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Tuesday, July 29, 2008

IPI Applauds NCSL Resolution Opposing Government Mandated Arbitration for Cable Program Carriage Disputes

IPI Applauds NCSL Resolution Opposing Government Mandated Arbitration for Cable Program Carriage Disputes

DALLAS, July 29 /PRNewswire-USNewswire/ -- The Institute for Policy Innovation (IPI) applauds the resolution made by the National Conference of States Legislatures (NCSL) calling upon policymakers nationwide to oppose the efforts requiring mandatory government arbitration in order to resolve disputes over private commercial program carriage.

"There is no role for government to intrude into the business negotiations going on between sports networks and video providers," said IPI president Tom Giovanetti.

As policymakers from the American Legislative Exchange Council (ALEC) and the National Conference of Hispanic Legislators (NCHL) convene in their respective annual meetings later this week, IPI hopes similar free market resolutions will be valued above distorting the marketplace with government arbitration and regulation.

"This trend for sports leagues to take programming off the table, create their own networks and then demand that video providers subsidize them is spreading," said Giovanetti.

Sports leagues, such as the NFL, caused a stir this year when, in a crusade for additional unearned revenues, they recruited state governments to introduce legislation forcing cable companies to carry premium sports networks requiring video providers to absorb the additional costs.

"The private right of contract is a foundational principle of capitalism," said Bartlett Cleland, director of the IPI Center for Technology Freedom. "Yet, the NFL is seeking to do damage to that fundamental construct. In the place of this basic tenant of freedom they offer... sports entertainment?"

"Let's keep our eye on the ball -- cable systems, just like the NFL, have invested billions of dollars in their property and should be allowed to maximize the return on their investments," said Cleland. "Granting further government favoritism to one set of billionaires, the NFL, is clearly a personal foul."

The Institute for Policy Innovation is an independent, non-profit public policy organization based in Dallas, Texas. Experts are available for interview by contacting Erin Humiston at (972) 874-5139, or erin@ipi.org.

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Source: Institute for Policy Innovation

CONTACT: Erin Humiston of the Institute for Policy Innovation,
+1-972-874-5139, erin@ipi.org

Web Site: http://www.ipi.org/


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