The time is fast approaching when joint sales agreements (JSA) in effect in the radio world must be reported to the FCC, as well as being noted in your public file. (Similar arrangements for television are under consideration.) The communications attorneys at Womble Carlyle Sandridge & Rice, PLLC have put together a quick primer on what you need to do should you be involved in such an arrangement. Here, then, for your complying pleasure, is a look at the new JSA reporting requirement.

The FCC has announced that copies of certain radio joint sales agreements (JSAs) are to be filed by February 22, 2005.

Portions of the FCC's local ownership rules are still being litigated and appear headed for the U.S. Supreme Court. Yet, the rules relating to radio multiple ownership have taken effect. Among these is an important new rule that addresses the attribution and filing of radio JSAs.

JSAs typically enable one licensee to sell the advertising inventory of another. Previously, the Commission had distinguished between JSAs and time brokerage agreements (TBAs, also known as local management agreements or LMAs). TBAs involving stations in the same market, and more than 15% of weekly broadcasting time, are deemed to be attributable (treated as tantamount to outright ownership), and require the filing of written agreements. Now, JSAs also are to be considered attributable where they involve stations (or parties under common control with stations) in the same market and include more than 15% of the advertising time of the brokered station on a weekly basis.

The brokering station is responsible for filing the JSA. However, at this time the filing requirement applies only to stations within Arbitron Metro markets. Filing of other JSAs will await the outcome of a pending FCC rulemaking proceeding to determine a standard for defining markets outside Arbitron Metros.

In addition to being filed with the FCC, applicable JSAs also must be placed in the public inspection files of both the brokering and brokered stations by February 22. Confidential or proprietary information (such as specific dollar figures) may be redacted from the FCC and public file copies but must be made available upon request by the FCC.

If an attributable JSA was entered into prior to June 2, 2003 and causes a broker to exceed the FCC's local radio ownership limit, it may continue in effect until the earlier of September 3, 2006 or expiration of the current term. JSAs entered into between June 2, 2003 and September 4, 2003 that would violate the local ownership rules must be terminated by April 4, 2005.

If you have any concern that a JSA may be affected by these new provisions, please be sure to let us know so that we may review the situation and advise you as to applicable legal regulatory requirements.

The communications lawyers at Womble Carlyle Sandridge & Rice include Peter Gutmann, Mark Palchick, Gregg P. Skall, John F. Garziglia, Vincent A Pepper, Howard J. Barr, Joan D. Stewart and Michael H. Shacter.