The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, March 14, 1996               TAG: 9603140348
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
                                             LENGTH: Short :   24 lines

FCC REVOKES RULES ON CABLE SCRAMBLING DIGEST

The Federal Communications Commission revoked cable-scrambling rules it adopted only a week ago after a Delaware court issued a restraining order on part of a new law that prescribed the rules. The court's move was in response to a lawsuit by Playboy Entertainment Group Inc., which argued that new rules forcing cable companies to scramble or block ``indecent programming'' violates the First Amendment's free speech protections. Under the Telecommunications Act of 1996, cable companies were ordered to take steps to ensure that cable programs ``primarily dedicated to sexually oriented programming or other programming that is indecent'' didn't accidentally leak into the homes of non-subscribers. (Bloomberg) by CNB