Clear Channel Countersues Infinity
July 21, 2004

UPDATED -  Clear Channel today countersued Infinity and One Twelve Inc, claiming that Howard Stern breached his contract by providing programs that didn't comply with federal indecency regulations. The $3 million counterclaim accompanied Clear Channel's response to a $10 million suit filed by Stern distributor Infinity and Stern company One Twelve on June 30 in Manhattan federal court. That suit argues that Clear Channel wrongfully failed to notify them when it pulled the show from six of its stations on February 25.

In its countersuit, Clear Channel alleged that those license agreements required the program to be delivered in conformance with all applicable laws and regulations. And that Stern breached his deal by delivering shows that weren't in compliance. Then, after the FCC hit the company with a $495,000 indecency fine for an April 9, 2003 Stern broadcast, Clear Channel had to cut the chord with Stern because he and Infinity refused to provide any assurances that there would be no further breaches.

Without assurances, Clear Channel "was in a box," the suit states. "It could either continue to broadcast the programs supplied by the Plaintiffs, without any right to preview, edit or alter, and hope that the programs would not place the Defendant in any further legal jeopardy with the FCC, or it could cease broadcasting the programs supplied under the License Agreements."

Clear Channel claims it was prohibited from making any changes to the show -- even when tape-delaying it for broadcast in other time zones would have lended itself to the editing of offensive material.

Infinity and Stern have long maintained that the show is not indecent.

"The radio show was pulled because Mr. Stern and Infinity refused to assure us that future programs would conform to the law," said CC Chief Legal Officer Andy Levin. "That was a key term in the agreement, and we gave them every opportunity to make good on their word before we permanently retired the show. We simply weren’t willing to put the future of our radio station licenses in the hands of Mr. Stern or Infinity. Fortunately, our contract doesn’t require us to do that."

Among the damages the company is seeking: lost advertising revenue, refund of monies paid between the time CC suspended Stern (late February ) and when it fired him (April), attorney fees, and indemnification of the portion of the $1.75 million the company paid the FCC that was attributable to the Stern show.




Breaking News
BIA/Kelsey: Digital Revenues for U.S. Radio Continue to Rise
Jeff Lyons Joins Cumulus As Promotions/Marketing Director for Appleton-Oshkosh, WI
March 27, 2017
Dennis Reese Named SVP/Promotion At RCA Nashville
Cumulus Media Brings Hot AC To Savannah, GA Launches WZAT (102.1 The Sound)
In Brief - March 27, 2017
March 24, 2017
Ryan Seacrest Announces KIIS FM's Wango Tango 2017 Lineup
WMGC (105.1 The Bounce)/Detroit Adds “Big Boy” To Mornings
107.1 The BOSS/New Jersey Announce Air Talent Line-Up
March 23, 2017
iHeartRadio Surpasses 100 Million Users
Westwood One Promotes Mark Wildman to EVP/Strategic Partnerships
March 23, 2017
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
Music News
Drake's More Life Sets Billboard 200 Streaming Record
Quick Hits: Halsey, Snoop Dogg / 2Pac, Pitbull / Wrestlemania, Paul McCartney, Phoenix, Matchbox Twenty & Counting Crows
Quick Hits: Kendrick Lamar, Iggy Azalea, Vans Warper Tour
Quick Hits: Gorillaz, Kaaboo Festival, March Madness
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony

Sam Milkman, EVP
Coleman Insights

FMQB Member Login

Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!