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CATV Page 5 A municipalities poker to rewire franchises of CATV companies should not be affected by the fact that such companies may be engaged in interstate commerce, especially in view of statements of the Federal Coi:L1uni.cations Commission that it intends no Federal pre - emption in the CATV field apart from the areas in which it has specifically indicated concern or proposed regulatory measures. The fee charged by the municipality, usually called a license tax, whether measured by gross receipts or b_y each telephone pole or foot of wire, must be "reasonable" in the sense that it is levied only to compensate the city, for the use of its streets, or for the cost of supervision. Charges for a special use of a municipality's streets are in the nature of rent and have been routinely upheld by the courts. There appear to be no decisions on the liability of a municipality for the copyright infringement of its franchise holder, but the differences between such a situation and the facts are at once apparent: The CATV operator does not stand in the relationship of agent, employee, or contractor of the municipality; issuance of a franchise is a legisla-ive and governmental act; and there is no certainty that the CATV system's business is or will. be illegal. California State Regulations. Government Code Section 53066 entitled community antenna television system states that: "tiny city or county or city and county in the State of California may, pursuant to such pro- visions as may be prescribed by its governing body, authorize by franchise or license the construction of a community antenna television system. In connection therewith, the governing body may prescribe such rules and regulations as it deems advisable to protect the individual subscribers to the services of such community antenna television system. The award of the franchise or license may be made on the basis of quality of service, rates to the subscriber, income to the city, county or city and county, experience and financial responsibility of the applicant plus any other consideration that will safeguard the local public interest, rather than a cash auction bid. Any cable television franchise or license awarded by a city or county or city and county pursuant to this section may authorize the grantee thereof to place wires, conduits and appurtenances for the community antenna television system along or across such public streets high-ways, alleys, public properties, or public easements of said city or county or city and county. Public easements, as used in this section,shall include but shall not be limited to any