Pillsbury’s communications lawyers have published the FCC Enforcement Monitor monthly since 1999 to inform our clients of notable FCC enforcement actions against FCC license holders and others. This month’s issue includes:
- Low Power FM Licensee Cedes De Facto Station Control Through Contract
- Pirate Radio Station Operator Arrested During Live Broadcast
- Northeast Property Owners Warned Over Illegal Radio Broadcasts
Short-Term License Renewal and $2,000 Consent Decree for LPFM Control Violation
The FCC’s Media Bureau entered into a Consent Decree with the licensee of a North Carolina low power FM (LPFM) station to resolve an investigation into whether the licensee violated Section 310(d) of the Communications Act and Section 73.865 of the FCC’s Rules. Under those provisions, an LPFM station cannot be transferred or assigned to another party without the FCC’s prior consent.
To determine whether control of a broadcast station has transferred, the FCC considers “actual or legal control, direct or indirect control, negative or affirmative control, and de facto as well as de jure control.” An analysis of de facto control looks at the exercise of control over a station’s programming, personnel, and finances, among other things. Surrendering control over these matters to another person transfers de facto control of the station.
Following receipt of a complaint alleging the station’s former licensee was controlling the station pursuant to a local marketing agreement, the FCC conducted an investigation. It concluded that the current licensee had ceded control of the station to the former licensee by entering into an agreement that gave the former licensee “sole right and privilege to determine the selection of programs” and required the station to “broadcast the provided programming, in its entirety, as delivered by [the former licensee] without any editing, 24 hours per day, 7 days per week.” Broadcast licensees are not allowed to convey such unfettered control over a station’s programming to another party.