A closely watched Copyright Office report on compulsory licensing will take a wide-ranging and lengthy look at rules allowing cable- and satellite-TV providers to get rights to distribute programs without negotiating with individual rights holders, said participants in the proceeding. Industry officials who lobbied the office in advance of the report agree it will be comprehensive, with a page count said to be around several hundred. It’s unclear whether the report will recommend any sweeping changes to compulsory licensing, as some content providers sought, they said. All expect an in-depth look at new technologies (CD Oct 12 p5), as they said the office signaled it would do in an April 2007 notice of inquiry kicking off the review.

More small cable systems will be exempted from having to carry high-definition broadcasts (CD May 23 p3) of must-carry stations after the DTV transition, in a coming FCC order that all commissioners have signaled they'll support, said agency officials. FCC Chairman Kevin Martin asked the Media Bureau to again redraft an order to excuse a wider array of systems than in the original draft he circulated April 9, they said. Although commissioners haven’t seen the new version, they've agreed in principle to expanded exemptions, they said. The order would also let such systems carry signals in analog only and still meet FCC viewability rules, said agency officials.

An FCC order finding Verizon unlawfully marketed to departing phone customers was unusual in many respects, some of which may provide fodder to a potential appeal by the company (CD June 23 p2), said agency and industry officials. The 4-1 vote, with Chairman Kevin Martin dissenting -- finalized late Friday but publicized Monday -- is the only time in recent memory when any chairman was in a minority of one, they said. Also unusual was the leak of the impending vote on the restricted proceeding by an FCC official acting at the behest of Martin, which included information on how Commissioner Robert McDowell would vote before he voted, they said.

Verizon might sue the FCC over an expected finding that the Bell broke the agency’s rules on use of subscriber information obtained during the number porting process. Late Friday, three commissioners were poised to oppose Chairman Kevin Martin, voting against a draft Enforcement Bureau order he circulated May 30 dismissing almost all components of a complaint by three cable operators’ against Verizon (CD June 11 p5), said agency officials. After news of the upset leaked, Verizon and NCTA officials bickered about the subscriber rules and FCC procedure.

Nearly seven months after commissioners voted to ask cable operators for subscriber data (CD Special Bulletin Nov 28 p1), the FCC hasn’t requested the information. Nor have FCC members heard how the agency will proceed, said FCC and industry officials. On Nov. 27, bowing to colleagues, FCC Chairman Kevin Martin agreed to ask cable operators to report on whether they meet the so-called 70/70 subscriber threshold. As part of that agreement, Martin removed a finding from a draft video competition report to Congress that claimed the milestone had been reached. If cable is determined to pass 70 percent of U.S. homes, and 70 percent of those homes subscribe, further agency regulation of the industry would be possible. Commissioners agreed to make a direct request to cable operators for the data. However, no such request appears ready, nor have commissioners had a draft to review preparatory to approving it, industry and agency officials said.

If FCC Chairman Kevin Martin and his colleagues are looking for legal arguments to conclude that Comcast’s slowing of peer-to-peer file transfers broke agency rules, a filing by Free Press may help, according even to some cable attorneys who disagree with the group’s stance. Late Thursday, Free Press made a 112-page filing with the commission in which it laid out seven provisions of the 1996 Telecom Act it said gave the FCC authority to prevent Internet service providers from engaging in “unreasonable discrimination” against Web content. Title 1 of the Act gives the commission the right to ensure networks are operated “'in a neutral manner,'” it said.

Replies to an FCC localism notice dwelt on proposals by public-interest groups that many broadcasters criticized. Advocacy groups’ filing stressed a need for the FCC to impose stricter rules for stations to serve their communities. CBS, Fox, the NAB and others said the groups, many opposed to media consolidation, offered paltry evidence in an April proposal (CD April 30 p6). The proposal would have the agency set “guidelines” so stations that air a substantial amount of local programming find it quicker and easier to get licenses renewals. The Association of Public Television Stations and the Public Broadcasting Service seek exemption from localism rules. The public interest groups partially supported that.

Commissioner Jonathan Adelstein, bemoaning low V-Chip use, said the FCC hasn’t addressed violence sufficiently on broadcast, cable and satellite TV. FCC Chairman Kevin Martin should immediately circulate a notice of inquiry asking about the availability and existence of technologies for parents to block kids from watching undesirable content, Adelstein told a Media Institute lunch Wednesday. Industry and the commission have failed to do enough to violence, he said.

AT&T and Verizon seem open to considering interactive plug and play technology. Monday, NCTA President Kyle McSlarrow said he has discussed technology to be used with any pay-TV provider with telco- and satellite-TV providers, and DirecTV said it will work with the consumer electronics industry on new technology (CD June 10 p8). AT&T has taken part in talks with the CE industry “in the past, and we're prepared to participate in the future,” said a spokesman. Verizon believes collaboration benefits consumers and industry, said a spokeswoman. It’s “actively pursuing the development of IPTV standards at ATIS and other open standards venues,” she added. The goal is to reach “innovative solutions that are agnostic to the type of service delivery network, while encouraging innovation of consumer devices and applications,” she said. Dish Network declined to comment, said a spokeswoman.

FCC commissioners are starting to review two related items dealing with what marketing practices by communications companies are allowed under FCC rules, said agency and industry officials. Commissioners face a deadline later this month to vote on an Enforcement Bureau order finding Verizon broke no rules in trying to lure back phone customers defecting to Bright House Communications, Comcast and Time Warner Cable, they said. The order was circulated by FCC Chairman Kevin Martin May 30.