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<br />STATEMENT OF UNDISPUTED MATERIAL FACTS <br /> <br />A. Clear Channel's Ownership And Improvement Of The 1-694 Sign <br />Clear Channel has owned and operated the 1-694 sign since April, 2006, when it purchased <br />the sign from Morris Communications Company, another outdoor advertising company. When <br />Clear Channel purchased the 1-694 sign, both the east and west-facing panels were designed to <br />display changeable vinyl images. From April to December 2006, Clear Channel sold and posted a <br />series of different advertisements on both faces without incident. <br />In mid-2006, Clear Channel decided to replace the westerly sign face with a new LED face. <br />McCarver Aff. 14. Although LED technology has been around for decades, this LED sign face <br />nevertheless represented a significant technological improvement over vinyl advertising images. <br /> <br />Whereas vinyl sign images could only be changed through a labor-intensive, on-site process, LED <br /> <br />images can be changed instantaneously from a remote location. fd. 15. <br /> <br />Ite adoption of LED technology is crucial to Clear Channel's competitiveness in the <br /> <br />advertising industry. In this regard, it is important to understand that Clear Channel does not just <br /> <br />compete with other outdoor advertising companies, but must also compete with television, radio, <br /> <br />and internet-based advertisers, all of whom ean change and adapt advertising messages on a daily, <br /> <br />hourly, or even second-by-second basis. McCarver Aff. 116. As long as it was limited to <br /> <br />displaying only vinyl images, Clear Channel lacked any way to offer advertisers time-sensitive <br /> <br />messages, and thus lacked a competitive edge against other media. LED technology offers a <br /> <br />solution because it allows Clear Channel to change messages instantaneously from an off-site <br /> <br />computer. By converting a few of its sign faces to LED technology, Clear Channel is able to sell <br /> <br />some advertising space in the form of static images which change every eight seconds. This is <br /> <br />critical to advertisers whose messages are changing or time-sensitive. <br /> <br />4 <br />