Comcast 2011 Annual Report Download - page 27

future letters of inquiry from the FCC prompted by complaints alleging that certain programming on our
owned local television stations included indecent or profane material. In addition, some policymakers support
the extension of indecency regulations to cable networks. Increased content regulation, particularly if it is
vague and difficult to apply, could have an adverse effect on our broadcast and cable networks businesses.
Sponsorship Identification
Federal legislation and FCC regulations provide that whenever a broadcast station transmits any program-
ming for which it has received money, service or other valuable consideration, it must provide an accurate
on-air identification of the sponsor of the programming. The FCC is examining whether “embedded
advertising,” such as product placements and product integration, in broadcast programming should be
subject to stricter disclosure requirements and whether the sponsorship identification regulations should be
extended to cable networks.
International Regulation
International regulation of television broadcasting varies widely according to jurisdiction and includes the regu-
lation of programming and advertising. For example, the European Union (“EU”) establishes minimum levels of
regulation across all EU member states focused on content and advertising, which also extends to nonlinear
television services, although EU countries are free to impose stricter regulation in certain areas. The majority
of our European channels are under United Kingdom jurisdiction and therefore subject to stricter regulation
by its regulator.
Filmed Entertainment
Our filmed entertainment business is subject to the provisions of so-called “trade practice laws” in effect in 25
states and Puerto Rico relating to theatrical distribution of motion pictures. These laws substantially restrict
the licensing of motion pictures unless theater owners are first invited to attend a screening of the motion
pictures and, in certain instances, also prohibit payment of advances and guarantees to motion picture
distributors by exhibitors. Further, under various consent judgments, federal and state antitrust laws and
state unfair competition laws, our motion picture company is subject to certain restrictions on trade practices
in the United States, including a requirement to offer motion pictures for exhibition to theaters on a
theater-by-theater basis. The Federal Trade Commission (“FTC”) has called for stronger industry safeguards
applicable to the marketing of violent movies to children.
In countries outside the United States, there are a variety of existing or contemplated governmental laws and
regulations that may affect our ability to distribute and license motion picture and television products, as well
as consumer merchandise products, including film screen quotas, television quotas, regulation of content,
regulated contract terms, product safety and labeling requirements, discriminatory taxes and other discrim-
inatory treatment of U.S. products. The ability of countries to deny market access or refuse national treatment
to products originating outside their territories is regulated under various international agreements.
Theme Parks
Our theme parks are subject to various regulations, including laws and regulations regarding environmental
protection, privacy and data protection, consumer product safety and theme park operations, such as health,
sanitation, safety and fire standards and liquor licenses.
Other Areas of Regulation
Intellectual Property
Copyright, trademark, unfair competition, patent, trade secret and Internet/domain laws of the United States
and other countries help protect our intellectual property rights. In particular, piracy of programming and films
through unauthorized distribution of counterfeit DVDs, peer-to-peer file sharing and other platforms presents
25 Comcast 2011 Annual Report on Form 10-K