FCC Broadcast Flag Rule Invalidated

On May 6, 2005, the US Court of Appeals for the DC Circuit invalidated a government rule designed to head off Web piracy of television shows when broadcasters switch to digital signals. According to the ruling, regulators lacked the authority to order TV makers to redesign their products.  

The rule was adopted in November 2003 as broadcasters were starting to convert to transmitting digital television signals.  TV broadcasters urged the FCC to adopt the rule to prevent redistribution of digital programming over the Internet. 

The Court of Appeals panel indicated that "[t]he FCC has no authority to regulate consumer electronic devices that can be used for receipt of wire or radio communications when those devices are not engaged in the process of radio or wire transmission."  One of the judges on the panel wrote, “In the seven decades of its existence, the FCC has never before asserted such sweeping authority.”

Steptoe attorneys Pantelis Michalopoulos, Cynthia Quarterman, Rhonda Bolton, Lincoln Davies, and Janice Gorin represented the victorious petitioners, appealing, briefing, and arguing the case on behalf of nine consumer and library organizations.   

The May 9, 2005, issue of the Legal Times reports on the firm's victory in the “Inadmissible” column (registration required).