HHR New Media, Entertainment and Technology Group

Since our last post on net neutrality, the debate has focused on the administrative questions as to who will set the guidelines for internet regulations and how those regulations will be implemented.  Since the D.C. Court of Appeals ruled that the FCC did not have the authority to regulate Comcast’s network management practices under Title I of the Communications Act, as predicted, the Commission has sought alternative ways to reclassify broadband services in order to extend regulatory authority over ISPs under the Act.   Last week, by a 3-2 vote, the FCC moved one step closer to reclassifying broadband to reestablish authority over ISPs.  In its meeting, the FCC released a Notice of Inquiry to seek comment on the proposed changes for broadband regulation.  Continue Reading »

Earlier this month, the DC Court of Appeals dealt a blow to the FCC’s “net neutrality” initiatives when it held that the Commission did not have the authority to sanction Comcast for employing network management practices that targeted users of P2P applications.  However, by basing its reasoning on a straightforward (and not surprising) interpretation of the Communications Act of 1934, the Court’s decision cannot be called a knock-out and it is likely that we will see a tactical shift in the FCC’s efforts to implement net neutrality regulations. Continue Reading »

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.