IMPEACH BUSH

In a decision that clears CBS of any wrongdoing for airing the 2004 Super Bowl halftime show that featured Janet Jackson's infamous "wardrobe malfunction," a federal appeals court overturned the $550,000 fine that the Federal Communications Commission levied against the station, calling the fine arbitrary and capricious.

The decision was handed down Monday by a three-judge panel of the United States Court of Appeals for the Third Circuit, which found that the fine was unfair because the commission, in imposing it, deliberately strayed from its practice of exempting fleeting indecency in broadcast programming from punishment. The commission also erred, the judges ruled, by holding CBS responsible for the actions of Janet Jackson and Justin Timberlake, who were characterized by the judges as "independent contractors hired for the limited purposed of the Halftime Show."

"Like any agency, the F.C.C. may change its policies without judicial second-guessing," the court said. "But it cannot change a well-established course of action without supplying notice of and a reasoned explanation for its policy departure."

The live broadcast on Feb. 1, 2004, sparked headlines around the world with one swift motion that came at the end of the halftime show, when Justin Timberlake tore off part of Jackson's bustier during the song "Rock Your Body," exposing her right breast. The network quickly cut to an aerial shot of the stadium, but not before the image was seen — and in many cases replayed on video recordings — in millions of homes. Although the exposure appeared to be pre-planned, CBS said it was surprised by the incident, and a spokesman for Ms. Jackson later said that Mr. Timberlake had accidentally removed too much of her outfit, calling it a "malfunction of the wardrobe."

The controversy surrounding the incident yielded a record-breaking 540,000 complaints to the commission in the weeks following the show. The commission responded by calling the exposure inappropriate, and imposed the penalty on CBS, in the form of fines of $27,500 against each of the 20 television stations that CBS owns and which — unlike the network — depend on F.C.C. licenses to operate.

The fine was the largest the commission has yet levied against a television company, but its second largest over all; the record was set in 2003 in a settlement with Clear Channel Communications, the largest chain owner of radio stations, stemming from complaints about broadcasts by Howard Stern and other radio personalities.

CBS, a division of Viacom, apologized for the Super Bowl incident and paid the F.C.C. fines, but appealed the decision in court. In their ruling on Monday, the judges said that CBS could not be held responsible for the exposure, and went on to question the extent of genuine public outrage over it, saying that "the record is unclear on the actual number of complaints received from unorganized, individual viewers" as opposed to advocacy groups. During arguments, lawyers for CBS had argued that many of the complaints the commission received were form letters.

The court, in its ruling, said the F.C.C. would have had a stronger case against CBS had the performance been pre-recorded. But because it was aired live, and there was no solid evidence that CBS had advance knowledge that Mr. Timberlake was going to tear at Ms. Jackson's bustier, the station did not appear to have acted recklessly by broadcasting the show.

In fact, the court said, CBS had implemented an audio delay and other measures to help censor any unexpected profanity, and numerous "script reviews" and "wardrobe checks" before the show did not reveal any problems.

"CBS rejected other potentially controversial performers who had previously engaged in offensive on-air conduct in favor of Jackson and Timberlake, with the N.F.L. ultimately approving the selections," the court wrote. "Timberlake in particular, CBS asserts, had on several prior occasions performed ‘Rock Your Body' live on national television without incident."

The F.C.C. did not immediately react to the ruling on Monday. But CBS released a statement calling it a victory.

"We are gratified by the court's decision, which we hope will lead the F.C.C. to return to the policy of restrained indecency enforcement," the network said in a statement. "This is an important win for the entire broadcasting industry, because it recognizes that there are rare instances, particularly during live programming, when it may not be possible to block unfortunate fleeting material."

The 2004 incident prompted the commission to step up its enforcement of indecency rules. In the years that followed, the agency has levied larger fines on broadcasters than before, and in 2006 Congress agreed to increase the maximum fine for a single violation tenfold, to $325,000. It was unclear what impact Monday's ruling might have on that trend.