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Television
Martin Offers Proposal To Ease Media Ownership Rules
by David Hatch
A federal ban on a single company owning a major newspaper and broadcast outlet in the same city would be lifted in the nation's 20 largest markets under new rules proposed Tuesday by FCC Chairman Kevin Martin.
The combinations would have to fulfill several conditions to ensure they satisfy the public interest, the agency said.
The announcement follows weeks of intense congressional pressure on Martin, a Republican, to delay a planned Dec. 18 vote on altering the media ownership restrictions. The House and Senate Commerce committees are planning December hearings to further review the FCC's plans.
During a Tuesday conference call with reporters, Martin said the proposal involves "a relatively moderate change" that's warranted to strengthen struggling newspapers. The relaxation, if adopted, could enable the buyout of the Tribune Company by real-estate mogul Sam Zell, who has said he hopes to complete the transaction by year's end.
The deal requires waivers in five markets to close. Under the FCC proposal, combinations could potentially be allowed in Chicago, Los Angeles, Miami and New York but would be barred in the fifth market, Hartford, which is outside the top 20.
Lawmakers and watchdogs quickly blasted the announcement. "The FCC still has not completed a separate proceeding with a thorough study of the impact of media concentration on localism," said Sen. Byron Dorgan, D-N.D., referring to broadcaster commitments to local coverage.
In a statement, Dorgan said that item is a necessary "prerequisite to any discussion of whether media ownership rules ought to be changed." He has introduced legislation with colleagues from both parties that would force the agency to delay the vote.
In an interview, Free Press Director Ben Scott dubbed the plan "corporate welfare" for media conglomerates. He warned that the proposal could be interpreted as relaxing waiver requirements in markets outside the top 20.
"He's opened up a giant loophole for waiver applications" from the ban in smaller markets, Scott said. Martin emphasized during the conference call that small-market combos would be "presumed" prohibited unless proven otherwise.
"Despite his protestations that this move is good for newspapers, Martin is really just working to aide the Tribune company," wrote Jeff Chester, executive director of the Center for Digital Democracy, in a statement.
In an effort to soften the criticism, the FCC emphasized in its announcement that the recommendation is "more conservative" than a 2003 effort to ease the rule and that no other media limits under review would be altered.
The FCC has granted exemptions from the ban by grandfathering combinations that predate its 1975 adoption of the media rules and through waivers to aid struggling properties.
For a large-market combination involving a television station, there must be at least eight independently-owned and operated "major media voices" left after the transaction. In addition, the TV station cannot be among the market's top four. The FCC also would consider a market's level of concentration, the impact of a combination on local news and editorial independence, and the financial condition of a paper.
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On The Hill
House Set To Pass Online Children Protection Bills
by Andrew Noyes
The House was poised to consider a handful of bills on Tuesday afternoon that are aimed at advancing technological and law enforcement efforts to protect children on the Internet. Votes were scheduled for late evening but could be postponed until Wednesday.
Legislation introduced in August by Rep. Melissa Bean, D-Ill., would require the FTC to "carry out a nationwide program to increase public awareness and provide education regarding Internet safety." H.R. 3461 would authorize $10 million for the effort in 2008.
Another bill, H.R. 3845, set for floor action would create a special counsel within the Justice Department to plan and coordinate child exploitation prosecution efforts as well as bolster the regional Internet Crimes Against Children task forces.
The measure, sponsored by Florida Democrat Debbie Wasserman Schultz, would authorize more than $1 billion over the next eight years for grant programs; new federal agents dedicated to child exploitation cases; and increased forensic capabilities.
A companion bill, S.1738, was introduced in the Senate by Delaware Democrat and presidential hopeful Joseph Biden and California Democrat Barbara Boxer. That bill is awaiting action by the Judiciary Committee.
Legislation that would create a registry of e-mail and instant-messaging addresses of convicted sex offenders also was on the House's agenda. North Dakota Democrat Earl Pomeroy's bill, H.R. 719, would make it a crime for adults to lie about their ages online to engage in sexual conduct with minors.
Additionally, the House also was expected to debate a measure, H.R. 4120, introduced last week by Rep. Nancy Boyda, D-Kan., aimed at tackling part of the child pornography problem, which has been cited in numerous hearings this session and in the 109th Congress.
In prepared remarks, Boyda said the bill would close a jurisdictional loophole that let a man in her state who was convicted of possessing child pornography escape punishment. "Congress must provide a unified message that we, as a society, will not stand for anything less than a safe Internet," she said.
Several of the bills were part of a Web criminal crackdown unveiled in August by House Judiciary Committee Chairman John Conyers. "We cannot allow the Internet to be a playground where our children are one mouse-click away from sexual predators," the Michigan Democrat said at a press briefing at the time.
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Telecom
Telecom Liability, Net Neutrality Light Up Dem Race
by Heather Greenfield
With four Democratic presidential candidates in the Senate, telecom issues getting attention on Capitol Hill also are attracting notice by the campaigns.
Despite largely similar positions on these issues, the Democratic contenders have shown some differences through their speeches and writing.
The most heated issue, retroactive immunity for telecom companies that assisted the Bush administration in their warrentless surveillance program, will become more contentious this week.
The Senate Judiciary Committee delayed action last week over whether to include retroactive immunity as part of an overhaul of the Foreign Intelligence Surveillance Act. The House did not include such immunity in its legislation, despite requests from both President Bush and telecom companies.
About 40 lawsuits have been filed against telecom companies accused of allowing the National Security Agency to intercept customer phone calls and e-mails.
Democrats hold a 10-9 majority on the Senate Judiciary Committee, but it is likely the legislation will include the controversial immunity provision. That's because Sen. Dianne Feinstein, D-Calif., has announced support for immunity.
If the bill emerges with immunity, Democratic presidential candidate and Connecticut Sen. Chris Dodd has promised to block it by placing a procedural "hold" on it or with a possible filibuster of the measure. Dodd and others say they are concerned that if lawsuits against telecom companies do not proceed, Americans may lose the chance to discover the extent of the government spying program.
The fight could require Dodd to take a week off from the campaign trail to formally object to the bill moving forward, but a Senate source said Tuesday this is a big issue for Dodd and he's willing to do that.
Dodd's Senate rivals in the presidential race, Hillary Clinton, D-N.Y., Barack Obama, D-Ill., and Joseph Biden, D-Del., all oppose retroactive immunity as well.
Clinton and Obama also are original co-sponsors of net neutrality legislation, S. 215, that could get more congressional attention after recent allegations of censorship and blocked traffic. The measure would bar broadband providers from charging preferred customers more for faster content.
"I want to maintain that basic principle in how the Internet functions, and as president I'm going to make sure that is the principle that my FCC commissioners are applying as we move forward," Obama said at a recent MySpace/MTV forum.
Clinton, meanwhile, has called for more broadband competition and deployment.
In an October blog posting, Clinton proposed a national broadband strategy called Connect America as part of her innovation agenda. She promises to strengthen tax incentives for extending broadband to underserved areas and support state and local broadband initiatives including new wireless technologies to high-speed fiber optics.
Clinton also said she wants to require the FCC to get an accurate, detailed picture of broadband deployment and penetration rates, saying current numbers are unreliable because they're "based on loose estimates and outdated standards."
None of the Democratic senators running for president issued a statement after the Senate passed legislation late last month extending the moratorium on Internet access taxes, though it was a big issue for Republicans presidential candidates. Ben Adler of the Politico said the issue, though opposed by some state governors, is one candidates may want to trumpet as it appeals to young voters.
According to Opensecrets.org, Clinton leads among Democratic candidates supported by telephone utilities with $106,300 in donations, followed by Obama with $84,936 and Democrat John Edwards with $18,761.
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Intellectual Property
Key Senator Voices Sympathy For Paying For Radio Play
by Andrew Noyes
Broadcast radio's exemption from paying musicians for playing their songs on radio stations is "illogical" and creates a "crazy quilt" royalty structure that needs to be changed, the Senate Judiciary Committee's top Republican said Tuesday at a hearing.
During a vetting of the escalating battle over public performance rights, Sen. Arlen Specter of Pennsylvania said the long-held belief that analog transmissions do not constitute duplications -- and therefore do not require broadcasters to pay royalties for playing music on their stations -- is outdated. Technological advances have made copying high-quality radio content easier.
Country crooner Lyle Lovett and singer-songwriter Alice Peacock, who testified on behalf of the musicFirst coalition, made a "strong point" about fairness, Specter said, "but I think we need to know a lot more."
Their group, which is backed by the Recording Industry Association of America, royalty collector SoundExchange and other industry groups, is lobbying Congress to bring over-the-air broadcasters in line with cable, Internet and satellite services, which pay royalties.
"Don't get me wrong, I love radio and I appreciate the support I've gotten," Lovett said. "But business is business and fair is fair and they shouldn't get to profit from the music we create without compensating us."
The National Association of Broadcasters has called the proposed fee a "performance tax" on local radio and has argued that the existing model adequately rewards musicians by promoting and playing their songs for free.
About 85 percent of music listeners identify FM radio as the first place they hear the music they purchase, Commonwealth Broadcasting Corporation CEO Steven Newberry pointed out. "There's no better way to expose and promote talent," he said.
If a royalty is instated, broadcasters would have to take drastic steps to comply, Newberry warned. Stations would be forced to reduce public affairs and news programming, lay off staff, cut employee benefits, and switch to non-music formats.
Dan DeVany, general manager of public radio station WETA of Arlington, Va., recently adopted a full-time classical music format and said the fee proposal would be "an onerous burden" for stations like his and smaller operations that function on "a razor thin margin."
Specter said he wanted to know "how many performers are discouraged from entering into the profession because they don't receive compensation for their performances" and whether traditional radio can afford such a change.
"The last thing you want is for Congress to legislate without knowing what the facts are," he said. "I'm groping for some facts."
Judiciary Committee Chairman Patrick Leahy, D-Vt., whose comments were less pointed than Specter's, said lawmakers need to strike a careful balance that will benefit both sectors. "The question [of fairness] is simple; the answer may not be," he said.
Leahy's office has reportedly been working with the staff of California Democrat Howard Berman, who chairs the House Judiciary Courts, the Internet and Intellectual Property Subcommittee, on crafting complimentary legislation for both chambers.
Sen. Orrin Hatch used the occasion to talk about the threat of music piracy -- a favorite topic for the Utah Republican. "That's another pressure on artists, writers and performers," he said. The issue is part of a "very complex, broad set of problems that are very difficult to understand."
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Security
Homeland Security Pressed To Address Weaknesses
by Chris Strohm
Members of a Senate panel Tuesday pressed the Homeland Security Department to address staffing shortages, low morale and poor management at the nation's ports of entry, after federal investigators found weaknesses that allowed thousands of people to illegally enter the country in 2006.
"Insufficient staffing and training seem to be the central reasons for these inadequate inspections," said Sen. Daniel Akaka, D-Hawaii, chairman of the Senate Homeland Security and Governmental Affairs Oversight Subcommittee, during a hearing.
The Government Accountability Office reported last week that Customs and Border Protection officers turned away 200,000 people who tried to enter the country through legal air, sea and land entry points during fiscal 2006. But 21,000 travelers were improperly allowed into the country, Paul Morris, CBP's executive director for admissibility requirements and migration control, told the subcommittee. That number was redacted in the GAO report.
Akaka said the report confirmed his fears that "staffing shortages, forced overtime and inadequate training contribute to serious morale problems at CBP." He added that land ports of entry need about $4 billion in infrastructure improvements, which he noted does not include billions more that would be needed to create a system that uses biometrics to verify when foreigners leave the country.
Sen. George Voinovich of Ohio, the subcommittee's ranking Republican, said problems at the ports of entry underscore the need for Homeland Security to have a chief management officer, which would be created through legislation he has authored.
"If we don't get that ... we'll be here five years from now and it'll be the same story," he said. He expressed frustration over problems at the ports. "Quite frankly, as a former mayor I'm fed up with it. I don't understand why we can't get the job done," he said.
Officials also fear that problems could get worse. Richard Stana, GAO's director of homeland security and justice issues, said about 20 percent of CBP's workforce is nearing retirement. He said retirements could have "a devastating effect" on the agency.
He added that up to 40 percent of ports of entry are understaffed, meaning that port directors often cannot send employees to training sessions. Morris said CBP faces a "vicious circle." As employees leave the agency, he said, the staffing crisis is compounded. He also said that newly hired CBP officers are paid less compared to other law enforcement agencies, making recruitment and ret1ention difficult.
He added that CBP is working with the General Services Administration to address "the urgent need" for making physical infrastructure improvements at ports of entry. In order to address security problems identified by GAO, however, the agency is working with the State Department to prevent inadmissible travelers from coming to the United States in the first place, Morris said.
He added that Homeland Security will implement a new rule in January that will limit the number of documents that travelers can present when trying to enter the United States at land crossings. The rule is expected to help border officials better detect fraudulent documents.
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Net Governance
Cuban Official's Remarks On Net Governance Cause Stir
by Andrew Noyes
A Cuban government communications official called for "an intervention" into global public policy objectives associated with the Internet on Monday at a high-tech conference in Brazil. The remarks rattled some in the U.S. delegation and those in the private sector.
At the second annual Internet Governance Forum, which is being webcast this week from Rio de Janeiro, Juan Fernandez Gonzalez said change, "led by governments with the full participation of other players," is needed.
"In the Internet world, not everything is well," he said. "Those who have more access to the Internet are those who have access to more wealth in the world. The poor in the world are the poor in Internet access."
Speaking at a session on "critical Internet resources," one of the general themes of the four-day event, Gonzalez, whose nation's only recognized political party is the Communist Party, said he did not believe that "the evolution of the Internet has been fully ... progressive."
A market-led Web evolution is not the only model to follow, he told the audience. In Latin America over the past 20 years, he said, "this has been a true disaster." Gonzalez called for "one policy" and "one development strategy."
Meanwhile, Vint Cerf and Robert Kahn, who have been widely noted as two of the Internet's founding fathers, described how they have worked for decades to ensure that nongovernmental stakeholders have been at the forefront of the Internet's development.
The comments by Cerf, who is Google's chief Internet evangelist, and Kahn, chairman of the Corporation for National Research Initiatives, stood in "stark contrast" to those of Gonzalez, said Steve DelBianco, executive director of the e-commerce trade group NetChoice.
When participants tried to talk about critical resources such as telecommunications infrastructure, electrical power and trained technical staff, "others kept wanting to go back to discussing ICANN's role," Cerf said in an e-mail after the event.
The Internet Corporation for Assigned Names and Numbers manages the Web addressing system. The multi-stakeholder group's new chairman, Peter Dengate Thrush, said domain name system management and IP address allocation are crucial but there are wider issues that deserve attention.
Thrush, who is Cerf's successor at ICANN, noted that governments heartily engage with his organization through its Governmental Advisory Committee. He reiterated the criticality of "an industry-led, self-regulated, bottom-up, transparent process for the coordination of the Internet resources."
Earlier in the day, Brazil's Minister for Strategic Affairs Roberto Mangabeira Unger said ICANN has played a "vital historical role" but now must make way for a less controversial and more inclusive organization. ICANN was created through an agreement with the U.S. government and runs under the eye of the Commerce Department.
Alun Michael, a member of the British Parliament, said he believed Unger was "wrong to look for an old-style institution" to manage the Internet.
"That's reaching for a safety blanket because it's a shape we already understand," he said. "The shape has to be much wider."
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Today's Feature:
People Column
Al Gore may be able to add some real green behind the green movement. The former vice president is joining the Silicon Valley venture capital firm Kleiner Perkins Caufield and Byers as a partner.
Every Tuesday, read the People Column by Heather Greenfield.
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E-briefs
Broadband: The House passed legislation Tuesday designed to improve data collection about subscriptions to high-speed Internet service. "This bill represents an indispensable first step" to improve data collection and broadband deployment, said Rep. Edward Markey, D-Mass., chairman of the House Energy and Commerce Subcommittee on Telecommunications and the Internet, during a floor speech. At deadline, the House also was considering a bill, H.R. 3403, sponsored by Rep. Bart Gordon, D-Tenn., that would require Internet phone service providers to offer E911 capability that provides emergency dispatchers with a caller's phone number and location. The legislation also would require that Internet telephony providers be given access to telecom networks that enable the provision of E911. The bill was expected to pass, Markey aides said via e-mail.
Budget: House Minority Leader John Boehner, R-Ohio, said he supports the president's veto of a "pork-laden" fiscal 2008 funding bill for the Labor, Health and Human Services and Education departments. In vetoing H.R. 3043, President Bush said Tuesday that the bill would spend too much and has too many earmarks, projects requested by specific lawmakers. "It is completely irresponsible for members of Congress to demand that taxpayers bankroll pet projects like a Hippie Museum in New York and an Exploratorium in San Francisco at a time when they are dealing with spiking gasoline prices ... and other cost of living increases," Boehner said. Meanwhile, the National Education Association said the veto would kill 49 federal education programs and cripple others, leaving needy students without essential programs they need to succeed in school. Urging lawmakers to override the veto, NEA President Reg Weaver said, "Cutting these programs would literally leave millions of children behind."
Nanotechnology: The best way to make sure public fear over nanotechnology products doesn't become more of a barrier to the industry's growth is to respond to public concerns, White House Office of Science and Technology Policy Director John Marburger said Tuesday. He spoke at a U.S. Chamber of Commerce event on the barriers to nanotechnology, which refers to materials that are smaller than 1/100th of a human hair. Marburger said if health advocacy groups think federal agencies are not taking the health risks seriously and spending enough money, "we should answer them." Marburger said funding research to examine the health impacts of the tiny materials used in everything from clothing to cosmetics to optical lenses can't just be symbolic. He said it must come from a rational business model that studies the reality of what industry is actually producing and the manufacturing techniques used.
Civil Liberties: Yahoo on Tuesday settled a lawsuit with two Chinese journalists who were jailed after the company provided Chinese authorities with information about their online activities. The terms of the deal were not disclosed, but Yahoo spokeswoman Tracy Schmaler said the company is establishing a human rights fund that would provide support to other political dissidents and families. AP reports that the two journalists and a family member sued earlier this year after Yahoo's subsidiary based in Hong Kong gave Chinese authorities e-mails containing pro-democracy literature. The plaintiffs alleged that jailers have tortured them and that Yahoo was responsible. The company has denied any responsibility and maintained it was complying with Chinese law. Rep. Chris Smith, R-N.J., a vocal human rights advocate, said in a statement on Tuesday that the settlement underscores why it is important to give such families standing in U.S. courts. He also touted his bill, H.R. 275, that would prohibit U.S. firms from cooperating with regimes that restrict speech on the Internet.
Antitrust: Sirius Satellite Radio stockholders on Tuesday approved the firm's planned merger with XM Satellite Radio Holdings. At a meeting in New York, stockholders backed an amendment to its certificate of incorporation and approved the issuance of common stock, paving the way for the $14 billion transaction. XM stockholders will receive 4.6 shares of Sirius stock for each share of XM they own. XM and Sirius stockholders will each own approximately 50 percent of the combined company. The FCC, which must approve the merger along with the Justice Department, sent questionnaires to the satellite radio firms earlier this month, seeking more information on distribution contracts and other details of the deal. Sirius expects regulatory approval by the end of the year. The National Association of Broadcasters and others oppose the deal, claiming combining the only two satellite radio services would create a monopoly. Meanwhile, several lawmakers have voiced support for the deal.
Business: News Corp. Chairman Rupert Murdoch said Tuesday he intends to make access to The Wall Street Journal's Web site free, trading subscription fees for anticipated ad revenue. AP reports that Murdoch said, "We are studying it and we expect to make that free, and instead of having 1 million [subscribers], having at least 10 million-15 million in every corner of the earth." News Corp. has signed an agreement to acquire Dow Jones, the Journal's parent company. The deal is expected to close in the fourth quarter. A special shareholders meeting is scheduled for Dec. 13 in New York. Murdoch said he believes that a free model, with increased readership for wsj.com, will attract "large numbers" of big-spending advertisers. The Web site, one of the few news sites globally to successfully introduce a subscription model, currently has around 1 million subscribers, which generates about $50 million in user fees.
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