TV & VIDEO - July 1, 1988

The Supreme Court refused Thursday to hear a case involving the way cable TV companies pay copyright royalties to the U.S. Copyright Office. The payment system had been challenged by Cablevision Co., a cable television operator in New York and New Jersey, and the National Cable Television Assn. Both organizations claim the current royalties system forces the cable industry to overpay at least $40 million a year. Under the Copyright Act of 1976, cable TV companies are allowed to retransmit copyrighted programming to their subscribers. In return, the cable systems must pay royalties into a Copyright Royalty Tribunal for distribution to copyright owners. The action refused by the court would have changed how cable companies determined how much to pay into the copyright fund.