and the extraordinary steps taken by the broadcaster to prevent a recurrence not just at this station, but at all of its stations, the FCC pursued an investigation of the broadcaster.

To resolve the investigation, the broadcaster entered into a Consent Decree with the Enforcement Bureau.  Under the terms of the Consent Decree, the broadcaster agreed to make a “voluntary contribution” of $222,500 to the United States Treasury, implement a multi-year Compliance Plan (including appointing a Compliance Officer, creating a Compliance Manual, conducting employee training and establishing operating procedures to prevent such an occurrence in the future, and committing to promptly notify the FCC of any future violations of either the indecency rules or of the Consent Decree), and submit regular compliance reports to the FCC over a three-year period.

FCC Revokes Kentucky Radio Station’s License After Years of Unpaid Regulatory Fees

 The FCC revoked the license of a Kentucky AM radio station for failing to pay regulatory fees for six fiscal years, going back to 2013.

Under Section 9 of the Communications Act and Section 1.1151 of the FCC’s Rules, the Commission has the authority to assess annual fees to cover its operational costs.  Late payment of these fees incurs a 25% penalty plus interest. Continue reading →

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Broadcast stations face a September 15 deadline to ensure that all programming aired on their stations complies with the FCC’s foreign sponsorship disclosure requirements.

The Foreign Sponsorship Disclosure Rule was adopted by the FCC in April 2021, targeting airtime lease agreements between broadcasters and foreign governments or their representatives. The rule requires stations to take specific steps to ensure that the public is made aware of any programming aired that is provided, funded, or distributed by “governments of foreign countries, foreign political parties, agents of foreign principals, and United States-based foreign media outlets.”

Specifically, broadcasters are required to notify program suppliers leasing airtime or providing free programming to the station for airing that there is a disclosure requirement that applies to programming provided by foreign government entities or their agents, and to affirmatively ask whether the programmer is a foreign government entity or an agent of one, as well as whether a foreign government entity or an agent of one was involved in the preparation, funding, or distribution of the programming.

That inquiry must be documented by the broadcaster, and the broadcaster must retain that documentation for the remainder of the station’s license term, or one year, whichever is longer. If the inquiry results in a determination that the programming was in fact prepared, funded, or distributed by a foreign government entity or an agent of one, then a disclosure notice must air at the beginning and end of the program, stating: “The [following/preceding] programming was [sponsored, paid for, or furnished], either in whole or in part, by [name of foreign governmental entity] on behalf of [name of foreign country].  If the program length is five minutes or less, a single announcement can be aired either at the beginning or end of it, and if it is longer than an hour, the announcement must also air at regular intervals, airing at least once per hour.  Note that the FCC specifically excluded agreements to air short-form advertising from its definition of leasing agreements covered by the Rule.

In addition to airing the disclosure, the station must upload a copy of the disclosure, along with the name of the affected program and the dates and times it aired, to its Public Inspection File on a quarterly basis.  These materials should be uploaded to the standalone file folder titled “Foreign Government-Provided Programming Disclosures.”

The Foreign Sponsorship Disclosure Rule went into affect for new airtime leasing arrangements on March 15, 2022.  However, because the Rule applies to both newly-entered and existing airtime leasing arrangements, the FCC provided a six-month period for stations to complete the inquiry/documentation process for airtime arrangements created prior to March 15, 2022.

That grace period ends on September 15, 2022, at which point stations should have completed their inquiries for all programming arrangements (not just pre-March 15, 2022 leasing agreements), documented those inquiries, and commenced airing on-air disclosures for any content that must be identified as having foreign government-connected sponsorship. Therefore, to the extent they have not already done so, stations with existing airtime leasing agreements should reach out to the program provider to determine whether a disclosure is required.

For new airtime agreements going forward, broadcasters may want to consider making the notice and inquiry part of the leasing agreement, integrating language into the leasing agreement forms to include a discussion of the disclosure requirement and requiring the programmer to affirmatively verify whether an on-air disclosure is required. To the extent that the programmer discloses that it is a foreign government entity or agent, then the agreement should note that the station will be running the required disclosure.

That approach of course doesn’t work for agreements that were previously created (unless done as an amendment to the original contract), so stations needing to document their inquiries relating to agreements that predated March 15, 2022 will need to separately document the inquiry, and then ensure that any program content determined to require a disclosure commences airing with the disclosure no later than September 15.

As noted, the Rule applies to all agreements to lease airtime to third parties. Therefore, to the extent that they have not already done so, broadcasters should be sure to complete their inquiries, document them, and commence airing the required disclosures.  Stations should also be careful not to forget to upload those disclosures to their Public Inspection File each quarter.

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Bringing to a close the process initiated with the adoption of the Secure and Trusted Communications Act of 2019, the FCC’s Public Safety and Homeland Security Bureau released its list of communications equipment and services that it has deemed to pose an unacceptable risk to U.S. national security. U.S.-based service providers are prohibited from receiving federal subsidies for purchasing the listed communications equipment or services (Covered List), and service providers will be given an opportunity to receive federal funds to subsidize the removal and replacement of the communications equipment and services included on the Covered List.

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