My Insanely Long Field Guide to the Fox29 Philadelphia (WTFX-TV) License Renewal Challenge.

In July, the Media and Democracy Project filed a Petition to Deny the license renewal of Fox29 (WTFX-TV) in Philadelphia. The Petition rests on a particular feature of Federal Communications Commission (FCC) broadcast licensing law. Every 8 years, a broadcast station must apply to the FCC to renew its broadcast license, which requires a showing that the licensee has — among other things — the requisite character to hold a broadcast license. The scope of behavior the FCC will consider under its 1986 Character Policy and subsequent amendments is fairly narrow — it does not, for example, include littering or making a nuisance of oneself. But it is not entirely limited to behavior involving the broadcast license itself. It includes any conduct that calls into question whether you can be trusted to run a broadcast station under the FCC’s rules and as a “trustee of the community of service.” In other words, the FCC can send you to the Group W Bench (here, a hearing) where, to paraphrase Arlo Guthrie, they decide if you are moral enough to hold an FCC broadcast license.

 

MAD challenges renewal of Fox29 on the grounds that Fox Corp, the ultimate owner of Fox Television Broadcast Stations (FTBS) and Rupert Murdoch and son Lachlan (principle shareholders who have previously been found to have de facto influence or control over FTBS as well as Fox Corp.) lack the requisite character to hold a Commission broadcast license. They point to the settlement in the Dominion defamation case, where Fox Corp. and Murdoch as the named defendants acknowledged (but did not formally admit to the truth of) the earlier findings of the district court that they had made false statements about the outcome of the 2020 election on Fox News Cable Network and the role of Dominion Voting System machines in supposedly “stealing” the election. (They attach the relevant decision and press statement to the Petition). This conduct, they argue, violates the Commission’s Character Policy — making Fox Corp and Murdoch inherently unfit to act as a broadcast licensee. FTBS responds in opposition that this is all irrelevant because none of the behavior involved Fox29 and that refusing to renew the license would violate the First Amendment. MAD replies that actions that violate the Character Policy do not need to involve the licensee, and that holding licensees accountable under the Character Policy does not violate the First Amendment, as it is long settled that there is no First Amendment right to a broadcast license and that the Commission has an obligation to ensure that all license grants serve the public interest. (See NBC v. United States and Red Lion Broadcasting Co. generally).

 

Most people who have paid attention to this have dismissed the Petition as frivolous and a waste of time. But the Petition raises some interesting, novel questions under the law. It also has attracted support from a number of folks involved in the formation of Fox as the fourth TV network, including Preston Padden (Fox’s main lobbyist in the 1980s and 90s), Ervin Duggan (former FCC Commissioner) and William Kristol (conservative pundit and former frequent guest on Fox), Jamie Kellner (first President of Fox Television) and former FCC Chair Al Sikes. I also note that the FCC has taken the highly unusual step of opening this license renewal hearing to public comment. To be clear, this step by the FCC does not indicate that the FCC has made any determination about the merits, but is a recognition that there is a public interest in allowing people to file in favor and against.

 

My point is that while getting the FCC to hold a hearing — let alone deny Fox29’s application for renewal — is certainly a long shot given how the FCC works, this is not a frivolous claim. To the contrary, it raises some very interesting questions from an FCC law perspective. So it is worth actually walking through the process here and what questions the FCC would need to resolve either to dismiss the Petition to Deny or to Designate for a Hearing. Because ultimately, unless the FCC finds a procedural deficiency, the FCC is going to have to actually write up a real and binding decision with real consequences and real precedential value.

 

Full disclosure, I’ve known and been friends with Preston Padden for a long time, and I rather hope this gets to the hearing phase if for no other reason than It Would Be Fun. But I will also say up front (and for reasons I will elaborate in below), I find it extremely unlikely the FCC will grant on the Petition. Still, it cannot get out of addressing the interesting questions raised by this case.

 

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700 MHz PreGame Show: Ergen’s Echostar Dances Alone; Brave Little Toaster Or Stubborn Idiot?

Echostar has decided to bid in the 700 MHz auction, despite DIRECTV sitting this one out. This raises the obvious question. Is Echostar founder and CEO Charlie Ergen a “brave little toaster,” boldly defying the odds and the nay sayers to reap a well-deserved reward in the end? Or is this another example of the stubborn idiocy that earned the proposed Echostar-DIRECTV merger the distinction of being the first merger in living memory actually rejected by the FCC because he refused to pull it when it became obvious it was doomed?

Actually, I’m betting on the “brave little entrepreneur” scenario, but the jury is still out.

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Unlicensed Spectrum in TV

The FCC has released its eagerly anticipated (or dreaded) Notice of Proposed Rule Making which would authorize the use of unlicensed spectrum access in the television bands. (Word, PDF, and Text). This is one of the real important proceedings before the FCC on unlicensed. You can be sure that major companies on both the pro-unlicensed and the anti-unlicensed side will file? But will you? Are you content to let Microsoft or Intel cut a deal with Viacom, News Corp and the rest of the media conglomerates for you? Or would you rather participate yourself and help define your own rights?

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Tales of the Sausage Factory: Will Janet Jackson's Bosom Baring Kill Comcast/Disney Deal

Granted its a cute headline, but what the heck am I talking about? Comcast and Disney had nothing to do with Ms. Jackson’s little “costume malfunction” and besides, isn’t this just a case of standard election year pandering by legislators on a nothing issue? Welcome, dear readers, to Washington Land, an E-Ticket Ride in the funhouse where surface appearances are very decieving . . .

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Tales of The Sausage Factory: CBS caves again for Bush

For those of you haven’t followed, Bush and the Republican leadership fought off an broad attempt by Congress to roll back the national television ownership cap to 35%. The compromise was to freeze the limit at 39%, which means that Viacom (parent of CBS) and News Corp. (parent of Fox) don’t have to sell off any stations. Senator Dick Durbin (D-IL) says that CBS has paid the administration back for this favor by refusing to sell time to an anti-bush ad on the Superbowl.

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