New rules adopted by the FCC will require virtually all license holders to report any ownership interests held by foreign adversaries. The decision, finalized in late January and highlighted in legal alerts this week, impacts a wide range of entities, including commercial and noncommercial broadcasters as well as private radio license holders.
Under the new regulations, licensees must disclose if entities or individuals from nations designated as foreign adversaries—such as China, Russia, Iran, or North Korea—hold a 10 percent or greater direct or indirect equity or voting interest. The rule establishes a presumption that such an interest constitutes control. Failure to comply with these reporting requirements could result in significant penalties, including fines or the revocation of licenses.