we emphasized in our testimony before the subcommittee about the parallel interests of creators and communicators. Sixth: Questions have been raised about the noncommercial character of ETV programs for which specific financial grants are received from foundations, businesses, or other outside sources. I have therefore attached copies of sections 73.621 and 73.654 of the FCC regulations applicable to ETV stations and their broadcasting operations (exhibit IV). Under these FCC requirements, the sources of all financial contributions must be identified on ETV as well as commercial television programs (in the case of controversial programs, both at the beginning and end); but this practice should in no way be considered as the same character as commercial advertising, which is expressly forbidden for ETV stations. Lastly, I should like to emphasize once again the tremendous clearance problems for ETV stations, should H.R. 4347 be enacted without change. I am sure that the subcommittee realizes full well after the several weeks of these hearings the tremendous complications that are involved in clearing copyrighted literary and musical material, even under the present law. These would be multiplied many times should the present ETV exemption be discontinued without other relief. Our recommendations have been aimed primarily at avoiding this unpleasant and unfortunate prospect for the benefit not only of ETV but also of the American children and adults it serves. Very truly yours, EUGENE N. ALEINIKOFF, General Counsel. EXHIBIT I Mr. EUGENE N. ALEINIKOFF, ROCKEFELLER BROS. FUND, General Counsel, National Educational Television, DEAR MR. ALEINIKOFF: We very much appreciate your thoughtful letter of May 5 presenting the educational television view on copyright revision. In "The Performing Arts: Problems and Prospects" the panel's exploration of the subject of copyright revision was brief as the subject lay somewhat outside the main focus of the report, which as you know is primarily concerned with the organizations involved in presenting live professional performances of theater, dance, and music. The points you have raised should be explored, but at the moment, with our panel disbanded, we cannot make an extended study. We would like to suggest, however, that in "The Performing Arts: Problems and Prospects," the panel's view on copyright revision is not so one-sided as the interpretation that has been made. The panel states, page 141, that it is opposed to a blanket exemption from payment of fees for the use of copyrighted material by educational television. This does not mean that the panel would be opposed to any exemption whatsoever. It is our understanding that the proposals which are being put forth by National Educational Television in the current hearing on copyright revision are for a partial rather than complete exemption. We also understand that there are practical problems of availability of material as well as payment of royalties involved. All of these very complicated technical problems must be resolved with the general public interest in mind. Finally I would like to call your attention to the following statement on page 199 of the report: "The panel believes educational television has a great opportunity to make a significant contribution to the arts. The panel urges the community to provide the support necessary to exploit this opportunity vigorously." Sincerely, ALAN CAMPBELL. EXHIBIT II HARLEM EDUCATIONAL TV SYSTEM UNDER CONSIDERATION BY HARYOU (By Val Adams) Harlem may establish its own educational television system. Livingston L. Wingate, executive director of Haryou-Act, confirmed yesterday that "we are carefully weighing a proposal" to build a limited-range television system. The board of the Harlem social agency, formed to combat poverty and delinquency, has not yet acted on the proposal. Haryou Act proposes to set up about 40 program centers, where Harlem residents could assemble and watch the various educational programs, since the station could not be picked up on ordinary receivers without special antennas. The type of programs envisioned by the agency include instruction on organizing for community action, voter registration, family diet, family budgets, health tips, prenatal care, and information on how to use social agencies. There also is thought of using the system as a teaching device for pre-school and in-school children. Programs would be presented from about 9 a.m. until some evening hour. Much of the study for the proposed station is under the direct supervision of William Smit, who is in charge of community relations for Haryou-Act. Mr. Smit said that the system would be the type known as on-the-air closed circuit television. This system, which operates in the 2500-megacycle range, is less costly than the transmission method employed by conventional stations. In the "on the air" closed circuit system, programs are relayed short distances through the air from one transmitter to another, thus eliminating the need for cable or lines. It is possible that only one transmitter would be required to serve the Harlem area. The Federal Communications Commission provided for this type of educational television service about 2 years ago when it established the Instructional Television Fixed Service and made channels available. Last year the three Roman Catholic dioceses in the metropolitan area said they would utilize the service for their school systems. Mr. Smit said that the special antennas needed to pick up the programs would cost about $1,000 each. He estimated that the cost to construct a station and set up the system might be about $250,000. Haryou Act obtains funds from the Federal, State, and local government. Presumably the money for the television system would come through Federal agencies. Before the station could be constructed, however, an application would have to be filed and approved by the Federal Communications Commission. Mr. Smit said he was hopeful that the Harlem system could be in operation, within a year. "Television as an educational device is proving itself all over the country," he said, "and its potential is a great potential." The operation of the station, Mr. Smit said, also could provide training in television operations for young persons who might then be able to obtain jobs in commercial television. He said that Haryou Act now has a film and sound unit, which produced a documentary last year. Some of those who helped make the film have since found jobs with commercial companies, he said. EXHIBIT III MILLER SEES PEN GROWING MIGHTIER-PLAYWRIGHT TELLS WRITERS OF THEIR IMPROVED STATUS BLED, YUGOSLAVIA, July 5 (AP).-The American playwright, Arthur Miller, said today that writers were gaining in influence and becoming a political and social power. He cited the White House protest of the poet, Robert Lowell, as an example. Mr. Lowell recently rejected an invitation to a White House arts festival, informing President Johnson that he was able to follow U.S. foreign policy only "with the greatest dismay and distrust." Speaking here to a congress of PEN-the international association of writersof which he has been elected president, Mr. Miller said: "A poet's opinions of politics were not much listened to, a short while ago. Today, a Robert Lowell condemns American foreign policy, and the very heart of Government contracts." "And I emphasize," he added, "that it is unlikely 1 percent of those contracting hearts had ever been exposed to Mr. Lowell's poetry, let alone the newspaper readers who read the reports of his criticism on the front pages." Speaking on the position of writers today, he said: "Culture pays today when it did not before: it has mass consumers, mass distribution, mass publicity, just like automobiles and bathing suits. "Years ago, to say you were a writer was not the highest recommendation to your landlord. Today, he at least hesitates before he refuses to rent you the apartment-for all he knows you may be rich." This improvement Mr. Miller ascribed to mass communication, especially television, "so that people who formerly were known only to a relatively specialized group are now injected into public consciousness on every level, and in that way become, potentially at least, elements of political and social power. "I think literature is on the verge of becoming public property instead of the preserve of the relative few," he said. EXHIBIT IV FEDERAL COMMUNICATIONS COMMISSION RULES AND REGULATIONS § 73.621 Noncommercial educational stations. In addition to the other provisions of this subpart, the following shall be applicable to noncommercial educational television broadcast stations: (a) Except as provided in paragraph (b) of this section, noncommercial educational broadcast stations will be licensed only to nonprofit educational organizations upon a showing that the proposed stations will be used primarily to serve the educational needs of the community; for the advancement of educational programs; and to furnish a nonprofit and noncommercial television broadcast service. (1) In determining the eligibility of publicly supported educational organizations, the accreditation of their respective state departments of education shall be taken into consideration. (2) In determining the eligibility of privately controlled educational organizations, the accreditation of state departments of education or recognized regional and national educational accrediting organizations shall be taken into consideration. (b) Where a municipality or other political subdivision has no independently constituted educational organization such as, for example, a board of education having autonomy with respect to carrying out the municipality's educational program, such municipality shall be eligible for a noncommercial educational television broadcast station. In such circumstances, a full and detailed showing must be made that a grant of the application will be consistent with the intent and purpose of the Commission's rules and regulations relating to such stations. (c) Noncommercial educational television broadcast stations may transmit educational, cultural and entertainment programs, and programs designed for use by schools and school systems in connection with regular school courses, as well as routine and administrative material pertaining thereto. (d) An educational station may not broadcast programs for which a consideration is received, except programs produced by or at the expense of or furnished by others than the licensee for which no other consideration than the furnishing of the program is received by the licensee. The payment of line charges by another station or network shall not be considered as being prohibited by this paragraph. (e) To the extent applicable to programs broadcast by a noncommercial educational station produced by or at the expense of or furnished by others than the licensee of said station, the provisions of § 73.654 relating to announcements regarding sponsored programs shall be applicable, except that no announcements (visual or aural) promoting the sale of a product or service shall be transmitted in connection with any program: Provided, however, That where a sponsor's name or product appears on the visual image during the course of a simultaneous or rebroadcast program either on the backdrop or in similar form, the portions of the program showing such information need not be deleted. § 73.654 Sponsored programs, announcement of. (a) When a television broadcast station transmits any matter for which money, services, or other valuable consideration is either directly or indirectly paid or promised to, or charged or received by, such station, the station shall broadcast an announcement that such matter is sponsored, paid for, or furnished, either in whole or in part, and by whom or on whose behalf such consideration was supplied: Provided, however, That "service or other valuable consideration" shall not include any service or property furnished without charge or at a nominal charge for use on, or in connection with, a broadcast unless it is so furnished in consideration for an identification in a broadcast of any person, product, service, trademark, or brand name beyond an identification which is reasonably related to the use of such service or property on the broadcast. (b) The licensee of each television broadcast station shall exercise reasonable diligence to obtain from its employees, and from other persons with whom it deals directly in connection with any program matter for broadcast, information to enable such licensee to make the announcement required by this section. (c) In any case where a report (concerning the providing or accepting of valuable consideration by any person for inclusion of any matter in a program intended for broadcasting) has been made to a television broadcast station, as required by section 508 of the Communications Act of 1934, as amended, of circumstances which would have required an announcement under this section had the consideration been received by such television broadcast station, an appropriate announcement shall be made by such station. (d) In the case of any political program or any program involving the discussion of public controversial issues for which any films, records, transcriptions, talent, scripts, or other material or services of any kind are furnished, either directly or indirectly, to a station as an inducement to the broadcasting of such program, an announcement shall be made both at the beginning and conclusion of such program on which such material or services are used that such films, records, transcriptions, talent, scripts, or other material or services have been furnished to such station in connection with the broadcasting of such program: Provided, however, That only one such announcement need be made in the case of any such program of 5 minutes' duration or less, which announcement may be made either at the beginning or conclusion of the program. (e) The announcements required by section 317(b) of the Communications Act of 1934, as amended, are waived with respect to feature motion picture films produced initially and primarily for theatre exhibition. NOTE: The waiver heretofore granted by the Commission in its Report and Order of November 21, 1960 (FCC 60-1369; 25 F.R. 11224. Nov. 26, 1960), continues to apply to programs filmed or recorded on or before June 20, 1963. (f) The announcement required by this section shall fully and fairly disclose the true identity of the person or persons by whom or in whose behalf such payment is made or promised, or from whom or in whose behalf such services or other valuable consideration is received, or by whom the material or services referred to in paragraph (d) of this section are furnished. Where an agent or other person contracts or otherwise makes arrangements with a station on behalf of another, and such fact is known to the station, the announcement shall disclose the identity of the person or persons in whose behalf such agent is acting instead of the name of such agent. (g) In the case of any program, other than a program advertising commercial products or services, which is sponsored, paid for, or furnished, either in whole or in part, or for which material or services referred to in paragraph (d) of this section are furnished, by a corporation, committee, association, or other unincorporated group, the announcement required by this section shall disclose the name of such corporation, committee, association, or other unincorporated group. In each such case the station shall require that a list of the chief execu tive officers or members of the executive committee or of the board of directors of the corporation, committee, association or other unincorporated group shall be made available for public inspection at the studios or general offices of one of the television broadcast stations carrying the program in each community in which the program is broadcast. (h) In the case of broadcast matter advertising commercial products or services, an announcement stating the sponsor's corporate or trade name, or the name of the sponsor's product, when it is clear that the mention of the name of the product constitutes a sponsorship identification, shall be deemed sufficient for the purposes of this section and only one such announcement need be made at any time during the course of the program. (i) Commission interpretations in connection with the foregoing rules may be found in the Commission's Public Notice entitled "Applicability of Sponsorship Identification Rules" (FCC 63-409; 28 F.R. 4732, May 10, 1963) and such supplements thereto as are issued from time to time. (Sec. 817, 48 Stat. 1089, as amended; 47 U.S.C. 317) Mr. KASTENMEIER. Now Mr. Burrows has a short statement. STATEMENT OF EDWIN G. BURROWS, MANAGER, STATIONS WUOM, ANN ARBOR, AND WVGR, GRAND RAPIDS, MICH., UNIVERSITY OF MICHIGAN Mr. BURROWS. Mr. Chairman, members of the committee, I am Edwin G. Burrows, manager of the University of Michigan's two educational noncommercial stations, WUOM, Ann Arbor, and WVGR, Grand Rapids. I am vice chairman of the Board of National Educational Radio, the radio division of the National Association of Educational Broadcasters. As a regional director on that board, I represent the interests of some 65 educational radio stations owned by universities, colleges and public school systems in Michigan, Ohio, Indiana, Illinois, and Wisconsin. I have worked in radio since 1938 and have been employed by the University of Michigan since 1948. As part of my managerial duties I have spent considerable time negotiating with publishers and licensing agencies for broadcast rights to copyrighted materials protected by the old 1909 copyright law and have, on several occasions, spent time with these organizations discussing our mutual problems, needs and aims. My colleagues appearing before you have and will address themselves to the wide spectrum of issues raised by the proposed revisions in the copyright law. In their analysis of these issues, I concur. I would also add that much of what has been said on behalf of educational television applies equally well to educational radio. The Federal Communications Commission has charged all radio stations, including educational noncommercial stations, with the responsibility to serve broad community interests. While in Michigan alone there are five educational radio stations primarily involved in systematic instruction for classroom use, there are nine other educational radio stations not primarily involved in systematic instruction |