Tech Law Journal Daily E-Mail Alert
December 14, 2001, 9:00 AM ET, Alert No. 328.
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Tauzin Dingell Bill Vote Delayed
12/12. On December 12 House Majority Leader Dick Armey (R-TX) announced that the House would vote on HR 1542, the Tauzin Dingell bill, on Friday, December 14. Also on December 12, Rep. David Dreier (R-CA), the Chairman of the House Rules Committee, stated in the House that "today a Dear Colleague letter is going to be sent to all Members informing them that the Committee on Rules is planning to meet this week to grant a rule which may limit the amendment process for HR 1542, the Internet Freedom and Broadband Deployment Act of 2001." See, Cong. Record, at H9264.
12/13. House Majority Leader Dick Armey (R-TX) announced that the House vote on the Tauzin Dingell bill has been postponed until next year -- probably March.
12/14. The U.S. Telecommunications Association (USTA), a group which is lobbying heavily for passage of the Tauzin Dingell bill, announced that it is "Enlarging the government affairs operations of USTA, doubling the number of Congressional lobbyists". It also stated that it is "Establishing tactical committees, made up of members that work closely with USTA staff to help execute legislative, regulatory, communications and PAC strategies." See, USTA release.
Sklyarov and Prosecutors Reach Agreement
12/13. The U.S. Attorney's Office (NDCal) and Dmitry Sklyarov entered into a Pretrial Diversion Agreement [PDF] in which Sklyarov admits to facts relevant to the criminal copyright law charges that are pending against him, and promises to cooperate in the prosecution of his former employer, Elcomsoft. The Agreement further provides for his release and return to Russia. It also provides that his prosecution will be deferred for one year, and if he completes his obligations under the Agreement, that charges against him will be dropped. See also, USAO release.
On August 28, 2001, a grand jury of the U.S. District Court (NDCal) returned a five count indictment [PDF] against Elcom Ltd., aka Elcomsoft Co. Ltd., and Dmitry Sklyarov for criminal violations of copyright law in connection with their marketing and sale of a program that circumvents Adobe's e-book reader. Elcomsoft and Sklyarov were charged with violation of the anti circumvention section of the Digital Millennium Copyright Act (DMCA), 17 U.S.C. § 1201. Sklyarov had also been charged by criminal complaint [PDF] with a single count of trafficking in a product designed to circumvent copyright protection measures, on July 17.
Adobe Systems makes the eBook Reader, a program which can read books in an electronic format named eBook. The program is downloadable at Adobe's web site. Users can then purchase encrypted electronic books in eBook format from online bookstores, such as Amazon.com, and read them with the eBook Reader. The books are encrypted to protect copyright interests. Elcomsoft and Sklyarov produced software that enables people to copy and read these electronic books without paying.
The indictment states that Elcomsoft, a software company based in Moscow, Russia, and Sklyarov, an employee of Elcom, designed, produced, and marketed a program named the Advanced eBook Processor (AEBPR). This program circumvents the Adobe Acrobat eBook Reader by removing all limitations on an ebook purchaser's ability to copy, distribute, and print ebooks.
Count One alleges conspiracy to traffic in technology primarily designed to circumvent and marketed for use in circumventing, technology that protects a right of a copyright owner in violation of 18 U.S.C. § 371. Counts Two and Three both allege trafficking in technology primarily designed to circumvent technology that protects a right of a copyright owner in violation of 17 U.S.C. § 1201(b)(1)(A) and 18 U.S.C. § 2. Count Four and Five both allege trafficking in technology marketed for use in circumventing technology that protects a right of a copyright owner in violation of 17 U.S.C. § 1201(b)(1(C) and 18 U.S.C. § 2.
The Pretrial Diversion Agreement contains a recitation of admissions by Sklyarov. For example, Sklyarov admits that "as part of my employment with Elcomsoft, I wrote a part of computer program titled the Advanced eBook Processor ("AEBPR"). ... The only use of the AEBPR is to create an unprotected copy of an electronic document. Once a PDF file is decrypted with the AEBPR, a copy is no longer protected by encryption. This is all the AEBPR program does."
The Agreement also attaches a copy of Sklyarov's speech at the DefCon Nine conference in Las Vegas in July that lead to his arrest. Sklyarov further agrees to be deposed under oath.
Intel and Via Settle Patent Disputes Re K7 Chipsets
12/12. Intel announced that it settled some of its pending patent infringement disputes with Via. Intel stated in its release that it "reached a settlement agreement with Via Technologies Inc. in a pending patent litigation related to chipsets that support Advanced Micro Devices microprocessors. The agreement was reached after Via redesigned its products in an effort to avoid infringing on Intel's patents. Under terms of the settlement, Intel will drop its patent infringement suit regarding U.S. Patent Nos. 5,926,651 and 5,051,622, which was scheduled for trial on Jan. 22."
Via announced in its release that "The dismissal terminates all litigation between VIA and Intel relating to VIA's K7 chipsets. While VIA has dismissed its counterclaims against Intel, no payments of any kind have been made to Intel in connection with Intel's dismissal of its remaining claim. VIA will not pay a royalty, and its K7 chipset products are no longer subject to a possible injunction arising from this litigation."
Various lawsuits in the Delaware, Texas, Germany, the United Kingdom, and Hong Kong between Intel and Via regarding Pentium 4 technology are still pending.
Microsoft Appoints Compliance Officers
12/13. Microsoft announced the appointment of two compliance officers -- Odell Guyton and David Dadoun -- to facilitate compliance with federal, state and legal obligations, including the proposed antitrust consent decree with the Department of Justice and nine states. David Dadoun is a former antitrust enforcement lawyer with the Federal Trade Commission (FTC). He will administer the Microsoft's antitrust compliance program under the proposed consent decree. See, proposed final judgment at Section IV.C. See also, MSFT release.
Nano Tech Alliance Advocates Funding for Basic Research
12/13. The Progressive Policy Institute (PPI) and the Nano Business Alliance jointly hosted a panel discussion on Capitol Hill on the public policy implications of the emerging science and business of nano technology. The panelists seek to educate legislators and government agencies on the promises of nano tech. They also advocate federal funding of basic research supporting nano tech.
The panelists were be Rob Atkinson (PPI), Mark Modzelewski (NanoBusiness Alliance), Mike Roco (National Nanotechnology Initiative), Steve Johns (Ardesta Capital), Meyya Meyyapan (NASA Ames Center for Nanotechnology), Steve Wilson (NYU Center for Advanced Materials and Nanotechnology), Stephan Maebius (Foley & Lardner), and Josh Wolfe (Lux Capital).
NASA's Meyyapan defined nano technology as "a way to create functional materials ... or a device, or a structure, or a system, at the nano scale level. But it is not just the nano scale level. ... At the nano scale the properties are going to be completely differently. We are talking about exploiting physical properties, chemical properties, mechanical properties, electrical properties, magnetic properties, biological properties." He stated that some of its major applications are in "computing, electronics, and data storage". Other panelists stated that promising applications include quantum dots, improved plastics, architecture of molecules by design, drugs that can attack specific cells, and other biomedical uses.
Meyyapan also addressed government support and funding for nano tech. He said that one of the best things that has happened for nano tech has been support from the Clinton and Bush administrations. He added that "that is very important because, actually, the companies generally will not fund something that is risky. ... So, the single most important thing is to keep the pipeline coming through, OK, on basic research on nano. That is the role of the government." He also said that other countries are spending on nano tech, and "we do not want to fall back. So, our first priority is to keep the pipeline full."
Tech Law Journal spoke with Robert Atkinson. He stated that we are "at the beginning stages of exploring nano. I think that there is no doubt that we need to appropriate more funds for it, and upgrade the initiative that we do have." He also suggested that a nano tech bill will soon be introduced in the Senate.
Patent Issues. TLJ also spoke with Stephan Maebius after the event regarding patent law issues. He stated that patent law is flexible and accommodates new technologies. Hence, changes to the patent statute will not be necessary. However, he stated that it will be important to educate patent examiners at the USPTO on these new technologies. He elaborated that this is important to ensure that quality patents will be issued, and to limit patent pendancy. The risk, said Maebius, is the issuance of an overly broad patent. He also added that the length of patent pendency might be reduced by forming a nano technology group at the USPTO. He also stated that the Congress is currently considering legislation regarding the patent re-examination process that would be relevant to nano technology patents.
Calif Supreme Court to Hear Case Re Jurisdiction Over Non Resident DeCSS Poster

12/12. The Supreme Court of California announced that it will hear an appeal in Pavlovich v. Superior Court, which is also known as the DVD copy control jurisdiction case. (Case Nos., S100809 and H021961.) See, Conference Results for 12/12/2001 [PDF] at page 1.


On August 7, 2001, the Court of Appeal of California (6) held that California's long-arm jurisdiction statute reaches owners, publishers, and operators of web sites when, in violation of California law, they make available for copying or distribution trade secrets or copyrighted material of California companies.


The issue on appeal, and in the opinion below, is not the merits of the case; it is not whether or not the defendant violated the trade secrets or copyrights of the plaintiff. Rather, the issue is whether the California courts have authority to try this case. California's long arm jurisdiction statute authorizes California courts to "exercise jurisdiction on any basis not inconsistent with the Constitution of this state or of the United States."
The DVD Copy Control Association (DVD CCA) filed a complaint in the Superior Court for Santa Clara County California against Matthew Pavlovich and others alleging misappropriation of trade secrets and other claims. Pavlovich published the DeCSS program in a web site which he owned and operated. He is not a resident of California. He also testified that he knew that the movie industry was based in California, and that DeCSS would harm that industry. He sought to quash the summons.
DVD is sometimes known as Digital Versatile Disc. CSS is a Content Scrambling System for DVD to protect intellectual property rights by means of encryption. DeCSS is a decryption tool that facilitates infringement.
Daschle Introduces Bill to Authorize Funds for Technology for Rural Police
12/12. Sen. Tom Daschle (D-SD) and Sen. Tim Johnson (D-SD) introduced S 1787, the Rural Safety Act of 2001. It was referred to the Senate Judiciary Committee. This is a bill to promote rural safety and improve rural law enforcement which includes a section on use of technology.
It authorizes appropriations of $40,000,000 over five years for grants to rural and tribal police departments to "(A) improve police communications through the use of wireless communications, computers, software, videocams, databases and other hardware and software that allow law enforcement agencies to communicate and operate more effectively; and (B) develop and improve access to crime solving technologies, including DNA analysis, photo enhancement, voice recognition, and other forensic capabilities."
People and Appointments
12/13. The members of the Federal Election Commission (FEC) elected David Mason Chairman and Karl Sandstrom Vice Chairman for 2002. See, FEC release.
12/3. The Senate confirmed Frederick Martone to be a U.S. District Court Judge for the District of Arizona by a vote of 97-0.
Friday, Dec 14
POSTPONED UNTIL NEXT YEAR. The House has tentatively scheduled a vote on HR 1542, the Tauzin Dingell bill.
8:30 - 10:00 AM. The American Enterprise Institute (AEI) will host a press breakfast on "The Role of the FCC in Restricting the Ownership of Licenses". Harold Furchtgott Roth and other AEI scholars will speak. RSVP to Veronique Rodman at 202 862-4871 or vrodman@aei.org. Location: AEI, 1150 17th Street, NW, 11th Floor Conference Room.
9:30 AM. The Senate Finance Committee will meet to continue its markup of HR 3005, the Bipartisan Trade Promotion Act of 2001. Location: Room 215, Dirksen Building.
Day two of a two day conference titled the "19th Annual Institute on Telecommunications Policy & Regulation". Location: International Trade Center.
19th Annual Institute on Telecommunications Policy & Regulation
Second Day: December 14
9:00 AM. Tutorial on FCC Legal Issues by Jane Mago and John Rogovin.
9:45 AM. Tutorial on International Issues by Donald Abelson and David Gross.
10:45 AM. Debate: The 1996 Telecommunications Act: A Failure or a Success? The moderator will be Peter Shields. The debaters will be Jeffrey Eisenach and David Leach.
11:30 AM. Panel: Telecommunications Future. The moderators will be Michele Farquhar and Richard Wiley. The panelists will be Scott Cleland, Peter Fannon, Dale Hatfield, William Kennard, Scott Marcus, and Alexandra Wilson.
Monday, Dec 17
9:00 AM - 4:00 PM. Department of Commerce's Technology Administration (TA) will host a workshop titled "Understanding Broadband Demand: Digital Content & Rights Management". Bruce Mehlman and Philip Bond of the TA will moderate. The morning session (9:15 - 11:45 AM) will address public demand for digital media. The speakers will be Brendan Traw (Intel), Andy Moss (Microsoft), Jack Valenti (MPAA), Jeff Okkonen (Liquid Audio ), Peter Fannon (Panasonic), Robert Holleyman (BSA), Victor McCrary (NIST), Dave Winston (Winston Group), Scott Sander (SightSound), William Check (NCTA), Rhett Dawson (ITIC), David Cheriton (Cisco). The afternoon session (1:15 - 3:45 PM) will address barriers to digital media online. The speakers will be Preston Padden (Disney), Elizabeth Frazee (AOLTW), Manus Cooney (Napster), Rick White (TechNet), Rick Lane (NewsCorp), Eric Scheirer (Forrester), Mark Bohannon (SIIA), Jonathan Potter (DiMA), Tim Sheehy (IBM), Gary Klein (CEA), Mitch Glazier (RIAA), Matt Gerson (Vivendi), Jenny Toomey (Future of Music Coalition), Justin Lilley (Bertelsman), Joel Wiginton (SONY). Location: Department of Commerce, 14th & Constitution Avenue, N.W., Room 4830.
Tuesday, Dec 18
12:15 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host a brown bag lunch. The speakers will be Commissioner Michael Copps' Legal Advisors: Jordan Goldstein, Paul Margie, and Susanna Zwerling. For more information contact Chris Moore at 202 224-9584 or moorecva@aol.com or Yaron Dori at 202 637-5458 or ydori@hhlaw.com.
1:30 PM. The U.S. International Telecommunication Advisory Committee (ITAC) will hold a meeting. See, notice in Federal Register, October 17, 2001, Vol. 66, No. 201, Page 52825. Location: State Department.
Wednesday, Dec 19
10:00 AM. The House Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection will hold a hearing titled Electronic Communications Networks in the Wake of September 11th. Room 2123, Rayburn Building.
10:00 AM - 12:00 NOON. The Federal Communications Commission's (FCC) Advisory Committee for the 2003 World Radiocommunication Conference (WRC-03 Advisory Committee) will hold a meeting. See, notice in Federal Register, November 26, 2001, Vol. 66, No. 227, at Page 59019. Location: FCC, 445 12th Street, SW, Room TW-C305.
Deadline to submit oppositions and comments to the FCC in response to Cingular Wireless', Nextel's, and Verizon Wireless' petitions for reconsideration of certain provisions of the FCC's October 12 orders addressing and conditionally approving requests for waivers and approval of revised deployment plans for wireless Enhanced 911 (E911) services. See, FCC Notice. (CC Docket No. 94-102.)
Deadline to submit comments to the National Telecommunications and Information Administration (NTIA) in response to its Request for Comments on Deployment of Broadband Networks and Advanced Telecommunications. See, notice.
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