Springfield Television Corporation v. Federal Communications Commission

609 F.2d 1014, 5 Media L. Rep. (BNA) 2301, 46 Rad. Reg. 2d (P & F) 1071, 1979 U.S. App. LEXIS 10093
CourtCourt of Appeals for the First Circuit
DecidedNovember 29, 1979
Docket79-1203
StatusPublished

This text of 609 F.2d 1014 (Springfield Television Corporation v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Springfield Television Corporation v. Federal Communications Commission, 609 F.2d 1014, 5 Media L. Rep. (BNA) 2301, 46 Rad. Reg. 2d (P & F) 1071, 1979 U.S. App. LEXIS 10093 (1st Cir. 1979).

Opinion

609 F.2d 1014

5 Media L. Rep. 2301

SPRINGFIELD TELEVISION CORPORATION, Petitioner,
v.
FEDERAL COMMUNICATIONS COMMISSION and United States of
America, Respondents,
Greater New England Cablevision Co., Inc., et al., Intervenors.

No. 79-1203.

United States Court of Appeals,
First Circuit.

Argued Sept. 12, 1979.
Decided Nov. 29, 1979.

Martin E. Firestone, Washington, D.C., with whom Stein, Halpert & Miller, Washington, D.C., Samuel A. Marsella, and Doherty, Wallace, Pillsbury & Murphy, Springfield, Mass., were on brief, for petitioner.

Keith H. Fagan, Counsel, Washington, D.C., with whom John H. Shenefield, Asst. Atty. Gen., Robert R. Bruce, Gen. Counsel, Daniel M. Armstrong, Associate Gen. Counsel, John J. Powers, III, and Frederic Freilicher, Attys., Dept. of Justice, Washington, D.C., were on brief, for respondents.

Edwin M. Durso, Washington, D.C., with whom Joseph R. Reifer, and Cole, Raywid & Braverman, Washington, D.C., were on brief, for intervenor Greater New England Cablevision Co., Inc.

Robert Alan Garrett, Evanston, Ill., with whom Alexander H. Hadden, New York City, James F. Fitzpatrick, and Arnold & Porter, Washington, D.C., were on brief, for intervenor, Commissioner of Baseball.

Before COFFIN, Chief Judge, CAMPBELL, Circuit Judge, DOOLING, Senior District Judge.*

COFFIN, Chief Judge.

A licensee of a television station and the Commissioner of Baseball here challenge an order of the Federal Communications Commission as arbitrary and capricious. The Commission's order denied a motion by the television station for a declaratory ruling that a nearby cable system must afford the station complete exclusivity for telecasts of Boston Red Sox baseball games in the Springfield, Massachusetts market. The Commission concluded that the cable system's practice of granting the station nonduplication protection for the scheduled 21/2 hour length of the telecasts was reasonable. We affirm.

I.

Springfield Television Corporation (STC)is licensed to operate television station WWLP, Springfield, Massachusetts. STC has contracted with station WSBK, Boston, for the right to carry telecasts of Boston Red Sox baseball games on WWLP. WSBK is the "flagship" station of a regional television network organized for transmission of Red Sox baseball telecasts.

Greater New England Cablevision Co. (GNEC) operates a cable television system in Wilbraham and Ludlow, Massachusetts, communities proximate to Springfield. Under FCC rules, Wilbraham and Ludlow are "local" to, because within thirty-five miles of, three television markets: the two hyphenated markets of Boston-Cambridge-Worcester, Massachusetts and Hartford-New Haven-New Britain-Waterbury, Connecticut, and the Springfield market. GNEC like every such cable television system must carry the signals of every station in its three local markets, 47 C.F.R. §§ 76.59(e), 76.61 (1978). Thus, GNEC carries the signal of WSBK and in May, 1977, relayed their telecasts of Red Sox games. At that time, STC learned that GNEC was carrying these games via WSBK and demanded that GNEC cease doing so. STC also filed a motion with the Commission requesting a declaratory ruling that GNEC must afford it syndicated and network exclusivity against WSBK and station WLVI, Cambridge.

The Commission has promulgated two batches of rules granting television stations, under certain circumstances, an exclusive right to telecast particular programs within a market as against more distant stations whose signals are imported by cable systems. These sets of rules are the syndicated programming exclusivity rules, 47 C.F.R. §§ 76.151 Et seq., and the network programming exclusivity rules, 47 C.F.R. §§ 76.92, Et seq. STC's request for a declaratory ruling alleged that GNEC's carriage of the WSBK Red Sox telecasts violated both the network and the syndicated exclusivity rules.

Two days before STC filed its motion, GNEC responded by blacking out the first 21/2 hours of each baseball telecast. In opposition to STC's motion GNEC argued that this action gave STC sufficient network exclusivity. It further argued that STC's claim of syndicated exclusivity had already been adversely decided against STC by a prior Commission order that had been affirmed on appeal and was res judicata. See Greater New England Cablevision Co., Inc., 45 F.C.C.2d 597 (1974), Aff'd sub nom. Springfield Television Broadcasting Corp. v. FCC, 168 U.S.App.D.C. 78, 512 F.2d 992 (D.C. Cir. 1975).

STC replied that prior litigation had not precluded its claim for syndicated exclusivity because it was now offering proof of specific economic injury caused by GNEC's carriage of the Boston station's Red Sox telecasts. This injury consisted of the threat by one advertiser to cancel sponsorship of WWLP Red Sox telecasts because of loss of audience share to the WSBK telecasts seen over GNEC. STC settled this threat by giving the advertiser substitute, or "make good", advertisements during WWLP's local newscasts. STC estimated the cost of affording the advertiser these "make good" spots would reach $7,000 by the end of the baseball season. However, this accommodation of the advertiser occurred before GNEC began to give STC 21/2 hours of exclusivity for the baseball telecasts. The record is silent as to the advertiser's reaction to this degree of exclusivity. STC further argued that it was entitled to network exclusivity for the duration of each telecast.

In September, 1978, the Chief of the Commission's Cable Television Bureau issued an opinion and order denying STC's motion for a declaratory ruling, 44 R.R.2d 144. The Bureau held that WWLP was not entitled to syndicated program exclusivity against other stations that under Commission rules are local to Wilbraham and Ludlow. The Bureau treated STC's motion as a request for a waiver from the syndicated exclusivity rules and denied the waiver because the evidence of injury did not meet the Commission's standard.1

The Bureau acknowledged that STC is entitled to network exclusivity against the WSBK Red Sox telecasts, but ruled that GNEC's practice of affording 21/2 hours exclusivity was sufficient. The rationale for this holding was the considerable difficulty cable systems face in manually switching back to a signal that has been blacked out during a network program when that program actually ends. The use of automatic switching equipment allows a cable system to set its equipment to return to the lower priority signal at a certain time, saving the cable system time and money. The Bureau thus thought it reasonable to allow GNEC to set its automatic equipment to switch back to WSBK at the scheduled completion of the ball game. As support for this determination the Bureau relied on First Report and Order in Docket 19995, 52 F.C.C.2d 519 (1975). There, the Commission had promulgated a rule that cable systems could set their automatic switching equipment for one hour after the scheduled conclusion of a sporting event telecast.

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609 F.2d 1014, 5 Media L. Rep. (BNA) 2301, 46 Rad. Reg. 2d (P & F) 1071, 1979 U.S. App. LEXIS 10093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/springfield-television-corporation-v-federal-communications-commission-ca1-1979.