| Senate | 
               
              
                | 4/2. The Senate approved S 27, Sen. John McCain's (R-AZ)
                  bill pertaining to campaign finance, by a vote of 59 to 41.
                  The Senate will now move on to President Bush's FY 2002 budget
                  proposal. | 
               
             
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                | ICANN & VeriSign | 
               
              
                | 4/2. The ICANN
                  Board of Directors approved proposed revisions to VeriSign's
                  contract to operate the .com, .net, and .org registries. Under
                  the revisions, the .com agreement would expire on November 10,
                  2007, and VeriSign would have a right at that time to renew
                  for a four year term if it satisfies the criteria set forth in
                  the agreement. Also, the .org agreement would expire on
                  December 31, 2002, and VeriSign would not be eligible to seek
                  to renew it. Finally, the .net agreement would expire on
                  January 1, 2006, and it would then be subject to a competitive
                  renewal process. See, ICANN
                  release. The proposed revisions were adopted by the ICANN
                  Board of Directors by a vote of 12 to 3. They are still
                  subject to ratification by the U.S. Department of Commerce. | 
               
             
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                | Privacy | 
               
              
                | 3/28. Three senior Democrats on the House Commerce Committee
                  wrote a letter
                  to FTC Chairman Robert
                  Pitofsky requesting that the FTC investigate the privacy
                  practices of TiVo, a maker
                  of personal video recorders and a provider of personal
                  television programming services. The letter questions whether
                  TiVo violates its own privacy policy by collecting information
                  about its customers' program viewing selections, and whether
                  this violates the prohibition in § 5 of the Federal
                  Trade Commission Act against "unfair or deceptive
                  practices." The letter was written by Rep. John Dingell
                  (D-MI), Ranking Member of the full committee, Rep. Edolphus Towns
                  (D-NY), Ranking Member of the Subcommittee on Commerce, Trade,
                  and Consumer Protection, and Rep. Ed  Markey
                  (D-MA), Ranking Member Subcommittee on Telecommunications and
                  the Internet. | 
               
             
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                | Annual 1377 Review | 
               
              
                | 4/2. The USTR said that
                  it released the results of its annual Section 1377 review of
                  foreign compliance with telecom trade agreements.
                  "Telecommunications trade agreements, particularly in the
                  World Trade Organization,
                  have been a driving force in opening up world markets to
                  high-technology trade and investment," said USTR Robert
                  Zoellick in a release.
                  The report addresses anti-competitive practices of state
                  owned, or formerly stated owned, telecom monopolies or
                  dominant carriers in eleven nations. The report addresses four
                  areas of concern regarding Germany's Deutsche Telekom (DT),
                  which is still 58% state owned: unbundled loop rates,
                  excessive colocation conditions and provisioning delays,
                  absence of a reference interconnection offer, and excessive
                  licensing fees. The report states that France Telecom,
                  which remains 54% state owned, has failed to provide essential
                  technical information for interconnection and non
                  discriminatory colocation, discriminates against competitors
                  in providing access necessary for the competitive provision of
                  DSL services, and receives preferential rights of ways over
                  new entrants. The report also states that over regulation of
                  new entrants and toleration of anticompetitive behavior by the
                  46% state owned NTT group of companies in Japan have
                  restricted opportunities for new entrants. The report also
                  identifies shortcoming in the United Kingdom, including
                  the failure of British Telecom,
                  the dominant incumbent, to offer non discriminatory access to
                  facilities necessary for local loop unbundling, and the
                  failure of BT to offer line sharing. The report also addresses
                  Spain, Italy, Mexico, Canada, Columbia, South Africa, and
                  Taiwan. See also, USTR
                  fact sheet and State
                  Dept. release. | 
               
             
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                | New Documents | 
               
              
                EPIC:
                  report
                  re digital divide, 4/2 (HTML, EPIC).
                   
                  Dingell:
                  letter
                  to FTC re privacy practices of TiVo, 3/28 (HTML, Dingell).
                   
                  WorldCom: comment
                  to FCC re Verizon's request to delay MDS and ITFS
                  applications, 4/2 (PDF, FCC).
                   
                  SupCtCal:
                  opinion
                  in Preston v. Board of Equalization re state sales taxes and
                  transfers of copyrights, 4/2 (PDF, SupCtCal). | 
               
             
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                | More IP News | 
               
              
                4/2. The National Association
                  of Broadcasters (NAB) submitted a request
                  [PDF] to intervene, or to file an amicus curiae brief, with
                  the Copyright
                  Board of Canadian in its JumpTV proceeding. The
                  NAB stated that it wants to argue "that internet
                  retransmissions of United States broadcast signals by 2000051
                  Ontario, Inc. ... or any other Canadian entity pursuant to
                  Section 31 of the Canadian Copyright Act could result in
                  devastating consequences for the United States system of free
                  over-the-air broadcasting and could violate the Berne
                  Convention to which both the United States and Canada are
                  signatories."
                   
                  4/2. The California Supreme Court issued its opinion
                  [PDF] in Preston
                  v. Board of Equalization, a case regarding whether
                  a copyright interest in artwork, transferred in
                  conjunction with the temporary transfer of the tangible
                  artwork itself, is subject to California state sales tax. The
                  California Supreme Court reversed the Court of Appeal, and
                  held that the relevant state statute exempts the copyright
                  transfer at issue from taxation.
                   
                  4/2. The U.S.
                  Court of Appeals (Fed Cir) heard oral argument in
                  Techsearch v. Intel, Appeal No. 00-1226.
                   
                  4/2. The U.S.
                  Court of Appeals (Fed Cir) heard oral argument in Semitool
                  v. Novellus Systems, Appeal No. 00-1375. | 
               
             
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                | Fast Track | 
               
              
                | 4/2. President Bush met at the White House with a group of
                  Senators and Representatives who are active on trade issues.
                  Bush advocated passing fast track trade negotiating
                  authority for the President. He stated that "We've
                  got a lot of work to do in order to get trade promotion
                  authority, but I'm confident that we can work together to do
                  so. ... This is an issue that is going to require close
                  cooperation between members of the Republican Party and the
                  Democrat Party.  But that's achievable ..."
                  See, transcript. | 
               
             
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                | High Tech Tax Issues | 
               
              
                4/2. Sen. Charles
                  Grassley (R-IA), the Chairman of the Senate Finance
                  Committee, gave a speech to the Tax Executives Institute, in
                  which he reviewed tax issues likely to be addressed by the
                  Senate this year, including the R&D tax credit, Internet
                  taxes, and the Foreign Sales Corporation (FSC) tax regime. He
                  made no predictions about the R&D tax credit, but
                  pointed out that the only corporate tax provision in President
                  Bush's tax plan is making the R&D tax credit permanent.
                   
                  Sen. Grassley stated that "It is very likely that the
                  Finance Committee will address electronic commerce
                  issues this year. The present federal moratorium on the
                  states' ability to tax Internet transactions expires this
                  fall. The challenging issues involved in the interstate and
                  international aspects of Internet transactions will certainly
                  be part of the Finance Committee's upcoming slate of
                  projects."
                   
                  Sen. Grassley also touched on the ongoing FSC dispute.
                  "Many of you have been closely following last year's
                  legislation repealing the foreign sales corporation
                  provisions. It appears the WTO will not issue a decision until
                  this summer. Be assured that the Finance Committee is
                  following the WTO case closely and is prepared to respond if
                  necessary." The FSC tax regime (which the WTO ruled to be an illegal
                  export subsidy), and the replacement legislation (enacted late
                  last year, and currently under review by the WTO), benefit
                  U.S. high tech exporters. | 
               
             
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                | More News | 
               
              
                4/2. The FCC adopted a
                  Second Report and Order adopting modifications to its LPFM
                  service rules. See, FCC
                  release. See, MM Docket 99-25.
                   
                  3/29. The U.S.
                  Court of Appeals (4thCir) issued its opinion
                  in Drews v. Silicon
                  Gaming, a case regarding construction of an
                  arbitration provision in a distribution contract between the
                  manufacturer and distributor of video gambling machines. | 
               
             
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                | 3G | 
               
              
                | 4/2. Robert Koppel, VP of Wireless Regulatory Affairs for WorldCom, called Verizon
                  Wireless' request to delay MDS and
                  ITFS
                  applications "a transparent and unconscionable effort to
                  use the regulatory process to delay broadband competition to
                  Verizon's DSL service." See, WorldCom's
                  comment [PDF] of April 2, and Verizon's petition
                  to the FCC [PDF] of March 27. The FCC is
                  examining whether spectrum in the 2500-2690 MHz band might be
                  reallocated, shared or segmented, for use by Third
                  Generation (3G) wireless technologies. MDS and ITFS
                  operators are incumbent users of spectrum in this band. See,
                  FCC's ET Docket No. 00-258. | 
               
             
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                | People | 
               
              
                4/2. Dianne Cornell will leave the FCC, where she
                  is currently Associate Bureau Chief of the WTB. She will
                  become VP for Regulatory Policy at the CTIA.
                   
                  4/2. Debra Valentine, General Counsel of the FTC,
                  will return to the law firm of O'Melveny
                  and Myers as a partner. She worked at the firm prior to
                  joining the FTC in 1995. John Graubert, who is
                  currently the Deputy General Counsel, will be acting General
                  Counsel. See, FTC
                  release. | 
               
             
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                | Today | 
               
              
                The Senate will debate the FY 2002 budget resolution.
                   
                  8:30 AM - 5:00 PM. The NTIA
                  and FTC will hold a public
                  workshop on the benefits and burdens of requiring consumer
                  consent to receive information electronically. These
                  agencies are required by the E-SIGN
                  Act, passed last year, to conduct a study.
                  Location: Federal Trade Commission, 600 Pennsylvania Avenue
                  NW, Washington DC. See, notice
                  published in the Federal Register.
                   
                  10:00 AM. The Senate
                  Judiciary Committee will hold a hearing on online
                  entertainment and copyright law. Sen. Orrin Hatch (R-UT)
                  will preside. Location: Room 226, Dirksen Building.
                   
                  10:00 AM - 12:00 NOON. The USPTO will hold recruitment meeting
                  for students majoring in engineering, science or computer
                  science who may be interested in becoming patent examiners.
                  Location: Patent Theatre, 2121 Crystal Drive, 2nd Floor,
                  Arlington, Virginia. See, notice.
                   
                  10:00 AM. The House
                  Government Reform Committee's Technology and Procurement
                  Subcommittee will hold a hearing titled "Enterprise-Wide
                  Strategies for Managing Information Resources and Technology:
                  Learning From State and Local Governments". Location:
                  Room 2154, Rayburn Building.
                   
                  2:00 PM. The House
                  Commerce Committee's Subcommittee on Commerce, Trade and
                  Consumer Protection will hold a hearing titled An
                  Examination of Existing Federal Statutes Addressing
                  Information Privacy. Rep. Cliff Stearns
                  (R-FL) will preside. Location: Room 2123, Rayburn Building.
                  The scheduled witnesses are: 
                   • Michael Lamb (AT&T). 
                   • Richard Varn (State of Iowa). 
                   • Anne Fortney (Lovells). 
                   • Rick Fischer (Morrison & Foerster 
                   • Ronald Plesser (Piper Marbury). 
                   • Ed Mierzwinski (USPIRG). 
                   • Richard Smith (Privacy Foundation). 
                   • Frank Torres (Consumers Union). 
                   • Jonathan Zuck (ACT). | 
              
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