Tech Law Journal Daily E-Mail Alert
December 4, 2001, 9:00 AM ET, Alert No. 320.
TLJ Home Page | Calendar | Back Issues
Supreme Court Denies Cert in Cable Caps Case
12/3. The Supreme Court denied a petition for writ of certiorari, without opinion, in Consumer Federation of America v. FCC, a case regarding cable ownership caps. See, Order List at page 2. (Supreme Court No. 01-223.)
The Consumer Federation of America sought review of the March 2, 2001, opinion of the U.S. Court of Appeals (DCCir) in Time Warner Entertainment v. FCC, 240 F.3d 1126 (DC Cir, 2001). That opinion overturned the FCC's cable ownership caps. AT&T and Time Warner petitioned for review of the FCC's cable ownership rules on First Amendment grounds. The FCC's horizontal rule imposed a 30% limit on the number of subscribers that may be served by a multiple cable system operator. Its vertical limit was set at 40% of channel capacity, reserving 60% for programming by non affiliated firms.
The three judge panel of the Court of Appeals reversed and remanded both the horizontal and vertical limits. The Court followed the Supreme Court's ruling in Turner Broadcasting I that cable operators are "entitled to the protection of the speech and press provisions of the First Amendment." The court, applying the intermediate scrutiny standard, then held that the "horizontal limit interferes with petitioners' speech rights by restricting the number of viewers to whom they can speak. The vertical limit restricts their ability to exercise their editorial control over a portion of the content they transmit."
The Office of the Solicitor General filed a brief in opposition to granting certiorari in November. It argued several grounds, including that the FCC initiated a Further Notice of Proposed Rulemaking [60 page PDF file] on September 21, 2001, to further develop the record in support of an order that might withstand judicial scrutiny. See also, FCC release. (FCC 01-263.)
First Circuit Affirms in Gupta v. Cisco
12/3. The U.S. Court of Appeals (1stCir) issued its opinion in Dev Vrat Gupta v. Cisco Systems, a dispute over ownership of stock in Maxcomm Technologies. Gupta is engineer and former employee of Cisco. He founded Maxcomm while employed by Cisco. An arbitrator, the District Court, and the Court of Appeals all upheld Cisco's right to repurchase Maxcomm stock pursuant to its agreements with Gupta that it could repurchase the stock if he left Maxcomm before January 2002.
Appeals Court Enforces Arbitration Clause in Fee Agreement
12/3. The U.S. Court of Appeals (1stCir) issued its opinion in Summit Packaging v. Kenyon & Kenyon, a case regarding the enforceability of an arbitration clause of a retainer agreement in dispute regarding alleged legal malpractice and unfair billing in a patent infringement lawsuit.
Kenyon & Kenyon is a law firm that focuses on intellectual property law. It represented Summit Packaging in a patent infringement lawsuit. The retainer agreement between them provided that "In the event any dispute arises between us concerning our representation or payment of our fees and disbursements which cannot be promptly resolved to our mutual satisfaction, you agree that the dispute will be submitted to arbitration ... or, if you prefer, submitted to the Courts of the State of New York ..."
Summit filed a complaint in New Hampshire Superior Court against Kenyon alleging legal malpractice and unfair billing practices. Kenyon removed the case to U.S. District Court (DNH). Kenyon moved for summary judgment, based on the arbitration clause. The District Court ruled that the arbitration clause is permissive, not mandatory, and denied the motion.
The Appeals Court held that the arbitrary clause is mandatory, and reversed. It wrote that "When Summit filed this action in New Hampshire Superior Court, it decided to forego bringing suit in New York. In so doing, arbitration became the mandatory, and exclusive, forum for dispute resolution."
More Identity Theft Bills Introduced
11/29. Sen. Maria Cantwell (D-WA) introduced S 1742, the Restore Your Identity Act of 2001, a broad bill pertaining to prevention of identity theft. It was referred to the Senate Judiciary Committee.
11/28. Rep. Jan Schakowsky (D-IL) and others introduced HR 3368, the Protect Victims of Identity Theft Act of 2001, a short bill that would amend the Fair Credit Reporting Act (FCRA) with respect to the statute of limitations on actions. It would amend the FCRA, 15 U.S.C. § 1681, et seq., to provide that "An action to enforce any liability created under this title may be brought in any appropriate United States district court, without regard to the amount in controversy, or in any other court of competent jurisdiction, not later than 2 years after the date on which the violation is discovered or should have been discovered by the exercise of reasonable diligence."
11/28. Rep. John Shadegg (R-AZ) introduced HR 3369, the Fair Credit Reporting Act Amendment of 2001, another bill to amend the FCRA to provide that the statute of limitations begins to run on the "earlier of the date on which the consumer discovers, or the date by which the consumer reasonably should have discovered, the violation giving rise to the liability". It too was referred to the House Financial Services Committee and House Judiciary Committee.
These bills, and others, are, in part, a response to the November 13 opinion [PDF] of Supreme Court of the U.S. in TRW v. Andrews, a case regarding the running of the two year statute of limitations governing suits based on the FCRA. In that case, Adelaide Andrews had her identity stolen. An imposter obtained her name, social security number, and other information, which she provided to a radiologist. This imposter then used this information to apply for credit in her name. TRW, a credit reporting agency now known as Experian, disclosed her credit record upon each application. She filed a complaint in U.S. District Court (CDCal) against TRW alleging violation of the FCRA. She filed her suit 17 months after learning of TRW's disclosures, but more than two years after the disclosures. The District Court ruled that the statute of limitations had run. The Ninth Circuit reversed. The Supreme Court ruled that the statute had run.
Education & Tech Commission Proposed
11/27. Rep. Mike Ferguson (R-NJ) and Rep. Danny Davis (D-IL) introduced H Res 295, a resolution pertaining to education and technology. It "urges the creation of a commission on technology and education that would (1) provide clear and focused goals for the future of classroom educational technology and make recommendations to efficiently implement technology to accomplish these goals ..."
More News
12/3. The U.S. Court of Appeals (FedCir) heard oral argument in Datapoint Corporation v. Standard Microsystems, No. 99-1239, and Charles E. Hill & Associates v. Compuserve, No. 00-1562.
12/3. The GAO released a report [PDF] titled "Information Technology: Leading Commercial Practices for Outsourcing of Services". The report was prepared for Sen. Daniel Akaka (D-HI) and Sen. James Inhofe (R-OK), the Chairman and ranking Republican on the Senate Armed Service Committee's Subcommittee on Readiness and Management Support.
Verizon CEO Addresses Legislative Issues
12/3. Ivan Seidenberg, P/CEO of Verizon, gave a speech at the National Press Club in Washington DC in which he addressed the Tauzin Dingell bill, spectrum regulation, and other issues.
Tauzin Dingell Bill. He stated that "the issue on broadband is really pretty simple: how to push more diverse technologies into the marketplace where they can fuel the economy, stimulate innovation, and give America the secure, redundant infrastructure it needs. In our industry -- as in all capital intensive, technology driven businesses -- it's also pretty clear how to do that: promote new investment by taking down the ``do not enter´´ signs that impede the flow of capital. At the most basic level, that’s what the broadband legislation known as the Tauzin Dingell bill is designed to do. "
This bill, HR 1542, was reported by the House Commerce Committee last spring. It was reported unfavorably by the House Judiciary Committee on June 18. It has not yet been brought to the House floor for debate and vote. Seidenberg stated that "We're hopeful that the House of Representatives will bring this legislation to a vote in the next two weeks ..."
Spectrum Management. Seidenberg stated that "In order to ensure continued growth and innovation in this vital industry, we needed to get more spectrum in the hands of companies that have the will and the wherewithal to actually put this resource to work for customers. And, while the spectrum auctions were a major step forward, the continuation of the spectrum cap put a lid on growth and acted as a barrier to the natural evolution of this industry."
Depreciation. Seidenberg also called for tax relief. He said that "the Congress should enact an economic stimulus package that contains meaningful incentives for capital investment. Unlike previous recessions that have been triggered by a decline in consumer spending, this one has been led by a huge slowdown in capital spending. Therefore, we believe any recovery package needs to include changes in the tax law to encourage new investment. In particular, we support the proposal -- included in the economic stimulus package passed by the House of Representatives as well as the one proposed by Senate Republicans -- that would give a 30 percent "bonus depreciation" for companies making new equipment purchases over the next three years."
FEC NPRM on Internet Speech
12/3. Monday, December 3, was the deadline to submit comments to the Federal Election Commission (FEC) regarding its proposed rule changes affecting political activity on the Internet. The FEC is the agency charged with enforcing the Federal Election Campaign Act (FECA), which regulates political contributions and expenditures. While the FEC had previously considered wide ranging regulation of political speech on the Internet, this Notice of Proposed Rulemaking (NPRM) merely proposes to permit certain personal political web sites, and to allow corporations and unions to put certain hyperlinks and press releases in their web sites. See, TLJ story of September 27, 2001. See also, FEC release, and notice in the Federal Register.
The Alliance for Justice submitted a comment in which it stated that it "generally supports the regulations proposed" by the FEC. It further stated that "any regulation should foster the Internet's potential to be a low-cost, democratic forum for greater participation in the political process."
The FEC approved the Notice of Proposed Rulemaking (NPRM) [PDF] at its September 27 meeting. It  proposes three rule changes. First, it would provide that there would be no contribution or expenditure within the meaning of the FECA when an individual, without receiving compensation, uses his or her own computer equipment, software, Internet services or domain names to attempt to influence a federal election. Second, it would allow corporations and unions to include hyperlinks to the web sites of candidates and political committees. Third, it would allow corporations and unions to publish in their web sites copies of press releases endorsing candidates.
Personal Web Sites. First, the NPRM states that the FEC "is proposing to add a new section 117.1, which would describe certain types of individual Internet activities that would not be treated as contributions or expenditures. Section 117.19(a) would contain an exception from the definition of "contribution" in section 100.7(a) of the current regulations. Section 117.1(b) would contain a parallel exception from the expenditure definitions in sections 100.8(a) and 109.1. Proposed sections 117.1(a) and (b) would state that no contribution or expenditure results where an individual, without receiving compensation, uses computer equipment, software, Internet services or Internet domain name(s) that he or she personally owns to engage in Internet activity for the purpose of influencing any election to Federal office."
Corporate and Union Hyperlinks. Second, the NPRM states "New section 117.2 would state that the establishment and maintenance of a hyperlink from the web site of a corporation or labor organization to the web site of a candidate or party committee for no charge or for a nominal charge would not be a contribution or expenditure ..." However, there are also limitations on this rule.
Corporate and Union Press Releases. Third, the NPRM states that "a corporation or labor organization may make a press release announcing a candidate endorsement available to the general public on its web site ..." However, to qualify, the corporation or union must regularly publish press releases in its web site, the release must be limited to the announcement of the endorsement and the reasons, the release must be made available in the same manner as other releases, and the cost must be de minimis.
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Tuesday, Dec 4
The House will meet at 12:30 PM for morning hour and 2:00 PM for legislative business. No recorded votes are expected before 7:00 PM. The House will consider several measures under suspension of the rules.
Day one of a two day conference hosted by the Business Software Alliance (BSA) titled "Global Tech Summit." See, agenda. Location: Omni Shoreham Hotel, 2500 Calvert Street.
LOCATION CHANGE. 9:00 AM - 5:00 PM. There will be an interagency public workshop on Gramm Leach Bliley (GLB) Act privacy notices. A joint announcement states that the "workshop will provide a forum to identify successful GLB Act privacy notices, discuss strategies for communicating complex information, and encourage industry self regulatory efforts and consumer and business education." The participating agencies are the FTC, Federal Reserve System, CFTC, Treasury Department, Comptroller of the Currency, Office of Thrift Supervision, FDIC, National Credit Union Administration, and the SEC. See, also FTC page on workshop. FTC Chairman Timothy Muris will give opening remarks at 9:00 AM. FTC Commissioner Mozelle Thompson will speak at 12:00 NOON. Former location: TC, 600 Pennsylvania Avenue, NW, Room 432. New location: Ronald Reagan Building and International Trade Center, Pennsylvania Ave. and 13½ St., NW.
9:00 AM. Bureau of Export Administration's (BSA) Regulations and Procedures Technical Advisory Committee (RPTAC) will hold a meeting. It will be partly open and partly closed. The open agenda includes an update on Wassenaar Arrangement and a review of encryption regulations. See, notice in Federal Register. Location: Room 3884, Herbert Hoover Building, 14th Street between Constitution and Pennsylvania Avenues.
9:00 AM - 5:00 PM. Day one of a three day meeting of NIST's Computer System Security and Privacy Advisory Board (CSSPAB). See, notice in Federal Register. Preregistration is required to attend; to register, contact Elaine Frye by November 30, 2001, at elaine.frye@nist.gov or 301 975-2819. Location: NIST, Administration Building, Lecture Room B, in Gaithersburg, MD.
10:00 AM. The Senate Judiciary Committee will hold another hearing in its ongoing series of hearings titled "DOJ Oversight: Preserving Our Freedoms While Defending Against Terrorism." These hearings began on December 28. They are scheduled to continue at 2:00 PM, and again at 10:00 AM on December 6. This hearing will focus on military tribunals, and will be chaired by Sen. Charles Schumer (D-NY). Location: Room 226, Dirksen Building.
10:00 AM. The Senate Finance Committee will meet to mark up S 1209, to amend the Trade Act of 1974 to consolidate and improve the trade adjustment assistance programs, to provide community based economic development assistance for trade affected communities. Location: Room 215, Dirksen Building.
10:00 AM. The House Judiciary Committee will hold a hearing on direct broadcast satellite service and competition in the multichannel video distribution market. Location: Room 2141, Rayburn Building.
1:30 PM. Rep. Sherwood Boehlert (R-NY), Rep. Ralph Hall (D-TX), Rep. Nick Smith (R-MI), and other members of the House Science Committee, will hold a press conference to announce the introduction of bills pertaining to cyber security and information technology. Rep. Boehlert, the Chairman of the Committee, will introduce a bill titled the "Cyber Security Research and Development Act". Rep. Smith, the Chairman of the Research Subcommittee, will introduce a bill, titled the "Networking and Information Technology Research Advancement Act". It authorizes an increase in basic research in information technology at six federal agencies (NSF, DOE's Office of Science, NASA, NIST, NOAA and EPA); it amends the 1991 High Performance Computing Act. Location: House Triangle.
2:00 PM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing titled The Status of Competition in the Multi Channel Video Programming Distribution Marketplace. The scheduled witnesses include Charlie Ergen (EchoStar), Eddy Hartenstein (DIRECTV), Robert Sachs (NCTA), Neal Schnog (Univision, on behalf of the ACA), Bob Phillips (Nat. Rural Telecom. Coop.),  Jared Abbruzzese (WSNET), Marshall Pagon (Pegasus Communication), Michael Fiorile (Dispatch Broadcast Group on behalf of the NAB). Location: Room 2123, Rayburn Building.
2:00 AM. The Senate Judiciary Committee will hold another hearing in its ongoing series of hearings titled "DOJ Oversight: Preserving Our Freedoms While Defending Against Terrorism." These hearings began on December 28. They are scheduled to continue 10:00 AM on December 6. This hearing will focus on detainees, and will be chaired by Sen. Russ Feingold (D-WI). Location: Room 226, Dirksen Building.
Wednesday, Dec 5
The House will meet at 10:00 AM.
Day two of a two day conference hosted by the Business Software Alliance (BSA) titled "Global Tech Summit." See, agenda. Location: Omni Shoreham Hotel, 2500 Calvert Street, NW.
The Supreme Court of the United States will hear oral argument in Verizon Maryland v. Public Service Commission of Maryland, Nos. 00-1531 and 00-1711.
9:00 AM. The Senate Commerce Committee's Subcommittee on Science, Technology, and Space will hold a hearing "to examine the technology sector in times of crises". Location: Room 253, Russell Building.
9:00 AM - 5:00 PM. Day two of a three day meeting of NIST's Computer System Security and Privacy Advisory Board (CSSPAB). See, notice in Federal Register. Preregistration is required to attend; to register, contact Elaine Frye by November 30, 2001, at elaine.frye@nist.gov or 301 975-2819. Location: NIST, Administration Building, Lecture Room B, in Gaithersburg, MD.
10:00 AM. The FCC's Technological Advisory Council will hold a meeting. See, notice in Federal Register. Location: FCC, 445 12th St., SW., Room TW-C305.
10:00 AM. The Senate Judiciary Committee will hold a hearing on pending nominations, including Callie Granade (to be U.S. District Judge for the Southern District of Alabama), Marcia Krieger (Colorado), James Mahan (Nevada), Philip Martinez (Western District of Texas), and Ashley Royal (Middle District of Georgia). Sen. Dick Durbin (D-IL) will preside. Location: Room 226, Dirksen Building.
12:15 PM. The Federal Communications Bar Association's (FCBA) Cable Practice Committee will host a luncheon. The speaker will be Barbara Esbin, Associate Bureau Chief, FCC Cable Services Bureau. The price to attend its $15. RSVP to Wendy Parish. Location: NCTA, 1724 Massachusetts Avenue, NW.
12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch. The topic will be "Meet the Mass Media Trade Press". RSVP to: Barry Umansky. Location: NAB, ground floor conference room, 1771 N Street, NW.
1:00 - 3:00 PM. The FCC's International Bureau will hold a roundtable discussion on the Bureau's Electric Filing System (IBFS). Location: FCC, Room 6B516, 445 12th Street, SW.
2:00 - 5:00 PM. Day one of a two day open business meeting of the U.S. National Commission on Libraries and Information Science. See, notice in Federal Register. Location: Conference Room, NCLIS Office, 1110 Vermont Avenue, NW., Suite 820.
2:15 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 3005, the Bipartisan Trade Promotion Authority Act of 2001.
Thursday, Dec 6
The House is scheduled to vote on HR 3005, the Bipartisan Trade Promotion Authority Act of 2001. 9:00 AM - 5:00 PM. Day one of a two day conference hosted by the NTIA regarding its grant program named "Technology Opportunities Program", or TOP. See, agenda. NTIA officials and grant recipients will speak on the first day. The second day will focus on how to write TOP grant applications. The price to attend is $65. Location: Renaissance Hotel, 999 Ninth Street NW.
9:00 AM - 9:45 AM. Bernadette Rivera (Associate Administrator of the NTIA), Nancy Victory (head of the NTIA), and Stephen Downs (Director of the TOP Grant program) will speak at the NTIA's confence on TOP grants.
9:00 AM - 5:00 PM. Day three of a three day meeting of NIST's Computer System Security and Privacy Advisory Board (CSSPAB). See, notice in Federal Register. Preregistration is required to attend; to register, contact Elaine Frye by November 30, 2001, at elaine.frye@nist.gov or 301 975-2819. Location: NIST, Administration Building, Lecture Room B, in Gaithersburg, MD.
9:00 AM - 12:00 NOON. Day two of a two day open business meeting of the U.S. National Commission on Libraries and Information Science. See, notice in Federal Register. Location: Conference Room, NCLIS Office, 1110 Vermont Avenue, NW., Suite 820.
9:30 AM. The The U.S. Court of Appeals for the District of Columbia Circuit will hear oral argument in Channel 32 Hispanic v. FCC, No. 00-1527. Judges Edwards, Henderson and Garland will preside. Location: 333 Constitution Ave., NW.
10:00 AM. The House Judiciary Committee's Subcommittee on Commercial and Administrative Law and Subcommittee on Courts, the Internet, and Intellectual Property will hold a joint hearing on the proposed settlement agreement between NextWave, the FCC, the DOJ, and the Auction 35 winning bidders. Location: Room 2141, Rayburn Building.
10:00 AM. The Senate Judiciary Committee will hold another hearing in its ongoing series of hearings titled "DOJ Oversight: Preserving Our Freedoms While Defending Against Terrorism." These hearings began on December 28. Attorney General John Ashcroft is scheduled to testify. Sen. Patrick Leahy (D-VT) will preside. Location: Room 106, Dirksen Building.
11:00 AM. The House Science Committee will meet to mark up the Networking and Information Technology Research Advancement Act, sponsored by Rep. Sherwood Boehlert (R-NY),and the Cyber Security Research and Development Act, sponsored by Rep. Nick Smith (R-MI). Location: Room 2318, Rayburn Building.
11:00 AM. George Washington University's Democracy Online Project will host press conference. Location: National Press Club, 529 14th St., NW, 13th Floor.
12:00 NOON - 4:00 PM. George Washington University's Democracy Online Project will host a debate titled "Privacy & Online Politics: Is online profiling doing more harm than good for citizens in our political system?" The scheduled participants include Scott Harshbarger (Common Cause), Jeffrey Eisenach (Progress & Freedom Foundation), and Marvin Kalb. RSVP to dop@gwu.edu or 202 994-3219. Location: Holeman Lounge, National Press Club, 529 14th St., NW, 13th Floor.
12:15 PM. The FCBA's Online Communications Practice Committee will host a brown bag lunch. Tod Cohen, Washington Counsel and Director of Governmental Affairs for Ebay, will give an address titled "Broadband, When?" RSVP to Diane Raley. Location: Covington & Burling, 1201 Pennsylvania Avenue, NW, 11th Floor.
12:30 PM. The Federal Communications Bar Association's (FCBA) FCC Enforcement Committee will host a brown bag lunch. The speaker will be David Solomon of the FCC's Enforcement Bureau. Location: Wiley Rein & Fielding, 1750 K Street, NW, 10th Floor.
The Bureau of Export Administration will host a course titled "Essentials of Export Controls". The price to attend is $100. For more information, contact Douglas Bell at 202 482-2642. Location: Ronald Reagan International Trade Center.
6:30 -­ 7:30 PM. There will be a panel discussion on Cyber Security. The speakers will be Richard Forno (Shadowlogic), Mark Rasch (Predictive Systems), Amit Yoran (Riptech), and Declan McCullagh (Wired News). In addition, Richard Clarke (Office of Homeland Security) has been invited. A reception will follow. The event is free for National Press Club members, and $10 for others. For reservations, contact 202 662-7501 or pnelson @press.org. Location: National Press Club, 529 14th St. NW, 13th Floor.