DeCSS case in Cal. will be heard by state’s Supreme Court. Announcement of review of DVD Copy Control Assn. v. Bunner (S102588) came late Wed. and was setback for Electronic Frontier Foundation (EFF). In Dec., EFF argued that Cal. Supreme Court shouldn’t grant DVD CCA’s request to review case after Cal. 6th Dist. Court of Appeal overturned lower court injunction ordering defendant Andrew Bunner to remove DeCSS hack for DVDs from his Web site. DVD CCA had sued under Cal. Uniform Trade Secrets Act, but appeals court said preliminary injunction was prior restraint under First Amendment. Following appeals court’s reversal in Nov., DVD CCA charged that “intermediate scrutiny” test of First Amendment should have been applied. EFF challenged DVD CCA’s petition to Cal. Supreme Court on grounds that DVD CCA was raising new legal and factual arguments at Supreme Court level, which EFF said was improper. Cal. Supreme Court didn’t comment on case or set date for hearing.

Court decision Tues. overturning FCC’s cable-TV station cross-ownership ban (CD Feb 20 p1) could have significant effect on how biennial review process is conducted, FCC Chmn. Powell said Wed. In somewhat unusual action, U.S. Appeals Court, D.C., acted not on any new FCC order but on agency’s decision to retain existing rule, in decision made during biennial review. Telecom Act requires FCC to review existing regulations every 2 years to determine whether they remain necessary.

It wouldn’t be enough for FCC to endorse report on iBiquity’s DAB system, CEA said in comments on report, because document itself isn’t standard for in-band, on-channel (IBOC) digital audio broadcasting: “The Commission must specify the technical parameters of the IBOC DAB signal to be transmitted by FM broadcasters in order for all receiver manufacturers to have confidence that the equipment they build will work for anyone listening to an FM IBOC DAB signal anywhere in the country.” Broadcasters almost unanimously endorsed report and urged FCC to speed transition to IBOC DAB. However, handful of commenters questioned National Radio Systems Committee (NRSC) testing methodology or raised other issues about DAB.

Broadcasters almost unanimously endorsed report on in- band, on-channel (IBOC) digital audio bcstg. (DAB) -- as well as concept of IBOC itself -- and urged FCC to speed transition to IBOC DAB, in comments on Commission inquiry. Backers pressed agency for quick, clear decision endorsing IBOC as broadcast standard. However, handful of commenters questioned National Radio Systems Committee (NRSC) testing methodology or raised other issues about DAB.

FCC is seeking comments on recent NTIA report on spectrum needs of energy, water and utility industries. Last month, NTIA released report on need for more spectrum for critical infrastructure providers, saying those needs might have changed after Sept. 11 terrorist attacks. Report to Congress said FCC should “revisit these critical issues” to accommodate operations of those industries. Fiscal 2001 appropriations act that called on NTIA to produce report also required FCC to submit followup report to Congress addressing any needs identified in NTIA document. Among points raised by report, which itself was based on feedback received from those industries and others, was that there was lack of consensus about where new spectrum could be reallocated or obtained. Comments are due March 6, replies March 18.

BellSouth Thurs. refiled Sec. 271 application for Ga. and La. that it withdrew Dec. 20 in face of questions from FCC (CD Dec 21 p5). Company said it added new information on several issues identified by Commission and vowed new data “provides the proof required to demonstrate that BellSouth has met the legal requirements for entering the long distance market.” Under Sec. 271 of Telecom Act, Bell companies must show they have opened their local markets to competition before they can gain approval to enter long distance business. BellSouth said new filing included “evidence of upgrades” to company’s operational support systems (OSS) as well as letters from 3rd parties affirming they have been able to integrate BellSouth’s pre-ordering and ordering systems, which was one of 5 areas questioned by FCC. Addressing other areas, BellSouth said it offered affidavits and statistical analysis to attest to improvements in service order accuracy and enhanced stability of its performance data. It also gave FCC more information on how it coordinated OSS changes with its competitors. FCC set March 4 deadline for comments on petition, March 21 for evaluation by Dept. of Justice, replies March 28. Statutory deadline for FCC action -- 90 days from filing -- is May 15. AT&T said it was “unlikely” that concerns raised by FCC could be addressed that soon but it would know more when it reviewed BellSouth’s filing. Said Covad Vp Jason Oxman: “BellSouth believes that it has solved all of those entrenched problems in only 7 weeks. The facts demonstrate otherwise.”

Opponents of Tauzin-Dingell data deregulation bill confirmed they would introduce line-sharing and telecom antitrust amendments if and when legislation reached House floor later this month. Bill (HR-1542) by House Commerce Committee Chmn. Tauzin (R-La.) and ranking minority member Dingell (D-Mich.) would ensure Bells could provide Internet backbone and high-speed Internet service across their respective interLATA boundaries without FCC approval. But House critics came out Thurs. in support of CLEC lobbying effort on Capitol Hill, endorsing competitive carriers’ claims HR-1542 would stifle rather than increase capital investment in advanced communications infrastructure.

FCC said Verizon Thurs. proposed “significant reduction” in its R.I. switching rates and agency asked for comments by Feb. 19 on proposal. Reduction came as FCC was reviewing Verizon’s Sec. 271 request to enter long distance business in R.I. FCC said parties had raised concern about switching rates Verizon charged to competitors in R.I. and whether they fell within “reasonable range” of total element long-range incremental cost (TELRIC) standards. Verizon’s R.I. application relied in part on benchmark comparison of switching rates in N.Y. and Mass., FCC said. However on Jan. 28, N.Y. PSC adopted new rates, “which are 50% lower than Verizon’s previous N.Y. switching rates,” thus changing that benchmark, FCC notice said. As result, Verizon must file to reduce switching rates it used in its application. FCC asked for comment on whether new rates “fall within the reasonable range that correct application of TELRIC principles would produce.” It emphasized that its issuance of public notice didn’t represent decision to use new rates in its deliberations. FCC said it expected Sec. 271 application to stand as filed but, if new material were submitted, it “retains the discretion” to consider it, start new 90-day review period or to give new material no weight. FCC is scheduled to act on Verizon’s R.I. petition by Feb. 24.

Broadcasters have little choice but to complete DTV transition because they face $500 million spectrum fee for analog channels beginning in 2007, MSTV Pres. David Donovan said Wed. at group’s DTV conference. But he said govt. wasn’t doing enough to promote transition, including DTV must-carry for cable, dual tuner requirement and requiring DTV-cable compatibility: “The light at the end of the tuner may be a train.”

Proposal for applying compulsory licenses to on-demand streams and limited downloads has prompted strong criticism from some in online music arena. Comments, posted Tues. by Copyright Office, respond to office’s Dec. 14 request for comments on tentative agreement signed by RIAA, National Music Publishers’ Assn. (NMPA) and Harry Fox Agency (HFA) last Oct. Agreement for Internet music subscription services was to give RIAA, its member labels and new online services such as pressplay and MusicNet immediate access to every musical work authorized to be licensed by HFA, which then would issue licenses for both streamed music and limited downloads.