Copyright © 2006 Allyn and Bacon9-1 William R. Davie and James R. Upshaw Chapter Eleven - Law This multimedia product and its contents are protected under copyright law. The following are prohibited by law: any public performance or display, including transmission of any image over a network; preparation of any derivative work, including the extraction, in whole or in part, of any images; any rental, lease, or lending of the program. Principles of Electronic Media

Copyright © 2006 Allyn and Bacon9-2 Principles of Electronic Media Chapter Eleven - Law Restriction of free thought and free speech is the most dangerous of all subversions. It is the one un- American act that could most easily defeat us. U.S. Supreme Court Justice William O. Douglas

Copyright © 2006 Allyn and Bacon9-3 Principles of Electronic Media Chapter Eleven - Law Principle #1 The government licenses broadcasters to serve the public interest. “Because broadcast waves are a natural resource – one defined as scarce and limited – their use is guarded in laws established by Congress and enforced through an executive agency, the Federal Communications Commission” (246).

Copyright © 2006 Allyn and Bacon9-4 Principles of Electronic Media Chapter Eleven - Law Beginning with the Rule of Law Wireless Ship Act of 1910 – Wireless Rules From 750kHz to 550 – 1500kHz The Intercity and Zenith Cases Enforcement Radio Control Bill of 1927 – The FRC to the FCC Herbert Hoover

Copyright © 2006 Allyn and Bacon9-5 Public Interest Vs. Profit Radio was immediately realized for its commercial potential. John R. Brinkley “Medical Question Box Show” “Bullet Bob” Shuler: Hate speech, defamation Aimee McPherson: “Please order your minions of Satan to leave my station alone. You cannot expect the Almighty to abide by your wavelength nonsense” (248).

Copyright © 2006 Allyn and Bacon9-6 Principles of Electronic Media Chapter Eleven - Law Principle #2 Public ownership of the spectrum requires government oversight over the use of its frequencies.

Copyright © 2006 Allyn and Bacon9-7 Principles of Electronic Media Chapter Eleven- Law Federal Communications Commission The FRC became the FCC in 1934 when its oversight was extended to include all electronic media

Copyright © 2006 Allyn and Bacon9-8 FCC Structure Structure Membership Five commissioners appointed by the President. One commissioner also serves as Chairperson. Only three commissioners may be of a single political party

Copyright © 2006 Allyn and Bacon9-9 FCC Structure Making Rules Notice of Inquiry Notice of Proposed Rule Making Report and Order

Copyright © 2006 Allyn and Bacon9-10 FCC Structure To receive a license to broadcast you must… Obtain a Construction Permit by… Confirming your U.S. citizenship. Confirming your character (no felons). Confirming your finances (having sufficient resources to run the station without profit for three months).

Copyright © 2006 Allyn and Bacon9-11 FCC Penalties The FCC may issue fines or revoke licenses for… Obscenity or indecency Soliciting money under false pretenses Violations of the public trust

Copyright © 2006 Allyn and Bacon9-12 Principles of Electronic Media Chapter Eleven - Law Principle #3 The scarcity of spectrum space limits broadcast frequencies and station licenses.

Copyright © 2006 Allyn and Bacon9-13 Principles of Electronic Media Chapter Eleven - Law Principle #4 Competitive bidding—not the promise of performance—determines who gains access to telecommunications channels.

Copyright © 2006 Allyn and Bacon9-14 Principles of Electronic Media Chapter Eleven - Law Media Ownership Almost all U.S. media comes from five source corporations: Time Warner, Disney, News Corporation, Viacom, and Bertelsmann.

Copyright © 2006 Allyn and Bacon9-15 Media Ownership 1952 “rule of sevens” cap on ownership “This simply meant that the maximum number of broadcast outlets for any one person or corporation to own was seven AM, seven FM, and seven TV stations. The rationale was that more broadcast owners meant more differences of opinion and more diversity in the marketplace of ideas, and that formula stood until 1984” (254).

Copyright © 2006 Allyn and Bacon9-16 Media Ownership The Telecommunications Act of 1996 The “all you can own” rule for radio stations. “There are rules governing the number of radio stations, TV stations, and newspapers one owner can control by applying a formula to take into account the varying sizes of the media markets” (254).

Copyright © 2006 Allyn and Bacon9-17 Media Ownership Diversity in ownership Capital gains tax breaks given to broadcast or cable properties that were sold to women or minorities. Partial recovery of investment in cases of distress sales to women and minorities. Both of these programs were done away with in 1995.

Copyright © 2006 Allyn and Bacon9-18 Principles of Electronic Media Chapter Eleven - Law Principle #5 Media consolidation leads to monopoly if left unregulated.

Copyright © 2006 Allyn and Bacon9-19 Principles of Electronic Media Chapter Eleven - Law Delivery Systems and Regulation Cable Franchising Cable Communication Policy Act of 1984: Gave FCC power over cable regulation and permitted cable companies to set their own rates 1992 Cable Law: Set limits on cable fees and promoted competition through “overbuild.” Must-Carry Controversies

Copyright © 2006 Allyn and Bacon9-20 Principles of Electronic Media Chapter Eleven - Law Delivery Systems and Regulation Regulating Satellites “Satellite systems are licensed, and the Cable Television Consumer Protection and Competition Act of 1992 granted satellite television equitable access to all cable channels available” (260). Multipoint Multichannel Delivery Systems

Copyright © 2006 Allyn and Bacon9-21 Delivery Systems and Regulations The Telephone Companies FCC “Video Dial Tone” decision of 1992 Permitted common-carrier video service through wires The Telecommunications Act of 1996 Lifted cross-ownership ban on telephone and cable services These factors together acted to unite phone and cable services.

Copyright © 2006 Allyn and Bacon9-22 Principles of Electronic Media Chapter Eleven - Law Establishing Standards for Content The Fairness Doctrine “The fairness doctrine grew out of the FCC’s longstanding commitment to ‘the free and fair competition of opposing views’” (261).

Copyright © 2006 Allyn and Bacon9-23 The Fairness Doctrine “The commission’s Fairness Report in 1985 deemed the Fairness Doctrine a failure. Congress desagreed and tried to codify the doctrine into law. President Reagan’s likely veto and radio talkshow host Ruch Limbaugh were all that stood in the way – but they were enough” (261).

Copyright © 2006 Allyn and Bacon9-24 The Fairness Doctrine Clinton attempted to revive the fairness doctrine by inviting a new bill, but it lacked the necessary congressional support.

Copyright © 2006 Allyn and Bacon9-25 Principles of Electronic Media Chapter Eleven - Law Principle #6 Advocacy groups influence policy and law for electronic media, including children’s television.

Copyright © 2006 Allyn and Bacon9-26 Principles of Electronic Media Chapter Eleven - Law Intellectual Property Three areas of trademark protection Slogans, Logos and Brand Names Patents for inventions Copyright protection for a “fixed, tangible medium of expression” (one cannot copyright an idea).

Copyright © 2006 Allyn and Bacon9-27 Fair Use “Fair use is the term for a privilege to use copyrighted material in a reasonable manner without the owner’s consent Limited use for a useful literary purpose.

Copyright © 2006 Allyn and Bacon9-28 Fair Use The Copyright Act of 1976 Four Criteria for Fair Use Did the original work fall under copyright protection? How much of the substantive content was exploited? Was that secondary use intended to make a profit? Will that use affect future profits for the copyright holder?

Copyright © 2006 Allyn and Bacon9-29 Fair Use Roy Orbison Vs. 2 Live Crew for “Pretty Woman” Woody Allen (image) Jackie Onassis (image)

Copyright © 2006 Allyn and Bacon9-30 Principles of Electronic Media Chapter Eleven - Law Principle #7 There is no absolute protection for one's ownership of original and creative content.

Copyright © 2006 Allyn and Bacon9-31 Principles of Electronic Media Chapter Eleven - Law The First Amendment – Free Speech Defamation: Slander and Libel Public & Private Figures Malicious intent (knowledge of falsehood or disregard for the truth) for celebrities. Fair comment or criticism Rhetorical hyperbole

Copyright © 2006 Allyn and Bacon9-32 Principles of Electronic Media Chapter Eleven - Law Principle #8 Public officials and figures receive less protection for their reputations than private citizens do.

Copyright © 2006 Allyn and Bacon9-33 Principles of Electronic Media Chapter Eleven - Law Principle #9 In granting electronic media access to the courts, jurists balance the right to a fair trial against the freedom of the press.

Copyright © 2006 Allyn and Bacon9-34 Principles of Electronic Media Chapter Eleven - Law The First Amendment – Free Speech Obscenity and Indecency Obscenity: Prurience, Offensiveness, Value Indecency: Language or material that, in context, depicts or describes, in terms patently offensive as measured by contemporary community standards for the broadcast medium, sexual or excretory activities, or organs.”

Copyright © 2006 Allyn and Bacon9-35 Indecency is Protected Indecency is provided “safe harbor” between 10pm and 6am.

Copyright © 2006 Allyn and Bacon9-36 Indecency on the Internet Communication Decency Act of 1996 (Part of the Telecommunications Act of 1996) (Defeated). The Child Online Protection Act of 1998 (Defeated). Children’s Internet Protection act of 2001 (Law).

Copyright © 2006 Allyn and Bacon9-37 Principles of Electronic Media Chapter Eleven - Law Principle #10 Obscenity always is illegal, but “indecent” communication is permitted when children are not in the audience.