The FCC OK'd Pandora's request for a declaratory ruling, letting it be up to 49.99 percent foreign owned. The company had also sought to buy KXMZ(FM), Box Elder, South Dakota, from Connoisseur Media, and the American Society of Composers, Authors and Publishers (ASCAP) sought to block that deal and opposed Pandora's petition. "We take no action at this time on the Assignment Application and related pleadings," said an order Monday approved by commissioners, with Commissioner Ajit Pai concurring. He called parts of the process "absurd," and noted that Pandora's request to buy KXMZ has been pending for two years. Pandora's "difficulties" to "prove that foreign entities do not beneficially own or vote more than 25 percent of its shares" are "far from unique," wrote Commissioner Mike O'Rielly. Connoisseur and Pandora lobbied the FCC last week to OK the deal (see 1505040031). Buying KXMZ would qualify Pandora for the same Radio Music License Committee license "under the same terms as our competitors," noted Dave Grimaldi, the company's director of public affairs. "This move makes sense to us beyond the licensing parity alone. Pandora excels in personalizing music discovery, and terrestrial radio is experienced in integrating with a local community." ASCAP had no immediate comment.

CEA President Gary Shapiro threw water on claims by the politically conservative advocacy group Americans for Limited Government (ALG) that concerns expressed by Sen. Jeff Sessions, R-Ala., about granting President Barack Obama trade promotion authority to negotiate the Trans-Pacific Partnership (TPP) would “eviscerate” the fast-track Pacific trade deal. Sessions’ opposition is “a game changer,” ALG President Rick Manning said Monday in a statement. ALG thinks the TPP “will subvert the treaty clause of the Constitution, increase immigration, and cede sovereignty to international powers," Manning said. However, “one senator who is not a leader or committee chair does not ‘eviscerate’ legislation,” Shapiro emailed us Monday. “Odds are high it will pass the Senate.” In a "critical alert" statement issued Monday, Sessions argued that Congress "has the responsibility to ensure that any international trade agreement entered into by the United States must serve the national interest, not merely the interests of those crafting the proposal in secret."

The seller of KXMZ(FM), Box Elder, South Dakota, and would-be buyer Pandora lobbied the FCC last week seeking "expedition since the proposed transaction has been pending for nearly two years," they said in a filing in docket 14-109. An FCC order Monday let Pandora exceed the 25 percent limit on foreign ownership and be as much as 49.9 percent foreign owned (see 1505040065), as expected (see 1504280046). Foreign-ownership reporting conditions that might be proposed in the declaratory ruling that Pandora seeks and whether the company would be willing to accept them were discussed, said the filing on meetings with aides to Commissioners Mike O'Rielly and Ajit Pai, also attended by representatives of KXMZ owner Connoisseur Media. "We also reiterated the public interest benefits of Pandora's programming for listeners of KXMZ," it said of the meeting with an aide to O'Rielly. But the FCC didn't approve Pandora's buy of KXMZ, and the order drew concern from O'Rielly and Pai.

Senate Commerce Committee Chairman John Thune, R-S.D., is investigating Dish Network’s use of designated entities in the recent AWS-3 spectrum auction. “The Committee has significant questions about whether conduct surrounding the bidding strategies employed by DISH Network and two affiliates adhered to both the letter and intent of the law, since it may ultimately cost three billion dollars in public funds,” Thune said in a statement. “While the FCC is reportedly already looking at whether DISH broke auction rules, an examination of how these affiliated companies approached the auction is the only way for Congress to determine whether this three billion dollar price tag was appropriate or a result of wrongful conduct, flawed agency rules, or laws Congress must update.” Thune sent four letters -- to Dish, the FCC and Dish DEs Northstar Wireless and SNR Wireless LicenseCo. Thune warned Dish CEO Charlie Ergen that Dish’s bidding activity may have been to “suppress rival bidders” and said in that letter “it is not difficult to draw comparisons” to Justice Department antitrust violation descriptions. Thune requested answers to several questions by May 15. Dish told us it will work with Thune. “We are confident that we fully complied with all legal requirements for the AWS-3 auction, including antitrust law and the DE rules, which were unanimously approved by the full Commission,” Dish said. “Our approach -- which was fully and publicly disclosed ahead of the auction -- was based on DE investment structures that have been approved by the FCC in past wireless spectrum auctions, including structures used by many other auction participants in the past.”

Senate Judiciary Committee ranking member Patrick Leahy, D-Vt., introduced the Consumer Privacy Protection Act Thursday. The legislation co-sponsored by Sens. Richard Blumenthal, D-Conn.; Al Franken, D-Minn.; Ed Markey, D-Mass.; Elizabeth Warren, D-Mass.; and Ron Wyden, D-Ore., calls for a “comprehensive approach to data security by requiring companies to take preventative steps to defend against cyber attacks and prevent data breaches, and to quickly notify customers in the event a data breach occurs,” a news release said. “The measure addresses the kinds of security breaches that have affected retail stores in recent years, as well as breaches of personal email, online accounts, and cloud computing that have sent Americans’ personal information, photos and even location out into public view,” it said. “Data security is not just about protecting our identities and our bank accounts; it is about protecting our privacy,” Leahy said. “Americans want to know not just that their bank account and credit cards are safe and secure, they want to know that their emails and their private pictures are protected as well,” he said. “Companies who benefit financially from our personal information should be obligated to take steps to keep it safe, and to notify us when those protections have failed,” Leahy said. His bill wouldn't pre-empt state laws that offer strong consumer protections and has a “broad definition of information that must be protected, including Social Security numbers; financial account information; online usernames and passwords; unique biometric data, including fingerprints; information about a person’s physical and mental health; information about a person’s geolocation; and access to private digital photographs and videos,” the release said. Consumer Federation of America Director-Consumer Protection and Privacy Susan Grant said “federal legislation will only be helpful to consumers if it provides them with greater privacy and security protection than they have today.” The Consumer Privacy Protection Act “takes the right approach, requiring reasonable security measures, providing strong consumer protection and enforcement, and only preempting state laws to the extent that they provide less stringent protection,” Grant said. CFA "supports this legislation and urges members of Congress to reject any attempts to institute lower standards for the security and privacy protection of consumers’ personal data,” she said. New America Open Technology Institute Senior Policy Counsel Laura Moy said in a news release that the bill is "truly pro-consumer." "Recently we have seen too many so-called 'privacy' bills that would actually replace strong state-level protections with a weaker national standard," Moy said. The bill introduced today "would leave consumers across the country better protected than they are currently," she said. "It sets a strong federal baseline," said Consumer Watchdog Privacy Project Director John Simpson.

Rep. Suzan DelBene, D-Wash., joined House Judiciary Committee members in cosponsoring the USA Freedom Act (see 1504280056) which they say would “rein in" the NSA's "domestic surveillance program and protect Americans’ privacy by creating greater transparency, oversight and accountability,” a news release said Wednesday. The legislation would end bulk data collection under USA Patriot Act Section 215, overhaul the Foreign Intelligence Surveillance Act (FISA) courts and increase transparency by creating a panel of experts that would provide guidance to the courts on issues such as privacy and civil liberties, DelBene said. Sen. Al Franken, D-Minn., declared his support for the Senate’s version of the bill, which “contains measures based on what Sens. Franken and Dean Heller, R-Nev., proposed in their Surveillance Transparency Act,” a Franken news release said Tuesday. All “novel and significant” FISA court opinions would be required to be public under the House legislation, DelBene said. The bill also “provides options for companies to publicly disclose information about requests they receive from the government,” which is a change DelBene pushed for in 2014. DelBene didn't support surveillance overhaul proposals last year, saying “critical and transparency provisions were weakened,” and said the legislation introduced by Senate Majority Leader Mitch McConnell, R-Ky., which would reauthorize the Patriot Act for five years, is “misguided and has little chance of becoming law.” CEA Senior Vice President-Government Affairs Michael Petricone said the USA Freedom Act will “restore trust in American services and products and preserve our competitiveness worldwide, while continuing to protect our national security.” Reaction from the international community to U.S. government surveillance practices has cost American companies tens of millions of dollars and potentially thousands of jobs, Petricone said. Yahoo is “encouraged” by the USA Freedom Act, and urges Congress to move forward with passing meaningful reform, said a spokeswoman.

Reps. Marsha Blackburn, R-Tenn., and Anna Eshoo, D-Calif., reintroduced the Protecting the Rights of Musicians Act Thursday. The bill would prohibit companies that own both TV and terrestrial radio stations from seeking retransmission payments for their TV stations unless their radio stations pay performance royalties. “Broadcasters have repeatedly told us that retransmission consent payments are fair because cable and satellite stations make millions by retransmitting local broadcast content,” Blackburn said in a news release. “However, when it comes to music, the same broadcasters, many who own both TV and radio stations, sing a completely different tune.” The bill includes a provision that would bar the FCC from imposing tuner mandates. The bill follows the April 13 introduction of the Fair Play Fair Pay Act (HR-1733), which also would require terrestrial radio stations to begin paying performance royalties (see 1504130056). An NAB spokesman said the group opposes the Protecting the Rights of Musicians Act, adding in a statement that the bill “devalues the indispensable role that hometown broadcasters play in communities across America.” The NAB spokesman said 166 members of the House and 13 senators are now co-sponsors of the Local Radio Freedom Act. CEA President Gary Shapiro praised the Protecting the Rights of Musicians Act’s provision barring any FCC tuner mandates in smartphones. The bill “recognizes that consumers and technology innovators -- not the government or analog radio broadcasters -- are best positioned to determine the functions and features of cutting-edge mobile devices,” Shapiro said in a statement. “Importantly, this bill also starts a worthwhile and much needed conversation about digital age music payment systems.” The provision banning FM tuner mandates in smartphones was added because "as more consumers use Internet radio, the bill ensures consumers aren’t locked into outdated technology mandates and can choose how they access local news and music on their mobile device,” Eshoo said in a statement. NAB has denied it’s seeking FCC tuner mandates in smartphones (see 1504150016), but CEA has said it's not buying those denials (see 1503200031).

CEA spent $110,000 more on lobbying in 2015’s Q1 than in Q1 a year earlier, $680,000 vs. $570,000, newly released lobbying reports showed. CEA lobbied on a range of issues, from immigration to drones to data breach notification to overhauling the Electronic Communications Privacy Act and surveillance issues. Its principal telecom lobbyists are Senior Vice President-Government and Regulatory Affairs Michael Petricone and Vice President-Government and Political Affairs Veronica O’Connell and it listed its primary lobbying priorities in that space as “Regulation of the Internet; Title II; Net Neutrality.” It mentioned one piece of legislation: the Wi-Fi Innovation Act (HR-821/S-424). It held a Lobby Day last week pegged to this month's CES on the Hill, pressing Capitol Hill offices on topics such as immigration and patent overhaul (see 1504160042).

Broadband for America, a group backed by ISPs, is lobbying Congress to advance bipartisan net neutrality legislation. “Small manufacturing companies play a major role in providing Internet access to millions of Americans while creating good jobs and driving economic growth,” reads the text at the outset of a video the group posted online last week. “Here is what they have to say about the Internet regulations.” The video shows interviews with different manufacturing industry figures and highlights the uncertainty they see associated with the new FCC net neutrality order. “Manufacturers proudly support an open Internet,” Broadband for America said. “Bipartisan leadership is needed to keep the Internet open.” The group also flags a petition website called United for an Open Internet. The URL was registered Feb. 5, the day FCC Chairman Tom Wheeler circulated his net neutrality order within the FCC. “Please urge your representatives to pass bipartisan net neutrality legislation that protects consumers and doesn’t treat the Internet like a public utility,” the petition website said. “Enter your zip code below and click submit to be matched to your legislators and send them a letter asking them to support the net neutrality legislation that has been proposed.” It alluded to draft legislation that would codify net neutrality rules while limiting FCC authority, which GOP leaders of the Commerce committees circulated in January.

Congress should declare April 30 “Internet Independence Day,” a self-styled group of “tech elders” told leaders on the Commerce committees in a letter Thursday. They slammed “the dangerous and uncertain legal path” the FCC has taken in reclassifying broadband as a Communications Act Title II service. April 30 is the 20th anniversary of the decommissioning of the National Science Foundation Network. The letter’s signatory was Daniel Beringer, founder of VCXC and speaking on behalf of the tech elders. That group includes Vonage founder Jeff Pulver and MP3.com CEO Michael Robertson.