Holding
The U.S. Supreme Court upheld the FCC action in 1978, by a vote of 5 to 4, ruling that the routine was "indecent but not obscene". The Court accepted as compelling the government's interests in 1) shielding children from potentially offensive material, and 2) ensuring that unwanted speech does not enter one's home. The Court stated that the FCC had the authority to prohibit such broadcasts during hours when children were likely to be among the audience, and gave the FCC broad leeway to determine what constituted indecency in different contexts.
Read more about this topic: Federal Communications Commission V. Pacifica Foundation
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