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(1) (a) (i) 1) a)D )DDDFrfQq "i~'^5>I\\>>>\g0>03\\\\\\\\\\33gggQyyrg>Frgygrr>3>T\>Q\Q\Q>\\33\3\\\\>F3\\\\QX%Xc>0cT>>>0>>>>>>>>\3QQQQQwyQrQrQrQrQ>3>3>3>3\\\\\\\\\\Q\Z\\\g\QQQyQyQycyQtrQrQrQrQ\\\c\c\>3>\>>>\gcc\r3rIr>r>r3\l\\\\y>y>y>gFgFgFgcrMr3rT\\\\\\crQrQrQ\r>\gFr>\t0\\=!=WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNBnnBT\>Q\\\\\3;\7;\7>>QQ\??n\\pBnnBmgg>Q\7"yyyy\njc\gnn\"i~'^ %,77\V%%%7>%7777777777>>>0eOIIOD>OO%*ODaOO>OI>DOOgOOD%%37%07070%777V7777%*77O77055;%;3%%%%%%%%%%%7O0O0O0O0O0aHI0D0D0D0D0%%%%O7O7O7O7O7O7O7O7O7O7O0O7O6O7O7O7>7O0O0O0I0I0I;I0OED0D0D0D0O7O7O7O;O7O;O7%%7%%%7M>;;O7DD,D%D%DO7AO7O7O7O7aOI%I%I%>*>*>*>;D.DD3O7O7O7O7O7O7gOO;D0D0D0O7D%O7>*D%O7E77%%WMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN(BB(37%07777j7#TT7!#TT7T!%%007n&&Bn77lCTn(nBB(A\\>>n%07\n!"IIIITTenn7TnB@;7>lBBn7"i~'^5>M\\>>>\}0>03\\\\\\\\\\>>}}}\rryrr>Qygyrr\grrggF3FM\>\\Q\Q3\\33Q3\\\\FF3\QyQQFI3Ic>0cM>>>0>>>>>>\>\3r\r\r\r\r\yyQrQrQrQrQ>3>3>3>3y\\\\\\\\\gQr\\\\gQ\r\r\r\r\yQyQycyQnrQrQrQrQ\\\c\c\>3>\>>>\\ccyQg3gBg>g;g3y\jy\y\\\yrFrFrF\F\F\FccgBg3gM\\\\\\ygcgFgFgF\g>y\\Fg>g\n0\\=(=WddddddddddddddddddddddddddddddddddddddddNBnnB_\F\\\\\\3;\7;\7>>gg\??n\\pBnnBb\\>g\7"yyyy\njc\}nn\2^r~Ђiy.X80,X\  P6G;Pj7jC:,9Xj\  P6G;XPk7nC:,|Xn4  pG;XlW!@(#,h@\  P6G;hPmH5!,i,5\  P6G;,P\n{,W80,%0W*f9 xr G;X\o5hC:,%2Xh*f9 xr G;XXt2a=5,&a\  P6G;&P s2e=5,&e4  pG;&uP:% ,J:\  P6G;JP\0_=5,%&_*f9 xr G;&Xgyy>3>j\>\gQgQ>\g3>g3g\ggQF>g\\\QI(I_>0_j>>>0>>>>>>\>g3\\\\\QyQyQyQD3D3D3D3g\\\\gggg\\g\\\\pg\\\QQ_QyQyQyQyQ\\\ X- X   ( X-  #&a\  P6G;&P#Federal Communications Commission`(#DA 98196 ă  yxdddy (ՊP3 #&a\  P6G;&P#Before the Federal Communications Commission  S-" Washington, D.C. 20554 ă  Sq-In re Petition ofTh)  SI-Th)  S!- Frank J. Vitale, d/b/a hh@h)  S- FALCOMM COMMUNICATIONS Th)  S-Th)  S-vs.Th)ppCSR5117L  S-Th)  SY - TCI CABLEVISION OF WOODHAVEN, INC. h)  S1 -Th)  S -For Leased Access ChannelsTh) T  S -  MEMORANDUM OPINION AND ORDER TP  SA-X` hp x (#%'0*,.8135@8:leased access requirements and directed the Commission to implement rules to govern this system of  Sq- xchannel leasing. In its 1993 Report and Order and Further Notice of Proposed Rule Making ("Rate  SK- x\Order"),>Khr yO%-ԍ8 FCC Rcd 5631 (1993).> the Commission adopted new rules for leased access addressing maximum reasonable rates,  xreasonable terms and conditions of use, minority and educational programming, and procedures for  S - x[resolution of disputes.i Bhr {O(-ԍSee 47 C.F.R. 76.970, 76.971, 76.975 and 76.977 (1995).i The Commission recently modified some of its leased access rules in the Second" ,))IIt""  S- xReport and Order and Second Order on Reconsideration of the First Report and Order ("Second Order").a\W {Oh- x-ԍFCC 9727 (released February 4, 1997), 62 Fed. Reg. 11364 (1997).  See also Order on Reconsideration of  xthe First Report and Order and Further Notice of Proposed Rulemaking in MM Docket No. 92266 and CS Docket  {O-No. 9660, 11 FCC Rcd 16933 (1996).a   S- xIn the Second Order, the Commission, among other things, confirmed that its regulations regarding  S- xreasonable terms and conditions of use for commercial leased access=W yO@-ԍ47 C.F.R.  76.971= do not deny cable operators the right  S-to require reasonable liability insurance coverage for leased access programming.L|W {O -ԍSee Second Report at  112.L  S<-- ALLEGATIONS AND ARGUMENT ă  S- ` 2x3.` ` FalComm, an independent producer of video programming, contends that, as a condition  xfor continued provision of leased access channel capacity, TCI Cablevision demands that FalComm obtain  xand maintain commercial general liability insurance and media perils insurance, with a policy liability limit  St- xMof $1,000,000 per occurrence and with TCI Cablevision listed as an additional insured party. In Fal SN - xComm Communications v. TCI Cablevision of Woodhaven, Inc., DA 971499, (Cable Serv. Bur., released  S( - xJuly 17, 1997), 1997 WL 398666, ("Bureau Order"), TCI Cablevision's requirement for being named as  xan additional insured party on FalComm's general liability insurance policy was held to be reasonable.  S - xFalComm now requests that we "revisit" the Bureau Order and make a further determination of whether  xTCI Cablevision's insurance requirement is reasonable in relation to the objective of the requirement. Fal S - x>Comm notes in this connection that the Commission in the Second Order placed the burden on cable operators to establish the reasonableness of insurance requirements imposed on leased access programmers.  S- ` `x4.` ` FalComm states that following release of the Bureau Order it obtained a meeting with  xTCI Cablevision to discuss the reasonableness of the insurance coverage requirements, consistent with the  S- x.requirements of the Commission's Second Order. FalComm states that at the meeting TCI Cablevision  xrefused to discuss a list of factors relevant to the insurance requirement issue which it presented at the  x]meeting, causing the meeting to be a costly waste of time. FalComm states that TCI Cablevision  SR- xsubsequently submitted a written response to the list that failed to meet the requirements of the Second  S,- xMOrder for justification of the insurance demand. FalComm claims that this failure, together with the  xdelays experienced in getting a meeting with TCI Cablevision in the first place, provides evidence of an  x>"anticommercial leased access attitude and culture" toward small independent leased access program  xproducers on the part of TCI Cablevision in particular and the cable industry in general. FalComm  xclaims the insurance requirement represents a significant barrier to small independent programmers and  xthat TCI Cablevision is imposing the insurance requirement as a means of discouraging such programmers  xfrom seeking leased access channels. FalComm requests the issuance of additional guidelines, rulings,  x>fines or penalties that will encourage cable operators to reform their current attitude and culture with respect to small independent leased access program producers.  S- ` x5.` ` TCI Cablevision opposes the petition first on procedural grounds, contending that the thirty  xdays allowed under Commission rules for filing a petition for reconsideration or application for review  SN- xof the Bureau Order passed well before the petition was filed, and that therefore time for revisiting the  S( - xBureau Order has expired. TCI Cablevision defends the insurance requirement on the merits by stating"( ,>(>(II!"  xthat its Standard Form Affiliation Agreement requires all cable programming networks to obtain  xcommercial liability insurance at limits of not less than $1,000,000 and media perils insurance (also known  S- xas broadcaster's liability/errors and omission insurance) at limits of not less that $3,000,000.hW {O-ԍSee Affidavit of Madison Bond, attached to the Opposition.h TCI  xMCablevision notes that the policy limit required of leased access programmers is only $1,000,000 and  xcontends that its insurance requirements for leased access programmers is comparable to the requirements  xfor nonleased programmers. TCI Cablevision claims also that the nature of FalComm's programming,  xwhich consists of advertisements for topless bars, poses increased liability risks, and that FalComm's  xlimited financial resources, made evident by its apparent inability to afford $165 per year for insurance  xpremiums, further supports the need for insurance protection. TCI Cablevision further contends that it  xresponded courteously and promptly to FalComm's leased access requests, including providing a written  x>response to the twelve factors presented for the first time by FalComm at the meeting with its local representative to discuss insurance matters.  S -XxPxPxP(# DISCUSSION AND ANALYSIS ă  S - ` x6.` ` A cable operator's right to require reasonable liability insurance coverage for leased access  S - xprogramming was initially discussed in Anthony Giannotti v. Cablevision Systems Corporation.C ZW yOz-ԍ11 FCC Rcd 10441 (CSB 1996)C In that  xcase, we noted that the programmer had not shown that the cost of the required insurance coverage was  xeither prohibitive or imposed an unreasonable cost of doing business as an independent program producer.  S - xThe Commission's Second Order confirmed that the regulations concerning reasonable terms and  xyconditions of use for commercial leased access do not deny cable operators the right to require reasonable  xliability insurance coverage for leased access programming. Noting that the costs and expenses  xattributable to defending a prosecution for carriage of an allegedly obscene program may be covered by  x.such insurance, the Commission previously stated, "this is a reasonable term or condition relating to use  xof leased access channel capacity in light of the removal by Congress in amended [S]ection 638 of cable  S- xzoperator immunity for carriage of obscene programming." W {O-ԍSee First Report and Order in MM Docket No. 92258, 8 FCC Rcd 998, 1007(1993), n.44.Ĉ Specific conditions or limits regarding the  xamount of coverage or the type of insurance policy that operators may require were not adopted in the  S- xMSecond Order, on the grounds that "a specific restriction might not be appropriate for all situations."  xInstead, the Commission stated that insurance requirements must be reasonable in relation to the objective  xof the requirement. The Commission further stated that determinations of a "reasonable" insurance  xLrequirement will be based on the operator's practices with respect to insurance requirements imposed on  xnonleased access programmers, the likelihood that the leased access programming will pose a liability  xyrisk for the operator, previous instances of litigation arising from the leased access programming, and any  S-other relevant factors. The burden of proof in establishing reasonableness was placed on cable operators.u |W {O"-ԍSee Second Order at  112, and 47 C.F.R.  76.971(d).u " ,>(>(II"Ԍ S- ` #x7.` ` We find that TCI Cablevision established the reasonableness of the insurance requirement  S- xin this particular case. W {O@- xԍTCI Cablevision's procedural objections to the petition as untimely filed will be dismissed. The Bureau Order  xheld only that the requirement that TCI Cablevision be named as an additional insured party was reasonable. The  {O- x;petition, while indicating a request to "revisit" the Bureau Order, does not seek to overturn that limited holding but  xYseeks instead a new determination whether TCI Cablevision satisfied the burden of demonstrating the reasonableness of the underlying insurance coverage requirement. First, the $165 per year premium for the required insurance coverage does not  xNappear unreasonable on its face. Second, the record shows that TCI Cablevision's Standard Form  xAffiliation Agreement requires all cable programming networks to obtain commercial liability insurance  xat limits of not less than $1,000,000 and media perils insurance (also known as broadcaster's  S8- x liability/errors and omission insurance) at limits of not less that $3,000,000.h 8|W {OT -ԍSee Affidavit of Madison Bond, attached to the Opposition.h In these respects, TCI  xCablevision's requirement for insurance in this instance is not substantially different from that required  x@of nonleased access programmers. Indeed, the overall liability limit is lower for leased access  xprogrammers. Third, while TCI Cablevision's representative declined to address the factors presented  xby FalComm during a meeting, a written response delivered after the meeting addressed each of the  xfactors FalComm presented for discussion. Among other things, TCI Cablevision's written response  xexplained that, although FalComm's half hour of programming is carried only twice monthly, subscribers  x.may be offended, obscenity may be aired, or a third party's protected rights may be violated as easily in  xa half hour as in 24 hours. TCI Cablevision also pointed out that such offense may come from a taped  xprogram as well as from a live program, or from programming scripted and edited by FalComm as well  xas by some one else. TCI Cablevision further noted that FalComm's programming involves advertising  xof topless bars and that such programming is considered highly controversial in the community served by  x.its cable system. Additionally, TCI Cablevision noted that the need for broadcasters liability insurance,  xwhich covers much more than copyright infringement, is not eliminated merely because FalComm's  xprogramming and music is original. TCI Cablevision noted further that, except for obscenity or  xindecency, cable operators may not exercise any control over content of leased access programming and  xtherefore have no ability to restrain a leased access programmer from libeling someone, violating  xsomeone's privacy or copyright, or otherwise causing someone actionable harm. TCI Cablevision also  xjsuggested that, with respect to a programmer for whom the required insurance premiums (approximately  S@- x$165 per year)A@W {O-ԍSee Petition, p. 3.A are prohibitive because of limited financial resources, reliance on an indemnification  S- xclause for liability protection is impractical.ZW {OX- xԍAlthough a copy of TCI Cablevision's written response was atteched to the petition, (see Petition, Exhibit 8,  yO" - xhTCI Cablevision letter dated September 15, 1997 to Frank Vitale), FalComm presented nothing in the petition that refutes TCI Cablevision's responses to the risk factors raised by FalComm. We find that TCI Cablevision met the Commission's  xrequirements to justify the reasonableness of the insurance requested of this particular leased access programmer.  Sx- ` x8.` ` We also reject as unsupported the claim that TCI Cablevision's conduct during  xknegotiations or its present request for insurance coverage demonstrates the existence of a "culture and  xattitude of anticommercial lease access" on the part of TCI Cablevision in particular or of the cable  x=industry in general. Such was not reflected by TCI Cablevision's representative at the meeting with Fal" ,>(>(II\"ԫ xComm. The record shows that the representative did not feel prepared address the twelve items which  xFalComm then presented for the first time, in part because some of them included legal issues and  xbecause he deemed it better to address them in writing, which he did promptly thereafter. The  xrepresentative stated that he remained available to discuss insurance generally, but that Mr. Vitale declined  xto discuss any other matters and left the meeting abruptly. The record also shows that TCI Cablevision's  x.representative made himself available for the meeting requested by FalComm as promptly as permitted  xjby his vacation schedule and as soon as a date for the meeting could be arranged by an exchange of phone  S- xcalls.jW {OP-ԍSee Affidavit of Daniel Bielski, attached to the Opposition.j Accordingly, FalComm's request for other relief, including assessment of fines and penalties, will be denied.  Sp- 1ORDERING CLAUSES ă  S - ` x9.` ` For the foregoing reasons, the petition for relief of FalComm Communications in File  S -No. CSR 5117L IS DENIED .   x10. This action is taken pursuant to authority delegated by Section 0.321 of the Commission's rules, 47 C.F.R.  0.321. X` hp x (#%'0*,.8135@8: