Attachment letter

letter

LETTER submitted by Pegasus

letter

2005-08-30

This document pretains to SAT-LOA-20031119-00336 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA2003111900336_453101

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                                          "~ORIGINAL
    August 30, 2008
                                                                                        umt
                                                                                    Hruce D. ncobs
                                                                           bncticoGpiitertewcom
    VIA COURIER

    Managing Director
    Attn: FOIA Officer
    Federal Communications Commission
    445 12" Street, S.W.
    Washington, DC 20554

    Res        Pegasus Development Corporation
               FOIA Control No: 2005—512
               Supplement to Opposition to Freedom of Information Act Request
    To whom it may concem:
           Pegasus Development Corporation ("Pegasus") hereby submits this letter in
    response to the additional comments of Highcast Network, Inc. filed in the above—
    referenced proceeding. See Letter to Managing Director from Mark 3. Halpren (August
    25, 2005) ("Additional Comments"). The International Bureau (*Bureau") should refect
    Highcast‘s unauthorized and procedurallyimproper filing. Despite Highcast‘s claim,
    Bureau staff expressly informed the parties that it did not seck additional pleadings from
    either party, and nothing in the Commission‘s rules permit supplementalfilings." In any
    event, if the Bureau considers the fling on its merits, the letter provides no justification
    for deviating from the Bureau‘s proposalto issue a protective order consistent with well—
    established Commission precedent in the satellte context. Accordingly, to the extent
    Highcast is unvwilling to accept the Bureau proposal, Pegasus urges the Bureau to dismiss
    the FOIA request outright.

           The sole new issue raised in Highcast‘s recent letter is whether its President, Mr.
    John Hane, should be permitted to review Pegasus® confidential satellite contract.
    However, Bureau determination ofthis issue would be premature. 1t is not relevant for
    purposes of assessing the confidentiality of the redacted provisions of the satellte

    ‘ See 47 CR § 046. If the Bureau nonethcless considersthe Additional Comments, Pegasus
    requests thatit also accept this fling.


Managing Director
August 30, 2008
Page 2



contract, and Highcast cites no precedent requiring the FCC to "pre—approve" the review
ofconfidential documents by a specific individual, In any event, Higheast‘s stated
justifications for its extraordinary request fail on the merits.

         As Pegasus stated in its Opposition, there are genuine concerns regarding the
propriety of Mr. Hane‘s personal review of the confidential material in light ofhis
ongoing litigation, as an individual, with Pegasus.® In its FOIA request, Highcast failed
to identify any specific reason whyit would be interested in the confidential satellite
contract, other than an apparent abstract interest in ensuring that licensees comply with
FCC regulations. Only when challenged did Highcast assert, infer alia, that it was a
prospective satellite licensee considering the 87°W orbital location — a position it now
tetracts." Under such circumstances, it would be eminently reasonable for the Bureau to
prevent Mr. Hane‘s review of the confidential documents in orderto "minimize the
potential forinadvertent misuse of such information."
        Additionally, as noted above, Highcast itselfat one point stated that it is a
potential competitor to Pegasus, and the FCC has consistently issued protective orders

" Contrary to Higheast‘s misleading statement, Pegasus has never stated that it is i Kiigation with
Higheast,as opposed to Mr. Hane. See Leter to Managing Director from Mark Halpren, at3 n3
(August9, 2005). In any event, Higheast has asserted that Pegasus "defaulted on ts obligations
to Highcast" (it. at 2) and has orally threatened Pegasus with itigation.
* Leter t Managing Director from Mark Halpren, t 2 (August 9, 2008) (‘If(Pegasus)is not in
complianee{,) Higheast must look elsewhere for access tosmllm broadcastingservices. Filing
proceed orallying wi -mhuK-h-ndhwuewr-pp ieant
are among the most likely options.") (emphasis added); compare Additional Comments,at1—2
(Higheast does not now and has never sought to be operate sic] a satellite or to provide satelte
services directly ... ."). Higheast‘s contradictory statements further support the conclusion that
Higheast secks review ofthe confidential materia for no legitimate FCC purpose.
* Examination ofCurrent Policy Concerning the Treatment ofConfidentialInformation Submitted
to the Commision, 13 FCC Red 24816, at§ 26 (1998) (*Confidential Information Policy
Order");see also In Re RequestofLouls 4. Goodman, 81 ECC 2d 124 (1980) ("The Commission
generally has denied requests foinspection .. where the [confidential) information is to be used
for the resolution ofessentially private dispates, unrelated to publicinterest dterminations
required by the Communications Act"); Meleon Construction Go,21 RR 2d 919 (1971)
(denying FOIA request by entty secking confidentia information ofFCC licensee because such
material was soughtin non—FCC relted litigation and discoverable in that proceeding).


Managing Director
August 30, 2005
Page3


preventing the review of satellite construction contracts by individuals in the industry
engaged in compettive decision—making.® The fact that Highcast‘s President is also
coincidentally ts in—house counsel® or that Highcast has voluntarily chosen outside
counsel unfamiliar with FCC practice does not warrant an exception to this well—
established rule. Any contrary conclusion would establish a dangerous loophole and
deny Pegasus basic FOIA protection against disclosure ofcompetiively sensitive
materials.

        There is no merit to Highcast‘s argument that the specific facts of this proceeding
warrant the issuance of a non—standard protective order. To Pegasus‘ knowledge, Bureau
staff elected the DirecTV/Pegasus protective order to be used as a template for this
proceeding simply because it was a recent satellite matter and one in which Pegasus had
participated. In fact, that protective order is not substantially different from any ofthe
protective orders cited by Highcastin its FOIA request. Thus, contrary to Highcast‘s
arguments otherwise, the facts of that case are simply irelevant.
        There is also no reason to adopt the "Model Protective Order" established by the
Commission in 1998, as Highcast urges. That dated template has long been in disuse,
and there is no reason to believe that it would be appropriate here. In fact,in an
analogous case nearly four years ago, /1 the Matter ofMotorola, Inc. and Teledesic, LLC,
DA 01—2231 (September 25, 2001), the Bureau rejected a similar request to use the
Model Protective Order. See Comments on Proposed Protective Order, File No. SAT—
ASG—20010109—00005, at4—5 (August 2, 2001).
        Accordingly, nothing in this case warrants deviation from the FCC‘s well—
established precedent. To the extent Highcast is unwilling to accept the review ofthe
confidential material under the terms of a standard protective order, Pegasus urges the
Commission to dismiss the FOIA request outright.



* The numerous cases cted by Higheasti ts iniial FOIA request contirm this conclusion. See
Letter to Managing Director from Mark Halpem,at 3 n. 6 uly 14, 2005).
* n light ofthe wel—established Commission precedent, there was no logical need for Pegasus to
requestatthe time ofthe submission ofts request for confidentil treatment thatin—house
counsel engaged in competitive decision—making be barted from reviewing the competitively
sensitive documents.


Managing Director
August 30, 2005
Page4


                     Very truly yours,


                      S#
                     Bfice D. Jacobs
                     Tony Lin
                     Counselfor Pegasus Development
                     Corporation
css   Andrea Kelly


                               Certificate of Service

        1, Melanie Gamble, hereby certify that on the 30th day of August, 2005, the
foregoing Supplement to Opposition to Freedom of Information Act Request was served
by first—class U.S. mail on the following:
      Mark S. Halpern
      Halpem & Levy, P.C.
      GSB Building
      One Belmont Avenue, Suite 400
      Bala Cymwyd, PA 19004



Document Created: 2005-09-01 14:53:07
Document Modified: 2005-09-01 14:53:07

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