| Pitofsky Resigns, Effective
                  May 31 | 
               
              
                | 5/29. Robert Pitofsky, the outgoing Chairman of the FTC,
                  wrote a letter
                  to President Bush in which he stated, "I tender my
                  resignation as Commissioner and Chairman of the Federal Trade
                  Commission, effective May 31, 2001." President Bush has
                  nominated, and the Senate has confirmed, Timothy Muris to
                  replace him. | 
               
             
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                | ICANN | 
               
              
                | 5/28. The ICANN
                  published in its web site a document
                  titled "Discussion Draft: A Unique, Authoritative Root
                  for the DNS." | 
               
             
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                | Appeals Court Rules in ASC
                  v. IBM | 
               
              
                | 5/29. The U.S.
                  Court of Appeals (8thCir) issued its opinion
                  in American
                  Shizuki Corp. v. IBM, a case involving a
                  dispute over IBM's purchase
                  from ASC of plastic film capacitors to be used by IBM in its
                  mainframe computers. ASC wanted IBM to purchase more
                  capacitors manufactured by ASC. However, IBM never promised
                  that it would purchase any specific quantity of capacitors.
                  ASC filed a complaint in U.S. District Court (DNeb)
                  in June 1997 against IBM based upon diversity jurisdiction, in
                  which it sought $8.5 Million in damages under three theories
                  of relief: promissory estoppel, negligent misrepresentation,
                  and fraudulent misrepresentation. The District Court granted
                  IBM's motion for summary judgment. The Appeals Court affirmed,
                  two to one. | 
               
             
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                | Federal Circuit Opinions | 
               
              
                5/25. The U.S.
                  Court of Appeals (FedCir) issued its opinion in SKF USA
                  v. U.S., an antidumping case involving the
                  obligation of a court to remand a case to an administrative
                  agency upon the agency's change in policy or statutory
                  interpretation. The Appeals Court held that the Court of
                  International Trade erred in declining to remand the case to
                  the Department of Commerce, and reversed that court's decision
                  in SKF USA Inc. v. United States, 77 F. Supp. 2d 1335 (CIT
                  1999).
                   
                  5/24. The
                  U.S. Court of Appeals (FedCir) issued its opinion in Budde
                  v. Harley Davidson, a patent infringement
                  case involving fuel injection systems in reciprocating
                  engines. Budde, the holder of U.S. Patent No. 4,955,348, filed
                  a complaint for patent infringement in U.S. District Court (NDCal)
                  against Harley Davidson. The District Court entered a judgment
                  of non-infringement. The Appeals Court vacated the judgment,
                  and remanded. | 
               
             
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                | Software Defined Radio | 
               
              
                | 5/29. The NTIA
                  submitted a reply
                  comment to the FCC in response to its Notice
                  of Proposed Rulemaking [PDF] titled "In the Matter of
                  Authorization and Use of Software Defined Radios". (See,
                  ET Docket No. 00-47.) | 
               
             
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                | New Documents | 
               
              
                Pitofsky: resignation
                  letter, 5/29 (HTML, FTC).
                   
                  ICANN:
                  discussion
                  draft re a unique, authoritative root for the DNS, 5/29
                  (HTML, ICANN).
                   
                  Jackovich:
                  speech
                  re global corruption, 5/29 (HTML, State).
                   
                  USCA:
                  opinion
                  in American Shizuki Corp. v. IBM, 5/29 (HTML, USCA). | 
               
             
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                | Globalization, Internet,
                  and Government Corruption | 
               
              
                5/29. A conference titled "Global Forum on Fighting
                  Corruption and Safeguarding Integrity" is being held from
                  May 28 through 31 at the Ministry of Justice in Hague,
                  Netherlands. U.S. Ambassador Victor Jackovich gave a speech
                  on May 29 in which he addressed the role of globalization, the
                  Internet and electronic funds transfers in government
                  corruption.
                   
                  Jackovich stated that globalization, which he defined as
                  "more rapid communication, easier international travel
                  and more technological innovation -- has given the purveyors
                  of crime and corruption some potent tools. For this reason,
                  corruption and criminality can permeate an entire state
                  apparatus and present formidable cross-border threats."
                  He continued that "the stability and security of the most
                  vulnerable of states is of vital interest to the stability and
                  security of the entire international community. We are only as
                  strong as our weakest link. In our modern age of instant
                  transference of funds and rapid exchange of information via
                  the Internet, the world's inter- connectivity has grown and
                  developed at a pace never before experienced. Even if we
                  wanted, we could not consign criminality and corruption to
                  certain states or societies and give as the excuse that these
                  problems are endemic or natural in those parts of the world.
                  Under these circumstances, it is clear that we must work
                  together ..."
                   
                  Jackovich is the Associate Director of the George Marshall
                  European Center for Security Studies in Garmisch-
                  Partenkirchen, Germany. See also, statement
                  by President Bush and statement
                  by Paula Dobriansky, Under Secretary of State for Global
                  Affairs. | 
               
             
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                | Web Sites and Broker Dealer
                  Registration | 
               
              
                | 5/24. The SEC issued an
                  administrative cease
                  and desist order against Paul Nortman in connection with
                  his operation of Livetrade.com,
                  an online trading software provider. The SEC determined that
                  Livetrade.com acted as an unregistered broker- dealer in
                  violation of Section 15(a) of the Exchange Act. See, SEC
                  release. | 
               
             
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                | Computer and Internet
                  Crimes | 
               
              
                5/29. A grand jury of the U.S. District Court (NDCal)
                  returned an indictment
                  [PDF] against Robert Robb charging 10 counts of wire fraud in
                  violation of 18 U.S.C. § 1343 and one count extortion in
                  violation of 18 U.S.C. § 875(b). The indictment states that
                  Robb made false statements to investors regarding his online
                  gambling companies, Junglegames.com and Millennium Networks,
                  which made multplayer gambling games that could be played at
                  casinos, or over the Internet. Among the false representations
                  was that Microsoft President Steve Ballmer had agreed to pay
                  $50 Million for patents to the games. The false statements
                  were made "by means of wire communication in interstate
                  commerce" -- i.e., by e-mail. AUSA
                  David Callaway is the Assistant U.S. Attorney prosecuting the
                  case. See, release.
                   
                  5/24. The U.S. District Court (NDCal)
                  sentenced Roger Guerroro to one year in prison for using a
                  computer in interstate commerce in an attempt to coerce and
                  entice a minor to engage in illegal sexual acts in violation
                  of 18 U.S.C. § 2422(b). Guerrero will also be subject to
                  restrictions, including prohibitions on unsupervised use of
                  computers or the Internet. See, indictment
                  [PDF] and release. | 
               
             
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                | R&D Tax Credit | 
               
              
                | 5/29. The Conference Report on HR 1836, the Economic Growth
                  and Tax Relief Reconciliation Act, which passed the House on
                  May 25, and the Senate on May 26, does not contain
                  language making the research and development tax credit
                  permanent. An earlier Senate version of the bill did include
                  this provision. There are also stand alone bills pending in
                  the House and Senate that would permanently extend the R&D
                  tax credit. See, S 41
                  and HR
                  41, so numbered because they would amend Section 41 of the
                  Internet Revenue Code. See also, S 515
                  and HR
                  1137. | 
               
             
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                | Today | 
               
              
                9:00 AM. Secretary of Commerce Donald Evans will speak at
                  the National Economic Development Forum Location: Washington
                  Hilton and Towers, International Ballroom, 1919 Connecticut
                  Ave., NW, Washington DC. See, release.
                   
                  2:30 PM. The Jonathan Zuck, President of the Association for
                  Competitive Technology, Boyden Gray, of Wilmer Cutler & Pickering,
                  and Lars Liebeler, Antitrust Counsel for the Computing
                  Technology Industry Association (CompTIA), will host a
                  conference call regarding the report
                  [PDF] issued by ProComp
                  on May 15 which alleges that " Microsoft has ...
                  introduced a series of business initiatives that put Microsoft
                  in a position to extend its monopoly to the Internet
                  itself."
                   
                  5:30 - 7:30 PM. The Federal
                  Communications Bar Association's Common Carrier Practice
                  Committee will host a CLE Seminar titled Telecom 201.
                  The scheduled speakers are Cheryl Tritt (Morrison & Foerster),
                  Charles Kennedy (Morrison & Foerster), Jane Jackson (Chief
                  of the FCC's Competitive
                  Pricing Division), John Nakahata (Harris Wiltshire &
                  Grannis), Kathy Levitz (BellSouth), and
                  Jeffrey Linder (Wiley Rein &
                  Fielding). The price to attend is $60 (members) or $80
                  (non-members). RSVP to Arlice Johnson at arlice@fcba.org. Location:
                  Wiley Rein & Fielding, 10th Floor Conference Room, 1750 K
                  Street, NW, Washington DC.
                   
                  Deadline to file reply comments with the FCC in
                  response to its Notice
                  of Proposed Rulemaking (NPRM) regarding revisions to the
                  method of subsidizing schools and libraries under its e-rate
                  program when there is insufficient funding to support all
                  requests. See, Federal Register, May 8, 2001, Vol. 66, No. 89,
                  at Pages 23204 - 23208. | 
              
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