| House to Vote on Extension
                  of Net Tax Ban | 
               
              
                10/16. The House is scheduled to consider HR
                  1552, the Internet Tax Nondiscrimination Act, under
                  suspension of the rules. Under this procedure, the time for
                  debate will be limited, no amendments will be permitted, and
                  passage will require a two thirds majority.
                   
                  This bill would extend the current moratorium on Internet
                  access taxes, and multiple and discriminatory taxes on
                  Internet commerce. The current three year ban expires on
                  October 21. On October 10 the House Judiciary
                  Committee approved an amendment in the nature of a
                  substitute offered by Rep.
                  Spencer Bachus (R-AL) that provides a two year
                  extension. The original bill contained a five year extension.
                  The Senate is also likely to take up extension legislation
                  this week. | 
               
             
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                | Nextwave Settlement | 
               
              
                10/16. The Washington Post reported in an October 16 story
                  by Christopher Stern that "The nation's major mobile
                  telephone companies have reached an agreement with NextWave
                  Telecom Inc. in which they would pay almost $16 billion to end
                  a five-year dispute over a slice of airwaves".
                   
                  NextWave obtained
                  spectrum licenses at FCC auctions in 1996. The FCC permitted
                  NextWave to obtain the licenses under an installment plan,
                  thus creating a debtor creditor relationship. NextWave did not
                  make payments required by the plan, and filed a Chapter 11
                  bankruptcy petition. The FCC then
                  cancelled the licenses. However, the FCC was blocked by the
                  bankruptcy court, citing § 525
                  of the Bankruptcy Code. The U.S. District Court (SNDY)
                  affirmed. The U.S.
                  Court of Appeals (2ndCir) issued its order reversing and
                  remanding the case on Nov. 24, 1999; it issued its opinion
                  explaining its reversal in May 2000. The FCC then re-auctioned
                  this spectrum to Verizon Wireless, Voice Stream and other
                  successful bidders, which intend to use it for third
                  generation wireless, and other, services.
                   
                  NextWave next petitioned the FCC to reconsider its
                  cancellation of its licenses. The FCC refused, and NextWave
                  petitioned for review by the U.S. Court of Appeals (DCCir).
                  The DC Circuit ruled on June 22 that the 2nd Circuit had not
                  already addressed NextWave's bankruptcy claims. It wrote in
                  its opinion
                  that the FCC "violated the provision of the Bankruptcy
                  Code that prohibits governmental entities from revoking
                  debtors' licenses solely for failure to pay debts
                  dischargeable in bankruptcy. The Commission, having chosen to
                  create standard debt obligations as part of its licensing
                  scheme, is bound by the usual rules governing the treatment of
                  such obligations in bankruptcy."
                   
                  Even if the FCC, NextWave, and the re-auction winners reach a
                  settlement, it is hypothetically possible that other
                  communications companies that did not participate in the
                  re-auction would bring legal challenges to the FCC's handling
                  of this process. | 
               
             
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                | Legislators Introduce Tech
                  Talent Bill | 
               
              
                10/15. Rep. Sherwood
                  Boehlert (R-NY) and Rep.
                  John Larson (D-CT) announced that they will introduce a
                  bill named the "Tech Talent Bill" that would
                  establish a competitive grant program through the National Science Foundation for
                  undergraduate institutions pledging to increase the number of
                  U.S. citizens or permanent residents obtaining degrees in
                  science, math, engineering and technology fields. The bill
                  would authorize $25 Million in FY02.
                   
                  Rep. Boehlert is Chairman of the House Science Committee.
                  Rep. Larson, who is also a member of the Committee, stated in
                  a release
                  that "In the wake of September 11, we must remember that
                  there is a strong connection to be made between our national
                  security and the level of science and technology proficiency
                  in America." See also, Committee
                  release.
                   
                  Sen. Joe Lieberman
                  (D-CT), Christopher Bond (R-MO), Barbara Mikulski (D-MD), Bill
                  Frist (R-TN), and Pete Domenici (R-NM) are sponsoring a
                  companion bill in the Senate. See, Lieberman
                  release. | 
               
             
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                | USTR Discusses Trade, APEC
                  and WTO Round | 
               
              
                | 10/15. USTR Robert Zoellick
                  held a press conference in Kuala Lumpur, Malaysia, in which he
                  addressed the Asia Pacific Economic Cooperation (APEC)
                  meetings scheduled for October 17-21 in Shanghai, China, the
                  upcoming meeting in Doha, Qatar, and a new WTO round of trade
                  negotiations. He was also asked about other issues. See, transcript. | 
               
             
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                | More Documents | 
               
              
                | USDC:
                  Order
                  appointing Eric Green mediator in the Microsoft antitrust
                  case, 10/12 (PDF, USDC). | 
               
             
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                | FCC Commissioner Wants to
                  Expand FCC Regulation | 
               
              
                10/15. FCC Commissioner Michael Copps
                  gave a speech in Washington DC in which he argued that the
                  terrorist attacks of September 11 mean that the FCC should
                  assume expanded regulatory authority, particularly with
                  respect to the Internet. See, prepared
                  text of speech.
                   
                  "What does September 11 mean for how the FCC does
                  business?", Copps asked himself rhetorically. He answered
                  his own question: "I believe the Federal Communications
                  Commission has a larger job to do".
                   
                  The FCC, which has statutory
                  mandates with respect to the Communications
                  Assistance for Law Enforcement Act (CALEA) and emergency
                  911 legislation, will likely pursue a more vigorous and
                  expeditious implementation of these statutes. Copps referenced
                  these topics. But, his speech was also littered with
                  references to the Internet, cyberspace, and information
                  systems -- all technologies over which the FCC now has no
                  general statutory authority.
                   
                  "The Commission must be in the vanguard of our homeland
                  security efforts," said Commissioner Copps. He continued
                  that the FCC's "participation in the homeland security
                  effort is not only logical but also imperative. Truly secure
                  and reliable telecommunications and cyberspace systems are no
                  longer a luxury after September 11th."
                   
                  The FCC is a regulatory commission made up of lawyers, lacking
                  both technical expertise in, and statutory authority over,
                  "cyberspace systems". One government agency with a
                  mandate in this area is the National
                  Infrastructure Protection Center (NIPC). Commissioner
                  Copps did name the source of this new FCC regulatory power:
                  "public interest" references contained in the
                  Communications Act of 1934.
                   
                  He elaborated: "America will mobilize the great power of
                  its communications and broadcast and information systems to
                  serve the safety and security of all our people. In the final
                  analysis, the safety of the people is the first and foremost
                  responsibility of government."
                   
                  Commissioner Copps spoke to the Federal
                  Communications Bar Association, a Washington DC group made
                  up largely of lawyers who practice before the FCC, work for
                  large telecommunications companies, or work for the FCC. | 
               
             
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                | September 11 Serves As
                  Rationale for Tech Initiatives | 
               
              
                10/15. OPINION. Since the terrorist attacks of
                  September 11, proponents of various technology related bills
                  and regulatory initiatives have argued that events of
                  September 11 mandate adoption of their proposals. Yet, many of
                  these proposals predate September 11, and have little nexus to
                  the events of September 11. Examples includes some provisions
                  of the USA Act and PATRIOT Act, the Internet gambling
                  provisions of the Financial Anti Terrorism Act, the Tech
                  Talent Bill, and proposals to expand the regulatory authority
                  of the FCC.
                   
                  Late last week the House and Senate passed similar bills
                  designed to give law enforcement and intelligence agencies
                  increased authority to investigate and prosecute, including
                  increased electronic surveillance powers. These bills, S 1510,
                  the USA Act,  and HR 2975,
                  the PATRIOT Act, no doubt enhance the ability of government
                  agencies to fight terrorism. However, many of the provisions
                  apply to crimes across the board, and not just to foreign
                  intelligence gathering, terrorism, and related matters.
                   
                  Similarly, on October 11 the House Financial
                  Services Committee adopted an amended version of HR
                  3004, the Financial Anti Terrorism Act of 2001.
                  § 307 provides, in part, that "No person engaged in
                  the business of betting or wagering may knowingly accept, in
                  connection with the participation of another person in
                  unlawful Internet gambling (1) credit, or the proceeds of
                  credit, extended to or on behalf of such other person
                  (including credit extended through the use of a credit
                  card)". What is the connection between the use of credit
                  cards to place bets over the Internet, and terrorism?
                   
                  Likewise, this week Representatives and Senators introduce
                  bills to increase government funding for math and science
                  education -- again, citing the events of September 11.
                   
                  Finally, FCC Commissioner Michael Copps argued in a speech
                  on October 15 that the September 11 means that the FCC
                  "has a larger job to do". | 
               
             
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                | Gov. Davis Signs School
                  Computer Bill | 
               
              
                | 10/15. California
                  Gov. Gray Davis signed Senate
                  Bill 388, a bill to facilitate the selling or leasing of
                  computers and Internet appliances to students' parents by
                  school districts. The bill provides that "a school
                  district may sell or lease Internet appliances or personal
                  computers to parents of pupils within the school district, for
                  the purpose of providing access to the school district's
                  educational computer network, at a standard price, not to
                  exceed the cost incurred by the school district in purchasing
                  the Internet appliance or personal computer." AB 388 was
                  sponsored by Sen.
                  Deirdre Alpert (D-San Diego). | 
               
             
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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 charge to
                  anyone who requests it. Just provide TLJ an e-mail address. 
                   
                  Number of subscribers: 2,180. 
                  Contact: 202-364-8882; E-mail. 
                  P.O. Box 15186, Washington DC, 20003. 
                  Privacy
                  Policy 
                  Notices
                  & Disclaimers 
                  Copyright 1998 - 2001 David Carney, dba Tech Law Journal. All
                  rights reserved. | 
               
             
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                | Tuesday, Oct 16 | 
               
              
                House will meet at 12:30 PM for morning hour and at 2:00 PM
                  for legislative business. No recorded votes are expected
                  before 6:00 PM. The House will consider a number of measures
                  under suspension of the rules, including HR 1552, the Internet
                  Tax Nondiscrimination Act, which extends the existing
                  Internet tax moratorium for two years.
                   
                  9:30 AM. The U.S.
                  Court of Appeals for the District of Columbia Circuit will
                  hear oral argument in COMSAT Corp v. FCC, No. 00-1458.
                  Judges Ginsburg, Williams and Henderson will preside.
                  Location: 333 Constitution Ave., NW, Washington DC.
                   
                  9:30 - 11:30 AM. The American
                  Enterprise Institute (AEI) will host a seminar at which Jeffrey
                  Rohlfs (Strategic Policy Research, Inc.) will present his
                  new book titled Bandwagon
                  Effects in High Technology Industries. He will also
                  address the role of bandwagon effects in the debate among
                  economists and policy analysts over whether governments should
                  set technical standards. The price to attend is $5 (waived for
                  AEI supporters, government employees, and media). Location:
                  AEI, Wohlstetter Conference Center, Twelfth Floor, 1150 17th
                  Street, NW, Washington DC.
                   
                  10:00 AM. The Senate
                  Commerce Committee will hold an oversight hearing to
                  examine the implementation of the Wireless Communication and
                  Safety Act and the integration of emergency 911 technologies.
                  Location: Room 253, Russell Building. | 
               
             
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                | Wednesday, Oct 17 | 
               
              
                9:30 AM. The Senate
                  Banking Committee will hold a hearing on the nominations
                  of Susan Bies and Mark Olson to be members of
                  the Board of Governors of the Federal Reserve System.
                  Location: Room 538, Dirksen Building.
                   
                  10:00 AM - 12:00 NOON. The House Science Committee
                  will hold a hearing titled Cyber Terrorism – A View From
                  the Gilmore Commission. Location: Room 2318, Rayburn
                  Building.
                   
                  10:00 AM. The Senate
                  Judiciary Committee will hold a hearing to examine
                  homeland defense matters. Location: Room 106, Dirksen
                  Building.
                   
                  12:15 PM. The Federal
                  Communications Bar Association's (FCBA) Mass Media
                  Practice Committee will host a brown bag lunch. The speakers
                  will be the FCC Commissioners' legal advisors on mass media
                  issues: Susan Eid (Powell), Stacy Robinson (Abernathy), Susana
                  Zwerling (Copps), and Catherine Bohigian (Martin). RSVP to
                  Kathy Dole at kdole@npr.org.
                  Location: National Public Radio, 635 Massachusetts Ave. NW,
                  Washington DC. | 
              
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                | Thursday, Oct 18 | 
               
              
                Day one of a three day conference of the American
                  Intellectual Property Law Association (AIPLA). Location:
                  Crystal Gate Marriott Hotel, 1700 Jefferson Davis Highway,
                  Arlington, Virginia.
                   
                  9:30 AM. The House
                  Commerce Committee's Subcommittee on Telecommunications
                  and the Internet will hold a hearing titled "Transition
                  to Digital Television: Progress on Broadcaster Buildout and
                  Proposals to Expedite Return to Spectrum." Rep. Fred Upton (R-MI)
                  will preside. Location: Room 2123, Rayburn Building.
                   
                  9:30 AM. The U.S.
                  Court of Appeals for the District of Columbia Circuit will
                  hear oral argument in Celtronix Telemetry v. FCC, No.
                  00-1400. Judges Ginsburg, Williams and Henderson will preside.
                  Location: 333 Constitution Ave., NW, Washington DC.
                   
                  9:30 - 11:30 AM. The American
                  Enterprise Institute (AEI) will host another program in
                  its Seminar Series in Telecommunications Deregulation. This
                  event is titled "On Refusing to Deal with Rivals."
                  The speaker will be Glen
                  Robinson of the University of Virginia School of Law. The
                  price to attend is $5 (waived for AEI supporters, government
                  employees, and media). Location: AEI Wohlstetter Conference
                  Center, Twelfth Floor, 1150 17th Street, NW, Washington DC.
                   
                  10:00 AM. The House
                  Judiciary Committee's Subcommittee on Courts, the
                  Internet, and Intellectual Property will hold a hearing titled
                  Intellectual Property Litigation. Location: Room 2141,
                  Rayburn Building.
                   
                  12:00 NOON. The Heritage
                  Foundation will host a panel discussion titled
                  "Freedom and Security: Preserving Constitutional
                  Liberties in Times of War." The speakers will be Jennifer
                  Neustead (Office of Legal Policy, DOJ), Lee Casey (Baker &
                  Hostettler), Todd Gaziano (Heritage), and Ed Meese (Heritage).
                  Location: Heritage Foundation, 214 Massachusetts Ave NE,
                  Washington DC.
                   
                  2:00 PM. The Senate
                  Judiciary Committee will hold hearings on pending
                  nominations. Location: Room 226, Dirksen Building.
                   
                  2:30 - 4:00 PM. The American
                  Enterprise Institute (AEI) will host a panel discussion
                  titled "Trade Promotion Authority -- What's the Bottom
                  Line for Congress?" The speakers will be Jagdish Bhagwati
                  (Columbia University), I.M. Destler (University of Maryland),
                  Brink Lindsey (Cato Institute), and Daniel Tarullo (Georgetown
                  University). See, online
                  registration page. Location: AEI Wohlstetter Conference
                  Center, Twelfth Floor, 1150 17th Street, NW, Washington DC. | 
              
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                | Friday, Oct 19 | 
               
              
                | Day two of a three day conference of the American
                  Intellectual Property Law Association (AIPLA). Location:
                  Crystal Gate Marriott Hotel, 1700 Jefferson Davis Highway,
                  Arlington, Virginia. | 
               
             
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