Exclusive Cable Contracts Are Unenforceable

The current edition of The California Landlords Law Book: Rights and Responsibilities discusses cable TV and landlords rights to contract with various companies. It mistakenly omits an important 2007 development concerning cable contracts that provided for exclusive access for the cable provider. 

Reversing its position (which had upheld such exclusive provisions), the Federal Communications Commission ruled that not only are exclusive contracts unenforceable, but exclusive clauses in existing contracts will not be enforced. The new order means that any exclusive clauses landlords may now have in their contracts are unenforceable, and they may not enter into any new ones. Landlords do not, however, have to let any cable company who asks into their buildings, nor must they invite new companies at the request of their tenants. 

Whether to host new companies will ultimately be a marketing decision, one that is driven by cost versus benefit: When existing wiring is available for a new company to use, the cost of inviting that company into the building goes way down. For more information, see the FCCs Small Entity Compliance Guide (type this title into the search box at www.fcc.gov).