Skip to main content

Managing Law and Regulation

  • Chapter
  • First Online:
  • 118k Accesses

Abstract

The chapter deals with “non-market” forms of competition with rivals in the public sphere: litigation, lobbying, public relations and regulation. The legal function in media firms are discussed first, with the dimensions of compliance management and investment calculus for litigation. The next themes are the management of lobbying and of public relations, and how much to spend on them. The chapter then covers the regulatory process, both by industry self-regulation and by government, and how it is used strategically by companies. The concluding sections cover substantive media law: content restrictions such as libel and slander, morality and child protection, the regulating of advertising, antitrust and anti-monopoly law, rules against price discrimination, profit and investment regulation, regulation of “universal connectivity,” support for national industry, privacy protections and the future of video regulation. The case discussion covers the non-market competition between Comcast and Google.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   54.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   69.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Holburn, Guy L. F., and Richard G. Vanden Bergh. “Policy and process: A game-theoretic framework for the design of non-market strategy.” In The New Institutionalism in Strategic Management (Advances in Strategic Management, Volume 19). Eds. Paul Ingram, and Brian S. Silverman. Emerald Group Publishing Limited, 2002; 33–66.

  2. 2.

    Baron, David P. “The Nonmarket Strategy System.” MIT Sloan Management Review 37, no. 1 (Fall 1995): 73-85.

  3. 3.

    Birnbaum, Jeffrey H. “Washington & the Web.” Fortune. October 11, 1999. Last accessed June 17, 2017. http://archive.fortune.com/magazines/fortune/fortune_archive/1999/10/11/267047/index.htm.

  4. 4.

    Sheldon, Michael. “Pros and Cons of In-House Counsel.” The Hartford. Last accessed June 17, 2017. https://www.thehartford.com/business-playbook/in-depth/in-house-counsel-pros-cons

  5. 5.

    Reason, Tim. “U.S. Companies Spending a Fortune in Court.” CFO. October 12, 2006. Last accessed June 17, 2017. http://ww2.cfo.com/risk-compliance/2006/10/u-s-companies-spending-a-fortune-in-court/

  6. 6.

    Forrest, Kirk G. “In Litigation, Consider Outcome and Cost.” Business Insurance 30, no. 37 (September 1996): 20.

  7. 7.

    Poltorak, Alexander and Paul J. Lerner. “Introducing litigation risk analysis.” Managing Intellectual Property no. 109 (May 2001): 47.

  8. 8.

    Baron, David P. “The Nonmarket Strategy System.” Sloan Management Review 37, no. 1 (Fall 1995): 73–85.

  9. 9.

    Mack, Charles S. Business, Politics, and the Practice of Government Relations. Westport: Quorum Books, 1997.

  10. 10.

    Watkins, Michael, Mickey Edwards, and Usha Thakrar. Winning The Influence Game: What Every Business Leader Should Know About Government. New York: John Wiley & Sons, Inc., 2001.

  11. 11.

    OpenSecrets. “TV/Movies/Music: Lobbying, 2016.” Last accessed June 17, 2017. https://www.opensecrets.org/industries/lobbying.php?cycle=2016&ind=B02.

  12. 12.

    Celniker, Jared, and Russ Choma. “Net Neutrality.” OpenSecrets. April 2015. Last accessed June 17, 2017. https://www.opensecrets.org/news/issues/net_neutrality/.

  13. 13.

    OpenSecrets. “Lobbying Top Spenders: 2013.” Last accessed June 17, 2017. https://www.opensecrets.org/lobby/top.php?showYear=2013&indexType=s.

  14. 14.

    New York Times. “Obama’s Top Fund-Raisers.” September 13, 2012. Last accessed June 17, 2017. http://www.nytimes.com/interactive/2012/09/13/us/politics/obamas-top-fund-raisers.html; Sink, Justin. “Comcast, Time Warner Execs Have Been Big Obama Supporters.” The Hill. February 13, 2014. Last accessed June 17, 2017. http://thehill.com/policy/technology/198350-comcast-time-warner-execs-have-been-big-obama-supporters.

  15. 15.

    Federal Election Commission. “Top 50 Corporate PACs by Receipts January 1, 2011–December 31, 2012.” Last accessed June 17, 2017. http://classic.fec.gov/press/summaries/2012/tables/pac/PAC5a_2011_12m.pdf.

  16. 16.

    Proportionally, Comcast’s share would have been about $6 million. NCTA data from OpenSecrets. “Lobbying Top Spenders: 2013.” Last accessed June 17, 2017. https://www.opensecrets.org/lobby/top.php?showYear=2013&indexType=s.

  17. 17.

    Sher, Andy. “Lobbyists had busy year in Nashville.” Times Free Press. May 30, 2011. Last accessed June 17, 2017. http://www.timesfreepress.com/news/news/story/2011/may/30/lobbyists-had-busy-year-nashville/50827/; Peterson, Andrea. “Comcast is donating heavily to defeat the mayor who is bringing gigabit fiber to Seattle.” Washington Post. October 31, 2013. Last accessed June 17, 2017. https://www.washingtonpost.com/news/the-switch/wp/2013/10/31/comcast-is-donating-heavily-to-defeat-the-mayor-who-is-bringing-gigabit-fiber-to-seattle/.

  18. 18.

    Badger, Emily. “How the Telecom Lobby is Killing Municipal Broadband.” Citylab. November 4, 2011. Last accessed June 17, 2017. http://www.citylab.com/tech/2011/11/telecom-lobby-killing-municipal-broadband/420/.

  19. 19.

    Brodkin, Jon. “ISP lobby has already won limits on public broadband in 20 states.” ArsTechnica. February 12, 2014. Last accessed June 17, 2017. http://arstechnica.com/tech-policy/2014/02/isp-lobby-has-already-won-limits-on-public-broadband-in-20-states/.

  20. 20.

    Collaborative Research on Corporations. “Company Profile.” November 2009. Last accessed June 21, 2010. http://www.crocodyl.org/wiki/news_corp.

  21. 21.

    Celniker, Jared and Russ Choma. “Net Neutrality.” OpenSecrets. April 2015. Last accessed June 17, 2017. https://www.opensecrets.org/news/issues/net_neutrality/.

  22. 22.

    Hemson, Paul. The Interest Group Connection: Electioneering, Lobbying, and Policymaking in Washington. Washington, D.C: CQ Press, 1998.

  23. 23.

    Watkins, Michael, Mickey Edwards, and Usha Thakrar. Winning The Influence Game: What Every Business Leader Should Know About Government. New York: John Wiley & Sons, Inc., 2001.

  24. 24.

    United States Senate, Secretary of the Senate and Clerk of the House. “Lobbying Disclosure Act Guidance.” January 1, 2008. Last updated December 15, 2011. Last accessed July 31, 2012. http://www.senate.gov/legislative/resources/pdf/S1guidance.pdf.

  25. 25.

    Dunbar, John. “The FCC’s Rapidly Revolving Door.” Center for Public Integrity. February 19, 2003. Last accessed June 17, 2017. https://www.publicintegrity.org/2003/02/19/6581/fccs-rapidly-revolving-door.

  26. 26.

    Henry, Kenneth. “Perspective on Public Relations.” Harvard Business Journal 45 (July/August 1967): 14.

  27. 27.

    Belch, George, and Michael Belch. Advertising and Promotion: An Integrated Marketing Communications Perspective, 4th ed. New York: Irwin/McGraw-Hill, 1998.

  28. 28.

    Epstein, Edward Jay. The Big Picture, The New Logic of Money and Power in Hollywood. New York: E.J.E. Publications, Ltd., Inc., 2005.

  29. 29.

    Lamb, Charles W., Joe F. Hair, and Carl McDaniel. Marketing. Mason, OH: South-Western, 2013.

  30. 30.

    Taylor, Andrea L., Suraje Dessai, and Wändi Bruine de Bruin. “Public Perception of Climate Risk and Adaptation in the UK: A Review of the Literature.” Climate Risk Management 4–5 (2014): 1–16.

  31. 31.

    Examples are such as Trendsmap, Hashtags.org or Neo Reach, a Stanford startup that helps managing campaigns with influencers in social media. Chapdelaine, Rachel. “7 Marvelous Resources for Researching Trending Twitter Topics.” Inbound Marketing Blog. January 29, 2014. Last accessed August 19, 2015. http://www.inboundmarketingagents.com/inbound-marketing-agents-blog/bid/333604/7-Marvelous-Resources-for-Researching-Trending-Twitter-Topics.

  32. 32.

    Cha, Meeyoung et al. “Measuring User Influence in Twitter: The Million Follower Fallacy.” Proceedings of the Fourth International AAAI Conference on Weblogs and Social Media (May 23–26, 2010): 10–17.

  33. 33.

    Lindenmann, Walter K. “Guidelines and Standards for Measuring the Effectiveness of PR Programs and Activities.” The Institute for Public Relations. 2003. Last accessed June 17, 2017. http://www.instituteforpr.org/wp-content/uploads/2002_MeasuringPrograms.pdf.

  34. 34.

    Paine, Katie D. “How to measure your results in a crisis.” The Institute for Public Relations. 2002. Last accessed June 17, 2017. http://www.instituteforpr.org/wp-content/uploads/Crisis_2002.pdf.

  35. 35.

    Belch, George, and Michael Belch. Advertising and Promotion: An Integrated Marketing Communications Perspective, 4th ed. New York: Irwin/McGraw-Hill, 1998.

  36. 36.

    Lindenmann, Walter K. “Guidelines and Standards for Measuring the Effectiveness of PR Programs and Activities.” The Institute for Public Relations. 2003. Last accessed June 17, 2017. http://www.instituteforpr.org/wp-content/uploads/2002_MeasuringPrograms.pdf.

  37. 37.

    Smith, Ronald D. Strategic Planning for Public Relations, 2nd ed. Mahwah, NJ: Lawrence Erlbaum Associates, 2005.

  38. 38.

    Casarez, Nicole B. “Dealing with cybersmear: How to protect your organization from online defamation.” Public Relations Quarterly 47, no. 2 (July 2002): 40–45.

  39. 39.

    van der Merwe, Rian et al. “Stakeholder Strength: PR Survival Strategies in the Internet Age.” Public Relations Quarterly 50, no. 1 (Spring 2005): 39–49.

  40. 40.

    Ernst, Marcia M. and John C. Ethridge Jr. “Corporate Strategies for Combating Cybersmear.” Trust the Leaders no. 4 (Summer 2003). Last accessed June 17, 2017. http://www.sgrlaw.com/ttl-articles/920/.

  41. 41.

    Thompson, Nicholas and Fred Vogelstein. “The Plot to Kill Google,” Wired. January 19, 2009. Last accessed June 17, 2017. https://www.wired.com/2009/01/ff-killgoogle/.

  42. 42.

    Berman, Craig. “How Should Firms Respond to Negative Publicity?” Chron. Last accessed June 17, 2017. http://smallbusiness.chron.com/should-firms-respond-negative-publicity-69199.html.

  43. 43.

    Campbell, Angela J. “Self Regulation and the Media.” Federal Communications Law Journal 51, no. 3 (May 1999): 711–771.

  44. 44.

    Dessart, George. “Standards and Practices.” The Encyclopedia of Television. Last accessed July 23, 2012. http://www.museum.tv/eotv/standardsand.htm.

  45. 45.

    The Museum of Broadcast Communications. “The Encyclopedia of Television.” Last accessed May 31, 2007. http://www.museum.tv/archives/etv/.

    U.S. House of Representatives (108th). Hearings on H.R. 3717, the “Broadcast Decency Enforcement Act of 2004.” February 26, 2004. Last accessed June 1, 2007. http://republicans.energycommerce.house.gov/108/Hearings/02262004hearing1216/hearing.htm.

  46. 46.

    U.S. House of Representatives (108th). Hearings on H.R. 3717, the “Broadcast Decency Enforcement Act of 2004.” February 26, 2004. Last accessed June 1, 2007. http://republicans.energycommerce.house.gov/108/Hearings/02262004hearing1216/hearing.htm.

  47. 47.

    Berger, Robin. “The Importance of Being Decent.” TVTechnology. June 8, 2005. Last accessed July 23, 2012. http://www.tvtechnology.com/news/0110/the-importance-of-being-decent-/184683.

  48. 48.

    Ewart, Brian J. “The Law and Economics of the FCC’s Decency Standard.” Selected Works. May 26, 2009. Last accessed July 5, 2012. http://works.bepress.com/brian_ewart/1/.

  49. 49.

    Federal Communications Commission. “FCC Organizational Chart.” January 23, 2017. Last accessed May 17, 2017. https://www.fcc.gov/sites/default/files/fccorg-01232017.pdf.

  50. 50.

    Indian Television.com. “The Cable Television Networks Rules, 1994.” September 29, 1994. Last accessed August 1, 2012. http://www.indiantelevision.com/indianbrodcast/legalreso/catvnetworkrules.htm.

  51. 51.

    A further appeal is possible, but the US Supreme Court rarely takes administrative appeals, and mostly only if two lower appellate courts have issued conflicting decisions, or where a major constitutional issue is at stake.

  52. 52.

    Blumenthal, Howard J., and Goodenough, Oliver R. This Business of Television. New York: Billboard Books, 1998.

  53. 53.

    Digital Media Law Project. “Stratton Oakmont v. Prodigy.” May 24, 1995. Last accessed June 17, 2017. http://www.citmedialaw.org/threats/stratton-oakmont-v-prodigy.

  54. 54.

    Strossen, Nadine. Hate: Why we should resist it with Free Speech, Not Censorship. Oxford, 2018.

  55. 55.

    Miller v. California, 413 U.S. 15 (1973).

  56. 56.

    Blumenthal, Howard J., and Oliver R. Goodenough. This Business of Television. New York: Billboard Books, 1998.

  57. 57.

    Nagle, Thomas T., and Reed K. Holden. The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making, 2nd ed. New York: Taylor & Francis, 1995.

  58. 58.

    Trumbull, Gunnar. Silicon and the State: French Innovation Policy in the Internet Age. Washington, DC: The Brookings Institution, 2004.

  59. 59.

    Major examples: Communications satellites, the Minitel consumer computer network system, the SECAM color TV standard, France Telecom network infrastructure, Alcatel telecom equipment, Computer development projects.

  60. 60.

    Blumenau, Jack. “Children’s Media Regulations: A report into state provisions for the protection and promotion of home-grown children’s media.” Save Kids’ TV. Last accessed July 11, 2013. http://www.savekidstv.org.uk/wp-content/uploads/2011/05/SKTV-competitor-territory-research-post-final-updated-24.4.11.pdf.

  61. 61.

    Australian Government Convergence Review. “Discussion Paper: Australian and Local Content.” Department of Broadband, Communications, and the Digital Economy, 2011. Last accessed July 11, 2013. http://www.dbcde.gov.au/__data/assets/pdf_file/0007/139255/P.4_11352_Convergence_Review_Discussion_Papers_Aus_Content_v4_FA_web.pdf.

  62. 62.

    Bhattacharjee, Ken, and Toby Mendel. “Local Content Rules in Broadcasting”Article19. March 2001. Last accessed July 11, 2013. http://www.article19.org/data/files/pdfs/publications/local-content-rules.pdf.

  63. 63.

    The Economic Freedom Network. “Canadian Content Regulations.” October 20, 1999. Last accessed July 11, 2013. http://oldfraser.lexi.net/publications/forum/1998/august/canadian.html.

  64. 64.

    Noam, Eli. “Privacy in Telecommunications: Markets, Rights, and Regulations.” Cleveland, OH United Church of Christ, 1994.

  65. 65.

    Hourly fee in large cities estimated at $600/hour (compare Lemoine, Gano. “How Much Does an Entertainment Lawyer Cost?” Lemoine Law Firm. March 9, 2010. Last accessed June 17, 2017. http://lemoinefirm.com/how-much-does-an-entertainment-lawyer-cost/); est. 100 outside counsel cases in 2015 (Law360. “Comcast Corporation.” Last accessed June 17, 2017. http://www.law360.com/companies/comcast-corporation/outside_counsel), est. 1 man month (= 250 hours) per case.

  66. 66.

    Est. average salary of $180,000/year (Glassdoor. “Senior Counsel Salaries.” Last updated May 8, 2017. https://www.glassdoor.com/Salaries/senior-counsel-salary-SRCH_KO0,14.htm; Robert Half Legal. “2016 Salary Guide for the Legal Field.” Last accessed June 17, 2017. https://www.roberthalf.com/sites/default/files/Media_Root/images/rhl-pdfs/robert_half_legal_2016_salary_guide.pdf), headcount: 25 (LinkedIn estimate) + 100% additional salary for support staff (paralegals, secretaries).

  67. 67.

    Comcast and NBCU combined, estimated from Corporate Counsel. “The 2016 GC Compensation Survey: Top Industry Earners.” July 20, 2016. Last accessed June 17, 2017. http://www.corpcounsel.com/home/id=1202763139481; and Corporate Counsel. “The GC Compensation Survey: First 100.” July 19, 2016. Last accessed June 17, 2017. http://www.corpcounsel.com/home/id=1202763026404.

  68. 68.

    OpenSecrets. “Comcast Corp.: Annual Lobbying by Comcast Corp.” Last accessed June 17, 2017. https://www.opensecrets.org/lobby/clientsum.php?id=D000000461&year=2015 (Comcast) + 25% (estimated) of NCTA lobbying (OpenSecrets. “National Cable & Telecommunications Assn.: Lobbying Totals, 1998–2016.” Last accessed June 17, 2017. https://www.opensecrets.org/orgs/lobby.php?id=D000022131)

  69. 69.

    OpenSecrets. “Comcast Corp.: Profile for 2016 Election Cycle.” Last accessed June 17, 2017. https://www.opensecrets.org/orgs/summary.php?id=D000000461 + 25% (estimated) of NCTA contributions (OpenSecrets. “National Cable & Telecommunications Assn.: Total Contributions.” Last accessed June 17, 2017. https://www.opensecrets.org/orgs/totals.php?id=D000022131&cycle=2014.)

  70. 70.

    The Comcast Foundation. 2014 Form 990-PF. Last accessed June 17, 2017. http://corporate.comcast.com/images/2014-IRS-Form-990-PF.pdf; NBCUniversal Foundation. 2014 Form 990-PF. Last accessed June 17, 2017. http://pdfs.citizenaudit.org/2015_08_PF/13-6096061_990PF_201412.pdf.

  71. 71.

    Noam, Eli. “Moore’s Law at risk from industry of delay.” Financial Times. January 19, 2006. Last accessed December 4, 2012. http://www.ft.com/intl/cms/s/2/c22f7fa4-891b-11da-94a6-0000779e2340.html.

  72. 72.

    The notion that “you can’t regulate the Internet” is incorrect. On the contrary, one can regulate packetized information and its conveyance much more effectively than undifferentiated waves and bits. Moreover, on the Internet, information is identifiable by the sender and recipient; therefore, it is targetable and able to be regulated.

Author information

Authors and Affiliations

Authors

Quiz Answers

Quiz Answers

  1. 1.

    C

  2. 2.

    A

  3. 3.

    D

  4. 4.

    A

  5. 5.

    D

  6. 6.

    D

  7. 7.

    A

  8. 8.

    B

  9. 9.

    A

  10. 10.

    C

  11. 11.

    C

  12. 12.

    D

  13. 13.

    A

  14. 14.

    B

  15. 15.

    C

  16. 16.

    C

  17. 17.

    E

  18. 18.

    B

  19. 19.

    C

  20. 20.

    E

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Noam, E.M. (2019). Managing Law and Regulation. In: Media and Digital Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-72000-5_8

Download citation

Publish with us

Policies and ethics