Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

MVH and Holy Family Communications each applied to the Federal Communications Commission for a license to operate a noncommercial educational radio station in the vicinity of Buffalo, New York. To do so, the agency used its comparative selection criteria, which it had promulgated through a notice-and-comment rulemaking. By application of those criteria, the Commission found Holy Family had the superior application and awarded it the license. The D.C. Circuit affirmed, rejecting an argument that the criterion upon which the outcome turned--the weight given to an applicant’s plan to broadcast to underserved populations-- either violated the Communications Act of 1934, which requires the Commission to distribute licenses fairly, or was arbitrary and capricious. That criterion is part of a reasonable framework for achieving goals consistent with the Commission’s statutory mandate, and because MVH offered no support for a waiver except that it came close to the threshold it needed to get the license. View "Mary V. Harris Found. v. Fed. Commc'n Comm'n" on Justia Law

“Musical work” and the owner’s exclusive right to perform the work in public are protected by 17 U.S.C. 106(4). Broadcast of a musical work is a performance and requires a license from the copyright owner. Copyright Act amendments afford the copyright owner of a sound recording “the narrow but exclusive right ‘to perform the copyrighted work publicly by means of a digital audio transmission.’” The law requires “certain digital music services . . . to pay recording companies and recording artists when they transmit[] sound recordings” and provides for appointment of three Copyright Royalty Judges. If sound recording copyrights owners are unable to negotiate a royalty with digital music services, the Judges may set reasonable rates and terms. The Judges set royalty rates and defined terms for statutorily defined satellite digital audio radio services (SDARS) and preexisting subscription services (PSS). SoundExchange, which collects and distributes royalties to copyright owners, argued that the Judges set rates too low and erred in defining “Gross Revenues” and eligible deductions for SDARS. A PSS that provides music-only television channels appealed, arguing that PSS rates were set too high. The D.C. Circuit affirmed, concluding that the Judges of the Board acted within their broad discretion and on a sufficient record. View "Music Choice v. Copyright Royalty Bd." on Justia Law

This case concerns Congress's requirement that the FCC establish rules prescribing a Uniform System of Accounts for use by telephone companies. The Commission adopted a new accounting system in 1986 (Part 32) to respond to the introduction of competition and new services. Section 10(a), 47 U.S.C. 160, provided the FCC with the authority to forbear from enforcing provisions of the Communication Act as well as its own regulations. Petitioners, Verizon and AT&T, appealed the FCC's denial of their petition to forbear from applying the requirement that incumbent price cap carriers maintain a Uniform System of Accounts. Petitioners argued that the switch to price cap regulation has rendered Part 32 useless, and section 10 therefore requires the FCC to forebear from applying it to incumbent price cap carriers. The court concluded that the FCC reasonably concluded that it continued to need Part 32 data to ensure that access rates were not discriminatory. Accordingly, the court concluded that the FCC's interpretation and application of section 10 are permissible and denied the petition for review. View "Verizon v. FCC" on Justia Law

Sorenson is a purveyor of telephones for the hearing-impaired that have words scrolling on a screen during a call. Sorenson's technology uses the Internet to transmit and receive both the call itself and the derived captions (IP CTS). Sorenson gives its phones out for free, with the captioning feature turned on. On appeal, Sorenson challenged the FCC's promulgation of rules regarding IP CTS under the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq. The court concluded that the FCC's rule requiring all new users to register and self-certify their hearing loss, but only if the provider sold the IP CTS equipment for $75 or more, was arbitrary and capricious because the FCC failed to articulate a satisfactory explanation for its action. Further, the FCC's requirement that IP CTS phones "have a default setting of captions off, so that all IP CTS users must affirmatively turn on captioning," was unsupported by the evidence and, rather, contradicted by it. Accordingly, the court granted the petitions for review.View "Sorenson Communications Inc., et al. v. FCC, et al." on Justia Law

Congress prohibited Bell Operating Companies from subsidizing their own payphones or charging discriminatory rates to competitor payphone providers. At issue were the remedies available for violations of that prohibition. Specifically, whether independent payphone providers who were charged excessive rates by Bell Operating Companies were entitled to refunds or instead were entitled only to prospective relief in the form of lower rates. The court concluded that Congress granted discretion to the FCC to determine whether refunds would be required in those circumstances and that the Commission reasonably exercised that discretion here. The court denied the petitions in part and dismissed the remainder for lack of jurisdiction. View "Illinois Public Telecommunications v. FCC, et al." on Justia Law

Plaintiff filed suit against Facebook and its founder, alleging that their delay in removing a page entitled "Third Palestinian Intifada," and related pages, which called for Muslims to rise up and kill the Jewish people, constituted intentional assault and negligence. The court affirmed the district court's holding that the Communications Decency Act of 1996, 47 U.S.C. 230, shielded Facebook and its founder from suit where Facebook qualified as an interactive computer service; the complaint acknowledges that the objected-to information was provided by third party users, not Facebook itself; and the complaint seeks to hold Facebook liable as the "publisher or speaker" of that information.View "Klayman v. Zuckerberg, et al." on Justia Law

Sorenson, a leading provider of video relay service (VRS), petitioned for review of the FCC's 2013 Rate Order as arbitrary and capricious, in violation of the Administrative Procedure Act, 5 U.S.C. 706(2)(a). The court found no fault with the new rates because the 2013 Rate Order is not arbitrary and capricious for ignoring costs incurred unnecessarily, even when the consequence for the provider that incurred those costs might be ruinous. However, Sorenson has demonstrated that additional consideration by the FCC is necessary in regards to providing service under the more demanding speed-of-answer requirement that the agency adopted as part of the 2013 Rate Order. Therefore, the court vacated the new speed-of-answer requirement and remanded that portion of the Order. In regard to tiered rates, the court held that the FCC adequately justified the 500,000- and 1,000,000-minute cut-offs. The court deferred to the FCC's decision concerning the tiered structure because the task of balancing the goals of setting rates to reflect economies of scale and transitioning the industry from rate regulation to competitive bidding is fairly within the discretion of the agency. View "Sorenson Communications, Inc., et al. v. FCC, et al." on Justia Law

This petition involves Bermuda's efforts to secure rights from the International Telecommunication Union (ITU) to operate a satellite at the 96.2 degree W.L. orbital location. Bermuda partnered with EchoStar to deploy and maintain its satellite at this orbital location. Meanwhile, the Netherlands also sought rights from the ITU to operate a satellite at a nearby orbital location. Petitioner, Spectrum Five, a developer and operator of satellites working in partnership with the Netherlands, filed an objection to the FCC to EchoStar's request to move its satellite from 76.8 degrees W.L. to 96.2 degrees W.L. The FCC granted EchoStar's request and determined that Bermuda secured rights to the 96.2 degree W.L. orbital location. Spectrum Five petitioned for review of the Commission's order, claiming principally that the Commission acted arbitrarily and capriciously. The court dismissed the petition for lack of Article III standing because Spectrum Five failed to demonstrate a significant likelihood that a decision of this court would redress its alleged injury. View "Spectrum Five LLC v. FCC" on Justia Law

The Commission granted waivers with nunc pro tunc effect to many of the companies seeking relief from a compliance deadline regarding regulations that required digital wireless service providers to offer telephone handsets that are compatible with hearing aids. Petitioners sought review of the Commission's denial of waivers for petitioners and raised several challenges to the procedural regularity of the Commission's adjudication of their waiver petitions. Because the three petitioners did not comply until after January 1, 2007, and because they reported to the Commission that they had done nothing to seek out compliant telephones beyond contacting their existing suppliers, petitioners failed to satisfy either of the Commission's reasonable criteria for waiver. Accordingly, the Commission's decision to deny the waiver petitions was reasonable. The Commission did not treat similarly situated carriers differently without offering an adequate explanation. The court rejected petitioners' remaining arguments and denied the petition for review. View "Blanca Telephone Co., et al. v. FCC" on Justia Law

Verizon challenged the FCC's Open Internet Order, which imposed disclosure, anti-blocking, and anti-discrimination requirements on broadband providers. The court concluded that the Commission has established that section 706 of the Telecommunications Act of 1996, 47 U.S.C. 1302(a), (b), vests it with affirmative authority to enact measures encouraging the deployment of broadband infrastructure; the Commission reasonably interpreted section 706 to empower it to promulgate rules governing broadband providers' treatment of Internet traffic, and its justification for the specific rules at issue here - that they will preserve and facilitate the "virtuous circle" of innovation that has driven the explosive growth of the Internet - was reasonable and supported by substantial evidence; given that the Commission has chosen to classify broadband providers in a manner that exempts them from treatment as common carriers, the Communications Act, 47 U.S.C. 201 et seq., expressly prohibits the Commission from nonetheless regulating them as such; and because the Commission has failed to establish that the anti-discrimination and anti-blocking rules did not impose per se common carrier obligations, the court vacated those portions of the Open Internet Order. View "Verizon v. FCC, et al." on Justia Law