Regulatory Framework for Business Transactions (RFBT) CEGG Practice Exam

Which statement best reflects must-carry rule impact on rebroadcasting and retransmission rights?

No. Rebroadcasting and retransmission are not protected intellectual property rights.

Yes. Both rebroadcasting and retransmission are protected under must-carry rules.

Rebroadcasting is not protected, but retransmissions are protected under must-carry rules.

Rebroadcasting is a protected intellectual property right, while retransmissions are not protected due to must-carry rules.

Must-carry rules regulate carriage, not licensing. They require cable systems to carry local broadcast stations, but they don’t grant or remove intellectual property rights themselves. The protection for rebroadcasting of content comes from copyright law, which covers how a broadcaster’s material can be distributed and publicly shown. When it comes to retransmitting a signal over a cable system, that right is typically handled through licensing or retransmission consent between the broadcaster and the carrier, not through must-carry obligations. Because must-carry doesn’t provide a shield or license for retransmissions, those rights aren’t protected by must-carry rules, even though rebroadcasting content remains protected as IP. That’s why the best choice states that rebroadcasting is a protected IP right, while retransmissions aren’t protected by must-carry rules.