Schurz Communications, Incorporated v. Federal Communications Commission and United States of Americ

Schurz Communications v. Federal Communications Commission and the United States of America, 982 F. 2d 1043 (2d Cir. 1992), held in the United States Court of Appeals for the Seventh Circuit, was argued on October 2, 1992 and decided on November 5, 1992. The case dealt with the justification of the FCC's regulation of the way television networks are allowed to distribute and produce programs into syndication. Judge Posner was the Circuit Judge for the case. This case challenged Syndication and Financial rules imposed in the 1970s, as broadcast television changed with the popularity of cable television, the rise of the FOX network, and the discrediting of the leverage theory.

Broadcast Structure

The broadcast television industry has a structure of three main role players:

The Network<br />The network is a vertically integrated media corporation. Vertically structured by the following reasons: networks own in-house production facilities in order to produce their own television video programming, networks own and operate television stations in major markets (such as Los Angeles and New York), networks affiliate themselves with independently owned television stations throughout the entire nation, and maintain telecommunications links among all these stations to distribute video programming. They are involved in every level: production, distribution and consumption.<br /><br />The Affiliates:<br />Affiliates are TV stations affiliated with networks...
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