NAB reports (Jan-Dec 1948)

those who will pay money for it, as for any other merchandise. Regarding the news, therefore, is but the material of which both parties are seeking to make profits at the same time and in the same field, we hardly can fail to recognize that for this purpose, and as between them, it must be regarded as quasi property, irrespec¬ tive of the rights of either as against the public.” While in that case INS had been using AP’s news without giving AP credit for it, the coiu’t held that this fact accentuated but was not the essence of the wrong. In Associated Press v. KVOS' the United States Circuit Court of Appeals for the 9th Circuit applied the same rule to enjoin station KVOS from using without permission the news of the Associated Press. The court there said that AP’s news “is not only made stale to those of their readers who first have access to it [on KVOSJ but also is made free, while still hot, to their readers who pay a usual subscription price for their papers. The obvious tendency of these factors is to cause [AP’s] papers to lose circulation and with it the advertising, income which is based on circulation. We are unable to see any theory under which such a diversion of advertising income from the Associated papers to KVOS, with its incidental de¬ struction of subscriber income, can be called anything but “unfair competition.” The court further made clear by implication that it would make no difference whether the news was broad¬ cast on a sustaining or a commercial basis, relying on the settled doctrine that if the use of literary, artistic and musical material is in connection with a com¬ mercial, profit-making venture, it is for profit. To quote Justice Holmes’ famous statement, “Whether it pays or not, the purpose of employing it is profit and that is enough.” More than likely most courts would refuse to make any distinction between the unauthorized use of news by a radio station and the unauthorized use of fea¬ tures, such as comic strips. In view of this, it is ad¬ visable that stations consult their own attorneys on this problem and get clearance, at least from the news¬ papers in their service area, before broadcasting any comics carried by those newspapers. "80 F. (2d) 575. Statement on Lottery Broadcasts !s Error NAB’s Legal Department has pointed out that a recently published newspaper statement saying “radio can broadcast news of lottery winners without restric¬ tions” is in error. Section 316 of the Communications Act, the Depart¬ ment emphasized, forbids the broadcasting of “any advertisement of, or information concerning, any lot¬ tery, gift enterprise, or similar scheme ... or any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme.” A general guide designed to help broadcasters de¬ termine whether particular programs violate lottery laws will be found in the 1947 volume of NAB Reports, p. 459. Legal circles have expressed hope that fur¬ ther information will be available at the conclusion of current FCC proceedings concerning give-away programs. (See NAB Reports, Oct. 20 & 27, 1947.) ^©search Department Annual FTC Report Totals Year’s Work The 1947 annual report of the Federal Trade Com¬ mission revealed last week that the FTC examined copies of 641,402 commercial radio broadcast continui¬ ties in the year ending June 30, 1947. The continuity totalled 1,430,692 pages, 569,340 for networks and 833,352 for individual stations. Some 29,000 pages of script for advertising portions of transcription productions were also examined. The report said that 9,573 bi’oadcast advertising statements in this material were marked for further study as containing representations that might be false or misleading. The FTC booklet also commended networks and in¬ dividual stations for “a desire ... to aid in the elimi¬ nation of false and misleading advertising.” PmMIc Iiit@rest Piragnrammliig Ad Council Network Campaigns The following public interest campaigns have been given top priority on network and national spot allocation plans during the week of February 9-15, 1948, by The Advertising Council. Copies of in¬ dividual fact sheets and schedules showing exactly what messages will be carried daily by the programs of the network with which your station is affiliated may be obtained on request from George P. Ludlam, radio director. The Advertising Council, 11 West 42nd Street, New York 18, New York. CRUSADE FOR CHILDREN (American Overseas Aid — United Nations Appeal for Children) was origi¬ nally scheduled on network radio facilities during the entire month of February. However, the Advertising Council has been advised that the major portion of the public appeal for $60,000,000 will be made in April and not in February, as originally planned. Under these circumstances, the Council does not feel that national radio publicity at this time is justified, and has recommended that network programs not carry the allocation messages on Crusade for Children. Sta¬ tions, wherever the local situation warrants, are asked to substitute a message on THE CRITICAL FUEL OIL EMERGENCY. The following is a brief resume of the fact sheet entitled FUEL OIL SITUATION CRITICAL. With an unusually severe winter harassing many areas of the country, a critical fuel oil situation exists which may become more acute in the next sixty days. Demands for fuel oil exceed supplies in the East, certain sections of the South, and in the mid-West. This means less oil for heating homes during February and March. Only (Continued on next page) FEBRUARY 1, 1948-86