Tech Law Journal Daily E-Mail Alert
April 19, 2002, 9:00 AM ET, Alert No. 414.
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Hollings Introduces Bill to Regulate Online Information Practices
4/18. Sen. Ernest Hollings (D-SC) introduced S 2201, the Online Personal Privacy Act 2002, a bill that would impose broad regulation of ISPs, online service providers, and commercial web site operators in their collection and dissemination of information. See, Sen. Hollings' section by section summary, and statement in the Senate.
The provides that before an Internet service provider, online service provider or commercial website operator could collect or disclose an individual's sensitive personally identifying information (including health information, race or ethnicity, political party affiliation, religion, social security number, or financial information) it would have to first get affirmative consent from the individual.
The bill also requires that individuals be given access to their personally identifying information.
The bill preempts related state laws.
The bill gives civil enforcement authority to the Federal Trade Commission (FTC). The bill also allows lawsuits by states and individuals for injunctive relief and monetary damages.
The bill is cosponsored by nine other Senators, who are mostly Democrats, and mostly members of the Senate Commerce Committee. The initial cosponsors are Conrad Burns (R-MT), John Kerry (D-MA), Ted Stevens (R-AK), Jay Rockefeller (D-WV), Daniel Inouye (D-HI), John Breaux (D-LA), Max Cleland (D-GA), Bill Nelson (D-FL), and Jean Carnahan (D-MO).
The Hollings bill was quickly condemned by technology and business groups. Harris Miller, President of the Information Technology Association of America (ITAA), stated in a release that "The Hollings bill is a static solution to a problem that is constantly changing. Such an approach might work if good guys and bad guys all agreed to play by the same privacy and security rules and the technology itself never changed. None of these things will ever happen. Instead, this bill would force online businesses to operate with rules different from their brick and mortar counterparts and, in the process, creates the best kind of target to shoot at: one that stands still."
Ed Black, President of the Computer & Communications Industry Association (CCIA) stated that "this legislation continues to advocate unworkable, unwise, and extremely onerous policies that would significantly transform the Internet and e-commerce as we know it. We also object to the discriminatory nature of the legislation, in that it subjects Internet companies and websites to harsher treatment than offline collectors of information".
Bruce Josten, EVP of the U.S. Chamber of Commerce, stated in a release that "We must not legislate privacy laws that are ineffective or hinder the growth of online commerce ... This proposal is nothing more than a solution in search of a problem."
Sen. Hollings, who is Chairman of the Senate Commerce Committee, has scheduled a hearing on his bill before his Committee for Thursday, April 25 at 9:30 AM.
FCC Holds Open Meeting
4/18. The Federal Communications Commission (FCC) held a meeting at which it announced the adoption of several items pertaining to satellite services, subsidies for rural health care providers, and telecommunications relay services. See, agenda.
The FCC announced that it adopted a Report and Order for licensing new satellite services in shared Ku-band frequencies, 10.7 GHz - 14.5 GHz. The FCC also announced that it adopted a Further Notice of Proposed Rulemaking (NPRM) that proposes a methodology for the licensees to demonstrate, in the aggregate, that their systems are within a limit on the total power that can be emitted by the Ku-band NGSO FSS service. The NPRM also seeks comment on whether the definition of in-line interference events adopted in the Order should be adjusted with respect to higher powered transmitters. This is IB Docket No. 01-96. See, FCC release.
The FCC also announced that it adopted a NPRM seeking comment on how to improve the rural health care universal service mechanism, which helps rural health care providers obtain access to telecommunications and information services for medical and health maintenance purposes. This is CC Docket No. 02-60. See, FCC release.
The FCC also announced that it adopted a Declaratory Ruling and Second Further NPRM regarding Telecommunications Relay Services (TRS). The FCC authorized the recovery of all Internet protocol relay costs from the Interstate TRS Fund, and asked for pubic comments on whether the FCC should attempt to devise a method for allocating calls as intrastate or interstate, and, if so, how to accomplish this goal. See, FCC release.
Evans Writes FCC Re Auction Postponement
4/18. Secretary of Commerce Donald Evans wrote a letter to Federal Communications Commission (FCC) Chairman Michael Powell regarding the FCC's decision not to postpone its auctions in the upper and lower 700 MHz bands, Auction Numbers 31 and 44..
He wrote "to urge the Commission to postpone the auctions in the Upper and Lower 700 MHz bands currently scheduled for June 19, 2002. While I applaud your recent ``Proposal for Voluntary Industry Actions to Speed the Digital Television Transition´´ as a call to action that I am hopeful industry will heed, significant uncertainty remains today about the date on which the spectrum in these bands will become available for new wireless services. Until more certainty exists about the means for and timing of such spectrum clearing, an auction of the Upper and Lower 700 MHz bands would be premature and contrary to public interest."
The Cellular Telecommunications and Internet Association (CTIA) praised the Evans letter. It wrote in a release that "The Administration is sounding its message loud and clear -- again. The 700 MHz spectrum auction is simply premature at this point. Commerce Secretary Evans has underscored the reality that conducting this auction now is inconsistent with efficient spectrum management, and with the Administration’s efforts to further spectrum reform. We hope the FCC can read the writing on the wall ..."
Tom Sugrue, Chief of the FCC's Wireless Telecommunications Bureau, sent a letter [PDF] on April 10 to Tom Wheeler, P/CEO of the CTIA denying the CTIA's request for an indefinite postponement.
Meanwhile, several members of the House Commerce Committee may introduce a bill next week to require postponement of the auction.
NTIA Director Addresses Spectrum Management
4/18. National Telecommunications and Information Administration (NTIA) Director Nancy Victory gave a speech in which she addressed government management of spectrum. She reviewed comments made at a spectrum summit hosted by the NTIA on April 4-5. She also spoke vaguely about "issue areas that should figure prominently" in the NTIA agenda.
Victory advocated "trust, collegiality and cooperation" among federal agencies involved in spectrum management. She also advocated "modernizing spectrum policies" and "forward looking policies". She also stated that "We need to remove the clouds over spectrum availability" and that the NTIA will continue to study possible bands for use by 3G services.
She spoke at a conference titled "The Response to Terror: New Laws, Rules and Strategies for IT and Telecom" that was hosted by the Computer Law Association and the Federal Communications Bar Association (FCBA) in Washington DC.
FTC Commissioner Anthony Addresses Deceptive Sales Via the Internet
4/16. Federal Trade Commission (FTC) Commissioner Sheila Anthony gave a speech titled "Combating Deception in Dietary Supplement Advertising" to the Food and Drug Law Institute 45th Annual Educational Conference in Washington DC.
She stated the the FTC's "law enforcement plate is very full as a result of the explosion in growth of the dietary supplement industry." She added that one of the reasons for this is that "The Internet has made it easier for snake oil salesmen to sell their products because it allows marketers, both large and small, to go global."
She continued that "One of the ways the Commission attempts to deal with that is through our ``surfs.´´ Our staff, together with other law enforcement agencies, conducts Internet surfs by searching for specific disease claims. When we find a site making dubious therapeutic claims, we send an email advisory to the website alerting it to the questionable nature of certain claims. The email also provides links to resources to help the site determine if it is in compliance with the law. Later, staff checks back and finds one of three things: the site is gone, the site modified its claims, or the site has ignored us. In some cases, those that have ignored our warning become law enforcement targets."
Sen. Wyden Introduces Cyber Security Research and Education Bill
4/17. Sen. Ron Wyden (D-OR) introduced S 2182, the Cyber Security Research and Development Act, a bill to authorize funding for computer and network security, research and development, and research fellowship programs. This is the Senate companion bill to HR 3394, which the House passed on February 7 by a vote of 400 to 12.
Sen. Wyden stated in the Senate that "This legislation, which has the widespread support of the Nation's technology sector, would significantly increase the amount of cyber security research in this country by creating important new research programs at the National Science Foundation, NSF, and National Institute of Standards and Technology, NIST. The NSF program would provide funding for innovative research, multidisciplinary academic centers devoted to cyber security, and new courses and fellowships to educate the cyber security experts of the future. The NIST program likewise would support cutting edge cyber security research, with a special emphasis on promoting cooperative efforts between government, industry, and academia." See, Cong. Rec., April 17, 2002, at S2832-2833.
See also, story titled "House Passes Cyber Security Research & Education Bill" in TLJ Daily E-Mail Alert No. 364, February. 8, 2002.
House Judiciary Committee Postpones Mark Up of Tech Bills
4/18. The House Judiciary Committee held a meeting to mark up several bills, including HR 3482, the Cyber Security Enhancement Act of 2001, and HR 3215, the Combatting Illegal Gambling Reform and Modernization Act (the Internet gambling bill). However, it postponed consideration of these two bills.
Senate Judiciary Committee Postpones Mark Up of IPR Bill
4/18. The Senate Judiciary Committee held a meeting to mark up bills and approve nominees. The agenda included consideration of S 2031, Intellectual Property Protection Restoration Act of 2002. This bill would prevent states from recovering damages for infringement of state owned intellectual property, unless they have first waived their 11th Amendment sovereign immunity from suits against them for their infringement of the intellectual property of others. However, this bill was held over, again.
State Department Official Addresses International Broadband Deployment
4/16. David Gross, a Deputy Assistant Secretary of State, gave a speech titled "Broadband: An International Perspective" at the luncheon hosted by The Media Institute in Washington DC.
He stated that "In the areas of the Internet and broadband, we stress the importance of creating open and competitive global telecom regimes during all of our bilateral and multilateral activities." He added that "one clear component to broadband penetration is a national regulatory environment that rewards innovation and encourages private sector competition. This is a critical ingredient for sustainable telecommunications development, including broadband."
He also reviewed the State Department's activities at recent and upcoming international meetings and conferences, including the recent meetings of the World Trade Organization (WTO) in Doha and the International Telecommunication Union (ITU) meeting. He also reviewed at length the status of broadband deployment in other countries, such as Korea, Canada, the United Kingdom, and India.
People and Appointments
4/18. The Senate Judiciary Committee approved several pending judicial nominations, including that of Jeffrey Howard to be a Judge of the U.S. Court of Appeals (1stCir). The Committee also approved Percy Anderson (U.S.D.C., Central District of California), John Walter (U.S.D.C., Central District of California), Michael Baylson (U.S.D.C., Eastern District of Pennsylvania), William Griesbach (U.S.D.C., District of Wisconsin), Joan Lancaster (U.S.D.C., District of Minnesota), and Cynthia Rufe (U.S.D.C., Eastern District of Pennsylvania). These nominees still require confirmation by the full Senate.
4/16. The Software & Information Industry Association (SIIA) named Karen Billings Vice President of its the Education Division. See, SIIA release.
More News
4/17. The House Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary  held a hearing on the proposed budget for FY 2003 for the Federal Communications Commission (FCC). FCC Chairman Michael Powell stated in his prepared testimony [PDF] that "the FCC has requested $278,092,000 and 1,975 FTEs for Fiscal Year 2003." Powell's written statement outlines the major activities and proceeding being conducted by the FCC.
4/17. The House Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary hold a hearing on the proposed budget for FY 2003 for the Securities and Exchange Commission (SEC).
4/17. The Federal Communications Commission (FCC) approved Verizon's Section 271 application to provide in region interLATA services in the state of Vermont. See, FCC release [PDF]. This is CC Docket No. 01-07.
4/18. The Federal Trade Commission (FTC) sent a warning letter to fifty companies that have made questionable gas saving and other energy related advertising claims in their web sites. The letter states that "We have not yet determined whether your advertising violates the FTC Act. We have, however, copied and preserved your online advertising because it contains specific gas savings claims. If your website misrepresents the benefits of your product, makes claims that lack credible scientific substantiation, or is otherwise deceptive or fraudulent, you should stop making those claims or revise them appropriately right away. Otherwise, you may be subject to legal action that could require you to stop your advertising and to pay money back to consumers."
4/18. The U.S. District Court (NDCal) unsealed a criminal information [PDF] charging Gary Jones with wire fraud in violation of 18 U.S.C. §§ 1343 and 1346. The information states that Jones defrauded his employer, software company Sagent Technology, by creating bogus software sales contracts with federal government agencies, including the Department of Justice (DOJ), for which he received commissions from Sagent. The Information was filed on March 25, 2002. The DOJ's Federal Bureau of Investigation (FBI) arrested Jones on April 17.
4/16. The General Accounting Office (GAO) wrote a letter [PDF] to Rep. Steve Horn (R-CA), Chairman of the House Government Reform Committee's Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations regarding federal departments' and agencies' information security programs.
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Copyright 1998 - 2002 David Carney, dba Tech Law Journal. All rights reserved.
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 below. 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". The speakers will include FTC Commissioner Orson Swindle, Paul Misener (Amazon), David Klaus (Privacy Leadership Initiative), and Peter Ford (Australian Attorney General's Dept.). See, PFF notice. Location: Room B369, Rayburn Building.
2:00 - 4:00 PM. The American Enterprise Institute (AEI) will host a panel discussion titled Freeing the Chinese Internet. The speakers will be Arthur Waldron (AEI), Paul Baranowski (Peekabooty Project), Ethan Gutmann (Project for the New American Century), and Greg Walton (Human Rights in China). See, online registration page. Location: AEI, 12th Floor, 1150 17th St., NW.
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 regarding its annual report to Congress regarding progress made in achieving the objectives of the 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.
Monday, April 22
Day one of a three day conference of the Electronics Industry Alliance. See, agenda [Word]. Location: Grand Hyatt Hotel.
11:30 AM. Sen. Charles Grassley (R-IA) and Robert Zoellick will hold a press conference and rally to urge the Senate leadership to schedule a vote on legislation to grant the President Trade Promotion Authority. Sen. Grassley is the ranking Republican on the Senate Finance Committee, which approved its version of HR 3005 in last December. Zoellick is the USTR. Location: Room 215, Dirksen Building.
12:00 NOON - 2:00 PM. Sen. John Breaux (D-LA) will speak at a luncheon at the spring convention of the Electronics Industry Alliance. Location: Grand Hyatt Hotel.
Extended deadline to file reply comments with the FCC in response to its notice of proposed rulemaking regarding the appropriate regulatory requirements for incumbent local exchange carriers' provision of broadband telecommunications services. See, notice in the Federal Register. See, Order [PDF] extending deadline from April 1 to April 22.
Tuesday, April 23
Day two of a three day conference of the Electronics Industry Alliance. See, agenda [Word]. Location: Grand Hyatt Hotel.
9:30 - 11:30 AM. The American Enterprise Institute (AEI) will host a lecture by Jerry Hausman of MIT titled From 2G to 3G: Wireless Competition for Internet Related Services. See, program summary and online registration page. Location: 12th Floor, AEI, 1150 17th Street, NW.
9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Saga Broadcasting Corp v. FCC, No. 01-1249. Judges Ginsburg, Sentelle and Henderson will preside. Location: 333 Constitution Ave. NW.
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 USPTO. Location: George Washington University, Loudoun Campus.
10:00 AM. The Senate Judiciary Committee will hold a hearing on reformation of the FBI and the Department of Justice. Location: Room 226, Dirksen Building.
12:00 NOON - 2:00 PM. General Richard Myers, Chairman of the Joint Chiefs of Staff, will speak on contributions that the electronics industry has made to military preparedness at a luncheon at the spring convention of the Electronics Industry Alliance. Location: Grand Hyatt Hotel.
2:30 PM. The Senate Judiciary Committee's Subcommittee on Antitrust, Competition, and Business and Consumer Rights will hold a hearing titled Cable Competition and the ATT Comcast Merger. Sen. Herb Kohl (D-WI) will preside. Location: Room 226, Dirksen Building.
7:00 - 10:00 PM. Tom Ridge, Director of the Office of Homeland Security, will speak at a dinner at the spring convention of the Electronics Industry Alliance. Location: Grand Hyatt Hotel.
Wednesday, April 24
Day three of a three day conference of the Electronics Industry Alliance. See, agenda [Word]. Location: Grand Hyatt Hotel.
9:00 AM - 3:30 PM. The Consumer Electronics Association (CEA) will host an event titled "Digital Television (DTV) Summit: Moving to Mass Markets". Rep. Billy Tauzin (R-LA) will give the opening keynote address. A 1:45 PM panel will include Michael Petricone (CEA), Rick Chessen (FCC), Andrew Levin (Minority Counsel, House Commerce Committee), and Jessica Wallace (Counsel, House Commerce Committee). See, agenda. Location: Washington Convention Center.
9:00 AM. Day one of a two day meeting of the Bureau of Export Administration's Information Systems Technical Advisory Committee (ISTAC). The ISTAC advises the Office of the Assistant Secretary for Export Administration on technical questions that affect the level of export controls applicable to information systems equipment and technology. The meeting will be open to the public in part, and closed to the public in part. The open agenda includes a presentation on web based remote hardware management, a presentation on microelectro- mechanical (MEMS) technology and applications, and a presentation on battery and fuel cell technology. See, notice in Federal Register. Location: Herbert Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave., NW.
1:00 - 4:30 PM. The CFTC's Technology Advisory Committee will hold a public meeting on technology related issues in the financial services and commodity markets, including cyber security. See, notice in Federal Register. Location: Room 1000, CFTC headquarters, Three Lafayette Centre, 1155 21st Street, NW.
2:30 PM. The Senate Commerce Committee's Subcommittee on Science, Technology, and Space will hold a hearing on S 2037, a bill providing for the establishment of a national emergency technology guard. Location: Room 253, Russell Building.
Thursday, April 25
9:00 AM - 5:30 PM. Day one of a two day Copyright Conference hosted by the U.S. Patent and Trademark Office, 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. Registration closes on April 19. Location: The Academy for Educational Development Conference Center, 1825 Connecticut Avenue, NW, 8th Floor.
9:00 AM. Day two of a two day meeting of the Bureau of Export Administration's Information Systems Technical Advisory Committee (ISTAC). The ISTAC advises the Office of the Assistant Secretary for Export Administration on technical questions that affect the level of export controls applicable to information systems equipment and technology. The meeting will be open to the public in part, and closed to the public in part. The open agenda includes a presentation on web based remote hardware management, a presentation on microelectro- mechanical (MEMS) technology and applications, and a presentation on battery and fuel cell technology. See, notice in Federal Register. Location: Herbert Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave., NW.
9:30 AM. The Senate Commerce Committee will hold a hearing on online privacy legislation. Location: Room 253, Russell Building.
TIME? The House Commerce Committee's Telecom and Internet Subcommittee has tentatively scheduled a hearing on digital television.
12:15 PM. The FCBA's Young Lawyers Committee will host a brown bag lunch. The topic will be "The Year of the 271". The speakers will be Dorothy Attwood (Chief of Wireline Competition Bureau), Michelle Carey, (Chief of the Competition Policy Division), Deena Shetler (Deputy Chief of the Pricing Policy Division), and Renee Crittendon (Senior Attorney Advisor in the Competition Policy Division). RSVP to Pam Slipakoff. Location: Room 8-C245, FCC, 445 12th Street, SW.
12:30 PM. The House Commerce Committee's Telecom and Internet Subcommittee will hold a hearing titled "Ensuring Content Protection in the Digital Age". Location: Room 2123, Rayburn Building.
3:30 PM. Mark Lemley (Professor, Boalt Hall, UC Berkeley) will give a lecture titled "Antitrust, Intellectual Property, and Standard Setting Organizations". For more information, contact Prof. Julie Cohen at jec@law. georgetown.edu. Location: Georgetown University Law Center, Faculty Lounge, 5th Floor, McDonough Hall, 600 New Jersey Ave., NW.
Deadline to submit Notices of Intent to Participate to the Copyright Office (CO) in its negotiation of 17 U.S.C. § 118 noncommercial educational broadcasting compulsory license. See, CO notice in Federal Register.