Streaming Service Franchise Fee Fights Seen Centering on State Courts
Alan Poole, a partner with Troutman Pepper, is quoted in the Communications Daily article, "Streaming Service Franchise Fee Fights Seen Centering on State Courts."
More such suits by localities are likely, said communications regulatory and licensing lawyer Alan Poole of Troutman Pepper. He said local government losses in court have often been due to unique state law issues, and there's likely a lot of variation from state to state. He said key issues largely haven't been addressed by the courts, such as whether streaming service programming is sufficiently similar to cable, and if the streamers are using public rights of way as contemplated by the franchise fee statutes.
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The New Boston, Texas, litigation isn't binding as the various Texas cities give the argument another shot in state court, said Troutman Pepper's Poole. He said streaming companies will likely argue the issue has been decided, and it will be put to the state court to decide if the court needs to take a separate look at the franchise fee fight under state law.
States are taking more of a wait-and-see approach before crafting state laws in response to the suits, Poole said. He said given the sizable federal money heading to states for broadband deployment, state could see more pressure over how they regulate innovative online services.