| Privacy Hearing | 
               
              
                4/3. The House
                  Commerce Committee's Subcommittee on Commerce, Trade and
                  Consumer Protection held a hearing titled An Examination of
                  Existing Federal Statutes Addressing Information Privacy. Rep. Cliff Stearns
                  (R-FL) presided. This is the third online privacy hearing held
                  by this subcommittee this year. The first two focused on the
                  EU privacy directive, and legal perspectives on proposals for
                  federal regulation of online privacy. This hearing addressed
                  existing laws relating to privacy. It also served to emphasize
                  the point that there are already many statutes on the books
                  regulating privacy.
                   
                  Rep. Billy Tauzin
                  (R-LA), the Chairman of the full committee, cautioned against
                  the "real and potential unintended consequences in
                  current statutes" in his prepared
                  statement. He elaborated that "while everyone agrees
                  with protecting the privacy of children as they navigate the
                  Internet, experience suggests that the existing statute, the
                  Child Online Privacy Protection Act (COPPA), has forced
                  companies to discontinue a number of products targeted towards
                  children." Rep.
                  John Dingell (D-MI), the Ranking Member of the full
                  committee, criticized the "unbalanced, unfair, or
                  arbitrary witness selection".
                   
                  The subcommittee heard from nine witnesses in two panels.
                  (Hyperlinks are to the witnesses prepared testimony.) 
                   • Michael
                  Lamb (Chief Privacy Officer, AT&T ) testified
                  regarding the Customer Propriety Network Information
                  provisions of the Communications Act, the Cable Communications
                  Policy Act, the Telephone Consumer Protection Act, and the
                  Electronic Communications Privacy Act. 
                   • Anne
                  Fortney (Managing Partner, Lovells) testified regarding
                  the Fair Credit Reporting Act (FCRA), and argued that it
                  should not serve as a paradigm for online privacy legislation. 
                   • Rick
                  Fischer (Morrison and Foerster) testified regarding the
                  Gramm Leach Bliley Act (GLBA) privacy provisions. 
                   • Ronald
                  Plesser (Piper Marbury) explained and criticized the
                  Children's Online Privacy Protection Act. 
                   • Richard
                  Varn (Chief Information Officer, Iowa) testified regarding
                  state perspectives on privacy. 
                   • Ed
                  Mierzwinski (USPIRG) testified regarding GLBA and the FCRA. 
                   • Richard
                  Smith (CTO, The Privacy Foundation) explained TiVo's
                  technology and it effects viewers' privacy; he also cautioned
                  that TiVo is just "the tip of the iceberg" --
                  forthcoming web enabled devices have the potential to impact
                  users' privacy. 
                   • Frank
                  Torres (Consumers Union). 
                   • Jonathon
                  Zuck (Association for Competitive Technology). | 
               
             
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                | SEC 10b Action | 
               
              
                | 3/29. The SEC filed a civil
                  complaint in U.S.
                  District Court (DDC) against Sean St. Heart alleging
                  violation of § 10(b) of the Securities Exchange Act of
                  1934 and Rule 10b-5 thereunder for engaging in a cyber smear
                  by posting a false message about NCO Group, Inc. on the Yahoo!
                  Finance Internet message board. St. Heart's fraudulent message
                  caused NCO's market capitalization to drop by over $200
                  Million. Also on March 29, St. Heart consented to entry of
                  judgment against him. See, SEC
                  release.  | 
               
             
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                | E-SIGN | 
               
              
                | 4/3. The NTIA
                  and FTC held 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. | 
               
             
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                | More News | 
               
              
                4/3. AMD filed a complaint
                  in state court in New York against Alcatel Business Systems
                  alleging breach of a contract in connection with the sale of
                  flash memory products to Alcatel. See, AMD release.
                   
                  4/3.The House
                  Government Reform Committee's Technology and Procurement
                  Subcommittee held a hearing titled "Enterprise-Wide
                  Strategies for Managing Information Resources and Technology:
                  Learning From State and Local Governments". See, prepared
                  testimony [PDF] of David McClure, GAO Director of
                  Information Technology Issues.
                   
                  4/2. Sen. Charles Schumer (D-NY) introduced S 671, a bill to
                  provide for public library construction and technology
                  enhancement. It was referred to the Senate Committee on
                  Health, Education, Labor, and Pensions.
                   
                  3/30. The GAO
                  released a report
                  [PDF] titled "Information Security: Progress and
                  Challenges to an Effective Defense-wide Information Assurance
                  Program."
                   
                  4/2. The GAO
                  released a report
                  [PDF] titled "Information Management: Electronic
                  Dissemination of Government Publications."
                   
                  4/3. The NTIA
                  published a notice
                  in the Federal Register requesting comments regarding
                  "the advantages accorded signatories of the INTELSAT,
                  in terms of immunities, market access, or otherwise, in the
                  countries or regions served by INTELSAT, the reason for such
                  advantages, and an assessment of progress toward fulfilling a
                  pro-competitive privatization of that organization."
                  Comments are due by May 3, 2001. See, Federal Register, April
                  3, 2001, Vol. 66, No. 64, Notices, at Pages 17686 - 17687. See
                  also, copy
                  of notice in NTIA web site. | 
               
             
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                | New Documents | 
               
              
                Berman: HR
                  1333, the Business Method Patent Improvement Act of 2001,
                  4/3 (HTML, TLJ).
                   
                  Berman:
                  H.Res
                  110, re ending diversion of USPTO fees, 4/3 (HTML, TLJ).
                   
                  Tauzin:
                  paper
                  re FCC reform, 4/3 (PDF, PFF). | 
               
             
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                | Business Method Patents
                  Bill Introduced | 
               
              
                4/3. Rep. Howard
                  Berman (D-CA) and Rep.
                  Rick Boucher (D-VA) introduced HR
                  1333, the Business Method Patent Improvement Act of 2001.
                  This bill is a revision of a similar bill (HR
                  5364) introduced by Reps. Berman and Boucher last October
                  at the end of the 106th Congress. The new bill, HR 1333,
                  requires the USPTO to
                  publish all business method patent applications after 18
                  months. It creates opportunities for the public to present
                  prior art or public use information before a business method
                  patent issues. It also establishes a process where parties can
                  challenge a granted business method patent in an expeditious,
                  less costly alternative to litigation. "We must make sure
                  that business method patents now issued are of the highest
                  quality," Rep. Berman said in a releae. "Since
                  questions have arisen about whether this is the case, Congress
                  must take a close look at how the U.S. patent system is
                  functioning in this new, and rapidly growing area of
                  patenting."
                   
                  4/3. The House
                  Judiciary Committee's Courts, Internet and Intellectual
                  Property Subcommittee will hold a hearing on April 4. Rep.
                  Berman is the Ranking Member of this subcommittee, and Rep.
                  Boucher is one of its senior members. The Senate Judiciary
                  Committee will take up the issue after the two week Easter
                  recess. It is scheduled to hold a hearing on business method
                  patents on May 1, and a hearing on genetic and biotech patents
                  on May 8.
                   
                  4/3. Reps. Berman and Boucher also introduced HR 1332, the
                  Patent Improvement Act of 2001. It would establish a process
                  by which a party could challenge any granted patent in an
                  expeditious, less costly alternative to litigation. | 
               
             
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                | Diversion of USPTO Fees | 
               
              
                | 4/3. Reps. Berman and Boucher also introduced H.Res
                  110, a resolution to bar the House from permitting the
                  diversion of USPTO user fees to fund other government
                  programs. It provides that "it shall not be in order in
                  the House of Representatives to consider any bill, joint
                  resolution, amendment, motion, or conference report that makes
                  available funds to the United States Patent and Trademark
                  Office for any fiscal year, or for any other period for which
                  the funds are provided, in amounts less than the total amount
                  of patent and trademark fees collected by the United States
                  Patent and Trademark Office ..." | 
               
             
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                | Napster News | 
               
              
                4/3. The Senate
                  Judiciary Committee held a hearing on online
                  entertainment and copyright law. See, opening statements
                  of Sen.
                  Orrin Hatch and Sen.
                  Pat Leahy, the Chairman and Ranking Member of the
                  Committee. See also, prepared testimony of witnesses: Richard
                  Parsons (AOL TimeWarner), Jack
                  Valenti (MPAA), Don
                  Henley, Alanis
                  Morissette, Hank
                  Barry (Napster), Steve
                  Gottlieb (TVT Records), Ken
                  Berry (EMI), Gerry
                  Kearby, Liquid Audio), Hilary
                  Rosen (RIAA), Robin
                  Richards (MP3.com), Ed
                  Murphy (NMPA), Mike
                  Farrace (Tower Records), Sally
                  Greenberg (Consumers Union), and Edmund
                  Fish (InterTrust Technologies).
                   
                  4/3. The U.S. Court of
                  Appeals (9thCir) issued an order
                  revising its slip opinion of February 12 in A&M Records
                  v. Napster. There are only three minor changes to
                  citations. | 
               
             
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                | 3G Spectrum | 
               
              
                | 4/3. The Network for
                  Instructional TV (NITV), which holds 23 ITFS
                  licenses issued by the FCC, filed a comment
                  [PDF] with the FCC opposing Verizon's petition
                  to the FCC [PDF] of March 27 to defer action on ITFS and MDS
                  applications. NITV stated that "Verizon's shrill,
                  eleventh-hour claim that the ITFS/MDS spectrum must be frozen
                  in time pending the outcome of the 3G proceeding shamelessly
                  ignores longstanding FCC rules and policies and the need of
                  American students and teachers for prompt access to broadband
                  educational services." Third Generation (3G)
                  wireless technologies are intended to extend broadband
                  Internet access to portable devices. The FCC is
                  examining whether spectrum in the 2500-2690 MHz band might be
                  reallocated, shared or segmented, for use by 3G technologies.
                  MDS and ITFS operators are incumbent users of spectrum in this
                  band, and don't want to give it up their licenses. See, FCC's
                  ET Docket No. 00-258. | 
               
             
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                | Trade | 
               
              
                4/3. The GAO
                  released a report
                  [PDF] titled "Free Trade Area of the Americas:
                  Negotiations at Key Juncture on Eve of April Meetings."
                  The report precedes the meeting of the trade ministers of 34
                  countries in negotiations in Buenos Aires, Argentina, on April
                  7, and the Summit of the Americas in Quebec City, Canada, on
                  April 20-22. The report concludes that "Significant
                  challenges will need to be overcome to successfully conclude
                  an agreement."
                   
                  4/3. The Department of Commerce's Bureau of Export Administration
                  published a notice
                  in the Federal Register that its Information Systems
                  Technical Advisory Committee (ISTAC) will meet on April 18
                  & 19, 2001 at 9:00 AM in the Herbert C. Hoover Building,
                  Room 3884, 14th Street between Pennsylvania Avenue and
                  Constitution Avenue, NW., Washington, DC. The ISTAC advises
                  the Office of the Assistant Secretary for Export
                  Administration on technical questions that affect the level of
                  export controls applicable to information systems equipment
                  and technology. See, Federal Register, April 3, 2001, Vol. 66,
                  No. 64, Page 17683. | 
               
             
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                | Tauzin Advocates FCC Reform | 
               
              
                4/3. Rep. Billy
                  Tauzin (R-LA), Chairman of the House Commerce Committee,
                  published a paper
                  [PDF] titled "Telecom Deregulation, Broadband Deployment,
                  and Economic Growth." The paper was published by the Progress and Freedom Foundation.
                   
                  He said that the FCC should regulate all broadband services
                  the same. "It is not enough to say that the FCC is
                  structured badly. That is obvious. You have only to look at
                  its bureaus to see that these distinct bureaus were built
                  around an age when communications facilities and services were
                  monopolies, providing distinct functional services in distinct
                  geographical areas. That structure doesn’t fit today's
                  marketplace ... Why should we have different regulation for
                  broadband delivery on a satellite, as opposed to a cable, as
                  opposed to a telephone DSL line, as opposed to a wireless
                  delivery terrestrial system, if it's all the same product that
                  is delivered to the consumer?"
                   
                  Rep. Tauzin next advocated reform of the FCC's merger
                  review process. He stated that it "has used the
                  process for considering applications for license renewals and
                  license transfers associated with mergers to implement a form
                  of personalized, subjective regulation, which borders upon
                  unconstitutionality."
                   
                  He also addressed the FCC's e-rate subsidy program. He
                  stated that "When the FCC gave us the E-Rate, a massive
                  tax upon telephone consumers to carry out a building program
                  in the education and hospital and library areas of our
                  country, there was a blurring of all kinds of lines that our
                  founding fathers attempted to draw in our basic structure of
                  government. Here, the FCC is passing taxes; directing
                  corporations to spend money without Congressional oversight
                  and review, or appropriation; and, in fact, executively
                  deciding who gets and who doesn’t get the benefit of these
                  dollars in a way that I believe offends the basic structure of
                  our government." He added that "That sort of
                  activity by the FCC has to stop" and proposed a
                  "blue ribbon commission to work with GAO and provide
                  recommendations".
                   
                  Tauzin also noted that IT and energy policy are
                  intertwined. "The dot-com and IT sectors of our economy
                  are actually energy guzzlers. ... If we're going to rebuild
                  the IT sector with competent and courageous deregulation, we
                  are going to have to complement it with access to affordable
                  energy. Hence, we need a prompt rewrite of national energy
                  policy." | 
               
             
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                | People | 
               
              
                | 4/3. President Bush announced his intent to nominate Bruce
                  Mehlman to be Assistant Secretary of Commerce for
                  Technology Policy. Mehlman is currently
                  Telecommunications Policy Counsel for Cisco. Previously, he
                  was General Counsel and Policy Director for the House
                  Republican Conference and General Counsel for the National
                  Republican Congressional Committee. See, release. | 
               
             
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                | Today | 
               
              
                The House will debate HR
                  8, the Death Tax Elimination Act, sponsored by Rep. Jennifer Dunn (R-WA).
                   
                  The Senate will continue its debate of President Bush's budget
                  proposal.
                   
                  10:00 AM. The Senate
                  Finance Committee will hold a hearing titled International
                  Trade and the American Economy. The witnesses will be Alan
                  Greenspan and Mickey Kantor. Location: Room 215,
                  Dirksen Building.
                   
                  10:00 AM. The House
                  Commerce Committee's Telecom Subcommittee will hold a
                  hearing titled the E-Rate and Filtering: A Review of the
                  Children's Internet Protection Act. Location: Room 2322,
                  Rayburn Building.
                   
                  10:00 AM. The Senate
                  Finance Committee will hold a hearing on international
                  trade and the American economy. Location: Room 215,
                  Dirksen Building.
                   
                  10:00 AM. The Senate
                  Judiciary Committee's Antitrust, Business Rights, and
                  Competition Subcommittee will hold a hearing to examine
                  competitive choices concerning cable and video. Sen. Mike
                  DeWine (R-OH) will preside. Room 226, Dirksen Building.
                   
                  1:30 PM. FCC Commissioner Harold Furchtgott-Roth will
                  address the Second Telecommunications Policy and Law
                  Symposium. Location: Capital Hilton, Washington DC.
                   
                  2:00 PM. The Senate
                  Judiciary Committee's Immigration Subcommittee will hold a
                  hearing on immigration policy. Sen. Sam Brownback
                  (R-KS) will preside. Room 226, Dirksen Building.
                   
                  2:00 PM. The House
                  Judiciary Committee's Subcommittee on Courts, Internet,
                  and Intellectual Property will hold a hearing on business
                  method patents. Location: Room 2141, Rayburn Building. | 
              
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                | About Tech Law Journal | 
               
                Tech Law Journal is a free access web site
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                  Copyright 1998 - 2001 David Carney, dba Tech Law Journal. All
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