| Motorola & Nokia Sue
Turkish Cellular Company for RICO Violations and Computer
Hacking |
1/28. Motorola Credit Corporation and Nokia Corporation filed a complaint
in U.S. District Court (SDNY)
against Kemal Uzan, other members of the Uzan family, and
corporations controlled by the Uzan family, regarding cellular
communications deals in the nation of Turkey. Motorola and
Nokia allege "theft of more than $3 billion".
The complaint states that the defendants, who are politically
well connected in Turkey, were awarded a Global System for
Mobile Telephony (GSM) license by the Turkish government.
Motorola then provided defendants loans to obtain base
stations from Motorola, and Nokia provided loans to obtain
switching equipment from Nokia. This equipment was then used
to build a GSM and 2.5G wireless telecommunications system in
Turkey. However, Motorola and Nokia did not get paid up front.
And now, they allege they have been defrauded out of $3
Billion.
The complaint states that the defendants borrowed from
Motorola and Nokia, and then intentionally and illegally
diluted the value of stock pledged as collateral for the
loans. The complaint also alleges that defendants manufactured
transactions to transfer assets from the debtor companies.
The complaint alleges numerous violations of the Racketeer
Influenced and Corrupt Organizations Act (RICO), 18
U.S.C. § 1962. It alleges that the predicate acts of
racketeering are mail fraud, wire fraud, extortion,
intimidation and computer hacking.
Computer Hacking. Count 8 alleges fraud in connection
with computers in violation of the Computer Fraud and Abuse
Act, 18
U.S.C. § 1030(a)(4). Count 9 alleges interception of
electronic communications in violation of the Electronic
Communications Privacy Act, 18
U.S.C. § 2511(1)(a). Count 10 alleges X unlawful access
to stored electronic communications in violation of the
Electronic Communications Privacy Act, 18
U.S.C. § 2701(a)(2).
The complaint states that defendants twice recruited employees
of Motorola Turkey to hack into the computer system of
Motorola Inc. to obtain unauthorized access to proprietary and
confidential information about Motorola Inc. and its
customers. The complaint further states that the target of the
hacking was "Motorola Inc.’s global customer contacts
outside of North America", and that the second attempt
succeeded. The allegations of fact pertaining to computer
hacking are found at ¶¶ 165- 176.
Motorola's General Counsel, Peter Lawson, stated in a release
that "We are taking the unusual step of jointly filing
this action because it is clear to both companies that the
Uzans had no intention of dealing in good faith with us in an
effort to resolve this situation. ... This action is in
recognition that this is not a normal commercial dispute
between private parties - it is, rather, a premeditated and
unlawful attempt by the Uzans to rob both Motorola and Nokia
of our assets."
Motorola seeks compensatory damages of over $2 Billion. Nokia
seeks compensatory damages of $700 Million. Both also seek
treble damages under RICO, and punitive damages, and well as
declaratory and injunctive relief.
The complaint contains 343 numbered paragraphs. It runs 117
pages as filed, excluding exhibits. It also alleges alleges
fraud, and violations of Illinois state law. |
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| TOP Grants |
1/29. The National
Telecommunications and Information Administration (NTIA)
published a notice
in the Federal Register regarding the availability of Technology Opportunity
Program (TOP) grants for FY 2002. All grants awarded for
FY 2001 involved projects that make some use of the Internet.
Some funded projects provide medical, public housing, and
other information through web sites. Other projects provide
networking and training. See, NTIA list
of grantees for FY 2001.
Grant applications for FY 2002 are due by 8:00 PM EST, on
March 21, 2002. See, Federal Register, January 29, 2002, Vol.
67, No. 19, at Page 4240. |
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| State of the Union Address |
1/29. President Bush delivered the State
of the Union address to a joint session of the Congress.
He focused on the war against terrorism, homeland defense, and
the state of the economy. However, he also briefly touched
upon two technology related issues.
He stated that "We will improve intelligence collection
and sharing, expand patrols at our borders, strengthen the
security of air travel and use technology to track the
arrivals and departures of visitors to the United
States." However, he did not elaborate further on the use
of technology.
He also urged the Senate to pass legislation granting the
President trade promotion authority, which is also known as
fast track. He stated that "Good jobs depend on expanded
trade. Selling into new markets creates new jobs, so I ask
Congress to finally approve Trade Promotion Authority."
The House has already passed its TPA bill, HR 3005.
Sen. Charles Grassley
(R-IA) issued a release in which commented on the State of the
Union address. It stated that he would "continue to work
to advance trade promotion authority for the President, noting
free trade is key to creating jobs." Sen. Grassley is the
ranking Republican on the Senate Finance
Committee, which has jurisdiction over TPA legislation. |
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| EPIC Seeks Government
Investigations of Microsoft's Passport |
1/29. The Electronic Privacy
Information Center (EPIC) announced that it will continue
its efforts to induce government regulators to investigate
Microsoft in connection its Passport and related services. It
urged state attorneys general to take action under state
unfair and deceptive trade practices statutes. It will also
file a complaint with the FTC pertaining to the EU safe harbor
provisions.
Last year, the EPIC unsuccessfully sought a Federal Trade Commission (FTC)
investigation. See, original complaint
[PDF] submitted on July 26, 2001, and updated
complaint [PDF] submitted on August 15. EPIC requested
that the FTC conduct an investigation of Microsoft, and enjoin
a number of software features and services, that EPIC alleges
violate § 5 of the Federal Trade Commission Act, 15 U.S.C.
§ 45. However, the FTC has not publicly announced that it
has taken any action with respect to these complaints.
EPIC alleged in its complaints that this "concerns the
privacy implications of the Microsoft XP operating system that
is expected to become the primary means of access for
consumers in the United States to the Internet. ... Microsoft
has engaged, and is engaging, in unfair and deceptive trade
practices intended to profile, track, and monitor millions of
Internet users. Central to the scheme is a system of services,
known collectively as ``.NET,´´ which incorporate
``Passport,´´ ``Wallet,´´ and ``HailStorm´´ that are
designed to obtain personal information from consumers in the
United States unfairly and deceptively. The public interest
requires the Commission to investigate these practices and to
enjoin Microsoft from violating Section 5" of the FTCA.
EPIC Legislative Counsel Chris Hoofnagle stated in a
teleconference on January 29 that the EPIC is pursuing two
other strategies. First, it just sent a letter
to state attorneys general urging them "to take action to
protect consumers against unfair and deceptive trade practices
raised by Microsoft Corporation’s Passport service ..."
Second, Hoofnagle stated that EPIC intends to submit another
complaint to the FTC in which it will allege that Microsoft's
actions violate the safe harbor provisions of the EU directive
on data protection.
Hoofnagle added that Microsoft is violating federal and state
unfair and deceptive trade practices laws by not disclosing
the security risks associated with Microsoft's Passport.
However, he conceded that while there have been numerous
security breaches involving the loss of personal information,
none have involved Microsoft's Passport. He also stated that
EPIC will not file its own private lawsuit against Microsoft. |
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| More News |
1/29. The Federal
Communications Commission (FCC) released its it annual report
[PDF] titled "Telecommunications Industry Revenues:
2000".
1/29. The General Accounting
Office (GAO) released a report [PDF]
titled "Defense Acquisitions: Collection and Reporting of
Information Technology Purchases". The Floyd Spence
National Defense Authorization Act for FY 20011 directed the
Secretary of Defense to collect specific procurement data on
the purchase of information technology products and services
made by the military services and defense agencies, and to
issue his first annual report to the Armed Services Committees
by March 15, 2002. This brief report concludes that the DOD is
making good progress in meeting these requirements.
1/28. The U.S.
Court of Appeals (6thCir) issued its opinion
in CDI
v. Reno, an H1B visa case. Prakash
Vaideeswaran received a non-immigrant, temporary employee visa
pursuant to 8 U.S.C. § 1101(a)(15)(H)(i)(b). That is, he held
an H1B visa that enabled him to work for a computer company.
The Immigration and Naturalization Service (INS) denied a
request to extend this visa on the grounds that he had moved
from Oregon to Hawaii. The District Court upheld the INS
decision. The Appeals Court ruled that it lacked jurisdiction.
It referred to 8 U.S.C. § 1252(a)(2)(B)(ii), which provides
that "no court shall have jurisdiction to review . . .
(ii) any other decision or action of the Attorney General the
authority for which is specified under this subchapter to be
in the discretion of the Attorney General ..."
1/29. The U.S.
Court of Appeals (FedCir) issued its opinion in In
Re Kenneth Berger. Berger filed a patent
application which described a shape for beverage cans. The
patent examiner rejected certain claims, pursuant to 35
U.S.C. § 112, for being indefinite. The U.S. Patent and
Trademark Office Board of Patent Appeals and Interferences
affirmed. The Appeals Court affirmed. |
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| About Tech Law Journal |
Tech Law Journal publishes a free access web site and
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to the TLJ Daily E-Mail Alert is $250 per year. However, there
are discounts for entities with multiple subscribers. Free one
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information page.
Contact: 202-364-8882; E-mail.
P.O. Box 4851, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998 - 2002 David Carney, dba Tech Law Journal. All
rights reserved. |
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| Wednesday, Jan 30 |
The House will not be in session. (The Republican retreat is
being held on January 30 and 31.)
Day three of the COMNET Conference & Expo. Location:
Convention Center.
Day one of the 2nd Annual Privacy & Data Security Summit,
sponsored by the International
Association of Privacy Officers. See, online
brochure [PDF]. Location: Hyatt Regency, 400 New Jersey
Ave., NW.
8:45 AM - 3:45 PM. The NIST
Advanced Technology Program Advisory Committee will hold a
partially closed meeting. See, notice
in Federal Register. Location: NIST, Administration Building,
Employees' Lounge, Gaithersburg, MD.
9:00 AM. The Global Business Dialogue will host a press
conference on the Foreign Sales Corporation (FSC) tax regime.
For more information, contact Judge Morris at 202 463-5075.
Location: First Amendment Room, National Press Club, 529 14th
St. NW, 13th Floor.
10:00 AM. The SEC, NASD Regulation, FTC
and NASAA
will hold a media briefing regarding online investor education
initiatives. Location: Room 1C-30 (Douglas Room), SEC, 450 5th
Street, NW. See, notice.
POSTPONED TO FEB 6. 10:00
AM - 12:00 NOON. The FCC's Advisory Committee for the 2003
World Radiocommunication Conference will meet. See, notice
of postponement [PDF].
12:15 PM. The FCBA's
Cable Practice Committee will host a luncheon. The speaker
will be Stacy Robinson, Mass Media Legal Advisor to FCC
Commissioner Kathleen
Abernathy. The price to attend is $15. RSVP to Wendy
Parish at wendy@fcba.org.
Location: National Cable & Internet Association, 1724
Mass. Ave., NW. |
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| Thursday, Jan 31 |
The House will not be in session. (The Republican retreat is
being held on January 30 and 31.)
Day two of the 2nd Annual Privacy & Data Security Summit,
sponsored by the International
Association of Privacy Officers. See, online
brochure [PDF]. Location: Hyatt Regency, 400 New Jersey
Ave., NW. Highlights include:
• 8:15 AM. Howard Beales (FTC Bureau of Consumer
Protection) will speak on "Privacy Regulation and the
Federal Trade Commission".
• 8:45 AM. Phillip Bond (Dept.
of Commerce) will speak on "Privacy and
Commerce".
• 9:15 AM. Amy Friend (Office of the Comptroller of
the Currency) will speak on "Privacy and Financial
Affairs".
• 9:45 AM. Kathleen Fyffe (HHS Dept.) will speak on
"Healthcare Privacy, Security and HIPAA Compliance".
• 10:15 AM. Daniel Collins (Justice Dept.) will speak on
"Prosecuting Privacy Violations".
• 12:30 PM. Panel titled "Privacy in America
Following the Terrorist Attacks on the WTC and the
Pentagon". The participants will be Agnes Scanlan
(FleetBoston Financial), Gary Clayton (Privacy Council), James
Harper (Privacilla.org),
John Kamp (Wiley Rein &
Fielding), Mark Rotenberg (EPIC),
David Stampley (Office of the NY Attorney General), Zoe
Strickland (USPS), Bruce Johnson
(Davis Wright Tremaine).
10:00 AM - 12:00 NOON. The ITAA's
Telecommunications Committee will meet. For more information,
contact Thomas Vincent at tvincent@itaa.org.
Location: ITAA, 1401 Wilson Blvd., Suite 1100, Arlington, VA.
12:30 PM. John Browne, the Director of the Los Alamos National Laboratories,
will speak at a luncheon. Location, Ballroom, National Press Club, 529 14th
St. NW, 13th Floor.
12:30 - 2:00 PM. The FCBA's
International Practice Committee will host a brown bag lunch
with FCC Commissioner Kathleen
Abernathy. Location: FCC, 445 12th St, SW, 8th Floor,
Conference Room 1.
1:00 - 3:30 PM. The FCC's WRC-03 Advisory Committee, Informal
Working Group 7: Regulatory Issues and Future Agendas, will
meet. Location: The Boeing Company, 1200 Wilson Boulevard,
Arlington, VA.
7:00 - 8:00 PM. There will be a panel discussion titled
"The State of Online Journalism" featuring Rich
Jaroslovsky (Wall Street Journal) and Doug Feaver (Washington
Post). Location: National
Press Club, 529 14th St. NW, 13th Floor. |
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| Friday, Feb 1 |
The House will meet at 10:00 AM in pro forma session only.
Day three of the 2nd Annual Privacy & Data Security
Summit, sponsored by the International
Association of Privacy Officers. See, online
brochure [PDF]. Location: Hyatt Regency, 400 New Jersey
Ave., NW.
12:30 PM. The FCBA will
host a luncheon. The speaker will be FCC Commissioner Kevin Martin.
There will be a reception at 12:00 NOON. The price to attend
is $45 for FCBA members, $35 for government and law student
members, and $55 for non-members. Registrations and
cancellations due by 5:00 PM on Tuesday, January 29. To
register, contact Wendy Parish at wendy @fcba.org. Location:
Capital Hilton Hotel, 16th & K Streets NW.
12:30 - 2:00 PM. Harold Furchtgott
Roth will give a speech titled "A Tough Act to
Follow: The Telecommunications Act of 1996". To register,
contact Linzey Powers at lpowers
@aei.org. Location: AEI, Twelfth floor, 1150 17th St., NW.
Deadline to submit comments to the FEC in response to
its requests comments on the second draft of the revisions to
the 1990 national voluntary performance standards for
computerized voting systems and the first draft of the
revisions to the 1990 national test standards. See, notice
in Federal Register.
12:00 NOON. Extended deadline to submit comments to the Office
of the USTR regarding
the operation and effectiveness of the WTO
Basic Telecommunications Agreement, the telecommunications
provisions of the NAFTA, and other telecommunications trade
agreements. This request for comments is pursuant to an annual
review of telecom agreements required by Section 1377. See,
original notice
and supplemental
notice in Federal Register. |
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| Monday, Feb 4 |
9:00 AM. The Cato Institute
will release a study titled "The Digital Dirty
Dozen" which lists and evaluates the worst high tech
legislative proposals of this Congress. The speakers will be Wayne Crews
and Adam
Thierer. This study will be released at an invitation only
press breakfast. For more information, contact Jerry Brito at
202 218-4621. Location: Cato, 1000 Mass. Ave., NW.
10:00 AM. The U.S. Court of
Appeals (FedCir) will hear oral argument in Telecom
Technical Services v. Siemens Rolm. Plaintiffs sued
Seimens alleging violation of federal antitrust laws; they
alleged monopolization of alleged markets for telecom
equipment; they also sought class action status. Seimens
asserted various counterclaims, including patent infringement.
The U.S.
District Court (NDGa) denied class action status.
Location: Room 201, 717 Madison Place.
Deadline to submit petitions and comments to the FCC's Cable Services Bureau
regarding the applications of Hughes Electronics Corporation
and EchoStar Communications Corporation to the FCC requesting
consent to the transfer of control of licenses and
authorizations involved in the EchoStar DirecTV merger. See,
FCC notice
[MS Word]. Oppositions and responses are due by February 25,
2002. This is CS Docket No. 01-348. |
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| Tuesday, Feb 5 |
9:30 AM. The U.S.
Court of Appeals (DCCir) will hear oral argument in EchoStar
v. FCC, No. 01-1032. Judges Ginsburg, Edwards and Sentelle
will preside.
RESCHEDULED FOR FEB 12. 12:15
PM. The FCBA's
Transactional Practice Brown Committee will host a brown bag
lunch on wireless transactions.
1:30 PM. The U.S. International Telecommunication Advisory
Committee (ITAC) will hold a meeting. See, notice
in Federal Register. Location: State Department.
4:00 PM. The Cato Institute
will host a book forum on Against
the Dead Hand: The Uncertain Struggle for Global Capitalism
[Amazon], by Brink
Lindsey (Senior Fellow at the Cato Institute). The
commenters will be Robert Zoellick (U.S. Trade Representative),
Sebastian Mallaby (The Washington Post), and Douglas Irwin
(Dartmouth University). See, online
information and registration page. Location: The Cato
Institute, 1000 Massachusetts Ave., NW.
Deadline to submit applications to the NTIA
for planning and construction grants for public
telecommunications facilities under the Public
Telecommunications Facilities Program (PTFP) for FY 2002. See,
notice
in Federal Register. |
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