NAB Appeals 'Sidecar' Pacts

The National Association of Broadcasters today filed a petition at the U.S. Court of Appeals for the D.C. Circuit asking the court to overturn "arbitrary and capricious" FCC presumption against transactions involving sharing arrangements among local television stations.

NAB's petition comes in response to the FCC's March 12 public notice announcing new "processing guidelines" for local TV applications proposing sharing arrangements and contingent financial interests.

At issue are the use of joint sales agreements (JSAs) and shared services agreements (SSAs) by a number of local TV stations across the country to better serve communities. NAB notes that JSAs and SSAs help sustain a competitive free and local television station business model in the face of competitive challenges from national pay television platforms.

NAB maintains the FCC's March 12 public notice effectively imposes punitive new rules for television stations without following legally required procedures. The new rules are not consistent with existing Commission rules, NAB noted.

NAB also noted that the FCC failed to respond to NAB's request to withdraw the March 12 public notice and to stop applying the defective new processing guidelines. Many local TV stations are currently being harmed by application of these defective new processing guidelines, according to NAB.