DIRECTV 2010 Annual Report Download - page 37

DIRECTV
redesign its set-top boxes and, conceivably, replace existing boxes on a other types of regulation on DBS operators. Also, while Congress has prohibited
schedule not of its own devising. The FCC is also considering a new regime local taxation of the provision of DBS service, taxation at the state level is
under which all multichannel video providers, including DIRECTV, would permissible, and many states have imposed such taxes, and additional states have
be required to offer so-called ‘‘All Vid interfaces’’ instead of its existing attempted to do so recently. Incident to conducting a consumer directed business,
set-top box arrangements. Such interfaces would be designed according to we occasionally receive inquiries or complaints from authorities such as state
government specifications to deliver DIRECTV’s programming stream and attorneys general and state consumer protection offices. These matters are generally
related data for manipulation by third-party electronic equipment. resolved in the ordinary course of business, and DIRECTV recently agreed to
DIRECTV believes such a requirement would significantly hinder its ability implement a restitution program for consumers who send eligible complaints related
to offer new and innovative services, and could complicate its customer to consumer protection practices.
service efforts. In Latin America, DTVLA and its subsidiaries are subject to laws and
regulations in each country in which they operate that govern many of the same
International Telecommunications Union Rules. We are required by
aspects of our operations as in the United States, such as landing rights for
international rules to coordinate the use of the frequencies on our satellites with
satellites; spectrum, earth station and other licenses; must carry and other
other satellite operators who may interfere with us or who may suffer interference
requirements with respect to the channels we carry; and regulations governing
from our operations.
telemarketing and customer service. Regulatory regimes in Latin America are
Other Legal and Regulatory Requirements. DBS/DTH providers are subject generally less developed than in the United States, and the application of existing
to other federal and state regulatory requirements, such as Federal Trade laws and regulations to DBS providers is at times uncertain. In addition, there are
Commission, FCC and state telemarketing and advertising rules, and subscriber certain areas where regulations in Latin America are stricter than in the United
privacy rules similar to those governing other MVPDs. We have agreed with the States, such as regarding labor and consumer protection laws. Foreign exchange laws
Federal Trade Commission to (1) review and monitor compliance with in some countries can have a material impact on our ability to repatriate funds to
telemarketing laws by any companies we authorize to do telemarketing as well as by the United States. Also, several countries such as Venezuela, Argentina and Brazil
independent retailers, (2) investigate and respond to complaints about alleged have passed or proposed laws imposing certain ‘‘national’’ content requirements,
improper telemarketing and (3) terminate our relationship with marketers or advertising limitations and other requirements on the content we distribute which
retailers found in violation. Similarly, we have agreed with certain state attorneys could, depending on the substance of the requirements and how they are applied,
general to comply with advertising disclosure requirements and monitor compliance have a material impact on our subsidiaries operating in those countries.
by independent retailers.
INTELLECTUAL PROPERTY
In addition, although Congress has granted the FCC exclusive jurisdiction over
the provision of DTH satellite services, aspects of DBS/DTH service remain All DIRECTV companies maintain active programs for identifying and
regulated at the state and local level. For example, the FCC has promulgated rules protecting our important intellectual property. With the exception of certain patents
prohibiting restrictions by local government agencies, such as zoning commissions and trademarks held by certain subsidiaries of DIRECTV Group and various
and private organizations, such as homeowners associations, on the placement of intellectual property licensed from third parties, DIRECTV Group owns all of our
DBS receiving antennas. Local governments and homeowners associations, however, intellectual property for the benefit of our company and subsidiaries.
may continue to regulate the placement of such antennas if necessary to accomplish We believe that our growing portfolio of pending and issued patents are
a clearly defined public safety objective or to preserve a recognized historic district, important assets. We presently hold over 2,000 issued patents worldwide relating to
and may also apply to the FCC for a waiver of FCC rules if there are other local our past and present businesses, including over 500 patents developed by, or
concerns of a special or unusual nature. In addition, a number of state and local otherwise relating to, the businesses of DIRECTV U.S. We hold a worldwide
governments have attempted to impose consumer protection, customer service and
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