arbitraryaardvark writes "Reuters reports that the 2nd circuit has struck down the FCC's recent ruling on indecency, in a case brought by Fox. The court said the U.S. Federal Communications Commission was 'arbitrary and capricious' in setting a new standard for defining indecency. 'Republican FCC Chairman Kevin Martin angrily retorted that he found it "hard to believe that the New York court would tell American families that 'sh*t' and 'f@ck' are fine to say on broadcast television during the hours when children are most likely to be in the audience ... If we can't restrict the use (of the two obscenities) during prime time, Hollywood will be able to say anything they want, whenever they want," Martin said in a statement.' No word yet on whether the agency will appeal.