Court Opinion

ID: 9750285
Source: CourtListenerOpinion
Date Created: 2023-08-28 14:46:21.206881+00
Date Added: 2024-06-11T07:26:06.562475
License: Public Domain

LA BUY, District Judge
(dissenting).
It is conceded by all and it is self-evident that the best system of color television is a compatible one; that is, a system requiring no change whatever in existing receivers for the reception of black and white as well as color pictures. Indeed, compatability is the coveted goal of all engineers and scientists engaged in the television industry.
In its order of October 11, 1950 (F3), the Commission stated: “ * * * that the state of the television art is such that new ideas and new inventions are matters of weekly, even daily occurrence; * And again, in recognizing the rapid developments in the field, the Commission said (B92, First Report): “The third matter we refer to is the possibility of new color systems and improvements in existing color systems which have been informally called to our attention since the hearings closed. Of course, these are not matters of record and cannot be relied on in reaching a decision unless the record is reopened. In considering these developments the Commission is aware that the institution of these proceedings stimulated great activity in the color field and that since fundamental research cannot be performed on schedule, it is possible that much of the fruit of this research is only now beginning to emerge. * * * ”
Commissioner Sterling, dissenting with what he characterized the “premature action taken by the majority”, also stated among other reasons for his disapproval of the action of the Commission “new developments came fast in the closing days of the hearing and immediately thereafter”. Commissioner Hennock, who also disagreed with the Commission’s speedy action, expressed her views as follows,
“ * * * in the light of the progress made in the development of color television since the start of the instant proceeding, I think it is essential to defer final decision in this matter until June 30, 1951.
“ * * * It is of vital importance to the future of television that we make every effort to gain the time necessary for further experimentation leading to the perfection of a compatible color television system. * * * ”
In its First Report, the Commission stated:
“ * * * two difficult courses of action are open to the Commission. The first course of action is to reopen the record * * * The second course of -action is to adopt a final decision.
*672“The advantage of the first course of action is that the Commission Would not be compelled to speculate as to an important basis for its decision . . . The disadvantage is that it would postpone a final decision and hence would aggravate- the compatability .problem. * * * The advantage of the second course of action is that it would bring a speedy conclusion to the matters in issue and would furnish manufacturers with a real incentive to build a successful tricolor tube as soon as possible. * * * The disadvantage is that the Commission’s determination on an important part of its decision would be based on speculation and hope rather than on demonstrations.”
On October 4, 1950 RCA petitioned the Commission to review the progress made in developing and perfecting the various systems before a final determination. It offered to show the Commission improvements in certain phases of their system about which the Commission expressed doubts. The Commission denied the petition giving among other reasons that “delay in reaching a determination * * * would not be conducive to the orderly and expeditious dispatch of the Commission’s business”.
The Commission recognized and the record before the Commission" is replete with evidence that rapid strides are being made toward the perfection of a fully compatible system. There is ample basis for the conclusion that the scientists laboring in the laboratories of the industry may soon resolve the problem of compatibility. In view of the admittedly fluid state of the art, it is difficult to understand why the Commission refused to hear additional evidence and chose instead a course of action, using its own words, based “on speculation and hope rather than on demonstrations.”
It is estimated that the cost of conversion to the new standards set by the Commission will cost the public in excess of a billion dollars. If hope and speculation may lawfully be substituted for evidence as a foundation for an important part of its decision, it was an abuse of discretion not to have indulged this speculation and hope in the public interest. The Commission chose a speedy determination of an issue of great public interest in preference to the more patient consideration which the magnitude of the question warranted. To prohibit the broadcast of color in completely compatible systems, whether it is RCA or any other fully compatible system, is a bar to competition between compatible and incompatible color and is unreasonable and arbitrary.
It is my opinion the Commission’s precipitous action in entering the order, the impact of which will require owners of televisions sets to install equipment at a cost of many hundreds of millions of dollars, and its refusal to hear additional evidence clearly indicates an abuse of discretion and constituted action which was arbitrary and capricious.
I would overrule the motion to dismiss and for a summary judgment and would restrain the enforcement of the order.