December 2014

Wisconsin Targets the Media

[Commentary] The Wisconsin assault on political speech has been in a lull, but it reappeared with a bang with a fresh document release by a state court. The disclosures include evidence that Wisconsin’s Government Accountability Board wanted to go after Milwaukee radio host Charlie Sykes and Sean Hannity of Fox News. The documents show that Wisconsin’s speech police are abusing their power with little regard for the First Amendment. The state legislature should shut them down.

Pandora cites free speech to defend against artist demands for royalties

[Commentary] Led by key members of the 1960s rock band the Turtles, oldies artists have persuaded a series of judges in California and New York that they are entitled to royalty payments from Sirius XM. Those artists are suing Pandora as well, claiming the online broadcaster violated their copyrights under California law to songs they recorded before February 1972. On Dec 19, Pandora struck back, moving to dismiss a federal class-action lawsuit by the Turtles' Flo & Eddie because it allegedly violates Pandora's 1st Amendment rights.

According to Pandora's filing, the claims by Flo & Eddie run afoul of a 1992 state law prohibiting "strategic lawsuits against public participation." This law is designed to protect people from being sued for exercising their rights to free speech or petition the government "in connection with a public issue or an issue of public interest." That's an interesting bit of legal jiu-jitsu, but it doesn't speak to the question the court will ultimately have to answer. That is, what rights does California's copyright law give to Flo & Eddie and their contemporaries?

Free hotel Wi-Fi coming, with strings attached

Starwood Hotels & Resorts Worldwide -- with more than 1,200 properties including the brands W, Westin, Sheraton, Four Points and St. Regis -- announced that standard in-room Internet will be free to all Starwood Preferred Guest members starting Feb. 2. The move mirrors a decision announced by Marriott International to offer free standard Wi-Fi to members of its loyalty rewards program, starting in January.

With the Starwood offer, loyalty reward members get the Wi-Fi if they book through Starwood’s online sites or the SPG app. Without a loyalty membership, guests pay up to $20 per day for basic Wi-Fi service, with even higher prices for Internet with premium speeds. Guests pay nothing to join the Starwood rewards program. Industry experts say hotel companies value loyalty membership because it enables the hotels to pepper guests with offers and shower them with perks to keep them loyal.

FTC Raises Its Voice Under Its Soft-Spoken Chairwoman

While public debate has raged in recent months over the Federal Communications Commission’s position on network neutrality and the Justice Department’s review of the proposed merger of Comcast and Time Warner Cable, the Federal Trade Commission has operated somewhat more in the shadows. But FTC Chairwoman Edith Ramirez is pushing to regain some of the prominence of the FTC, the nation’s top consumer protection enforcer, which just celebrated its 100th anniversary -- by focusing particular attention on digital privacy and transactions.

Her efforts could lead to more turf battles, including with the FCC and the Consumer Financial Protection Bureau, which see their mandates as covering much of the same enforcement territory. The agencies say publicly that they are working well together and just divvying up the spoils. Behind the scenes, though, more than a little tension has developed. The FTC has recently warned, for example, that the FCC’s net neutrality ruling might infringe on the trade commission’s ability to protect consumers. If the communications commission reclassifies broadband Internet service as a sort of utility, the trade commission would lose some legal jurisdiction over Internet service providers. Similarly, last week, the FCC and the consumer bureau stepped in to aggressively target Sprint, the mobile phone company, on a type of case that the FTC has recently brought against two other wireless carriers, AT&T and T-Mobile. Chairwoman Ramirez, described by colleagues as a reserved yet diligent litigator, will be at the center of that turf battle, her calm demeanor masking an aggressive negotiator.

FDA Oversight in the Internet Age

A Food and Drug Administration rebuke of televised comments made by Aegerion Pharmaceuticals’ CEO -- which led the company to air a TV commercial correcting the statements -- was prompted by complaints from a government drug reviewer. The incident shed light on the regulator’s oversight of marketing in the Internet age, where comments that might have aired once and been forgotten in the past can now easily be retrieved through a Google search.

Facebook caves to Russian censorship, blocks page supporting Putin critic

Facebook has blocked a page calling for a protest in support of a prominent opposition leader in Russia, apparently at the request of Vladimir Putin's government.

The page was created on Dec 19 to organize a Moscow demonstration to support Alexei Navalny, an anti-Putin blogger who has been targeted by the Russian regime since 2011, when he spearheaded widespread anti-government protests. Russian prosecutors called for Navalny to serve a 10-year jail sentence on nebulous charges of embezzlement, sparking calls for pro-Navalny protests. The Facebook event page, which has 13,000 attendees as of the morning of Dec 22, was blocked within Russia on Dec 20, though it remains online for users outside the country.

The news media crackdown in Turkey threatens democracy

[Commentary] Autocrats often feel compelled to invent pretexts, no matter how unconvincing, for crushing their opponents.

In the latest round of attacks on the news media in Turkey, warrants were issued for the arrest of journalists in which it was stated they are suspected of nefarious deeds, such as plotting “to seize state power” or forming an armed organization to support terrorists. These trumped-up claims are intended to divert attention from a crackdown by President Recep Tayyip Erdogan on his critics and rivals. At stake is Turkey’s democracy. Erdogan ignores a central premise of democracy: that it is strengthened, not weakened, by competition. The noisy news media are not carrying out some dark conspiracy and not participating in a palace coup, but they rather are a critical part of a functioning, healthy political system.

Suffocate the news media, and Erdogan risks destroying all that Turkey should aspire to. Erdogan ought to reverse direction before driving off the cliff.

This tiny legal tweak could change the way you watch TV and get online

The Federal Communications Commission is proposing a tweak to the nation's TV rules, suggesting that new online video providers be treated just like the country's traditional cable and satellite TV companies. That means companies offering live television over the Internet -- such as the now-shuttered Aereo -- would be given the same privileges (and requirements) that apply to companies such as Comcast or Time Warner Cable.

In theory, this means online video providers would be able to take advantage of certain protections when negotiating with programmers for the right to broadcast their content. Programmers, meanwhile, could begin charging these distributors money. Notably, though, the FCC's rules would only apply to firms that offer "stream[s] of prescheduled video programming." So services like YouTube and Hulu would not be covered, because they offer playback on demand. The FCC believes that streamlining these rules would help newer, smaller video providers grow as more people start watching TV over the Internet.

Tribal Mobility Fund Phase I Support Authorized for Eleven Winning Bids

On December 19, 2014, the Federal Communications Commission issued a public notice authorizing Tribal Mobility Fund Phase I support for eleven winning bids.

Vermont connects broadband library network

Representatives from the Vermont Department of Libraries, the Vermont Telecommunications Authority and Sovernet Communications gathered to announce the completion of the project that provides broadband to 43 libraries from Pownal and Vernon to Montpelier and Plainfield.

The project was funded as part of a $33.4 million federal grant awarded to the Vermont Telecommunications Authority and Sovernet Communications in 2010. Other funds included a $12.5-million investment from Sovernet Communications, $2.3 million in state appropriations and $550,000 from the Bill & Melinda Gates Foundation. Richard Kendall, president and chief executive officer of Sovernet Communications, said connecting the libraries -- some of which are in larger communities such as Rutland and St. Johnsbury and others in very small towns like Cabot and Rupert -- is part of a four-year project that saw the company construct more than 900 miles of fiber-optic cable.