Justice Dept. Backs Network TV’s Rerun Rights : Television: Upholding an FCC ruling, the decision ushers ABC, CBS and NBC into the multibillion-dollar market.

In a defeat for the Hollywood movie studios, the Justice Department said Thursday that it still supports allowing the three big television networks into the multibillion-dollar market for reruns and syndicated shows.

The department notified a federal court in California that it backs the Federal Communications Commission’s decision, made in April, to relax longstanding rules and allow the networks to own the rerun rights to prime-time shows they air.

Separately, the FCC also voted Thursday to let its ruling stand, rejecting industry requests for reconsideration.

For years, the networks have sought repeal of the so-called financial interest and syndication rules, established in 1970 to prevent them from dominating programming.

The last remaining hurdles for the networks were the consent decrees that bar network participation in rerun syndication.

The decrees, entered years ago as part of an antitrust settlement against the networks, are overseen by U.S. District Judge Manuel L. Real in Los Angeles.

Assistant U.S. Atty. Gen. Anne Bingaman said in a two-page letter to the court that the Justice Department has reviewed its position but still supports the networks’ position that the decrees should be lifted.

Early this year, movie studio representatives met with Atty. Gen. Janet Reno to appeal for a change in the government’s position.

Television industry executives had their own chance to present their side when they met with Reno in May.

The networks had been concerned that President Clinton, with his close ties to Hollywood, might side with the movie studios.

Hollywood executives gave millions of dollars to his presidential campaign, and Clinton is close friends with Hollywood’s Harry and Linda Bloodworth Thomason, producers of television series such as “Evening Shade” and “Designing Women.”

Network officials praised the decision and expressed relief that Hollywood interests had not managed to reverse the Justice Department’s previous stand.

“It is notable that today’s decision was made against the backdrop of Warner Bros.’ announced plans to launch a fifth broadcast network, the bidding war over Paramount and the prospects of a sixth network, and a court decision that allows telephone companies to enter the TV business,” NBC said in a statement.

Bingaman told the judge that the Justice Department “will be happy to address this matter further” at a court hearing set for Oct. 18. Bingaman noted, however, that “the court might want to hear” the views of a Hollywood lobbying organization at the hearing.

The decision to allow the networks into the rerun syndication business has been seen as a financial boost for ABC, CBS and NBC, which face vigorous competition from cable television and the expanding Fox Broadcasting network.

Under the old rules, hit programs such as “The Cosby Show,” “Cheers” and “Roseanne” first appeared on the networks, but Hollywood producers then reaped hundreds of millions of dollars by selling them for rebroadcasting after their initial seasons.

Besides allowing the networks to hold a financial interest in the lucrative rerun rights, the FCC also eliminated a rule that bars the networks from in-house production of more than 40% of prime-time programming.

The agency also voted in April to lift all restrictions on network purchases of foreign syndication interests or rights in either off-network or first-run foreign programming.

The FCC decision also eases barriers that have long prevented Hollywood studios from merging with television networks.