Broadcasters want the FCC to distinguish between “next-generation EAS” (emergency alert system) and enhanced alerting through ATSC 3.0, said replies posted Friday in docket 15-94. “Conflating the two platforms threatens to encourage the migration of the rules and requirements that govern EAS (which have accrued from the 1950’s to this proceeding) to ATSC 3.0 emergency messaging,” said the Advanced Warning and Response Network Alliance and ATSC. The 3.0 “optional, value-added urgent news information service” is called “Advanced Emergency Information” and is a valuable supplement for EAS alerts but isn’t the same thing, NAB said. “Refrain from regulating such an optional ATSC 3.0 content service because it is unrelated to the vital service provided by the EAS system and doing so could hinder innovation.” AWARN and ATSC urged the FCC not to impose alerting regulations on streaming media. NAB reiterated (see 2110200065) that an FCC proposal for persistent EAS alerts isn’t feasible.
Cisco revenue growth in its fiscal Q1 ended Oct. 30 of 8% year over year to $12.9 billion was “solid” but was hindered by supply constraints, CEO Chuck Robbins told analysts. “Our product orders were extremely strong and balanced across our markets, but we are constrained in what we can build and ship.” The company takes “multiple steps to mitigate the supply shortages and deliver products,” including paying “significantly higher logistics costs,” said Robbins Wednesday. It “thoughtfully raised prices” to offset the impact of higher costs from suppliers that are crimping its gross margins. “Most customers are very understanding. They are super-frustrated with the lead times.” Many Cisco customers “are doing the same thing to their customers, so this is a whole inflationary trend that we see across the entire economy,” said the CEO. When its order backlog might clear is “the $64,000 question,” said Chief Financial Officer Scott Herren. “It's not just one commodity that's constrained,” he said. “Then you have to overlay on that the snarled logistics position that we find ourselves in, really across all lanes, whether it’s ocean or air or trucking.” The company expects revenue growth of 4.5% to 6.5% for this quarter, said the CFO: “The Q2 guide is impacted by the supply chain -- the component supply issues that are putting a headwind on what we can get pushed out the door.” Thursday, the stock closed down 5.5% at $53.63.
Tidal launched direct-to-artist payments, said the streaming music service Wednesday. Each month, beginning in 2022, a percentage of Tidal’s highest tier’s subscribers' membership fees will be directed toward the top streamed artist. Royalties will be paid based on the actual streaming activity of individual HiFi Plus subscribers as opposed to the industry-accepted method of aggregating streams. Tidal also announced it entered the free streaming music space with a U.S. advertising-supported tier.
The FTC will vote at a Nov. 18 open meeting on whether to issue orders to large retailers and consumer goods suppliers to study the competition impact of supply chain disruptions, the agency announced Wednesday. The FTC Act Section 6(b) study would “focus on why these disruptions occur, whether they are leading to specific bottlenecks, shortages, anticompetitive practices, or contributing to rising consumer prices.” The White House launched a supply chain task force in June, and President Joe Biden in October addressed efforts from major retailers like Walmart, FedEx, UPS, Target and Samsung. FTC speaker registration and comment submissions are due Monday. Also on the agenda is a staff report on “the status of criminal referrals by the Bureaus of Competition and Consumer Protection that have resulted in criminal enforcement action by federal and state legal authorities.” Commissioners will vote on whether to issue a statement regarding FTC commitments in this area. The meeting is at 1 p.m. EST.
Most artists are self-employed, earning modest livings and lack a systematic means of identifying copyright infringements, so a strict three-year limit on recoverable damages regardless of when a claim accrues would be a hardship, artists' rights organizations told the 9th U.S. Circuit Court of Appeals Wednesday. In an amicus brief backing plaintiff-appellee Starz (docket 21-55379), organizations including the Authors Guild, Romance Writers of America and Songwriters Guild of America said defendant-appellant MGM -- in asking the court for that limit -- is "sharply limiting the ability of blameless artists to recover damages" and discouraging private enforcement of infringements. MGM is appealing a lower court's denial of a motion to dismiss 378 of Starz's 1,020 copyright claims on MGM licensing content to Starz and subsequently to other content service providers while Starz allegedly had exclusive license. Santa Clara University law professor Tyler Ochoa in an amicus brief said MGM's read of Supreme Court precedent is wrong and there should be a presumption that acts happening more than three years before filing are barred, but that copyright owners can recover damages if shown they didn't and couldn't discover the infringement earlier. MGM's outside counsel didn't comment Thursday.
Movie production companies suing WideOpenWest for alleged piracy committed by WOW broadband subscribers are "part of a well-known web of copyright trolls" and haven't alleged facts showing WOW knew of, encouraged or profited from any copyright infringement, it told U.S. District in Denver on Friday in a motion to dismiss in docket 21-cv-01901. Counsel for plaintiffs didn't comment Monday.
Apple is “very, very focused" on discussing the privacy and security elements of the App Store with regulators and legislators, said CEO Tim Cook, responding to a question Thursday from Morgan Stanley's Katy Huberty on how Apple will balance consumer preference for App Store transactions with legislators’ push for more choice. The analyst cited a Morgan Stanley survey of 4,000 consumers showing most customers don’t want to pay for apps directly to developers because they value the security and privacy of transactions within the App Store. Apple is working “to explain the decisions that we've made that are key to keeping the privacy and security there, which is to not have sideloading" or to open the iPhone to unreviewed apps, which would sidestep privacy restrictions Apple put on the App Store, Cook said. Morgan Stanley didn't provide a copy of its survey Friday. Meanwhile, for the holiday season, Apple faces chip shortages and high demand across product lines, Cook told a quarterly call for the three months ended Sept. 25. See Q4 materials here.
MVPDs carrying more Jewish-themed programming can "foster community & help combat the scourge of antisemitism against Jewish people," Rep. Kathleen Rice, D-N.Y., tweeted Thursday. She noted a series of letters sent this week to Comcast, Charter, Cox Communications, Altice, Dish Network, AT&T and Verizon asking about plans to increase Jewish-themed programming and seeking responses by Nov. 9. Co-signers of the letters were fellow Democratic Reps. Grace Meng of New York, Ted Deutch of Florida and California's Ted Lieu and Brad Sherman.
Music label plaintiffs are wrong when they argue the Supreme Court's Grokster decision standards don't apply in their litigation against Charter Communications (see 2108120002), Charter told U.S. District Court in Boulder Monday in its reply supporting its motion to dismiss the lawsuit (in Pacer, docket 21-cv-02020). Grokster said selling a service capable of unlawful use isn't contributory infringement unless there's evidence the defendant also promoted its use to infringe copyright. Charter said district courts in the 10th U.S. Circuit of Appeals jurisdiction routinely apply Grokster to contributory infringement claims, requiring allegations or proof of the defendant’s intent to cause infringement. Outside counsel for plaintiffs didn't comment Tuesday.
The U.S. won't impose Section 301 tariffs on goods from Austria, France, Italy, Spain and the U.K. over digital services taxes, the Office of the U.S. Trade Representative announced. Those markets settled with the Treasury Department about the transition from DSTs to a new approach for taxing multinational firms, USTR said. Tariffs on goods from India and Turkey, which weren't party to the settlement, remain suspended through early December, USTR said. Ending the tariffs on the five countries drew tech industry hopes for a rollback everywhere. “While today’s transitional agreement is a meaningful step, it is imperative that all governments urgently and fully withdraw their digital services tax measures,” said Information Technology Industry Council CEO Jason Oxman Thursday. The Computer & Communications Industry Association said it backs a "broader multilateral global tax agreement."