	Introduction

On December 18, 2007, the Federal Communications Commission ("FCC" or "Commission") concluded a review of its broadcast ownership rules by relaxing the ban on cross-ownership of a newspaper and a broadcast station in certain markets. In 2003, the FCC had adopted a comprehensive order (in its 2002 Biennial Review) revising many of its cross-ownership rules but, as will be discussed below, the United States Court of Appeals for the Third Circuit found insufficient basis for many of the proposed changes in that order and remanded it to the FCC for reconsideration. The report also addresses the current status of the rules. The Commission had previously initiated proceedings regarding the local radio ownership rule and the newspaper/broadcast cross-ownership rule. On June 2, 2003, the Commission adopted a Report and Order modifying its ownership rules. The numerous petitions for review were consolidated and the case was heard by the United States Court of Appeals for the Third Circuit in Philadelphia. However, the court found fault with the numerical limits set by the FCC in each of the local ownership rules. All other cross-ownership rules and restrictions will remain unchanged. The FCC also adopted rules in December 2007 to promote diversification of broadcast ownership in a separate order from the newspaper/broadcast station cross-ownership rule. Recent Court Proceedings

The relaxation of the newspaper/broadcast cross-ownership rule as well as the other ownership rules promulgated by the FCC in December 2007 have yet to go into effect. Pursuant to the Third Circuit's final order in the Prometheus case, the FCC's newest rules may not go into effect until the Third Circuit lifts its stay. On June 12, 2009, the Third Circuit decided to keep the stay in place until further order of the court and ordered the parties to file status reports regarding whether the stay should remain in place later in the year. On October 1, 2009, the FCC filed its status report with the Third Circuit. The FCC argued that the stay should remain in place, because the 2008 order no longer incorporates the views of a majority of the Commissioners and the agency is set to begin a new review of the media ownership rules that should be completed in 2010.
In December 2007, the Federal Communications Commission relaxed its newspaper/broadcast ownership ban (order released February 2008). The decision raised concerns in Congress about increasing media consolidation that have long been at the forefront of the debate over ownership restrictions. The Commission's order served to rekindle the discussion of media consolidation and the perceived need to take action to preserve a diversity of voices in the marketplace of ideas. The FCC rule, as this report illustrates, has a history dating back to a previous failed attempt to relax a greater number of broadcast cross-ownership restrictions, and it is worthwhile to examine this previous proceeding in order to understand the current status of the rules.
On June 2, 2003, the FCC adopted a set of comprehensive rules addressing six different aspects of media ownership, including cross-ownership of broadcast and print media, local television and radio ownership, and national television ownership. On June 24, 2004, the United States Court of Appeals for the Third Circuit, in Prometheus Radio v. FCC, remanded several of these rules to the Commission for further consideration finding that the Commission failed to adequately justify the numerical limitations used in the rules. This report provides an overview of the Commission's 2002 Biennial Review from which the 2003 rules originated and the Prometheus case.
The report also addresses current issues facing the actions taken by the FCC in response to the Third Circuit Court of Appeals' decision in Prometheus. On December 18, 2007, the FCC concluded its review of broadcast ownership rules by relaxing the newspaper/broadcast station cross-ownership restrictions in certain markets. All other broadcast ownership rules, however, remain unchanged.
The relaxation of the newspaper/broadcast cross-ownership rule as well as the other ownership rules passed by the FCC in December 2007 have yet to go into effect. Pursuant to the Third Circuit's final order in the Prometheus case, the FCC's newest rules may not take effect until the Third Circuit lifts its stay. On June 12, 2009, the Third Circuit decided to keep the stay in place until further order of the court. On October 1, 2009, the FCC filed a status report with the Third Circuit. The FCC argued that the stay should remain in place, because the 2008 order no longer incorporates the views of a majority of the Commissioners and the agency is set to begin a new review of the media ownership rules that should be completed in 2010.