FCC Issues Guidelines for "Remedial Foreign Ownership” Reports

Under the Communications Act, a foreign entity may have up to a 20% direct ownership interest in a station.  Also, a foreign entity may have up to 25% interest in an entity that directly or indirectly controls a licensee.  The 25% limit may be permitted by the FCC upon review.

The 25% foreign ownership limit can get complex when the entity holding the license is part of a much larger corporate entity.  In these cases, a corporate parent may merge and exceed the 25% foreign ownership limit. The actual broadcast licensee may have no control over the activities of its corporate parent.  Nonetheless, FCC approval is needed if the 25% foreign ownership limit is exceeded. 

The FCC has published guidelines for stations that have exceeded the 25% limit due to activities that were beyond their control.  The rules give the ability to either fix, i.e., reduce the amount of foreign ownership, or retroactively apply to the FCC for authorization to exceed the limit.

You can see a copy of the FCC’s guideline here.