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September 5, 2001, 9:00 AM ET, Alert No. 261.
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Senate Begins Debate on Export Administration Act
9/4. The Senate returned from its August recess, and began debate on S 149, the Export Administration Act of 2001. The bill is a major overhaul of export control laws. It passed the Senate Banking Committee on March 22, 2001, by a vote of 19 to 1. It would ease restraints on the export of most dual use products, such as computers and software. However, it would raise penalties for violation of remaining prohibitions. It would also repeal provisions of the 1998 National Defense Authorization Act which require the President to use MTOPS to set restrictions on the export of high performance computers.
The bill is sponsored by Sen. Mike Enzi (R-WY). It is supported by Sen. Paul Sarbanes (D-MD), the Chairman of the Senate Banking Committee, Sen. Phil Gramm (R-TX), the ranking Republican on the Committee, and by President Bush. However, it is opposed by a small faction in the Senate led by Sen. Fred Thompson (R-TN), Sen. John Warner (R-VA), and Sen. Richard Shelby (R-AL).
The Senate defeated, by a vote of 74 to 19, an amendment offered by Sen. Fred Thompson (R-TN) that would have increased the power of agencies to delay license applications for an additional 60 days. This amendment would have allowed reviewing agencies to extend the time limits on reviewing export license applications if they determined that "due to the complexity of the analysis" or "because of the potential impact on the national security or foreign policy interests of the United States" a further delay is warranted. Under current law, and S 149, an exporter wishing to export an item on a control list must apply for a license. The application must be sent to the Secretary of Commerce, who then refers it to other interested departments. The agencies must provide a recommendation to approve or deny the license within 30 days of that referral. S 149 also contains six specific circumstances in which further time may be taken. Sen. Enzi argued that passage of the Thompson amendment would "significantly undermine the discipline of the entire review process, and effectively create gridlock".
Secretary of State Colin Powell, Secretary of Defense Donald Rumsfeld, and Secretary of Commerce Donald Evans wrote a letter to Sen. Trent Lott (R-MS), the Republican Majority Leader, urging passage of the bill. "President Bush strongly supports the bill as passed by the Senate Banking Committee and wants to move forward in this important area. We urge you to support S. 149," the three wrote.
The current Export Administration Act was scheduled to lapse on August 20. However, President Bush issued an Executive Order on August 17 extending it. President Bush also wrote a letter to the Speaker of the House of Representatives and the President of the Senate regarding this decision.
Sen. Gramm Announces Retirement
9/4. Sen. Phil Gramm (R-TX) announced that he will not run for re-election in the 2002 election. Sen. Gramm is the ranking Republican on the Senate Banking Committee. He has been involved in many technology related debates.
He is a strong supporter of the Export Administration Act of 2001, which is currently being debated by the full Senate. His retirement may open the way for Sen. Richard Shelby (R-AL) to become either ranking Republican or Chairman of the Committee. Sen. Shelby is an an opponent of the bill.
In the 104 and 105th Congresses Sen. Gramm supported and moved legislation to limit meritless class action securities litigation against technology companies. See, the Private Securities Litigation Reform Act of 1995 (PSLRA), and the Securities Litigation Uniform Standards Act of 1998 (SLUSA).
The landmark Gramm Leach Bliley Act carries Sen. Gramm's name. This landmark legislation removes New Deal era restrictions on affiliations among banks, securities firms, and insurance companies. It also contains new privacy provisions regarding non-public personal information.
Finally, while immigration issues do not fall within the jurisdiction of the Senate Banking Committee, Sen. Gramm has been an advocate of amending visa laws to enable companies to hire highly skilled technology workers from other countries.
Rep. Horn Announces Retirement
9/4. Rep. Steve Horn (R-CA) announced that he will not run for re-election. The California legislature, which is controlled by Democrats, redrew district lines to eliminate his district. He is Chairman of the House Reform Committee's Subcommittee on Government Management, Information and Technology. During the 105th Congress his subcommittee issued low grades to government agencies on their level of computer security, and studied Year 2000 conversion efforts of government agencies. See, Horn release.
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Solicitor General Files Amicus Brief in Festo Case
8/31. The Office of the Solicitor General (OSG) filed its amicus curiae brief with the Supreme Court of the U.S. in Festo v. Shoketsu Kinzoku Kogyo Kabushiki, a patent infringement case. The OSG argued that the Appeals Court judgment should be vacated.
The U.S. Court of Appeals (FedCir) issued its divided en banc opinion on November 29, 2000, narrowing the doctrine of equivalents, which prevents an accused infringer from avoiding liability for infringement by changing only minor or insubstantial details of a claimed invention while retaining the invention's essential identity. The Appeals Court sought to answer several questions that remained following the Supreme Court's decision in Warner - Jenkinson v. Hilton Davis Chemical, 520 U.S. 17 (1997). The Supreme Court granted certiorari in the Festo case on June 18.
The OSG wrote in the amicus brief that the "doctrine of equivalents provides that a product or process that does not literally infringe upon the express terms of a patent claim may nevertheless be found to infringe if there is an "equivalence" between the elements of the accused product or process and the claimed elements of the patented invention. ... That doctrine is limited by the concept of prosecution history estoppel, which recognizes that, if a patent claim is amended during patent prosecution, the amendment may curtail application of the doctrine of equivalents to the amended claim."
The OSG stated that the questions presented are "Whether an amendment of a patent claim that narrows the scope of the claim for any reason related to the statutory requirements for a patent gives rise to prosecution history estoppel with respect to the amended portion of the claim" and "Whether an amendment of a patent claim that gives rise to prosecution history estoppel completely precludes invocation of the doctrine of equivalents for the amended portion of the claim."
The OSG argued that Federal Circuit "correctly ruled that an amendment of a patent claim that narrows the scope of the claim for reasons of patentability gives rise to prosecution history estoppel with respect to the amended portion of that claim." However, it continued that the Court "erred in ruling that a patent claim amendment that gives rise to prosecution history estoppel completely bars invocation of the doctrine of equivalents for the amended portion of the claim." Hence, it argued that the judgment of the Court of Appeals should be vacated.
Bush Announces 13 U.S. Attorneys
9/4. President Bush announced his intent to nominate 13 U.S. Attorneys. Among these is the nomination of Thomas DiBiagio for the District of Maryland. DiBiagio is currently a partner in the Washington DC law firm of Dyer Ellis & Joseph. From 1991 to 2000 he was Assistant U.S. Attorney for the District of Maryland. See, White House release and Dyer Ellis bio.
The other nominations are as follows: William Duffy (Northern District of Georgia), Maxwell Wood (Middle District of Georgia), Edward Kubo (District of Hawaii), Steven Colloton (Southern District of Iowa), Donald Washington (Western District of Louisiana), Jeffrey Collins (Eastern District of Michigan), Gregory Lockhart (Southern District of Ohio), Sheldon Sperling (Eastern District of Oklahoma), Mary Beth Buchanan (Western District of Pennsylvania), Daniel Bogden (District of Nevada), Peter Hall (District of Vermont), Thomas Johnston (Northern District of West Virginia).
More News
8/31. Xerox announced that it has reached a settlement of its remaining claims against Copier Services Unlimited. See, Xerox release.
9/4. National Science Foundation (NSF) published a notice in the Federal Register that the Advisory Committee for Cyberinfrastructure will hold a meeting on September 14, 2001, from 2:00 - 5:00 PM, at Room 1150, National Science Foundation, 4201 Wilson Boulevard, Arlington, Virginia. The purpose of this meeting is to develop a plan for the preparation of a report to the NSF regarding advanced cyberinfrastructure and the evaluation of the existing Partnerships for Advanced Computational Infrastructure. See, Federal Register, September 4, 2001, Vol. 66, No. 171, at Page 46293.
9/4. The Copyright Office (CO) published a notice in the Federal Register that it is extending the period for filing comments regarding the determination of reasonable rates and terms for the digital performance of sound recordings. The CO is extending the period to file comments to proposed regulations that will govern the RIAA collective when it functions as the designated agent receiving royalty payments and statements of accounts from nonexempt, subscription digital transmission services which make digital transmissions of sound recordings under the provisions of § 114 of the Copyright Act. Comments and Notices of Intent to Participate in a Copyright Arbitration Royalty Panel Proceeding are due by September 19, 2001. See, Federal Register, September 4, 2001, Vol. 66, No. 171, at Page 46250.
Wednesday, Sept. 5
The House returns from its August recess.
The House is likely to take up several non controversial matters under suspension of the rules. It will likely pass HR 1866, HR 1886, and HR 2048. HR 1866 would overturn the 1997 opinion of the U.S. Court of Appeals (FedCir) in In Re Portola Packaging, in which the Court held that the restriction on the scope of patent reexaminations to "substantial new questions" precludes the consideration of prior art that was before the examiner. The key language of the HR 1866 amends 35 U.S.C. §§ 303(a) and 312(a). It adds the following: "The existence of a substantial new question of patentability is not precluded by the fact that a patent or printed publication was previously cited by or to the Office." HR 1886 affords all participants, including third party requesters, in reexamination proceedings, judicial review before federal appeals courts. HR 2048 would require the Attorney General to submit a report to the House and Senate regarding the effectiveness of State Justice Institute operations.
9:30 AM. The Center for Freedom and Technology, of the Pacific Research Institute, will hold a press conference to release a study titled "Consumer Privacy: A Free Choice Approach." For more information, contact Sonia Arrison, Director, Center for Freedom and Technology, Pacific Research Institute, 415-989-0833 x107. Location: National Press Club, Lisagor Room, 529 14th St. NW, 13th Floor, Washington DC.
3:30 PM. The Senate Intelligence Committee will hold a hearing to examine the FY 2002 Intelligence Authorization Bill, focusing on information leak provisions. Location: Room 216, Hart Building.
Deadline to file reply comments with the FCC in its Notice of Inquiry (NOI) regarding video competition. On June 20, 2001 the FCC adopted a NOI into the status of competition in the market for the delivery of video programming. The FCC stated in a release that "The NOI seeks information that will allow the FCC to evaluate the status of competition in the video marketplace, prospects for new entrants to that market, and its effect on the cable television industry and consumers. The NOI also solicits information regarding the extent to which consumers have choices among video programming distributors and delivery technologies." See, CS Docket No. 01-129.
Thursday, Sept. 6
9:30 AM. The U.S. Court of Appeals for the District of Columbia Circuit will hear oral argument in Verizon v. FCC, No. 00-1207. Judges Ginsburg, Edwards and Sentelle will preside. Location: 333 Constitution Ave., NW, Washington DC.
9:30 AM. The U.S. Court of Appeals for the District of Columbia Circuit will hear oral argument in National Association of Broadcasters v. FCC, No. 00-1054. Judges Henderson, Rogers and Tatel will preside. Location: 333 Constitution Ave., NW, Washington DC.
10:00 AM. The Senate Judiciary Committee will hold an executive business meeting. Location: Room 226, Dirksen Building.
Friday, Sept. 7
9:30 AM. The U.S. Court of Appeals for the District of Columbia Circuit will hear oral argument in Fox v. FCC, No. 00-1222. Judges Ginsburg, Edwards and Sentelle will preside. Location: 333 Constitution Ave., NW, Washington DC.
POSTPONED. 9:30 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet has scheduled a hearing titled "Area Code Exhaustion: Management of Our Nation’s Telephone Numbers." Location: Room 2123, Rayburn Building.
9:30 AM - 12:00 Noon. The FCC's Office of Engineering and Technology (OET) will host the first of two tutorials on new spectrally efficient techniques. Location: FCC, Commission Meeting Room, 445 12th Street, Room TW-C305, Washington DC.
1:30 - 3:00 PM. The FCC's Office of Engineering and Technology (OET) will host the second of two tutorials on new spectrally efficient techniques. Location: FCC, Commission Meeting Room, 445 12th Street, Room TW-C305, Washington DC.
Deadline to submit comments to the USPTO in response to its notice of proposed rulemaking regarding elimination of continued prosecution application practice as to utility and plant patent applications. The notice stated that the AIPA enacted provisions for the continued examination of a utility or plant application at the request of the applicant, and therefore, "there no longer appears to be a need for continued prosecution application (CPA) practice as to utility and plant applications. Thus, the Office is proposing to eliminate CPA practice as to utility and plant applications. An applicant for a utility or plant patent may also continue to effectively obtain further examination of the application by filing a continuing application under section 1.53(b). Since RCE practice does not apply to design applications, CPA practice will remain in place for design applications." See, Federal Register, July 9, 2001, Vol. 66, No. 131, at Pages 35763 - 35765.