HHR New Media, Entertainment and Technology Group

The Federal Communications Commission (FCC) recently opened an inquiry into Google Voice, the popular messaging and call service offered by Google, and Google’s practice of blocking certain calls.   The inquiry was prompted by complaints from AT&T to the FCC accusing Google of unfairly blocking calls to certain numbers in rural areas where local phone companies charge high connections fees.  A bipartisan group of 20 Congressional members also submitted a letter asking the FCC to open an investigation into Google’s voice application.  Continue Reading »

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• The FCC announced plans to impose more than $12 million in fines on 600 telecoms that failed to file paperwork last year detailing how they are going to protect the privacy of their customers.  The FCC is seeking the fines because many of the phone companies, internet telephone service providers and calling-card companies that are supposed to make the detailed annual reports are not complying with the current rules. 
• In a week where we’ve read so much about newspapers becoming obsolete, a new survey by The Rosen Group has found that the majority of Americans still consider print to be a vital source for their news and entertainment even though a third of us consider websites to be our number one source of information. 
• According to a report by PriceWaterhouseCoopers, internet gambling, which was banned in 2006, could bring in over $52 billion in tax revenue over 10 years.  That may be one of the factors driving a decision to reintroduce legislation in Congress to overturn the ban. 
• A two-year old lawsuit filed by Eminem’s production company against Universal Music Group seeking about $1.3 million in unpaid digital music royalties finally went to court this week and its outcome could have a profound effect on the digital music business.  The issue is whether digital music downloads fall under “distribution” or “licensing” agreements — the latter giving artists a 50% take on royalties earned. 

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• E-commerce sites, especially Amazon, the biggest of them all, got some bad news as the New York Supreme Court upheld the validity of a law requiring e-tailers to collect state sales tax. Amazon and Overstock.com sued based on a 1992 Supreme Court ruling that a company had to have a physical presence in the state to collect taxes.  Appeals are likely but for now, it looks likely that sales tax on e-commerce is inevitable.  More information is here.
• A task force has been formed by four Madison Avenue trade groups, with the support of the Council of Better Business Bureaus, to develop industry guidelines for new forms of online behavioral advertising and to lobby the government regulators and policymakers on the benefits to consumers.  The initiative is in response to potential government regulations that would limit new forms of online user targeting.  More details here.
• Reports out of Washington say that Julius Genachowski is being considered to take the chair of the Federal Communications Commission.  Although he was a former general counsel at the FCC and knows the agency well, he is better known as a digital media veteran, a longtime executive at InterActiveCorp and founder of a D.C.-based VC firm which has invested in numerous Web companies.  Here’s a piece from all things digital.com discussing the proposed appointment and industry reaction.
• Two consumer groups are set to appear before the FCC to seek an investigation into mobile ads.  The Center for Digital Democracy and US Public Interest Research Group claim that mobile ad firms don’t fully disclose the extent of the information they collect from consumers.  Here’s an article from the San Francisco Chronicle detailing the debate.

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• One report says that ad spending on social networking sites will be lower than expected this year and will remain relatively flat in 2009.  Details from the WSJ are here. 
• The House Committee on Energy and Commerce has released a report entitled “Deception and Distrust:  The Federal Commmunications Commission under Chairman Kevin J. Martin.”  Some of the highlights of the criticism: lax oversight of telecommunciations companies and pushing for revisions to agency reports in a less-than-open fashion.  One caveat:  the report was prepared and released by the majority staff and is not necessarily a consensus view.  Here’s a link.
• Google has reached agreement to bring the magazine archive and current issues online as part of Google Book Search.  Titles involved in the project are a diverse bunch and include New York Magazine, Popular  Mechanics and Ebony.  The announcement was made via this post on Google’s official blog.
• The New York Times takes a look at licensing and other revenue opportunities that are being exploited in virtual worlds.  We’ll be looking at the legal impact that emerging technologies in the virtual space might have on licensing arrangements in the coming weeks.  Check back for the full post.

A few months back, we wrote about Congress jumping into the debate over “net neutrality” with the introduction of a bill directing the FCC to assess the extent and impact of efforts by broadband providers to police internet traffic, impeding connections and access based on content and activity. (See “A Congressional Foray Into the Net Neutrality Debate“).  Continue Reading »