The FTC lacks the authority to regulate copyright matters related to AI-generated content, tech groups told the commission Thursday. In comments earlier this month, the FTC told the Copyright Office AI-generated activity may prompt FTC enforcement against unfair competition and unfair or deceptive practices (see 2311080038). None of the FTC’s authorizing statutes mentions copyright, and the CO’s statutes don’t mention FTC authority, said TechFreedom Associate Counsel Andy Jung during the FTC’s open meeting. The CO doesn’t list the FTC as one of its enforcement partners, he noted, saying the commission “has no expertise or authority related to copyright.” Chamber of Progress Legal Advocacy Counsel Jess Miers said the FTC erroneously supports a licensing framework that would hinder the free and fair use of publicly available works. Interpretation of copyright law falls within the jurisdiction of the courts, not within the scope of FTC Act Section 5 enforcement, she said. Copyright law has traditionally recognized the “fair use of intermediate copying” for activities such as search indexing and browsing, and this logically extends to AI model training, she said. Benjamin Harbakk, a game developer, urged the FTC to help content creators whose work is copied and sold without permission. AI generators can mimic and steal content, and thousands of pieces of artwork can be created in an hour or less, he said. The original creators have no recourse aside from lengthy legal processes associated with the Digital Millennium Copyright Act, he said. Chair Lina Khan didn’t address public comments on copyright but said voice-cloning scams are an agency focus. Sen. Amy Klobuchar, D-Minn., provided anecdotal evidence of scammers targeting military families with voice clones of service members. She urged the FTC and FCC to act. Voice cloning scams have the potential to get much worse, and consumers often aren’t able to decipher what’s AI-generated, said Khan: The FTC will continue working closely with its government partners to enforce against voice-cloning scams.
Country of origin cases
President Joe Biden’s executive order on AI (see 2310300056) didn’t include FTC recommendations the agency wasn’t already exploring, Commissioner Alvaro Bedoya said Wednesday.
FCC Chairwoman Jessica Rosenworcel circulated to the 10th floor a draft NPRM on prioritizing the processing of broadcast TV and radio applications from stations that provide locally originated programming, according to a news release Tuesday. The prioritization would apply to renewal applications and transfers of control, the release said. “There’s something special about when you hear a local voice on the airwaves or see a familiar face on your television set in the evening,” said Rosenworcel in the release. “We want to recognize that dedication when it comes time for license renewals and transactions and this proposal does just that.” No draft text for the item was released. Asked about the origin of the proposal, an FCC spokesperson said Rosenworcel was "inspired by her longstanding recognition of the importance of local journalism and news," and that she "continues to look for ways for consumers to receive news from trusted sources closest to them.” The FCC "is right to acknowledge the vital role local broadcast stations play in connecting and informing their communities," an NAB spokesperson said. "Especially at a time when misinformation runs rampant online and newspapers are shuttering, local broadcasting remains one of the most trusted sources of news and information. We look forward to learning more about this proposal.” United Church of Christ Media Justice Ministry attorney Cheryl Leanza said FCC policies to incentivize local programming would be a positive step.
The FCC's USF funding mechanism "violates the original understanding of the nondelegation doctrine, the modern intelligible-principle doctrine, and the private nondelegation doctrine" (see 2310060069), Consumers' Research told the U.S. Court of Appeals for the D.C. Circuit in a reply brief Thursday (docket 23-1091). The court should "make clear that Congress cannot delegate such power, let alone to a private entity," the group said.
Streaming advertising is doing well, but the linear ad market in the second half of 2023 has been "disappointing," with no rebound immediately in sight, Warner Bros. Discover (WBD) Chief Financial Officer Gunnar Wiedenfels said Wednesday as the company announced Q3 financial results. Also outside the company's control is the ongoing Screen Actors Guild strike, which helped result in "one of our lightest original content schedules in years," which in turn affected Q3 streaming subscriber numbers, CEO David Zaslav said. Also hurting streaming sub numbers were declines in the Discovery+ subscriber base due to its being incorporated into Max. WBD stock closed for the day at $9.40, down 19%. "We made a last and final offer" that met most of the actors' union goals, Zaslav said. He said WBD will launch Max in Latin America in Q1, to be followed by launches in the Nordics, Netherlands, and Central and Eastern Europe in the spring, with further global expansion over the next two to three years. Wiedenfels was bullish on the Charter Communications/Disney distribution deal reached in September (see 2309110034). "You can imagine a world where we're redoing our deals" where Max is available to cable subscribers, he said. "it created potentially a very interesting bridge to more scale, lower churn and more stability to linear."
New Hampshire legislators addressed the state DOJ’s concerns about not having enough resources to enforce a comprehensive consumer data privacy bill, a department spokesperson said Wednesday. The state legislature’s House Judiciary Committee voted 17-3 that day to amend and advance SB-255 to the floor. With the changes, "uniformly, everyone is a little unhappy, and so I consider that a success,” state Rep. Marjorie Smith (D) told the committee at a livestreamed meeting Wednesday.
NTIA released a conditional waiver of the broadband, equity, access and deployment program's letter of credit requirement Wednesday. More than 300 groups in September urged the agency to remove the requirement, citing potential limitations on small providers' participation (see 2309060022).
Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., and subpanel members from both parties voiced growing frustration during a Tuesday hearing with DOJ’s perceived reticence in enforcing existing anti-robocall statutes and eyed the FCC’s Further NPRM giving consumers more choice on the robocalls and robotexts they will receive (see 2306080043). There was more uneven interest among Senate Communications members and witnesses at the hearing in pursuing additional legislation to address ongoing robocall problems amid those enforcement shortcomings.
HARRISBURG, Pa. -- Aiming to resolve claims about poor service in Pennsylvania, Frontier Communications plans to file a proposed settlement with state consumer and small-business advocates Wednesday, the parties said at a Pennsylvania Public Utility Commission hearing here Tuesday. If that schedule holds, comments would be due Dec. 11, with responses from parties due Dec. 26, said PUC Administrative Law Judge John Coogan.
The era of FCC agreement on most items appears to be over. In addition to the fight over net neutrality, and perhaps the longest statement yet at a meeting by Commissioner Brendan Carr (see 2310190020), Carr and Simington dissented Thursday on a declaratory ruling clarifying that the use of Wi-Fi on school buses is an educational purpose and eligible for E-rate funding. But an order approving changes to rules for wireless emergency alerts, a notice of inquiry on broadband and maternal health and an NPRM on connectivity in Alaska were approved without dissents.