There was no progress on Hill last week in getting conference together. Congress’ July 4 recess starts this week, with legislators returning July 12. Early reactions from those still left on Capitol Hill at end of week was that agreement appeared to be interesting, but needs some closer review. However, House Intellectual Property Subcommittee Chmn. Coble (R-N.C.) said he’s pleased that parties appeared to have worked out agreement. NAB and DirecTV proposal to Hill includes: (1) Reauthorization of Sect. 119 compulsory license for 5 years with current Grade B signal intensity standard incorporating Individual Location Longley-Rice (ILLR) methodology into copyright law. However, FCC will be directed to take into account in its rulemaking building structures and other land covers. Commission wouldn’t have authority to change signal intensity standard. (2) Deletion of 90-day waiting period for cable subscribers to get distant signals. Senate and House bills agree on that provision. (3) Creation of local-into-local compulsory license. (4) Deletion of House provision that would have required free antennas. (5) Limitation on carriers to providing 2 distant affiliate signals per network to unserved households. (6) Suspension of retransmission requirement into L.A. and N.Y. for 3 months, all other markets 9 months. (7) Superstations could be delivered to any subscribers outside of station’s local market.

Proposal is largely anticonsumer, Ergen said, and its few provisions considered helpful to his company already have been agreed upon by congressional committees: “It’s unfortunate that DirecTV capitulated to the pressures of the powerful network broadcast lobby.” EchoStar views agreement largely as giveaway to broadcasters made up of items that would be done anyway, such as elimination of 90-day waiting period, or of items that wouldn’t help in DBS fight against cable, as opposed to DirecTV competition against EchoStar. Company also objects to 3-month suspension of retransmission consent agreements in N.Y.C. and L.A., and opposes 9 month hiatus for other markets. That’s too short time period to sort out relationships with stations, EchoStar said.

In addition to split in satellite community, not all broadcasters agree with NAB- DirecTV. ALTV is taking issue with elimination of syndicated exclusivity for superstations and weakened must-carry provisions, said Pres. James Hedlund. Hedlund said his group, which generally represents independent TV stations, some of which belong to NAB, never likes to pick fight with NAB, but agreement was reached without its input.

DirecTV, however, believes it cut good deal, pointing to what it sees as breakthrough agreements on lack of network nonduplication rules for distant signals, refinements to ILLR methodology, and allowing FCC in must-carry rulemaking to take into account capacity and other differences between cable and satellite.

DirecTV-NAB agreement is “theatrical ploy” designed to upstage upcoming congressional deliberations, said EchoStar Chmn. Charles Ergen. EchoStar, which independently has been lobbying for local-into-local legislation, didn’t participate in negotiations, nor did Fox, one of plaintiffs in lawsuit that led to federal court ruling last year that satellite operators illegally were providing distant signals to subscribers. Fox and its affiliates have withdrawn from NAB, and had no comment on agreement, said Peggy Binzel, senior vp-govt. relations. Ergen said he was confident lawmakers would recognize that pressures leading to proposal had nothing to do with competition or consumer rights.

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posted by Administrator at 8:13 am & filed under Sirius |