Encoding Rules for Defined Business Models. (a) Commercial Audiovisual Content delivered as Unencrypted Broadcast Television shall not be Encoded so as to prevent or limit copying thereof by Covered Products. (b) Except for (i) a specific determination made by the Commission pursuant to a petition with respect to a Defined Business Model other than Unencrypted Broadcast Television; or (ii) an Undefined Business Model subject to the procedures set forth in this Section: (A) Commercial Audiovisual Content shall not be Encoded so as to prevent or limit copying thereof except as follows: (i) to prevent or limit copying of Video-on-Demand, Pay-Per-View, or Subscription-on-Demand transmissions, subject to the requirements of subsection 2(B); and (ii) to prevent or limit copying, other than first generation of copies, of Pay Television Transmissions, Non-Premium Subscription Television, and Free Conditional Access Delivery transmissions; and (B) With respect to any Commercial Audiovisual Content delivered or transmitted in the form of a Video-on-Demand, Pay-Per-View or Subscription-on-Demand transmission, a Covered Entity shall not Encode such content so as to prevent a Covered Product, without further authorization, from pausing such content up to 90 minutes from initial transmission by the Covered Entity (e.g., frame-by-frame, minute-by-minute, megabyte by megabyte, etc.). (c) The Commission may by petition determine whether it would be in the public interest to allow within a Defined Business Model the Encoding of a service other than in accordance with the Encoding Rule set forth in subsections 2(b)(A) and 2(b)(B) applicable to such Defined Business Model.
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Sources: Ex Parte Communication, Ex Parte Communication