Tech Law Journal Daily E-Mail Alert
April 15, 2002, 9:00 AM ET, Alert No. 410.
TLJ Home Page | Calendar | Subscribe | Back Issues
Trade Promotion Authority News
4/12. Sen. Orrin Hatch (R-UT) spoke in the Senate regarding trade promotion authority (TPA). He said that "It is my hope that the majority leader will give us a date certain when the Senate will have the opportunity to act on this important legislation. I hope that we pass TPA before Memorial Day."
TPA, which is also known as fast track, would give the President authority to negotiate trade agreements which can only be voted up or down, but not amended, by the Congress. TPA would strengthen the bargaining position of the President, and the U.S. Trade Representative (USTR), in trade negotiations with other nations. It would benefit U.S. industries, including technology industries, that export their products.
The House passed its TPA bill, HR 3005, the Bipartisan Trade Promotion Authority Act of 2001, by a roll call vote of 215 to 214, on December 6, 2001. The Senate Finance Committee passed its version of the bill later in December. Senate Majority Leader Tom Daschle has yet to schedule the bill for consideration by the full Senate.
Sen. Hatch extolled the virtues of free trade at length. He also commented on amendments to the bill. He stated that "I recognize that the reality is that the Senate will in all likelihood also act favorably on Trade Adjustment Assistance legislation -- TAA -- or the TPA bill will stall. So be it. I am for both TPA and TAA in any order, tied or untied. But let me be clear, I am not for a loaded up TAA bill with health care provisions." See, Cong. Rec., April 12, 2002, at S2627-8.
TAA is provided for in Chapter 12 of the Trade Act of 1974, 19 U.S.C. § 2101, et seq. See also, the Department of Labor's Employment and Training Administration's summary of TAA.
Also on April 12, Rep. Anna Eshoo (D-CA) and other 25 other House Democrats wrote a letter to President Bush regarding TPA and TAA.
They wrote that "While we strongly support trade, we understand that there are inevitable shifts in our economy that can result in displaced workers who need assistance and retraining to re-enter the job market. When TAA was established in 1962 the federal government committed itself to assisting workers dislocated by international trade." They continued that "As cosponsors of H.R. 3670, we urge you to embrace fundamental changes to TAA. Our bill would broaden TAA eligibility to include coverage for secondary workers."
Twenty-one of the Members who signed the letter voted against HR 3005, the House TPA bill: Rep. Anna Eshoo (D-CA), Rep. Adam Smith (D-WA), Rep. Zoe Lofgren (D-CA), Rep. Sam Farr (D-CA), Rep. Peter Visclosky (D-IN), Rep. George Miller (D-CA), Rep. Harold Ford (D-TN), Rep. Jane Harman (D-CA), Rep. Karen Thurman (D-FL), Rep. Lucille Allard (D-CA), Rep. Robert Brady (D-PA), Rep. James Barcia (D-MI), Rep. Silvestre Reyes (D-TX), Mike Honda (D-CA), Rep. Corrinne Brown (D-FL), Rep. David Wu (D-OR), Rep. Ellen Tauscher (D-CA), Rep. Ron Kind (D-WI), Rep. David Price (D-NC), and Rep. Dale Kildee (D-MI).
Only five of the signers voted in favor of passage: Rep. Ken Bentsen (D-TX), Rep. Jim Davis (D-FL), Rep. James Moran (D-VA), Rep. Baron Hill (D-IN), and Rep. Cal Dooley (D-CA).
On April 10, Sen. Evan Bayh (D-IN), Sen. Richard Durbin (D-IL), and Sen. Mark Dayton (D-MN) introduced S 2088, an untitled bill to provide for industry wide certification for trade adjustment assistance. It was referred to the Senate Finance Committee.
SEC Adopts Internet Related Rule Proposals
4/11. The Securities and Exchange Commission (SEC) adopted by votes of 3-0 two Internet related items regarding web site access to periodic SEC filings, and online investment advisors.
First, the SEC announced in a release that it "will issue for comment its proposals to accelerate the periodic report filing dates for domestic issuers and to require disclosure concerning Web site access to these reports." In particular, the SEC proposals would "require companies subject to the accelerated filing deadlines to disclose in their Form 10-K filings how investors can access company filings."
Companies would be required to disclose four items: "Whether it makes its periodic reports available free of charge on its Web site no later than the same day such material is electronically filed with or furnished to the Commission", "If the company does not make its filings available on its Web site, the reasons why", "Disclosure of the company's Web site address, if it has one", and "Other information regarding availability of the company's filings, including whether the company will provide electronic or paper copies of its filings free of charge upon request."
Second, the SEC "will issue its proposed rule amendments that would allow online investment advisers to register with the Commission, relieving them of the time and costs associated with state by state registration for public comment. The amendments would apply to Internet based advisers that provide substantially all of their investment advice through interactive Web sites where clients can enter their personal financial information and receive personalized investment advice based on a series of computer algorithms."
The SEC explained that since "online investment advisers typically do not manage client assets, they are currently ineligible for SEC registration, which requires that advisers manage at least $25 million. As a result, according to SEC staff cost benefit analysis, Internet based firms may need to spend $50,000 a year to register in every state and comply with varying state law requirements. In recommending the proposed amendments to the Commission, the Division noted that the demand for Internet based investment advice could grow in the next several years as employers respond to the increasing demand for independent advice from their pension plan participants.
Antitrust and Intellectual Property
4/10. Sen. Orrin Hatch (R-UT) and Sen. Charles Schumer (D-NY) introduced S 2082, the Playwrights Licensing Relief Act of 2002, a bill to modify the application of the antitrust laws to permit collective development and implementation of a standard contract form for playwrights for the licensing of their plays. It was referred to the Senate Judiciary Committee, of which Sen. Hatch is the ranking Republican, and Sen. Schumer is a member.
The bill would provide that "the antitrust laws shall not apply to any joint discussion, consideration, review, action, or agreement for the express purpose of, and limited to, the development of a standard form contract containing minimum terms of artistic protection and levels of compensation for playwrights by means of (1) meetings, discussions, and negotiations between or among playwrights or their representatives and producers or their representatives; or (2) joint or collective voluntary actions for the limited purposes of developing a standard form contract by playwrights or their representatives."
Sen. Hatch explained his bill in the Senate. "This bill is necessary both to ensure the continued vitality of American live theater and to protect the intellectual property and artistic rights of playwrights. ... Playwrights and their voluntary peer membership organization, the Dramatists Guild, operate under the shadow of the antitrust laws, and substantially without the ability to coordinate their actions in protecting their interests. This has impeded playwrights' ability to act collectively in dealing with highly organized and unionized groups, such as actors, directors, and choreographers, on the one hand, and the increasingly consolidated producers and investors on the other." See, Cong. Rec., April 10, 2002, at S2486.
FCC Announces Agenda of April 18 Meeting
The FCC released the agenda for its April 18 open meeting. It includes the following items:
Consideration of issues concerning Internet protocol relay service as it relates to the Interstate Telecommunications Relay Service Fund. CC Docket No. 98-67.
Consideration of a Notice of Proposed Rulemaking concerning the rural health care universal service support mechanism. WC Docket No. 02-60.
Consideration of a Report and Order and Further Notice of Proposed Rulemaking to implement sharing among multiple licensees in a new service capable of providing broadband access to the Internet over satellite facilities. IB Docket No. 01-96.
A report from the International Bureau on its role in the ITU World Telecommunications Development Conference, which concluded March 27, 2002.
NTIA Director Addresses 3G, Broadband and ICANN
4/12. National Telecommunications and Information Administration (NTIA) Director Nancy Victory gave a speech to the Federal Communications Bar Association (FCBA) in Washington DC. She reviewed the responsibilities of the NTIA, and listed the NTIA's priorities regarding spectrum management, broadband deployment, and the Internet Corporation for Assigned Names and Numbers (ICANN).
3G Wireless Services. Third generation (3G) wireless services are intended to bring broadband Internet access to portable devices. Victory stated that "With the FCC and DoD, NTIA is in the midst of conducting an assessment of the viability of making certain spectrum (1710-1770 and 2110-2170 MHz) available for 3G. We are looking into the extent to which the spectrum can be shared or cleared, the time frame for doing so and the cost. We hope to complete this assessment within the next two months. ...We will also continue to try to identify and urge the elimination of outdated and unnecessary regulations that limit the ability of existing licensees to maximize the use of their spectrum."
Broadband Deployment. Victory stated that "We in the Administration continue to be focused on how to remove obstacles to broadband deployment and how to ensure the development of sustained competition in the broadband marketplace. ... We have already identified rights of way regulation reform as an important issue and are working with industry, the states and localities to underscore best practices and eliminate worst ones."
ICANN. Finally, Victory addressed the ICANN. She said that "The creation of ICANN as a private sector entity to administer the global Internet has often been referred to as ``the great experiment.´´ ICANN has accomplished a great deal in its first few years of existence, yet all would agree that the road has been far from smooth. ICANN is now in the process of re-examining its mission and its structure. NTIA will participate in this process both through its contractual relationship with ICANN and through its membership in ICANN's Government Advisory Committee. NTIA's goal in doing so is to ensure that the Internet remains stable and secure, and that the mechanism for managing the Internet is sustainable over the long term."
Sen. Baucus Introduces Rural Spectrum Bill
4/9. Sen. Max Baucus (D-MT) and Sen. Tim Johnson (D-SD) introduced S 2075, the Rural Electromagnetic Spectrum Access Act of 2002 (RESA), a bill to facilitate the availability of electromagnetic spectrum for the deployment of wireless based services in rural areas. The bill was referred to the Senate Commerce Committee.
It would amend 47 U.S.C. § 309j by providing that "In order to facilitate the deployment of wireless based services in rural areas, the Commission shall, when more than one license is available (as determined by the Commission) within a single block of the electromagnetic spectrum, award at least one license in such block of spectrum for a rural service area (RSA) or similarly sized geographic area." (Parentheses in original.)
Sen. Baucus spoke about his bill in the Senate. He stated that "Wireless communications is revolutionizing the way we communicate. It allows us to place calls from anywhere in the world to anywhere in the world. We can check our favorite websites, and even stay in touch with family and friends through email, all without a phone line."
He continued that "Due to the way the FCC distributes spectrum, rural America is finding it more and more difficult to get quality wireless service. The current system distributes spectrum on very large geographic areas, which in effect, inhibits certain carriers from participating in wireless auctions. Since the geographic licensing areas are so large and the price for the spectrum is equally as large, rural carriers often find it difficult bidding on the spectrum. My legislation will correct this inequity."
He concluded that "RESA requires the Federal Communications Commission, in future auctions, to distribute spectrum on smaller geographic levels. It does not favor one type of carrier over another, or pick which carrier can serve which areas. Rather, it simply allows carriers to bid on spectrum that they find difficult under today's system." See, Cong. Rec., April 9, 2002, at S2414.
Spectrum Auctions 31 and 34
4/10. Tom Sugrue, Chief of the Federal Communications Commission's (FCC) Wireless Telecommunications Bureau, sent a letter [PDF] to Tom Wheeler, P/CEO of the Cellular Telecommunications & Internet Association (CTIA) denying the CTIA's request for an indefinite postponement of the FCC's auction of licenses in the Upper and Lower 700 MHz bands, Auction Numbers 31 and 44.
The CTIA's Wheeler criticized this FCC decision. He stated in a release that "it is mind boggling that the FCC would deny an auction delay that was requested in the President's budget, assumed by the Senate Budget Committee, and that would help provide better public safety ... Going forward with a June auction severely limits the ability to develop a rational spectrum management policy. Once this valuable block of spectrum had the potential to be part of the solution to the spectrum crisis; this decision just made it part of the problem."
Entities seeking to participate in Auction Nos. 31 and 44 must submit short form applications by May 8, 2002.
People and Appointments
4/11. The Senate Judiciary Committee voted 19-0 to confirm three judges: Terrence O'Brien (U.S. Court of Appeals for the Tenth Circuit), Lance Africk (U.S. District Court for the Eastern District of Louisiana), and Legrome Davis (U.S. District Court for the Eastern District of Pennsylvania). These nominees still require confirmation by the full Senate.
4/12. The Senate confirmed five U.S. Attorneys: Michael Shelby (Southern District of Texas), Jane Boyle (Northern District of Texas), Matthew Orwig (Eastern District of Texas), James Comey (Southern District of New York), and Thomas Marino (Middle District of Pennsylvania).
4/12. National Telecommunications and Information Administration (NTIA) Director Nancy Victory announced that Jack Zinman will join the NTIA as her Senior Advisor on May 1. He has worked at the Federal Communications Commission (FCC) since 1997, most recently in the Common Carrier Bureau on universal service issues, and before that, in the Wireless Telecommunications Bureau on spectrum issues. See, Victory speech.
4/12. AT&T announced the appointment of Donald Teague to lead its sales team providing communications and professional services to the civil branch of the federal government. See, AT&T release.
More News
4/11. The Senate Judiciary Committee held an executive business meeting on Thursday, April 11. The Committee had scheduled a vote on S 2031, Intellectual Property Protection Restoration Act of 2002, sponsored by Sen. Patrick Leahy (D-VT) and Sen. Sam Brownback (R-KS). However, at the request of Sen. Orrin Hatch (R-UT), the matter was held over. The purpose of this bill is to prevent states from infringing patents, copyrights and trademarks. It would prevent states from recovering damages for infringement of state owned intellectual property, unless they have first waive their 11th Amendment sovereign immunity from suits against them for their infringement of the intellectual property of others.
4/12. Verizon announced that it notified the Maryland Public Service Commission (PSC) that it plans to file a Section 271 application with the Federal Communications Commission (FCC) to offer in region interLATA services in the state of Maryland. Verizon seeks the Maryland PSC's support for providing long distance services.
4/12. Computer Associates International (CAI) stated in a release that "it has been informed that previously disclosed inquiries by the United States Attorney's Office and Securities and Exchange Commission are preliminary, that no one has been identified as a target, and that no conclusions have been reached." CAI stated also that "it continues to believe that its accounting for revenues from multiyear software licensing agreements, which it had consistently applied since the early 1980s, was proper. Recognizing such revenue up front was not only required by GAAP but also consistent with the practice of most software companies even today."
About Tech Law Journal
Tech Law Journal publishes a free access web site and subscription e-mail alert. The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year. However, there are discounts for entities with multiple subscribers. Free one month trial subscriptions are available. Also, free subscriptions are available for law students, journalists, elected officials, and employees of the Congress, courts, and executive branch, and state officials. The TLJ web site is free access. However, copies of the TLJ Daily E-Mail Alert and news items are not published in the web site until one month after writing. See, subscription 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.
Monday, April 15
The House will meet in pro forma session at 2:00 PM.
The Senate will meet at 1:00 PM.
The Supreme Court returns from recess.
Extended deadline to submit comments to the FTC regarding proposed changes to its Telemarketing Sales Rule. See, notice in Federal Register and FTC release.
Tuesday, April 16
The House will meet at 12:30 PM for morning hour and 2:00 PM for legislative business. No votes are expected before 6:30 PM. The House will consider a number of measures under suspension of the rules.
9:30 AM. The Senate Commerce Committee will hold a hearing to examine the Technology Administration and the National Institute of Standards and Technology (NIST), including the Advanced Technology Program. Location: Room 253, Russell Building.
10:00 AM. The Senate Health, Education, Labor, and Pensions Committee will hold a hearing to examine medical privacy issues. Location: Room 216, Hart Building.
6:00 - 8:15 PM. The FCBA will host a CLE seminar titled U.S. Spectrum Policy: Convergence or Co-Existence? This is Part II of a two part series.
6:30 - 8:30 PM. The IP Law Forum of the Women's Bar Association of DC (WBA) and the IP Section of the District of Columbia Bar will host a panel discussion and reception titled "What Judges Want: Effective Advocacy in Technology Cases". The speakers will be Judge Paul Michel of the U.S. Court of Appeals (FedCir), Judge Yvette Kane of the U.S. District Court (WDPenn), and Judge Marvin Garbis of the U.S. District Court (DMd). The price to attend is $40. For more information, contact the WBA at 202 639-8880. Location: Auditorium, The Hirshhorn Museum, 7th Street and Independence Ave., SW.
Wednesday, April 17
The House will meet at 10:00 AM for legislative business.
10:00 AM. The House Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary will hold a hearing on the proposed budget for FY 2003 for the SEC. Location: Room H-309, The Capitol.
2:00 PM. The House Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary will hold a hearing on the proposed budget for FY 2003 for the FCC. Location: Room H-309, The Capitol.
9:00 AM. Oral argument on cross motions for summary judgment in Swedenburg v. Kelly, a constitutional challenge by a Virginia winery and wine consumers to New York State's liquor control law, which prohibits out of state wineries from selling directly to New York residents, including via the Internet. Location: U.S. District Court, Southern District of New York, New York, NY.
9:30 AM - 12:00 NOON. The U.S. International Telecommunication Advisory Committee (ITAC), which advises the Department of State on policy and technical issues with respect to the International Telecommunication Union (ITU), will meet to prepare for the June 2002 meeting of the Telecommunication Sector Advisory Group (TSAG). Location: Alliance for Telecommunications Industry Solutions (ATIS), 1200 G Street NW, Suite 350.
10:00 AM. The FEC will hold a hearing regarding voting system standards. See, notice in Federal Register.
12:15 PM. The FCBA's Mass Media Committee will host a brown bag lunch. The speaker will be Jane Mago, FCC General Counsel. RSVP to: kdole @npr.org. Location: 1st Floor, NPR, 635 Mass Ave., NW.
12:15 PM. The FCBA's Online Communications Committee will host a brown bag lunch. The speaker will be Scott Marcus, Senior Advisor for Internet Technology at the Federal Communications Commission's (FCC) Office of Plans and Policy. The title will be "Broadband, When? -- A View from OPP". RSVP to Scott Harris at sharris @harriswiltshire.com. Location: Wiley Rein & Fielding, 1776 K St., NW, 4th Floor Conference Room.
2:00 - 3:00 PM. The FCBA's International Practice Committee will host an event titled "Today's International Issues". The speaker will be FCC Commissioner Michael Copps. RSVP to Scott Harris. Location: FCC, 445 12th Street, SW.
Thursday, April 18
The House will meet at 10:00 AM for legislative business.
8:30 AM. Rep. Joe Knollenberg (R-MI) will speak at a breakfast hosted by the Greater Washington Board of Trade's Federal PAC and CapNet. RSVP to either JaimeHjort @bot.org or 202 857-5909. Location: Greater Washington Board of Trade Board Building, 1129 20th Street, NW, Suite 200.
8:30 AM - 4:00 PM. The Progress and Freedom Foundation will host an event titled "Digital Online Content: Creating a Market that Works". James Rogan, Undersecretary of Commerce for Intellectual Property, will speak. Location: J.W. Marriott Hotel, 1331 Pennsylvania Ave, NW.
9:30 AM. The FCC will hold a meeting. See, agenda. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).
9:30 AM. The Senate Commerce Committee will hold an executive session. Location: Room 253, Russell Building.
9:30 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host a pair of panel discussions titled "Gene Related Inventions: Evolving Patent Standards and Their Consequences". The first panel will address "Science, Economics, and Patent Law". The panelists will be Lee Bendekgey (Incyte Genomics), Iain Cockburn (Boston University), and Rochelle Seide (Baker Botts). The second panel will be titled "Perspectives from the Patents and Trademark Office and Capitol Hill". The panelists will be John Doll (USPTO), Chris Katopis (House Subcommittee on Courts, the Internet, and Intellectual Property), Maureen Mellody (office of Rep. Howard Berman (D-CA)), and Gerald Mossinghoff (Oblon Spivak). See, agenda and online registration page. Location: 12th Floor, AEI, 1150 17th Street, NW.
Day one of a two day ALI-ABA course for inside and outside counsel titled "Trademarks, Copyrights, and Unfair Competition for the General Practitioner and the Corporate Counsel". The price to attend is $685. See, online brochure. Location: Loews L'Enfant Plaza.
Day one of a two day conference titled "IT Law and the Response to Terror: New Laws, Rules and Strategies". The event is hosted by the Computer Law Association and the FCBA. See, online brochure [PDF]. Location: Monarch Hotel, 2401 M Street NW.
Friday, April 19
The House will not be in session.
9:00 AM - 5:15 PM. The George Washington University Law School (GWULS) will host an event titled Symposium on Patents and Standard Setting. See, agenda in GWULS web site, and at right. Registration is required. For more information, contact Prof. Martin Adelman at madelman @main.nlc.gwu.edu. Location: GWULS, Moot Court Room, 2000 H Street, NW.
12:00 NOON - 2:00 PM. The Progress and Freedom Foundation will host an event titled "Privacy Online: A Report on the Internet Practices and Policies of Commercial Websites".  Location: Rayburn House Office Building.
Day two of a two day ALI-ABA course for inside and outside counsel titled "Trademarks, Copyrights, and Unfair Competition for the General Practitioner and the Corporate Counsel". The price to attend is $685. See, online brochure. Location: Loews L'Enfant Plaza.
Day two of a two day conference titled "IT Law and the Response to Terror: New Laws, Rules and Strategies". The event is hosted by the Computer Law Association and the FCBA. See, online brochure [PDF]. Location: Monarch Hotel, 2401 M Street NW.
Deadline to submit reply comments to the FCC (FCC) regarding its annual report to Congress regarding progress made in achieving the objectives of the Open Market Reorganization for the Betterment of International Telecommunications Act (ORBIT Act), 47 U.S.C. § 646. The next FCC Orbit Act report is due to Congress on June 15, 2002. See, FCC notice [PDF].
Deadline to register to attend the "Copyright Conference" hosted by the USPTO, the purpose of which is to "discuss current domestic and international issues vital to the development of e-commerce with members of the business and intellectual property communities." See, USPTO notice. Registration is required.