Court Blocks FCC's Leased Access Rules
Appellate Court Says New FCC Regulation Brings ‘Likelihood Of Irreparable Harm’ To Cable Operators
By Ted Hearn -- Multichannel News, 5/22/2008 3:56:00 PM
Washington—A federal appeals court in Cincinnati Thursday blocked the Federal Communications Commission from enforcing new cable leased access rules, saying there was a “likelihood of irreparable harm” to cable operators.
The stay, sought separately by the National Cable & Telecommunications Association and Verizon Communications, was issued by a unanimous three-judge panel of the U.S. Court of Appeals for the 6th Circuit.
The cable industry went to court to stop rates that third-party programmers need to pay to lease time on cable systems. Although the FCC said it cut rates by 75 percent, the cable industry claimed that the new rate formula in many instances would produce zero revenue.
“NCTA has demonstrated some likelihood of irreparable harm. The balance of the harms and the public interest, as well as NCTA's potential of success on the merits, supports a stay pending review of the FCC's order," the 6th Circuit panel said.
The court stay was the fourth issued within the last few months to block various regulations supported by FCC chairman Kevin Martin, a Republican appointee of President Bush.
The FCC's rules were to take effect on May 28 or when the Office of Management and Budget approved portions of the FCC's order, whichever is later.
