The FCC’s Open Internet Order was published in the Federal Register on April 13, 2015.  As we reported previously (see here and here), the Order adopts new Open Internet rules and reclassifies broadband Internet access service as a heavily regulated “telecommunications service” under Title II of the Communications Act. 

The new rules and the reclassification will take effect on June 12, 2015, except for enhanced disclosure obligations for ISPs with at least 100,000 subscribers, which will take effect after approval by the Office of Management and Budget.  Several parties, including ACA, have filed court challenges to the rules, and some have asked the Courts to grant a “stay,” which would stop the rules from taking effect until the Court makes a decision on the challenges.   

Barring a stay, the rules will take effect on June 12^th.  In the meantime, CM is planning a webinar and is organizing other resources to help cable operators comply with the new rules and the effects of reclassification.

Stay tuned to our Client Updates for details on the compliance webinar. 

FCC Updates List of Top Five Nonbroadcast Networks

Subject to Video Description Obligations

            Earlier this spring, the FCC released an Order and Public Notice updating the list of national, nonbroadcast channels (i.e., satellite programmers) subject to the video description requirements.  Beginning July 1, 2015, the top five channels will be USA, TNT, TBS, Disney Channel, and newly added History (replacing Nickelodeon).  ESPN would have ranked among the top five based on ratings, but successfully petitioned for an exemption based on the fact that it does not provide 50 hours per quarter of programming that is not live or near-live.

Under the FCC’s video description the rules, multichannel video programming distributors (“MVPDs”) and broadcast stations must offer audio narration of the action depicted in television programming (“video description”).  Video description aids people who are blind or visually impaired by providing an oral narration of visual images present on screen.  We cover the main requirements and exceptions under the rules below.

            Requirements for MVPDs.  Since July 1, 2012, all MVPDs have been required, regardless of size, to “pass through” video description provided on both broadcast and non-broadcast programming.  This requirement only applies if the MVPD has the “technical capability” to pass through the video description and that technical capacity is not being used for another purpose.

Subsequent Airings.  Once an MVPD airs a program with video description it generally must include the video description on all subsequent airings.

Additional Obligations for MVPD Systems with 50,000 Subscribers or More.  These MVPD systems must offer 50 hours of video description, per calendar quarter, for each of the top five non-broadcast channels.  MVPD systems that reach the 50,000 subscriber threshold have three months to come into compliance.

Exceptions.  If an MVPD does not have the technical capability to pass through the video description, it is not required to upgrade its system if doing so would cost more than a small amount.  “Technical capability” means that an MVPD has “virtually all necessary equipment and infrastructure . . . except for items that would be of minimal cost . . . .”  Systems that can currently offer a second audio channel would likely be considered as having the “technical capability” to comply with these rules.

In addition, the pass through requirement does not apply where the technical capacity to provide video description is used for another purpose related to the programming that conflicts with providing video description.  For example, most cable systems only have the capacity to pass through a primary and secondary audio channel.  If the programmer sends video description on a third audio channel, the system operator is not required to replace its existing secondary audio feed with the video description. 

Requirements for Broadcasters.  The Order and Public Notice also reminds broadcasters that, beginning July 1, 2015, the requirement for broadcast affiliates of the top four national networks (ABC, CBS, Fox and NBC) to provide 50 hours per calendar quarter of programming with video description will expand from affiliates located in the top 25 television markets to those located in the top 60 markets.  Broadcasters must also “pass through” video description provided by their networks and other programming sources. 

If you have questions about the video description rules, please contact Scott Friedman or Jake Baldwin at (312) 372-3930 or sfriedman@cinnamonmueller.com or jbaldwin@cinnamonmueller.com.

Copyright Forms and Fees Due August 31, 2015

Cable operators must file with the U.S. Copyright Office their Statement of Accounts (Form SA1-2 or SA3) and pay any royalty fees due for the January 2015 – June 2015 accounting period by August 31, 2015. The following forms apply:

• SA1-2 Short Form. For use by cable systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable systems with semiannual gross receipts of $527,600 or more.

Copyright filings must be accompanied by a filing fee in addition to the royalty payment.  The filing fee is calculated based on the type of form filed:  

Operators must remit the royalty fee and filing fee in a single electronic payment.  If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or hschmid@cinnamonmueller.com.

Form 477 Due September 1, 2015

            The next Form 477 is due September 1, 2015.  Telephone, broadband, and interconnected VoIP providers must report information about broadband connections and local telephone service as of June 30, 2015.

This is the third Form 477 filing requiring the use of the new filing interface on the FCC’s website.  Instructions for filers can be found here.  Filers can also review a brief summary of the Form 477 changes on the FCC’s website. 

If you have any questions about Form 477, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

The Oscars and Online Piracy:  How ISPs Can Prepare for Copyright Infringement Claims

In April’s Independent Cable News, CM attorneys Heidi Schmid and Madeleine Goldfarb outlined tips for Internet service providers to prepare for and respond to copyright infringement claims.  Read their article here.