In July, 2009, the 2nd U.S. Circuit Court of Appeals ruled that the FCC's "Indecency" Policy, which prohibited "single uses of vulgar words," was unconstitutional, violating the First Amendment rights of broadcasters. In April, the Justice Department appealed to the Supreme Court over the ongoing confusion on the FCC's enforcement of moral standards in broadcasting, stating that the Appeals Court rulings "preclude the commission from effectively implementing statutory restrictions on broadcast indecency that the agency has enforced since its creation in 1934." The Supreme Court announced on June 27th that it would revisit the case when it returns from its summer recess in October.

Update: On June 21, 2012, the Supreme Court held that the FCC had exceeded its authority in fining broadcasters for the fleeting nudity and expletives at issue in the case, because the agency had failed to provide adequate notice to broadcasters about what kind of content would be deemed indecent.  However, the Court declined to hold that the FCC's actions violated the First Amendment.  Given the history of litigation on this issue, the question is highly likely to arise again sometime in the future.