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TELECOM CASE

Telecommunications Act Unconstitutional

In a 5-4 decision, the court ruled that the provision of the Telecommunications Act--which required cable providers of sexually explicit material to "fully scramble" their signals or show such programming only when children are unlikely to be watching--violated the First Amendment's free speech guarantees.

The court said another section of the same law, which requires cable operators to block any cable channel at the request of a subscriber, offered an equally effective and "less restrictive" means to achieve the same goal.

In First Amendment matters, "if a less restrictive means is available for the government to achieve its goals, the government must use it," Justice Anthony M. Kennedy wrote for the court majority.

Yesterday's high court decision represented a victory for Playboy Entertainment Group Inc., which operates the Playboy TV Network and the Spice Network, the dominant adult entertainment cable channels. It was also another sign that a slim court majority is more willing than Congress to apply strict First Amendment protections to evolving information technology.

In 1997, the justices invalidated another section of the same federal law that restricted the transmission of sexually explicit material over the Internet. The ruling delighted civil libertarians and the cable television industry, but dismayed a variety of conservative organizations that are working to restrict children's exposure to sexually oriented material.

Christie Hefner, chairman and chief executive of Playboy Enterprises, Inc., said "the beauty of the decision was to endorse the rights of parents to control what comes into their home without limiting the rights of adults to see constitutionally protected programming."

But Janet LaRue, senior director of legal studies at the Family Research Council, said "it's a sad day when the protection of children and unconsenting adults takes a back seat to the profit of cable pornographers." She said the court's decision "places the burden on cable subscribers rather than the sexually explicit cable providers" to keep the material out of homes.

The case, U.S. v. Playboy Entertainment Group Inc., arose from the problem of "signal bleed"--cable TV signals sometimes becoming available to nonsubscribers. Congress responded in the 1996 Telecommunications Act by requiring cable providers of sexually explicit material to scramble those signals or confine the programming to times when children are unlikely to be watching. The Federal Communications Commission later set the acceptable time as between 10 p.m. and 6 a.m.

According to Playboy, most cable operators chose to restrict the time they would show adult programming rather than risk lawsuits stemming from signal bleed or incurring the expense of creating a foolproof scrambling system.

Playboy challenged the restrictions, and in 1998 a special federal district court in Delaware ruled that the rules violated the First Amendment by targeting a certain kind of speech--sexually explicit material--based on its content, and banning that type of programming for most of the day. Unlike obscene materia, sexually explicit programming is protected under the First Amendment.

Kennedy, who was joined by Justices John Paul Stevens, David H. Souter, Clarence Thomas and Ruth Bader Ginsburg, agreed with that decision, saying that the only "reasonable way" for many cable operators to comply with the law was to restrict adult programming to a few hours a day.

That, Kennedy wrote, "silences the protected speech for two-thirds of the day in every home in a cable service area, regardless of the presence or likely presence of children or of the wishes of the viewers. . . . To prohibit this much speech is a significant restriction of communication between speakers and willing adult listeners, communication which enjoys First Amendment protection."

Kennedy also emphasized that because the case involved free speech guarantees, it was up to the government to prove that the proposed alternative method of protecting children from sexually explicit material would be ineffective. He said the government had failed to do so.

It was on this point that Justice Stephen G. Breyer based the main dissent in the case. He argued there was no evidence that allowing cable subscribers to request complete blocking of certain programming would be equally effective in shielding children.

Citing the millions of children left alone at home after school, Breyer said that the restrictions struck down yesterday offered more certain protections for "a large number of families."

"By finding 'adequate alternatives' where there are none, the court reduces Congress's protective power to the vanishing point," Breyer wrote. Other dissenters were Chief Justice William H. Rehnquist and Justices Sandra Day O'Connor and Antonin Scalia.

There is little agreement on the pervasiveness of signal bleed. The Justice Department estimated that 39 million homes with 29.5 million children could potentially be affected. But Robert Corn-Revere, a lawyer for Playboy, said that in 16 years of transmitting adult entertainment, the company had heard only a handful of complaints and did not believe it was a significant problem.

Hefner said about 25 million households view Playboy TV and 14 million receive the Spice Network, which Playboy acquired last year. Playboy projected that the federal law would cost it $25 million in lost revenue over a decade.

In another closely watched case decided yesterday, the court upheld a key part of a Civil War-era law that authorizes individuals to file suit on behalf of the federal government alleging fraud and to keep a portion of any settlement or court award.

But in the 7-2 decision, the justices also said that states and state agencies cannot be sued under the 1863 False Claims Act because they are not "persons" as defined by the law. Amended and revived in the 1980s, the law is considered an important element in "whistleblower" attempts to curb fraud against the government.

In another case yesterday, the court ruled unanimously that a federal anti-arson law does not apply to fires set in private homes but only to commercial buildings or other structures more closely linked to Congress's authority to regulate interstate commerce. The decision invalidated the federal conviction of an Indiana man who set fire to his cousin's house.

And in yet another decision, the court ruled 5-4 that criminal defendants who voluntarily tell jurors about previous convictions, rather than allowing that information to become known through cross-examination by prosecutors, cannot appeal a judge's decision to allow questioning about their criminal backgrounds.

Reasons why this case is important:

1. It involves the First Amendment, the most attacked article of the Constitution

2. It over-rules an act of Congress

3. It's a major moral issue, which always draw attention from the extremities of American Politics