The House Judiciary Committee plans a hearing on net neutrality, tentatively June 20 at 9 a.m., two committee aides told us. The FCC is collecting comments on how best to reinstate net neutrality rules. The committee has not formally announced any hearing on net neutrality. Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., plans a field hearing in Vermont on the issue in July, he has said.
NAB General Counsel Jane Nago will attack recent FCC actions on media ownership, and Media Bureau Chief Bill Lake will defend them, said their written statements for a Wednesday House Communications Subcommittee hearing on the topic. The FCC “has failed to fulfill its obligation to review and update the broadcast ownership rules in light of current competitive conditions,” Mago plans to say (http://1.usa.gov/1kjcdGT). “Congress should require that the FCC complete its quadrennial review of the ownership restrictions in a timely manner.” Congress should also “examine how the FCC’s administration of the ownership rules has affected investment and opportunity in broadcasting,” she will say. The FCC did not fail to complete the quadrennial review due to “lack of effort,” Lake will argue (http://1.usa.gov/1l4Wwro), citing the agency’s desire to now complete the review by June 30, 2016. His written statement includes a broad summary and defense of the FCC’s recent actions limiting sharing agreements. The hearing is at 10:30 a.m. in 2123 Rayburn.
A financial analyst will also testify on media ownership issues this week. RBC Capital Markets Managing Director-Global Media Equity Research David Bank is the sixth witness at the House Communications Subcommittee’s Wednesday hearing, at 10:30 a.m. in 2123 Rayburn, according to the official witness list (http://1.usa.gov/1hAZoNc). It includes, as expected (CD June 9 p12), witnesses from the FCC and NAB. “Decades-old ownership rules simply have not kept up with changes in the media marketplace and are hampering traditional media’s ability to compete,” House Republicans said in a memo for the hearing, also slamming the FCC’s recent change to attribution rules. “This change in attribution rules could force broadcasters to divest stations or dissolve agreements that are beneficial to bringing local content to smaller markets,” a change that’s “troubling, given the benefit generated from such arrangements,” said the memo.
"In the digital age, our outdated and unfair music licensing policies could totally silence the next generation of songwriters if this Congress delays action on music licensing,” said House Judiciary IP Subcommittee member Doug Collins, R-Ga., in a release (http://1.usa.gov/SsO4Xn) Monday on the House Judiciary IP Subcommittee hearing on compulsory music licensing at 10 a.m. in 2141 Rayburn Tuesday (http://1.usa.gov/1oWQCLU). “I will not rest until my bill, the Songwriter Equity Act [SEA], and legislation like it that actually encourages American innovation get swift and thorough consideration,” said Collins, who introduced SEA, HR-4079 Feb. 25 (CD Feb 26 p13). “Terrestrial radio broadcasters continue to deny musicians any right whatsoever to performance royalties for the use of their music, which radio giants use to make billions in annual advertising revenue,” said Neil Portnow, Recording Academy CEO, in prepared testimony (http://1.usa.gov/TB5q5Q). Portnow slammed NAB for opposing performance royalties on terrestrial radio and expressed support for SEA. “Congress should look first and foremost at ways to eliminate government regulation in the songwriting business,” said David Israelite, National Music Publishers’ Association CEO, in prepared testimony (http://1.usa.gov/1kL2ZrG). “But in the absence of a free market, the processes that determine what creators are paid must be improved to attempt to reflect fair market compensation,” said Israelite. Broadcast Music Inc. CEO Michael O'Neill in prepared testimony (http://1.usa.gov/TB7Cdy) suggested four reforms to the consent decree process instituted by the Department of Justice. A “digital rights withdrawal” under the BMI consent decree and BMI’s ability to “license multiple rights” were included as possible reforms, said O'Neill. SEA and the Respecting Senior Performers as Essential Cultural Treasures (RESPECT) Act (HR-4772) “take us in the wrong direction by seeking to create additional anomalies within the music licensing framework which cater to the unique interests of only a limited group of stakeholders,” said Lee Knife, Digital Media Association executive director, in prepared testimony (http://1.usa.gov/1xzeJTt). The RESPECT Act seeks to ensure the payment of performance royalties for pre-'72 sound recordings on digital radio. The bill was introduced by House Judiciary Committee ranking member John Conyers, D-Mich., and House Judiciary IP Subcommittee member George Holding, R-N.C., May 29.
The Computer & Communications Industry Association sees many problems in allowing Comcast to buy Time Warner Cable, CEO Ed Black told Sen. Al Franken, D-Minn., in a letter Monday. “Acute competitive problems already exist in the last-mile broadband access market and not only will this merger lead to even less competition, but it would make competitive entry less likely in the future,” Black said (http://1.usa.gov/1oNT9Ez). “We are concerned that the merger will increase the quantity and enhance the effectiveness of the anticompetitive tools at the merged company’s disposal.” The combined company could degrade quality of service and raise operating costs of over-the-top content providers and charge “inflated” interconnection prices as well as withhold a bigger catalog of programming from pay-TV providers and over-the-top competitors, CCIA said. The response is “yet another indication that the proposed acquisition would stifle innovation and harm competition in the telecom industry,” Franken said in a statement. Franken also released a May 27 response from Comcast Executive Vice President David Cohen on the issue of net neutrality (http://1.usa.gov/1l1jpHD). Cohen defended Comcast’s net neutrality commitments and said he believes the FCC will issue new net neutrality rules under Communications Act Section 706 by 2018, when Comcast’s obligation to follow the 2010 rules as part of its NBCUniversal acquisition will expire. Those rules are likely to survive judicial scrutiny, Cohen said. But it would be “neither fair nor appropriate” to require in this transaction “an indefinite commitment by Comcast alone” to abide by “any form of open Internet rules,” Cohen said, saying this should be an industrywide commitment. Comcast has defended the Time Warner Cable deal as one good for consumers and not likely to cause any competitive harm. Comcast had no comment on CCIA’s critique.
Senate Judiciary Committee leadership will likely introduce its expected Satellite Television Extension and Localism Act reauthorization bill (CD June 9 p1) on the sooner side of this week. Chairman Patrick Leahy, D-Vt., and ranking member Chuck Grassley, R-Iowa, seem to be responsible for what is a straight reauthorization bill, and plan to introduce it Tuesday, one Republican aide to a different Judiciary member told us, saying his office had not seen draft text. A media industry lobbyist also called the bill “relatively clean” and said it’s expected to be introduced early this week. The Judiciary bill is uncontroversial and a short two pages, not trying to do much beyond reauthorizing STELA, a communications industry lobbyist said. The bill would extend the Copyright Act Section 119 license for five years and make some small technical tweaks to sections 111 and 119, he said. But watch out for other Judiciary lawmakers who are already gearing up with amendments, that lobbyist said, expecting some to be attached to the final version cleared during a markup session a few weeks from now. “People are starting to look at the clock,” the lobbyist said, pointing to other committees focused on STELA drafts. There’s increased dialogue between Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., and ranking member John Thune, R-S.D., according to the lobbyist. STELA will expire at the end of the year unless Congress reauthorizes it. Commerce and Judiciary in both chambers have jurisdiction.
The second House Judiciary IP Subcommittee hearing on compulsory music licensing in a digital context will be June 25 at 10 a.m. in 2141 Rayburn, said a House Judiciary Committee news release. The first hearing is at the same time and place June 10, the committee said Thursday as expected (http://1.usa.gov/1oWQCLU) (CD June 5 p9). Witnesses at the second hearing include Delida Costin, Pandora general counsel; David Frear, SiriusXM Radio executive vice president; RIAA CEO Cary Sherman; and Paul Williams, American Society of Composers, Authors and Publishers president, said the release. Witnesses at the first hearing include David Israelite, National Music Publishers’ Association CEO; Michael O'Neill, Broadcast Music Inc. CEO; and Recording Academy CEO Neil Portnow.
FCC Media Bureau Chief Bill Lake and NAB General Counsel Jane Mago will testify on media ownership issues Wednesday before the House Communications Subcommittee, their spokespeople confirmed. The hearing will be at 10:30 a.m. in 2123 Rayburn and is expected to discuss the FCC’s recent action limiting sharing agreements. Other witnesses are Newspaper Association of America Senior Vice President-Public Policy Paul Boyle; National Hispanic Media Coalition General Counsel Jessica Gonzalez; and Communications Workers of America Newspaper Guild President Bernie Lunzer, one media industry official told us. Lunzer confirmed to us that he’s testifying and expects to touch on joint sales agreements, shared service agreements and the quadrennial review, he said, saying his group has “strong feelings” on all of these media issues. The subcommittee has not announced witnesses, and a spokesman did not confirm or deny the list of witnesses.
Listen to the public outcry on net neutrality, Sen. Chuck Schumer, D-N.Y., told FCC Chairman Tom Wheeler in a letter last week (http://1.usa.gov/1kQO3Dk). “While the Commission is accustomed to hearing from businesses who are concerned with proposed changes to telecommunications law, I cannot recall a time when ordinary Americans have been so engaged in a regulatory issue,” Schumer said of the tens of thousands of comments the FCC has received on net neutrality this year. This input “should underscore for the Commission how important this question is to Americans in their everyday lives,” Schumer said, telling the FCC “to give significant weight to the public input in your rulemaking process.”
Public Citizen said Google’s recently opened D.C. office at 25 Massachusetts Ave., NW, just blocks from the Capitol building, “symbolizes the company’s growing political activity and nontransparent expenditures.” Google led all tech companies, spending $3.82 million on lobbying in Q1 2014. Public Citizen said the company is third among all companies since 2012 in lobbying spending. It urged on Google to be more transparent about its lobbying efforts and reason for the new offices. “Google’s commitment to open information and its ‘Don’t Be Evil’ mantra suggest that increasing its transparency would align with its values,” said Sam Jewler, spokesman for Public Citizen’s U.S. Chamber Watch program. Google did not comment.