Funding Net Neutrality … And Worse

There are so many things wrong with the FCC’s codified “net neutrality” rules, the kindest thing one can say about those responsible is that they were all born yesterday.  But criticism of this monstrosity abounds already, and given the potential for it to be wholly or partly undone by the courts or Congress, no further discussion of its many flaws is either timely or necessary.

Just before Christmas, however, John Fund wrote a piece in the Wall Street Journal that ought to be required reading for every media and communications mogul in America.  Titled “The Net Neutrality Coup,” Fund recounts the role played by a handful of large grant-giving foundations, and the beneficiaries of their largesse (“paid clappers,” in Ted Turner’s immortal phrase) in the promotion of this cynical creation of the “media reform” movement.

Perhaps the greatest value in Fund’s piece is his finding that most of those foundations that provided the lion’s share of funding for net neutrality were also among the biggest sources of funding for the earlier (and even worse) mischief, “campaign finance reform.”

Fund identifies by name a total of six grant-giving foundations and four operating organizations.  They are, among the former: the Pew Charitable Trusts, the Schumann Center for Media and Democracy, the Joyce Foundation, George Soros’s Open Society Institute, the Ford Foundation, and the John and Catherine MacArthur Foundation.

The four operating groups are Free Press, Public Knowledge, Harvard’s Berkman Center for Internet and Society, and the New America Foundation.  What all of these groups – funders and recipients alike – share in common is that, to varying degrees, they are all liberal-leaning, or “progressive,” as they yearn to be called nowadays.

Missing from this list is another billion-dollar grant-giving group – the Knight Foundation – which, through the Knight Commission, has itself peddled  net neutrality, along with such pap as the need for greater funding of public broadcasting, and tax credits for investigative journalism.  Though we won’t know for sure until its report is issued, the FCC appears to have adopted the Knight Commission’s recommendations as a kind of blueprint in its approach to the commission’s so-called Future of Media initiative.

The reason all of this should be of the greatest importance to everyone, but particularly to titans of media and communications, is simple: The communications policy views of grant-making groups like the Open Society Institute and the Ford Foundation (not to mention Free Press) are inimical to the well being of media and communications companies.

It’s not entirely clear why the “progressive” moneybags’ lavish spending has not incited individuals with different political views, many of whom have amassed great wealth in the media and communications business, to fund non-profit organizations with more pro-business communications policy views.  Perhaps it’s because some of them, having gotten theirs and now in retirement, no longer care much what happens to the industry of which they were once a part.  Or maybe it’s because many don’t think of themselves, or want others to think of them, as “conservatives,” whatever that means in the context of communications policymaking.

But a likelier explanation is that many fail to understand what a threat to their own and their industry’s welfare some of these groups actually pose.  Perhaps because businessmen are very good at lobbying, and understand the ins and outs of PACs, they don’t see the need to engage their critics in the worlds of academia or think tankery.

It’s a mistake, that, because in truth it’s the people who deal in ideas – intellectuals and artists, activists and policy wonks – who are often the engines in the development of policy issues in which legislators and regulators are but the last people to board the train.  Witness, for instance, net neutrality.

As John Fund puts it, in the conclusion of his WSJ piece, “So the ‘media reform’ movement paid for research that backed its views, paid activists to promote the research, saw its allies installed in the FCC and other key agencies, and paid for the FCC research that evaluated the research they had already paid for.  Now they have their policy.  That’s quite a coup.”

                                                
The opinions expressed above are those of the writer and not necessarily of The Media Institute, its Board, contributors, or advisory councils.

A Unitary First Amendment – Redux

By guest blogger LAURENCE H. WINER, Professor of Law and Faculty Fellow, Center for Law, Science & Technology, Sandra Day O’Connor College of Law, Arizona State University, Tempe, Ariz.

“[W]e don’t put our First Amendment rights in the hands of [government] bureaucrats.”  What an extraordinary statement for the Chief Justice of the United States to make when one considers the Supreme Court’s long history of allowing Federal Communications Commission (FCC) content-based regulation of broadcasting and other electronic media!

Chief Justice Roberts made this statement in last week’s oral argument of Citizens United v. Federal Election Commission.  Citizens United, involving “Hillary: The Movie,” is the little case that could – could just restore a strong measure of freedom of speech in the most critical of all contexts, namely political speech.

As described in an earlier post occasioned by the first round of oral argument in this case last spring, the narrow issue is the provision of the McCain-Feingold “Bipartisan Campaign Reform Act of 2002” (BCRA) that bans the use of corporate funds for “electioneering communications” via broadcast, cable, or satellite close to an election.  In the earlier argument some members of the Court were astounded by the government’s contention that Congress also would have the constitutional power to similarly ban printed material, including books.
    
This apparently led those members of the Court who long have been troubled by limitations on political speech imposed in the guise of campaign finance reform to set re-briefing and rearguing for an unusual and extended one-day September session.  And, the Court broadened the issue for rehearing by asking the parties to discuss whether the Court should overrule not only that part of its 2003 opinion in McConnell v. F.E.C. upholding the specific BCRA provision, but also the Court’s 1990 opinion in Austin v. Michigan Chamber of Commerce.  In Austin, over strong dissents, the Court upheld a state’s restrictions on independent expenditures from general corporate funds for ads supporting or opposing a candidate for state elective office.

Not surprisingly, the Court’s actions with respect to Citizens United prompted more than 40 amicus briefs with what the New York Times called “an array of strange bedfellows and uneasy alliances” and set the stage for high drama.  How far will the Court go in affirming the political free speech rights of corporations?  

Arguing briefly for Senator Mitch McConnell as amicus, Floyd Abrams reminded the Court that in New York Times v. Sullivan the Court eschewed available narrow grounds to resolve the case and instead issued a broad ruling to fully vindicate the vital First Amendment interests at stake.  And he told Justice Sotomayor that, similarly here, this is the way the Court would do more good than harm.

Solicitor General Elena Kagan, making her debut appearance on behalf of the FEC, tried to reassure the Court that the government’s position on printed campaign speech had changed.  Don’t worry, she suggested, the FEC has never tried to ban a book, though when pressed she immediately stated a pamphlet might be different.  And this is when Chief Justice Roberts made his comment about not relying on FEC bureaucrats to protect the First Amendment.

But the Court has left countless First Amendment matters in the hands of the government bureaucrats at the FCC at least since Justice Frankfurter’s 1943 opinion in the seminal NBC v. U.S. case in which, in a single paragraph, he subordinated the First Amendment to the public interest standard of the Communications Act.  This later caused Professor Harry Kalven to comment that: “The passage catches a great judge at an unimpressive moment.”  

Over the years, the Court’s deference to the FCC has allowed all manner of infringements on free speech in the name of the amorphous public interest, from the now-defunct (but perhaps soon to be resurrected in some version) fairness doctrine, to the recent debacle over broadcast “indecency,” and maybe to a threatened similar campaign against violence in the media.

But members of the FCC, no less than of the FEC, have no expertise or competence in First Amendment matters.  This is not a comment on any present or former members as individuals; rather it is the basic recognition that the First Amendment disables any government bureaucrat from claiming or exercising any province over matters of free speech or free press.  “Congress shall make no law” is a straightforward “hands-off” policy for government bureaucrats.

During last week’s argument of Citizens United, Justice Breyer suggested to Ted Olson (representing Citizens United) that Congress had a compelling interest for the restrictions it enacted and thought it had narrowly tailored them.  So, the justice asked, should the Court really second-guess Congress?  Mr. Olson forthrightly replied, “You must always second-guess Congress when the First Amendment is in play.”  Exactly so, regardless of the medium of communication at issue, and a fortiori must courts stringently second-guess the FCC when it is infringing free speech, directly or indirectly, as it is wont to do all too frequently.

Whatever the ruling in Citizens United, we can only hope the chief justice’s words reverberate loudly the next time the FCC seeks to sustain an infringement on free speech or press in the name of the public interest.

A Unitary First Amendment

By guest blogger LAURENCE H. WINER, Professor of Law and Faculty Fellow, Center for Law, Science & Technology, Sandra Day O’Connor College of Law, Arizona State University, Tempe, Ariz.
 
In last week’s Supreme Court oral argument of the “Hillary: the Movie” case, Citizens United v. F.E.C., the government attorney apparently perplexed several of the Justices by the breadth of his argument.  His argument, and the responses of some Justices, highlight a crucial aspect of the First Amendment.

Citizens United is a nonprofit corporation that made a 90-minute film sharply critical of Hillary Clinton.  During her presidential campaign it wanted to pay cable companies to make the film available to subscribers free via video on demand.

The McCain-Feingold “Bipartisan Campaign Reform Act of 2002” (BCRA), however, bans “electioneering communications.”  This ban prohibits a corporation or labor union from using its general treasury funds for any broadcast, cable, or satellite communication that constitutes express advocacy or its functional equivalent regarding a clearly identified federal candidate within a set time prior to an election.  Electioneering communications, however, do not include news or commentary by a media company, and the statutory ban does not apply to the print media or the Internet.

We are used to media exceptionalism, at least with regard to broadcasting.  That is, throughout its history broadcasting has struggled under a strange First Amendment jurisprudence affording it limited freedom of expression and subjecting it to a panoply of “public interest” obligations that would be constitutional anathemas for any other medium of mass communication.  

Political access rules and requirements for children’s educational programming, for example, fall in this public interest category for broadcasting.  BCRA strangely perpetuates this dichotomous approach by, on the one hand, in effect covering only “television” (broadcast, cable, and satellite), and at the same time exempting from its reach news and commentary in all media.

When pressed by the Justices, the government attorney took the position that the Constitution would allow Congress, if it wished, to extend the statutory ban to print media, a book for example.  To this, Justice Alito replied, “That’s pretty incredible,” going on to characterize the government’s position as allowing it to ban a book about politics, under an expanded BCRA statute, if published by a corporation close to an election.  

Justice Kennedy then demonstrated how bizarre the government’s position is by noting that a book, downloaded by satellite onto a Kindle reader, presumably both would come under the reach of the present statute and, in the government’s view, constitutionally be subject to censorship.  Before long Justice Scalia confessed to being “a little disoriented” because he thought the Court was dealing with the constitutional provision, known as the First Amendment, that he remembers as beginning with “Congress shall make no law.”

BCRA’s restriction on political speech in the guise of campaign finance reform is troubling in its own right.  What great evil of political propaganda justifies this sort of censorship?  But it is good to see members of the Court now “disoriented” by the hopelessly disjointed, media-based approach to First Amendment freedom of expression that the Court itself spawned in the middle of the 20th century and unfortunately maintains in our radically transformed digital era.  

These Justices were incredulous that the government would suggest it could extend a regulation of electronic media to print.  But the disconnect finally should go just as strongly in the other direction – what is prohibited in regulating print media is also prohibited for all media, including broadcasting.

In recent years, the Federal Communications Commission under former chairman Martin pursued a relentless and unwarranted campaign against so-called “indecency” on broadcast television.  The Supreme Court has pending before it a challenge to the Commission’s authority in this area to regulate what no government entity can restrict in any other media.  It would be gratifying if in its decision in the next few weeks the Court finally adopts and applies a unitary First Amendment.

Professor Winer is also the Faculty Editor of Jurimetrics.

Journalists, and the future of the media. Part I

“Ladies and gentlemen, The Network News Hour with Sybil the Soothsayer … Jim Levitt and his Almost Truth Department … Ms. Madahare and her Skeletons in the Closet…. Tonight, another segment of Vox Populi….  And starring the mad prophet of the airwaves: Howard Beale!”  (From the movie “Network,” 1976)

Everyone of a certain age remembers the story of the unhinged anchorman, Howard (“I’m mad as hell and I won’t take it any more”) Beale.  Examples abound that playwright Paddy Chayefsky was onto something.  Keith Olbermann comes to mind – and all the more so after MSNBC took the highly unusual step of removing him from his anchor post for being too far over the top.  Where journalism is untethered to standards of professionalism, and ratings are all, journalism suffers.

But the sullying effect of entertainment values on journalism is well understood.  The thing that’s less well understood, and a much more intractable problem, is the role of journalists in the decline of journalism.

From their tiny and parochial grasp of the speech clause of the First Amendment, to their growing embrace of opinion rather than objectivity, to their response to all things Internet, the performance of much of the national press corps these days seems – to borrow a phrase from Malcolm Muggeridge – like the antics of an exhausted stock.

Journalists’ knowledge of and support for the First Amendment can be measured by the things they promote and the things they do not. They favor access to government information, the right not to have to reveal their sources, and weak libel laws.  And leaving room for a little quibbling around the edges, all of these are good things.  But note the parochialism.  Journalists want access to information in the same way, and for the same reason, that fishermen want access to nets.  The point being that, whatever the intrinsic public good, and it’s manifest, access to information is a practical need of journalists.

But what about the speech needs of people who are not journalists?  Like the commercial speech of advertisers of legal products?  Or the speech of college students, circumscribed by campus speech codes?  Or the political speech of groups or individuals who, close to the date of federal elections, wish to make political arguments through issue ads?  Or, even within the industry, of the right of media companies not to have to yield to onerous and government-mandated “public interest” obligations?

On these and other First Amendment issues, far too many journalists are silent if, as with campaign finance reform, they aren’t actually on the other side.

Controversy over media coverage of this year’s extraordinary presidential election campaign opens a window on another journalistic sore spot, the twinned issues of objectivity and media bias.  In an article dated 9/3, Howard Kurtz of the Washington Post observed, without a hint of irony, that “denouncing the news media as biased plays well with many Republican voters.”

A similar observation was made the next day in an article in the New York Times. “If there is one mission Mr. McCain wants to accomplish at his convention,” it says, “it is to galvanize conservative voters who have shown signs of depression this year.  Traditionally, one surefire way to do that has been to attack the ‘elitist’ mainstream news media.”

But whether we’re talking about conservatives, who represent maybe one-third of the country, or Republicans who, at least at election time, represent half, the obvious question is why do they feel this way?  Why is it that attacking the media is a “surefire” way to galvanize Republicans and conservatives?  In all the years that I’ve been watching presidential campaigns, I don’t ever recall reading a similar line about Democrats, or about liberals for that matter.

It’s true, of course, that there are people to the left of liberals who are critical of the media.  But the great divide in American political life isn’t between Republicans and conservatives on the one hand, and Marxists and leftists on the other. It’s between Republicans and Democrats, conservatives and liberals.  And thus, when journalists suggest, as they have for decades, that the existence of critics on the left as well as the right proves that their efforts are balanced, they miss the pregnant truth by a mile and persuade no one.

At what may be a tipping point for all of the professional media, isn’t this a problem that the industry should redress?  Is there any other industry that, upon hearing that half of their market feels they’re being dissed, wouldn’t move to correct, or at least ameliorate, that problem?

Of course the media are different from other industries in another way too.  Owing to the “firewall” erected over time between the journalistic “product” and the management of the companies that own that product, the news industry is the only one in which corporate management exercises little control over what its writers, reporters, and editors produce – little control, in other words, over their very products.

So with management hamstrung by the firewall convention, who is willing and able to mind the store, so to speak?  Certainly not those institutions that exist to fund, study, promote, and chronicle contemporary journalism.

Of the handful of foundations – like the Knight Foundation – that routinely provide funding for journalism-related programs at universities and nonprofit organizations, all share a mindset, whatever their funding priorities, that can be characterized as Old Newspaper.  As such, they cling to journalistic notions that are outdated, uninformed, and fundamentally irrelevant.  And what is true of the foundations is true, and then some, of the rest of the journalism infrastructure: TV critics, media reporters, ombudsmen, and the journalism reviews.

If, as they say, war is too important to be left to generals, perhaps it’s not too much of a reach to say that journalism is too important to be left to journalists.

Next: The Internet and its growing impact on journalism.