The proposed legislation would compel CATV to pay copyright owners for distributing signals carrying their copyrighted works. The broadcaster has the right to pick and choose the copyrighted works he will buy and broadcast. Congress should set the record straight. If the Commission is confirmed in the power to require carriage of particular signals by CATV, than CATV is a supplemental reception service performs nothing, and owes nothing. If it is desired to require copyright payment by CATV for its supplemental role, then CATV should be entitled to carry whatever programs it desires, delete the advertising and substitute its own. The broadcaster should not be permitted to have it both ways colect additional revenue from sponsors for the added carriage of CATV and require CATV to pay copyright fees In short, the broadcaster is arguing for the morality of unjust enrichment to copyright owners at the expense of the public CATV serves as a means of using copyright to restrict the growth of CATV It is the public who will unjustly enrich the broadcaster and/or the copyright owner - not the CATV operators These anti-consumer provisions should not be enacted into law.

IV CONCLUSION

Based on the foregoing review of the background and the provisions of this legislation, it must be concluded that the provisions of S. 1361 concerning CATV are philosophically unsound. An across-theboard payment. including payment by the public for two tickets to the same performance or for distant signals as limited by the Commission's rules, is, in my opinion, soaking the consumer and will add to an already inflationary economy. I believe that you are justified and should revert to the industry's histor cal position and make every effort to seek an amendment to this bill, substantially as recommended in 1965 (supra n.1), to eliminate any liability under Section 106 or other provisions of S. 1361.

The Subcommittee on Communications of the Senate Commerce Committee, in its Report No 93-1035 on S. 1361, proposed certain amendments to the bill. In conclusion, the subcommittee stated on page 71:

"Despite proposing amendments to the Judiciary Committee's amendment in the nature of a substitute for S.1361, you Committee emphasizes it is reporting the bill out without recommendation.

"Clearly, some of its subject matter substantially affects the broadcasting and cable industries, and is regulatory in nature.

"Should it be enacted it will have a significant impact on our nationwide communications system, without the relevant issues having been analyzed in the forum designated the Senate for that purpose, i.e. your Committee on Commerce."

I have not undertaken to separate the regulatory parts of the bill from those properly in a copyright bill. At a later time, this type analysis should be made in order to further demonstrate the inappropriateness of the provisions of S. 1361 relating to cable television.

10

Frederick W. Ford

AD HOC COMMITTEE

OF CONCERNED CABLE TELEVISION OPERATORS

FOR A FAIR COPYRIGHT LAW,
Painted Post, N.Y., June 10, 1975.

Re H.R. 2223-Omnibus Copyright Revision Legislation-Cable Television. Hon. ROBERT W. KASTENMEIER,

Chairman, Subcommittee on Courts, Civil Liberties, and the Administration of Justice, Judiciary Committee, House of Representatives, Washington, D.C. DEAR CONGRESSMAN KASTENMEIER: The Ad Hoc Committee of Concerned Cable Television Operators For a Fair Copyright Law is enclosing herewith for insertion in the records on the current Hearings on the above-referenced legislation the following:

1. Listing of State and Regional cable television associations that have adopted resolutions against the payment of copyright fees by cable television systems. 2. Copies of resolutions passed by 53 municipalities in the United States against the payment of copyright fees by CATV systems and indirectly the United States public that happens to view their television on CATV systems.

It is pertinent to note that no municipalities in the United States have voted in favor of having CATV systems pay copyright. It would obviously not be logical for them to do so because the cost of the copyright fees will be passed on to the subscribing U.S. consumers. Obviously they know it would not be popular or even intelligent to adopt such a position. This special interest legislation would in effect require the American consumer to pay special copyright fees for viewing programming that has advertisements attached to it. Such “pork barrel" legislation is clearly not in the public interest.

You will note that to date 23 states have officially adopted resolutions against the payment of copyright fees by CATV systems, CATV operators are essentially providing an "antenna service”. As such, CATV operators do not understand this entire issue of copyright. However, as CATV operators become more and more aware that they will have to pay copyright fees in the immediate future if this disastrous legislation goes through, they are putting pressure on individual state associations to officially adopt positions against the payment of copyright. The only people that are for the payment of copyright are the large multiple system owned CATV operators that control the National Cable Television Association These operators feel that the Federal Communications Commission will continue to enact disastrous legislation in our industry if this copyright issue is not settled. We agree that it should be settled. But we also feel that to agree to pay copyright which we feel is fundamentally immoral and anti-consumer is not the appropriate course of action.

We hope that your Committee will consider in its deliberations on the proposed copyright legislation the strong feeling of the municipalities that voted against this legislation. Please also consider the feelings of all the state associations representing approximately 11⁄2 of all the states in America that have taken the trouble to adopt resolutions against this legislation as it relates to cable television. Very truly yours,

LAWRENCE FLINN, JR., Member.

LISTING OF STATE AND REGIONAL CATV ASSOCIATIONS THAT HAVE ADOPTED A "NO PAY" POSITION ON COPYRIGHT AS OF JUNE 6, 1975

STATE ASSOCIATIONS

1. Alabama*

2. Arkansas

3. Colorado

4. Iowa

5. Kentucky 6. Louisiana

7. Minnesota*

S. New York 9. Oklahoma 10. Oregon*

11. Pennsylvania 1

Footnotes at end of listings.

12. Texas*

13. Virginia*

14. West Virginia

STATES REPRESENTED THROUGH REGIONAL CATV ASSOCIATIONS

STATES REPRESENTED AND NAME OF REGIONAL ASSOCIATIONS

15. Illinois, Illinois-Indiana CATV Assn.

16. Indiana.

17. Maryland, Maryland-Delaware CATV Assn.

18. Delaware.

19. Kansas, Mid-America CATV Assn.

20. Missouri.

Oklahoma (counted above. Passed separate resolution).

21, Nebraska.

22. Colorado, Rocky Mountain CATV Assn.

23. Wyoming*

STATE ASSOCIATIONS THAT HAVE VOTED TO ADOPT THE NCTA POSITION

1. California.

2. Florida.

ON COPYRIGHT

Copy of resolution passed is submitted herewith. The other resolutions have been recently reported by telephone or in the press and copies of the related resolutions passed will be obtained and copies will be submitted to Congress.

1 Would pay copyright on distant signals only beyond basic complement of 7 TV signals. (3 nets, 1 ETV, & 3 Independents).

AD HOC COMMITTEE

OF CONCERNED CABLE TELEVISION OPERATORS
FOR A FAIR COPYRIGHT LAW

Re: H.R. 2223 - Omnibus Copyright Revision Legislation -
Cable Television

Dear Congressman Kastenmeier:

In reference to our letter to you dated June 10, 1975, enclosed herewith is a resolution passed by the City of Bellaire, Ohio requesting Congress to remove any provision requiring the payment of copyright fees by cable television systems from the above referenced legislation.

Please include the enclosed document in our previous filing for insertion in the records for the current deliberations on this proposed legislation. Thank you for your help in this matter.

cc: Members of the House Subcommittee on Courts,
Civil Liberties and the Administration of Justice

57-7AF () - 76 - pt. 1 43

RE:

RESOLUTION NO.

325

OMNIBUS COPYRIGHT REVISION LEG -MION CARLE TELEVISIO

WHEREAS, the master of lia lity of cable revision ope and, through them cable subscribers to pay copyright royaltie television signals carried on cable television is now before Congress of the United States in the Omnibus Copyright Revisio Bill;

WHEREAS, the 1974 annual meeting of the United States Co: of Mayors in San Diego did unanimously approve Resolution Num urging the United States Senate not to adop、 legislation which place an extra surcharge on the viewing of television program: via a cable television system;

ar

WHEREAS, this resolution was ignored and had no effe Or action of the United States Senate in the ember 9th. Senate Bill S.1361;

WHEREAS, the United States Suprer tour has twice carring of broadcast signals by cable television is not under deral copyright law for which copyright royaltic quired to be paid; and

ca

WHEREAS, as a matter of pure logic and economic thee, P of copyright royalties for carriage of broadcast signals television is improper and can result in consumers pay. royalties twice;

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a.

WHEREAS, the cable television industry, still in i should not be overburdened with required fees and charge, pay. of which must be subsidized by the ultimate consumer, the cl television subscriber;

WHEREAS, the continuation of quality cable television .er in and for the community of Bellaire, Ohio, is important to the well-being, education, and informed status of our citizens;

WHEREAS, adoption of this copyrigh legislation by the ful Congress of the United States will be inflationary and will selectively "tax" the cable viewing residents of bellaire, Ohio

NOW, THEREFORE, BE IT RESOLVED, by the Council of the city Bellaire, Ohio:

$1. That the Congress of the United States is urged to re. ye from the Omnibus Copyright Revision Bil. all language which wou. require a copyright payment for carriage of broadcast signals on cable television.