Document: 406 U.S. 649 92 S.Ct. 1860 32 L.Ed.2d 390 UNITED STATES et al., Petitioners,v.MIDWEST VIDEO CORPORATION. No. 71—506. Argued April 19, 1972. Decided June 7, Rehearing Denied Oct. 10, See 93 95. Syllabus The Federal Communications Commission (FCC) promulgated a rule that 'no CATV system having 3,500 or more subscribers shall carry the signal of any television broadcast station unless also operates to significant extent as local outlet by cablecasting (i.e., originating programs) and has available facilities for production presentation programs other than automated services.' Upon challenge respondent, an operator systems subject new requirement, Court Appeals set aside regulation on ground FCC had no authority issue it. Held: judgment is reversed. Pp. 659 675. 441 F.2d 1322, Mr. Justice BRENNAN, joined WHITE, MARSHALL, BLACKMUN, concluded that: 1. within FCC's statutory regulate at least 'reasonably ancillary effective performance Commission's various responsibilities broadcasting,' United States v. Southwestern Cable Co., 392 157, 178, 88 1994, 2005, 20 1001. 659—670. 2. In light record in this case, there substantial evidence rule, with its standard it applied under guidelines waiver showing financial hardship, will promote public interest meaning Act 1934. 671—675. THE CHIEF JUSTICE until Congress acts deal problems brought about emergence CATV, should be allowed wide latitude. 675—676. Lawrence G. Wallace, Washington, D.C., petitioners. Harry M. Plotkin, respondent. BRENNAN announced Court, opinion which BLACKMUN join. 1 Community antenna (CATV) was developed long after enactment 1934, 48 Stat. 1064, amended, 47 U.S.C. § 151 seq., auxiliary broadcasting through retransmission wire intercepted signals viewers otherwise unable receive them because distance terrain.1 1001 (1968), where we sustained jurisdiction industry, id., S.Ct., observed growth since establishment first commercial 1950 been nothing less "explosive." Id., 163, 1998.2 potential industry augment communication services now equally phenomenal.3 As said Southwestern, 164, 1998, '(promises) future provide national communications system, from selected centers would transmitted metropolitan areas throughout country.' Moreover, noted, 'the expanding multichannel capacity cable could utilized variety homes businesses community,' such facsimile reproduction documents, electronic mail delivery, information retrieval. Notice Proposed Rulemaking Inquiry, 15 F.C.C.2d 417, 419 420 (1968). Perhaps important, can themselves originate programs, 'cablecast'—which means, found, '(increase) number outlets community self-expression (augment) public's choice types without use spectrum . ..' 421. 2 Recognizing potential, Commission, shortly our decision initiated general inquiry 'to explore broad question how best obtain, consistent Act, full benefits developing technology public, particular immediate reference 417. particular, tentatively concluded, part expansive program CATV,4 'that, general, origination interest,' 421, sought comments proposal condition carriage (local distant) upon requirement operate originating.' 422. impose stated 'concern not just matter avoidance adverse effects, but extends requiring affirmatively further policies.' Ibid. 3 On basis received, October 24, 1969, adopted providing extent5 cablecasting6 CFR 74.1111(a).7 report accompanying regulation, tentative conclusions earlier notice proposed rulemaking. 4 'recognize great achievement long-established regulatory goals field increasing augmenting They reflect view multipurpose operation combining common carrier services,8 might exploit channel advantage basic purpose created: 'regulating interstate foreign commerce com- 7 This applicable both microwave non-microwave 'grandfathering' provision, originally scheduled go into effect January 1, 1971. First Report Order 223. petitions reconsideration, however, date delayed 1971, see Memorandum Opinion 827, 830, then, below, suspended pending final here. 36 Fed.Reg. 10876 (1971). Meanwhile, revised appears 76.201(a). revision significance case. 830 (revision Aug. 14, 1970); Television Service, 3271, 3277, 3287 Mar. 31, 1972). 8 Although did common-carrier obligations 1969 report, note help ensure are others leased channels.' 209. Public access requirements were introduced although directly heading service. 3277. 5 munication radio so make available, far possible, all people rapid, efficient, nation-wide, worldwide service adequate reasonable charges .' (sec. Act).9 After consideration filed parties, adhere interest.'10 Order, 201, 202 (1969). 6 stated, 208—209: 'The enabled finance construction high facilities. return these uses devote portion needed service, furthering responsibility 'encourage larger interest' 303(g)).11 facilitate duty fair, equitable distribution each several communities 307(b)),12 have accomplish media.'13 respondent Midwest Video Corp., Eighth Circuit 'is impose' 1328 (1971).14 power (over CATV) .,' court explained, 'must based right adopt rules reasonably field,' 1326—a thought 'goes beyond.' 1327.15 court's may understood hold invalid supported serve interest. itself shows,' said, 'that made, highly speculative whether sufficient expertise support finding interest.' 1328. 'Entering involves very expenditures,' 1327, '(a) probability exists self-supporting,' 'substantial increase' subscription fees, 'in some instances' operators driven out business. Ibid.16 We granted certiorari. 404 1014, 676, 30 661 (1972). reverse. 9 * 1966 regulations that, required (1) carry, request specified order priority limits their capacity, stations whose area they competing signals; (2) avoid, request, duplication same day programing; (3) refrain bringing distant 100 largest markets except prior Second 725 (1966). assessing over against backdrop regulations,17 focused chiefly 2(a) 152(a), provides pertinent part: provisions (Act) apply ., originates and/or received States, persons engaged Act's definitions 'communication wire' radio,'18 character services,19 congressional intent '(t)he expected 'single Government agency' 'unified jurisdiction' 'regulatory powre forms electrical communication, telephone, telegraph, cable, radio." U.S., 167—168, 2000 (footnotes omitted), held amply covers operations. grant merely prescription governing carriers broadcasters apply: 10 'We cannot (we said) construe restrictively. Nothing language (2(a)), surrounding language, history purposes those activities specifically described provisions. Certainly 1934 foreseen development systems, seems us precisely wished maintain, appropriate administrative control, grip dynamic aspects transmission,' F.C.C. Pottsville Broadcasting supra, 309 138, 60 439 (84 L.Ed. 656) conferred 'broad authority.' Thus, '(u)nderlying whole (Communications Act) recognition rapidly fluctuating factors characteristic evolution corresponding process possess flexibility adjust factors.' (Ibid.) acted demonstrably 'both dynamic,' therefore gave 'a comprehensive mandate,' 'not niggardly powers.' National Co. 319 190, 219, 63 997, 1010, 87 1344. found reason believe does not, terms suggest, confer 'all 172 173, 2002 omitted). 11 conclusion, end analysis, prescribe objectives properly exercised. accordingly went evaluate reasons asserted imperative if perform effectiveness certain responsibilities.' 2003. determined "the unregulated explosive CATV," especially 'its importation stations' resulting division audiences revenues, threatened 'deprive (the) charged overseeing 307(b) Act.20 175, 2004. expressing 'as authority, any, circumstances purposes,' (its) (and) may, purposes, 'such restrictions conditions, inconsistent law,' 'public convenience, interest, necessity requires." 2005 (quoting 303(r) 50 191, 303(r)). 12 parties before do dispute transmissions 'interstate radio' even insofar cablecasts.21 controversy, instead, program-origination broadcasting.'22 is. 13 At outset must legitimate concern limited controlling competitive impact services. refers 'various broadcasting.' These considerably numerous simply assuring operating agree Supra, 653. Since effects furtherance policies, sensible distinction theory drawn along lines. More stations, see, e.g., Radio Comm'n Nelson Bros. Bond & Mortgage 289 266, 53 627, 77 1166 (1933) (deletion station), enhance well impair provision Consequently, define protection, opposed advancement, artificially constrict authority." 660—661.23 14 formed demonstrate point. Those were, course, avowedly designed guard being undermined growth. time, recognized 'CATV arisen response need demand improved valuable respect.' 725, 745 (1966).24 Accordingly, express deprive important restrict enriched programing selection makes available. Rather, goal here integrate structure way maximum (secs. 303(g) act (nn. 11, supra)), who dependent off-the-air minimum measures essential insure continues supplementary role unduly damaging impeding service.' 745—746.25 16 implementation approach encourage diversified suitable community's needs prevent diversion advertising revenues.26 forbidden latter purpose, only preserve, practicable, contribution wider nationwide day.' 747. Finally, distant-importation enable reach public-interest determination weighing advantages disadvantages facts individual 776, 781—782. short, generally protect assigned broadcasting. 17 critical case 'further 654. find has. 18 plainly mandate broadcasting.27 1344 (1943), example, sustain relations between network organizations preserving ability programing. Noting large enough accommodate wish them,' 216, 1009, 'Act supervision (radio) traffic. It puts burden determining composition traffic.' 215—216, 1009. then upheld able, willing outstanding events concerts, civic meetings, sports events, consumer social interest." 203, 1003. 19 Equally policies served review. To sure, cablecasts spectrum. But less, reason, all, assure provided suitably objective underlying local-carriage reviewed subsequently upheld. 666 nn. 26, supra. essence different technological quality carriage. one strength picture voice subscriber, while content offered. cases §§ premised, 654—656,28 also, words, 'facilitate communities' 307(b). 1864.29 sum, preserves enhances integrity Respondent, nevertheless, maintains powerless require applicants licenses desirable be, so, too, unwillingly engage cablecasting. view, analogy thus draws entry misconceived. attempting compel commitment undertake whom applies voluntarily seeks satisfactorily meets context undertaking. 21 For conclude Southwestern. II 22 remains read holding lacking creates risk added result increased rates termination That patently incorrect record. 23 proposing noted '(t)here practical limitations (for compliance) stemming size systems' cutoff point application regulation) cost equipment personnel minimally necessary originations.' 422 included detailed data indicating, monochrome obtained operated annual $21,000 color $56,000. 210. information, sampling experience already origination. 24 'decided permanent us. intends obtain experience, equipment, nature effort. meantime, liberal origination, toward lowering floor proceedings, proceedings establish appropriateness desirability action.' 213. 25 chose subscribers, 26 'This (the explained) (data filed), permit natural breaks 1-year grace period. approximately 70 percent fewer subscribers; indeed, half 2,000 subscribers. (T)he encompass small percentage existing present subscriber levels, percent.' 27 reconsideration 'been given tending cablecast impairing stability, raising reducing 826. repeated minimal potentials cablecasting,'30 but, nonetheless, own motion postponed afford additional preparation time.' 827. 28 still effort tailor operators. denying respondent's stay reiterated 'there made compliance unsustainable burden.' 778, 779 hand, suggested 10,000 ultimate loss four years cablecast. capital expenditure figures 'appreciably higher' projected Commission. concluded: 29 'While consider justify change, benefit risking injury ad hoc regulation), action requests. Systems waivers, excused grants requested .. (The) (of cablecasting) (requested respondent) granted, would, therefore, speaks itself. interest.31 Indeed, appear argue contrary. Tr. Oral Arg. 43—44. was, beyond competence assess relative risks 224, 1013: 31 'Our when findings evidence, pursuant Congress. say (in fact) furthered retarded (regulation).' Storer 351 192, 76 763, 1081 (1956); General Telephone Southwest 449 846, 858 859, 862—863 (CA5 1971). 33 Reversed. 34 Chief BURGER, concurring result. 35 presents questions extraordinary difficulty sensitivity field, opinions divided divisions reflect. anticipate advent enacted scheme nearly 40 ago. Yet anticipated pervasive instrumentalities decades spanning life courts consistently construed granting meet expansion embrace indicated plurality opinion. totally link seen Act. 37 Concededly, explicitly contemplate either asserted. However, aware 1930's instrumentality, predicted, scientific developments inevitably enlarge scope broadcasting, consequence, schemes flexible virtually open-ended. 38 Candor requires acknowledgment, me least, position strains outer open-ended evolved decisions courts. almost suggests re-examination relates development, considered left entirely 39 I plurality's rejection meaningful develop concept commandeering someone private surface transmission CATV—to contribution—are exactly strangers stream interrupt put profit, take burdens, am fully persuaded correct thoughtful dissenting my reservations. review resolve perhaps member gives license created instrumentality powers, generations 'feel' problem. acts, latitude concur reached Court. 41 DOUGLAS, STEWART, POWELL, REHNQUIST concur, dissenting. 42 reflected wise ones. certainly competent authorized make. agency acted. 43 captures TV signals, converts carries relay coaxial cables directly. 1001, signals. case: 44 two functions. First, supplement facilitating satisfactory reception adjacent possible; second, transmit range antennae. hav increased, principal function frequently become signals.' 1998. 45 passed. radio,' precise methods known. 46 Compulsory is, cry approved Cable. Origination investment cast personnel.1 210—211. marked difference Fortnightly Corp. Artists Television, 390, 2084, 1176, clear CATV's traditional liable infringement copyrights movies licensed carried CATV. liable, saying: little broadcasters. fact rebroadcast. Broadcasters select viewed; editing, whatever receive. procure propagate public; released channels viewers. operators, like unlike broadcasters, carry.' 399—401, 2089. forbids person obtaining 301. Only qualified 308—309. nowhere slightest suggestion compelled enter field. States.' 152(a) (emphasis added). When limited, logic expanded 'originate' 'receive.' dealing 'applicants,' 'applications licenses,' 307 308, 'whether application.' 309(a). emphasis Committee Reports 'original applications' 'application renewal license.' H.R.Rep.No.1918, 73d Cong., 2d Sess., 48; S.Rep.No.781, 9. idea drafted his broadcaster completely 49 control message telephone company. A seek broadcaster's license; bludgeoned becoming live lenient rules. There clue compulsorily converted performs legerdemain saying ancillary' broadcasting.2 brand-new amendment effect. carte blanche initiate stations; force city greater B he there. decides mean programs. directs 303(g), 51 upshot today's 'ancillary' licensee. Of transmits entrust some, few, business give forbidding authority. decide so. step legislative measure extreme interstitially vague 52 affirm Appeals. amplify them, microwave, ultimately distribute receivers subscribers.' 161, 1997, 'perform antennae.' 2,678 operation, 1,916 franchises yet current 2,804 franchise applications pending. Weekly Activity Addenda, Digest (Feb. 28, recently term 'cable television' place Service; Relay 3252 n. (1972) (hereinafter cited Service). early canvassed here, rules, programing, markets. infra, 659. 1968 rulemaking addressed, addition permitted doctrines 'equal time,' 'fairness,' sponsorship identification aply them. Other service; federal licensing CATV; cross-ownership system; reporting technical standards; major offered concrete proposals areas, 201 (1969) Order), Service. 825 (1970) Order). None regulations, us, we, intimate validity. 'By indicated) something (such time weather, news ticker, stock etc.) aural music announcements). channels, 'operation outlet' necessitates kind video (e.g., camera tape recorder, etc.).' 214. 'Cablecasting' defined 'programing distributed originated another entity, exclusive system.' 74.1101(j). definition clear, include produced operator, 'films tapes others, programing.' 203. altered conform changes 76.5(w). Service 3279. 'subject operator,' apparently meant change substance preclude others. 3271. Section 151, states: 'For regulating Nation-wide, world-wide charges, defense, promoting safety property securing execution policy centralizing heretofore law agencies respect commission known 'Federal Commission', constituted hereinafter provided, execute enforce chapter.' concluding, rejected contention prohibition originations 'necessary fractionalization audience siphoning off material revenue 202. '(B)roadcasters originators reasoned, 'stand footing acquiring compete.' moment net service,' ibid.—an event, arise. 203—204. 826 3, 828—829. 1082, 303, states '(e)xcept chapter, requires, shall' '(g) (s)tudy radio, experimental frequencies, 307(b), 1084, 'In considering energy, communications, radio), modifications renewals thereof, same, licenses, hours among same.' added: '(I)n authorizing receipt, forwarding, delivery authorization closely related facilities.' 209 (citing, inter alia, 301 1081, (generally apparatus radio)). Since, hold, pass See, 134, 437, 84 656 (1940); Cal. FCC, 134 U.S.App.D.C. 116, 130—131, 413 404—405 (1969); Philadelphia 123 298, 300, 359 282, 284 (1966): bases tools entitled leeway choosing jurisdictional base most advancing Congressional objective.' 'existing operators,' reasoning extended broadly and, applications. F.2d, Respondent challenged advertising, identification, per-program per-channel cablecasts. Appeals, '(pass) choose programs,' 1326, acknowledged want cabelcast hence lacked standing attack held, addition, (their) captured (broadcast) programs.' 1327. separate 22, infra. Concurring similar vein, Judge Gibson systems,' confiscatory arbitrary,' 1328, 'would extremely burdensome remove many entrepreneurs resources, talent field.' 1329. If suggest burdens business, argument incorrect. remain balance committed which, did. reviewed, validity of, regulations. 167, 2000. Their correctly appeals decision. Black Hills 399 65 (CA8 1968). Sections 3(a), (b), 1065, 153(a), transmission' 'of writing, signs, pictures, sounds kinds,' 'including instrumentalities, facilities, apparatus, (among things, communications) incidental transmission.' 'Nor doubt emanate located State operates. consists programming devised for, to, audiences; (CATV operators) ordinarily employed simultaneous often States. essentially uninterrupted indivisible. categorize intrastate disregard efficient 279, 1166.' 168—169, 2001. 12, 303(f), (h), (h) (authorizing interference respectively). feared significantly magnify characteristically serious difficulties UHF educational broadcasters.' 175—176, This, contested Illinois amicus curiae. constitute (or involved), moved interstate, encouraged. 207—208 (regional interconnections) 6, nonbroadcast bring compass 2(a). declined carve transmissions, components. justified interdependencies components, preserve "unified (broadcasting) industry." 168, 13, 137, 439). rationale despite lesser content' present. because, have, virtue necessarily subjected jurisdiction. (then Judge) Burger context: Petitioners (telephone companies facilities) choice, inserted links indivisible integral transmission. economic free Commission.' 127, 401. devotion together cablecasts, unified regulation—plainly suffices Barnett, State, Federal, Local Regulation Notre Dame Law. 685, 721—723, 726—734 broadcasters,' Inc., 400, 2089, 1176 devoted imposition concerned proper conduct according undertaking (owner) expressly impliedly assumed,' Northern Pacific R. North Dakota, 236 585, 595, 429, 433, 59 735 (1915), argues customary carrying conclusion follow For, are, extent, regulation. Our dispositive claim. 669—670. bearing question. retransmit, copyrighted works 'perform' Copyright 61 652, '(e)ssentially, (that of) viewer's 399, operations viewing copyright obviously dictate handed down week Fortnightly, receivers, transmitters U.S.App.D.C., 124, 398: 'Over years, concerning defined, contemplated done, avoid continuing revision. intolerable Congress—one escape delegating functions elaborated: meeting too population remote isolated terrain regular good reception. contributed multiple choices, particularly three contributing realization governed allocations planning, clearly radio.' And, market, dearth increase opportunities, or, what likely, locally times presented stations.' 781 745. statement, non-duplication requirements, true rule. retained 'if substantially duplicates higher grade, would—because capacity—prevent nonnetwork signal, contribute diversity 683, 717 (1965). 752—753. warned reviewing discretionary equal circumstances, 'give allegation closer ties.' 755. satellite satellites' parents; otherwise, (might) lose (find) incentive (reduced).' 755—756. waivers '(accord) weight' considerations nearer, out-of-State (otherwise carriage)—e.g., coverage political elections affairs state-wide concern.' 753. 'it tenet widest possible dissemination diverse antagonistic sources welfare public.' Associated Press 326 (65 1416, 1424, 89 2013); Red Lion Inc. 395 367 (89 1794, 371) 205. "(w)ith factos, demands entrusted fullest them." 218, 1010. "A licensee retain freedom supply community. vital life. ready, aparently this, contends instead state implementation. Brief 24. founded confer. 660, 662 303(r). asserts difficult mandatory (origination) aid availability communities.' ignores affects fairness, efficiency, equity basis, added, overturning regard favorable. 654—655 10. Commissioner Bartley, dissented 7,500 831. Nor infirm failure 'grandfather' rights, 424 635, ('the fettered maintaining arrangements conflict policy'). Tuttle elaborated, 863—864 1971): complex perfect clairvoyance. Indeed Cardozo once 'Hardship postponement till complete. consequences human intellect denial legislators judges infinite prevision.' Cardozo, Nature Judicial Process 145 (1921). thus, afforded fit exigencies burgeoning industry. Where on-rushing course (has) outpaced process, remedy (problem) retroactive adjustments, reasonable. 'Admittedly embarked issuance Final Report. Nonetheless announcement consequences. regulated industries imposed abolish modify pre-existing interests.' With 21, 703—705 116. striking carriage,' ante, 669, 'Essentially well-located connection set. plays 'active' making area, ordinary sets antennas. powerful sophisticated, serves furnished viewer. erected hill, strung house, installed amplifying 'performing' combined erect cooperative purpose. owned users entrepreneur. reaches Act.' Ante, analysis knows short complete domination reasoning—divorced specific basis—could manufacturers receiving equipment.

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