| PPI Backs Anti Spam
                  Legislation | 
               
              
                6/4. The Progressive
                  Policy Institute (PPI) a think tank of the New Democrats
                  released a paper
                  titled "E-Mail Spam Labeling: Why the Cyberlibertarians
                  Have It Wrong." It states that the House Judiciary
                  Committee "gutted" HR 718, a bill sponsored by Rep. Heather Wilson
                  (R-NM) and Rep. Gene
                  Green (D-TX), that the House Commerce Committee had
                  previously adopted. The PPI report also defended an amendment
                  offered by Rep. Melissa Hart
                  (R-PA), which was adopted by the Judiciary Committee, that
                  would require any spam that contained pormographic content to
                  be labeled as such. The report specifically rebuts another
                  report by the Center for
                  Democracy and Technology which criticized the Hart
                  amendment. The PPI report was authored by Shane Ham.
                   
                  6/5. The House Judiciary Committee issued its report on its
                  version of HR
                  718. | 
               
             
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                | USPTO Seeks Comments
                  Regarding Business Method Patents | 
               
              
                | 6/5. The USPTO
                  published a notice
                  in the Federal Register requesting comments from the public
                  regarding optional search criteria used during examination of
                  patent applications related to computer implemented Business
                  Methods in Class 705. The USPTO seeks comments concerning
                  databases, documenting practices, procedures, and
                  developments, in specific industries within the computer
                  implemented business method field, to identify additional
                  information and materials that could be considered during the
                  examination process. The recommended database will be reviewed
                  quarterly. Database recommendations received before June 30,
                  2001, will be included in the first evaluation process which
                  will commence on July 31, 2001. | 
               
             
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                | GAO Reports on USPTO Lease | 
               
              
                | 6/5. The GAO
                  issued a report
                  [PDF] written for Sen.
                  James Inhofe (R-OK) and Sen. John McCain (R-AZ)
                  regarding Acquisition of Leased Space for the USPTO. The
                  report concluded: "we found nothing improper in GSA's
                  award of the lease for the PTO facility. This procurement has
                  also been reviewed by the Department of Commerce's (DOC)
                  Inspector General and later in litigation in federal court.
                  None of these reviews resulted in a conclusion that the
                  procurement activities had been conducted improperly."
                  Currently, the USPTO has 33 leases occupying all or portions
                  of 18 buildings in Crystal City, Virginia. On June 1, 2000,
                  the GSA signed a 20
                  year lease with LCOR
                  Alexandria for 2.2 million rentable square feet to house 7,100
                  USPTO staff at the Carlyle site in Alexandria, Virginia. The
                  lease is valued at $1.24 Billion over 20 years, plus operating
                  expenses and taxes. | 
               
             
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                | Computer Crime | 
               
              
                6/5. Michael Wallace plead guilty in U.S. District Court to
                  two counts of theft of government property and unauthorized
                  removal of classified materials. The defendant, a  former
                  computer specialist for the Department of State, stole
                  computer equipment from the government and removed equipment
                  containing classified national security information without
                  authorization. See, DOJ
                  release.
                   
                  6/1. Roosevelt Bailey was sentenced in U.S. District Court (SDInd)
                  to 18 months imprisonment following his guilty plea to
                  trafficking in counterfeit computer software, including Adobe
                  products, and tax evasion. See, DOJ
                  release. | 
               
             
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                | New Documents | 
               
              
                PPI:
                  paper
                  on anti spam legislation, 6/5 (HTML, PPI).
                   
                  GAO:
                  report
                  on USPTO lease, 6/5 (PDF, GAO). | 
               
             
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                | Tauzin Dingell Bill
                  Criticized at Judiciary Committee Hearing | 
               
              
                6/5. The House
                  Judiciary Committee held a hearing on HR
                  1542, the Tauzin Dingell bill to provide protection to the
                  Bell companies. Committee members made statements, and four
                  witness testified. See, prepared statements of Jim
                  Glassman (AEI), Margaret
                  Greene (BellSouth), Clark
                  McLeod (McLeod USA), and Tom
                  Tauke (Verizon). HR 1542 would provide, among other
                  things, interlata data relief for the RBOCs.
                  Rep. Chris Cannon
                  (R-UT) and Rep. John
                  Conyers (D-MI) are sponsors of a competing pair of bills
                  that would provide further protection for CLECs.
                  Supporters of both the Tauzin Dingell bill and the Cannon
                  Conyers bills assert that their bills would promote the
                  deployment of broadband services.
                   
                  Rep. James
                  Sensenbrenner (R-WI), the Chairman of the Committee,
                  stated in his opening opening
                  statement that he has not taken a position in the debate.
                  He also explained the limited jurisdiction of the Judiciary
                  Committee over HR 1542: "The referral to this Committee
                  by the Speaker is specifically, quote, for consideration of
                  such provisions in the bill and amendment recommended by the
                  Committee on Energy and Commerce as to close or narrow the
                  purview of the Attorney General under Section
                  271 of the Communications Act of 1934." He then
                  devoted himself to keeping the hearing in order and on
                  schedule.
                   
                  Rep. Conyers, the ranking Democrat on the Committee, is an
                  ardent opponent of the Tauzin Dingell bill. He stated that
                  "The Telecommunications Act of 1996 unleashed a flood of
                  new investment directed at that last mile bottleneck. Many new
                  companies were created to bring consumers new choices,
                  including new services. And these competitive carriers use all
                  of the means open to them to compete against monopolies that
                  have become entrenched over the course of a century. ...
                  Believing in the promise of the 96 Act the CLECs invested
                  billions of dollars ... But, today most of the companies have
                  been devastated by behavior and procrastination on the part of
                  the Bell systems, which have ironically regrouped, and in some
                  ways become stronger than they were before the 1996
                  Telecommunications Act."
                   
                  Two witnesses testified in favor of the bill: Tom Tauke and
                  Margaret Greene. Both work for Bell companies that would
                  benefit from the protections offered by the bill. Tauke argued
                  that the provisions of the Telecom Act of 1996 that require
                  the Bells to open their networks to competitors should apply
                  to voice, but not data, communications. He said that "HR
                  1542 stops the application of rules that were intended for the
                  voice telephony market to the broadband services market. These
                  are two very distinct markets." Green argued that the
                  cable companies which offer broadband Internet access are not
                  subject to regulation, so the phone companies should not be
                  either. Several members of the Committee also spoke in favor
                  of the bill, including Rep.
                  Rick Boucher (D-VA), Rep.
                  Bob Goodlatte (R-VA), and Rep. Spencer Bachus
                  (R-AL).
                   
                  Two witnesses opposed the Tauzin Dingell bill: Clark McLeod,
                  of McLeadUSA, and
                  James Glassman, a resident fellow at the American Enterprise Institute
                  and publisher of the Tech Central Station
                  web site. McLeod stated that HR 1542 "strengthens the
                  Bell monopoly by restricting access to the local loop."
                  He added that "it is moving our industry towards re-
                  monopolization."
                   
                  Glassman stated that "HR 1542 is being promoted as a way
                  to boost deployment of high-speed data services. In fact, it
                  will produce the opposite result. It will severely harm
                  prospects for sustainable and effective telecommunications
                  competition – and it will further deter the deployment of
                  broadband Internet technology and do substantial damage to the
                  U.S. economy as a result. You cannot have real consumer choice
                  and the benefits that flow from it without competition, and
                  you cannot have competition without competitors. HR 1542 would
                  eviscerate the crucial provisions of the Telecommunications
                  Act of 1996 that have created the competitive local exchange
                  carrier (CLEC) industry and, make no mistake, kill that
                  industry – kill the competitors, both current and
                  future."
                   
                  Several members of the Committee criticized HR 1542, including
                  Conyers, Cannon, Nadler, and Weiner. | 
               
             
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                | Glassman: Bells Push HR
                  1542 to Slow CLEC Investment | 
               
              
                6/5. The Bell companies and their lobbyists have been
                  pushing hard for passage of HR 1542, the Tauzin Dingell bill.
                  It currently has 100 cosponsors in the House. Also, it has
                  been approved by the House Commerce Committee. However, it is
                  widely regarded to have very little chance of passing the
                  Senate. This has lead to speculation as to why the Bell
                  companies are lobbying and advertising intensively for the
                  bill.
                   
                  James Glassman offered his explanation at the House Judiciary
                  Committee's hearing on the bill. He stated during his oral
                  testimony and responses to questions that HR 1542 has had the
                  effect of drying up new investment in CLECs.
                   
                  However, he went a step further in the written
                  testimony that he submitted to the Committee. He suggested
                  that stopping the flow of capital to CLECs is the RBOCs'
                  purpose in pushing this bill. He stated the "The high
                  level of uncertainty introduced simply by Congressional
                  consideration of HR 1542 is exactly the type of force that
                  squashes investment. Moreover, it raises the possibility that
                  the Bell monopolies are purposefully lobbying heavily for
                  bills such as this one because they are well aware that uncertainty
                  about those changes can itself accomplish the job of slowing
                  CLEC investment. Because of their smaller size and greater
                  need for financial resources, CLECs suffer disproportionately
                  when regulatory uncertainty contributes to raising the costs
                  for financial capital. That is one of the preliminary
                  conclusions of our study, but common sense would indicate its
                  truth." | 
               
             
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                | Carlisle Appointed to
                  Common Carrier Bureau | 
               
              
                | 6/5. FCC Chairman Michael Powell appointed Jeffrey
                  Carlisle Senior Deputy Chief of the Common Carrier Bureau,
                  effective June 11, 2001. Carlisle currently practices law, and
                  is VP for interconnected services and regulatory affairs at INLEC Communications, a
                  company that constructs and manages broadband infrastructure
                  within residential apartment buildings. Previously, he was an
                  associate in the Washington DC office of the law firm of O'Melveny & Myers, where he
                  focused on telecommunications mergers and acquisitions and
                  competitive entry into local exchange markets. | 
               
             
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                | Wednesday, June 6 | 
               
              
                The House will meet at 10:00 AM for legislative business.
                   
                  The IPO will
                  hold a day long conference on Corporate IP Management.
                  Location: the new Ritz-Carlton in Washington DC. For
                  information call the IPO office at 202-466-2396.
                   
                  9:00 - 11:30 AM. The President's National Security
                  Telecommunications Advisory Committee will hold a closed
                  meeting. Location: Department of State, Washington DC. See, notice
                  in Federal Register, April 20, 2001, Vol. 66, No. 77, at Pages
                  20336 - 20337.
                   
                  10:00 AM. The Senate
                  Appropriations Committee's Subcommittee on VA, HUD, and
                  Independent Agencies will hold a hearing on proposed budget
                  estimates for FY 2002 for the National
                  Science Foundation and the Office of Science Technology
                  Policy. Location: Room 138, Dirksen Building.
                   
                  2:00 PM. The House
                  Judiciary Committee will hold an oversight hearing on the
                  Justice Department. Attorney General John Ashcroft will
                  testify. Location: Room 2141, Rayburn House Office Building.
                   
                  2:00 - 4:00 PM. The House
                  Science Committee will hold a hearing titled NSF FY02
                  Budget Request: Research and Related Activities. Location:
                  Room 2318, Rayburn House Office Building. | 
              
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                | Thursday, June 7 | 
               
              
                12:00 NOON. The Congressional Internet Caucus Advisory
                  Committee will host a luncheon and panel discussion on issues
                  raised in the Tauzin Dingell and Cannon Conyers bills. RSVP to
                  RSVP@netcaucus.org or
                  telephone Danielle at 202-638-4370. Location: Room HC-5, U.S.
                  Capitol Building.
                   
                  2:00 PM. The House
                  Judiciary Committee's Subcommittee on Courts, Internet and
                  Intellectual Property will hold an oversight hearing on titled
                  The Operations of the U.S. Patent and Trademark Office,
                  Including Review of Agency Funding. Location: Room 2141,
                  Rayburn House Office Building. | 
               
             
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                | Media Coverage of Court
                  Proceedings | 
               
              
                6/5. Sen. Charles
                  Grassley (R-IA), Sen.
                  Charles Schumer (D-NY), and others, introduced S 986, a
                  bill that would allow federal trial and appellate judges to
                  permit cameras in their courtrooms. The bill would also direct
                  the Judicial Conference, the federal courts' principal policy
                  making body, to draft non-binding guidelines that judges can
                  refer to in making a decision pertaining to the coverage of a
                  particular case. It was referred the the Senate Judiciary
                  Committee, of which both Grassley and Schumer are members.
                   
                  Sen. Grassley stated that "Chief Justice Rehnquist
                  allowed the delayed audio broadcasting of the oral arguments
                  before the Supreme Court in the 2000 presidential election
                  dispute. The Supreme Court's response to our request was an
                  historic, major step in the right direction. Since then, other
                  courts have followed suit, such as the live audio broadcast of
                  oral arguments before the D.C. Circuit in the Microsoft
                  antitrust case and the televising of appellate proceedings
                  before the Ninth Circuit in the Napster copyright case. The
                  public wants to see what is happening in these important
                  judicial proceedings, and the benefits are significant in
                  terms of public knowledge and discussion." | 
               
             
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                | Two Representatives Oppose
                  NTR Status for PRC | 
               
              
                | 6/5. Rep. Dana
                  Rohrabacher (R-CA) and Rep. Sherrod Brown
                  (D-OH) introduced HJRes 50, a joint resolution disapproving
                  the extension of the waiver authority contained in section
                  402(c) of the Trade Act of 1974 with respect to the People's
                  Republic of China (PRC). The resolution would prevent the
                  extension of normal trade relations status (formerly known as
                  most favored nation status) to the PRC. It was referred to the
                  House Ways and Means Committee. See, Rohrabacher
                  release and Brown
                  release. | 
               
             
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                | About Tech Law Journal | 
               
                Tech Law Journal is a free access web site
                  and e-mail alert that provides news, records, and analysis of
                  legislation, litigation, and regulation affecting the computer
                  and Internet industry. This e-mail service is offered free of
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