Tech Law Journal Daily E-Mail Alert
May 10, 2002, 9:00 AM ET, Alert No. 429.
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House Judiciary Committee Progress on Tech Related Bills
5/9. The House Judiciary Committee dealt with several technology related bills this week. The following is a summary of the action on each bill.
HR 3215, the Combatting Illegal Gambling Reform and Modernization Act. This is Rep. Bob Goodlatte's (R-VA) Internet gambling bill. On Wednesday, May 8, the Committee began mark up. However, it proceeded only as far as opening statements. The Committee has not yet scheduled a continuation of this mark up.
HR 3482, the Cyber Security Enhancement Act of 2001. The Committee amended and approved this bill on Wednesday, May 8.
HR 4623, the Child Obscenity and Pormography Prevention Act of 2002. The Crime Subcommittee held a hearing on the morning of Thursday, May 9, and then amended and approved the bill later in the day. The full Committee is likely to mark up the bill next week. The full House may approve the bill before the Memorial Day recess.
HR 4640, a bill to provide criminal penalties for providing false information in registering a domain name on the Internet. The Crime Subcommittee had scheduled this bill for its hearing and mark up meetings on Thursday, May 9. However, it was removed from the agenda of both meetings.
HR 4658, the Truth in Domain Names Act. The Crime Subcommittee had scheduled this bill for its hearing and mark up meetings on Thursday, May 9. However, it was removed from the agenda of both meetings.
House Research Subcommittee Approves Two Bills
5/9. The House Science Committee's Subcommittee on Research held a hearing on HR 4664, the National Science Foundation Reauthorization Act of 2002. The bill would authorize the doubling the agency's budget in five years. The Subcommittee approved one amendment, renaming the bill the Investing in America's Future Act. The bill, as amended, was then approved by a unanimous voice vote.
The Subcommittee on Research also approved by voice vote at its May 9 meeting HR 3130, the Undergraduate Science, Mathematics, Engineering, and Technology Education Improvement Act, which was introduced under the title, Technology Talent Act of 2001.
This bill would authorize grants to be awarded on a competitive basis to institutions of higher education to increase the number of students studying and receiving associates or bachelor's degrees in science, mathematics, engineering, and technology.
Both bills are likely to be approved by the full Science Committee before the Memorial Day recess. There was no dispute within the Committee over these bills. However, whether the full House will go along is altogether another question.
FCC Announces Agenda of May 16 Meeting
5/9. The Federal Communications Commission (FCC) announced the agenda for its Thursday, May 16, meeting. See, agenda. It includes approval of the following items.
A Notice of Proposed Rulemaking concerning section 272(f)(l), the sunset of the BOC separate affiliate and related matters.
A Report and Order allowing private cable operators to use frequencies in the 12 GHz band of the Cable Television Relay Service (CARS). (CS Docket No. 99-250; RM-9257).
An Order concerning extension of the October 5, 2001, digital television construction deadline; and a Notice of Proposed Rulemaking on remedial steps for failure to comply with the DTV construction schedule.
A Second Report and Order concerning regulations for spread spectrum systems. (ET Docket No. 99-231).
A Report and Order concerning service rules for the 216-220 MHz, 1390-1395 MHz, 1427-1432 MHz, 1670-1675 MHz, 2385-2390 MHz and the paired 1392-1395 MHz and 1432-1435 MHz Bands. (WT Docket No. 02-8; RM-9267, RM-9692, RM-9797, RM-9854, RM-9882).
FRB Vice Chairman Addresses Communications, Information and Terrorism
5/9. Federal Reserve Board Vice Chairman Roger Ferguson gave a speech titled "Implications of 9/11 for the Financial Services Sector". He recommended that financial institutions should seek greater redundancy of telecommunications services through alternative technologies, including Internet, satellite, and wireless services. He spoke at the Conference on Bank Structure and Competition, in Chicago, Illinois.
He first reviewed the affect of the terrorist attack in New York City upon communications. He stated that "The destruction of telecommunications infrastructure supporting lower Manhattan disrupted the telephone connections for several days between the whole nation and financial markets and intermediaries located in the lower Manhattan financial district. This disruption created bottlenecks in the processing of financial transactions and caused a temporary -- but severe -- dislocation of liquidity for financial institutions. The primary markets closed temporarily, to facilitate disaster recovery efforts and to ensure fair and orderly markets, until telecommunications could be restored."
He added that "Banks and other financial intermediaries stayed open. Key wholesale and retail payments system remained operational, like other financial activities, except to the extent that telecommunications disruptions had a temporary or local effect."
He next offered his assessment of why the financial system performed so well following the terrorist attacks. "First, the financial industry incorporated information technology into its business processes many years ago and since then has encouraged innovations in business process to achieve efficiency and security. As a result, industry participants are extremely knowledgeable about technology and the related operations risk."
"Second, financial institutions understand that it is in their best business interest to make business continuity planning an executive management issue, requiring top level involvement and not insignificant investment. Preparations for the century date change gave us a much clearer understanding of the financial system's dependence on technology and on the complexities of managing operations risk", said Ferguson.
"Third, financial institutions have long understood the need for strong internal controls and physical security. As banks increased reliance on information technology, they naturally incorporated measures to ensure the security of information. Moreover, financial institutions recognized immediately that the increasing role of information system networks and the Internet in the financial markets engendered new risks, and they became leaders in addressing cyber protection issues." He then praised the financial industry information sharing and analysis center (ISAC).
Ferguson also offered a few lessons to be learned from September 11. He said that "institutions will need to develop internal business resumption standards and define their recovery targets in a fairly consistent manner." He also stated that "financial institutions should seek greater redundancy of telecommunications services through alternative technologies (Internet, satellite, and wireless) and eliminate potential single points of failure."
Friday, May 10
The House will meet at 9:00 AM for legislative business. No votes are expected after 2:00 PM.
The Supreme Court is on recess until May 13.
8:30 AM - 4:30 PM. The New America Foundation and Public Knowledge will co-host a conference titled "Protecting the Information Commons: Asserting the Public Interest In Copyright Law and Digital Infrastructure". At 9:00 AM Rep. Rick Boucher (D-VA) will give the keynote address titled "Public Interest Principles for Digital Rights Management Systems". RSVP to Tina Sherman at 202 986-2700 or sherman @newamerica.net. See, agenda. Location: National Guard Association, 1 Massachusetts Ave.
9:00 AM - 5:00 PM. The Copyright Office will hold "a public roundtable discussion concerning issues raised in the course of an ongoing rulemaking proceeding to adopt requirements for giving copyright owners reasonable notice of the use of their works for sound recordings under the section 114 and 112 statutory licenses and for how records of such use shall be kept and made available to copyright owners." See, notice in Federal Register. Requests to attend or participate must be submitted by close of business on Monday, May 6, 2002. Location: Room LM620 (Dining Room A), Madison Building, First and Independence Avenue, SE.
9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in AT&T v. FCC, No. 01-1467, and Verizon v. FCC, No. 01-1371. Judges Ginsburg, Randolph and Tatel will preside. Location: 333 Constitution Ave. NW.
9:30 AM - 1:00 PM. The SEC will hold an event titled "Investor Summit" which will also be webcast. See, SEC release. Location: WOD Room, basement, SEC, 450 5th Street NW.
10:00 AM. The House Government Reform Committee's Subcommittee on Technology and Procurement Policy will hold a hearing titled "Intellectual Property and Government R&D for Homeland Security". Location: Room 2154, Rayburn Building.
10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in ULead Systems v. Lex Computer, No. 01-1320, an appeal from the U.S. District Court (CDCal). The lower court held that U.S. Patent No. 4,538,188 is unenforceable due to the owner's inequitable conduct in fraudulently paying reduced small entity maintenance fees to the USPTO when it was not a small entity. Location: LaFayette Square, at 717 Madison Place, NW.
11:30 AM. The American Electronics Association (AEA) will hold a press briefing regarding the Internal Revenue Service's (IRS) proposal to impose payroll taxes on certain broad based stock options beginning January 1, 2003. To participate by telephone, call 703 871-3016. See, AEA notice. RSVP to Deanna Keim at 202 289-6700 or djkeim @abcstaff.org. Location: AEA, 601 Pennsylvania Ave. NW, 6th Floor. (The entrance is on Indiana Ave. between 6th and 7th Streets.)
12:15 PM. The The FCBA's Wireless Committee will host a luncheon. The speaker will be Ed Thomas, Chief of the FCC's Office of Engineering and Technology. RSVP by May 7 to wendy @fcba.org. The price is &15. Location: Sidley Austin, 1501 K Street, NW.
1:00 PM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a field hearing titled "Chatting On Line: A Dangerous Proposition for Children." Rep. Fred Upton (R-MI) will preside. Press contact: Ken Johnson or Jon Tripp at 202-225-5735. Location: Kalamazoo Valley Community College M-Tec Facility, Oshtemo, Michigan.
Monday, May 13
The Supreme Court of the U.S. returns from recess.
Tuesday, May 14
8:45 AM - 3:45 PM. The National Institute of Standards and Technology's (NIST) Advanced Technology Program (ATP) Advisory Committee will hold a meeting that will be open in part, and closed in part. The agenda includes a discussion on universities and R&D technology issues, a presentation on In-Q-Tel (the CIA's Silicon Valley venture capital group), an update on the ATP competition, and a presentation on a study on the ATP Computer Based Software Focus Program. Pre-registration by May 9 is required for attendance; submit your name, time of arrival, e-mail address and phone number to Carolyn Stull at carolyn.stull @nist.gov or 301 975-5607. See, notice in Federal Register. Location: NIST, Administration Building, Lecture Room A, Gaithersburg, MD.
9:00 - 11:00 AM. The U.S. Chamber of Commerce (USCC), Ernst & Young, and the Internet Education Foundation (IEF) will co-host forum on online privacy and the Platform for Privacy Preferences (P3P) created by the World Wide Web Consortium (W3C). Rep. Adam Smith (D-WA) will make opening remarks. There will be two panels. The first panel will address online privacy issues; the speakers will be Joe Rubin (USCC), Shane Ham (Progressive Policy Institute), and Ari Schwartz (Center for Democracy and Technology). The second panel will address P3P; the speakers will be Martin Marshall (IBM), Marc Berejka (Microsoft), Brian Tretick (Ernst & Young), and Brian Zwit (AOL). RSVP by e-mail to rsvp @p3ptoolbox.org, or call Joshua Freed (IEF) at 202 638-4370. Coffee and snacks will be provided. Location: Herman Lay Room, USCC, 1615 H Street, NW.
TIME CHANGE. 9:00 AM. The IRS will hold a hearing on proposed regulations relating to tax treatment of incentive stock options and options granted under employee stock purchase plan. See, original notice in the Federal Register. See also, supplemental notice rescheduling hearing time, Federal Register. Location: Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW.
9:30AM - 1:30 PM. George Washington University (Ashburn Campus) and the CCIA will cohost a pair of panels discussions. The first panel will address last mile broadband deployment. The second panel will address how to protect audio and video property rights. See, notice. For more information, contact Sandy Rose at 703 726-8310 or sandyr @gwu.edu. Location: 20101 Academic Way, Ashburn, VA. (This is east of Leesburg on the north side of Route 7, west of Route 28.)
9:30 AM - 4:00 PM. The Antitrust Division of the Department of Justice and the FTC will hold another in their series of hearings on antitrust and intellectual property. This event is titled "Antitrust Analysis of Licensing Practices". At 9:00 AM there will be a panel titled "Antitrust Analysis of Specific Intellectual Property Licensing Practices". At 1:30 PM there will be a panel titled "Practical Issues Encountered in Antitrust Analysis of Licensing Practices". The DOJ requires that attendees provide their name and date of birth 24 hours in advance to Kathleen Leicht at kathleen.leicht @usdoj.gov or 202 514-7018. For more information, contact Gina Talamona in the Office of Public Affairs at 202 514-2007, or Frances Marshall in the Antitrust Division at 202 305-2520. Location: Great Hall, DOJ, Main Building, 950 Pennsylvania Ave., NW.
10:00 AM. The Senate Indian Affairs Committee and the Senate Commerce Committee will hold a joint hearings on communications issues in Indian country.
10:00 AM. The Senate Banking Committee will hold a hearing on the Annual National Export Strategy Report of the Trade Promotion Coordinating Committee. The witnesses include: Donald Evans (Secretary of Commerce), Eduardo Aguirre (Export Import Bank), Hector Barreto (SBA), Peter Watson (Overseas Private Investment Corp.), and Thelma Askey (U.S. Trade and Development Agency). Location: Room 538, Dirksen Building.
Deadline to submit oppositions and responses to the FCC in its AT&T Comcast merger review proceeding. This proceeding is titled "In the Matter of Applications for Consent to the Transfer of Control of Licenses, Comcast Corporation and AT&T Corp., Transferors, To AT&T Comcast Corporation, Transferee". See, FCC notice.
Wednesday, May 15
8:45 - 9:30 AM. FTC Commissioner Orson Swindle will give the opening keynote address titled "The Urgency of Security In A Networked World" at the Information Integrity World Summit. See, notice. Location: Wyndham Washington, 1400 M Street NW.
9:30 AM. The Senate Judiciary Committee will hold a hearing to examine copyright royalties, focusing on webcasting. Press contact: Mimi Devlin 202 224-9437. Location: Room 226, Dirksen Building.
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, will meet to prepare for the June 2002 meeting of the Telecommunication Sector Advisory Group (TSAG). Location: TIA, 1300 Pennsylvania Ave., NW., Suite 350.
11:00 AM. The Cato Institute will host a panel discussion titled "Digital Copy Protection: Mandate It? Ban It? Or Let the Market Decide?" The speakers will be Rick Lane (News Corporation), Jonathan Potter (Digital Media Association), Sarah Deutsch (Verizon), and Steve DelBianco (Association for Competitive Technology). See, online registration page. Webcast. Location: Cato, 1000 Massachusetts Ave., NW.
12:30 PM? The Association of Federal Communications Consulting Engineers will hold a luncheon meeting. For more information, contact Noel Luddy at luddyen @aol.com or 301 299-2270.
7:30 PM. There will be a panel discussion titled "Tech Talk: Information Security and Information Warfare". The panelists will be Robert Norris (National Defense University), Daniel Kuehl (National Defense University), and Lance Hoffman (George Washington University). The event is free, but reservations are required. Call 202 662-7501 or email pnelson @press.org for reservations. For more information, contact Laura Falacienski at 202 662-7564 or lauraf @press.org. Location: National Press Club, Murrow Room, 529 14th St. NW, 13th Floor.
Deadline to submit comments to the USTR regarding the requests of 23 nations to join the WTO. See, notice in Federal Register.
Deadline to submit comments to the USPTO regarding its plan to disseminate all future editions of the Trademark Manual of Examining Procedure solely in electronic format. See, notice in Federal Register.
Thursday, May 16
The Senate Commerce Committee may hold a meeting to mark up bills. The agenda may include S 2037, a bill providing for the establishment of a national emergency technology guard, and 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. The agenda may also include S 630, the Can Spam Act. See, Sen. Burns release. Press contact: Andy Davis at 202 224-6654. Location: Room 253, Russell Building.
9:30 AM. The Federal Communications Commission (FCC) will hold a meeting. Audio webcast. Press contact: Maureen Peratino or David Fiske at 202 418-0500. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).
9:30 AM. The U.S. Patent and Trademark Office (USPTO) will hold a public hearing on its proposed plan to eliminate the paper patent and trademark registration collections from its public search facilities, and to transition to electronic patent and trademark information collections. The USPTO is seeking public comment on issues related to this proposed plan. The USPTO is also seeking input on whether any governmental entity or non-profit organization is interested in acquiring the paper patent and trademark registration collections to be removed from the USPTO's public search facilities. See, notice in Federal Register. Location: Patent Theater, second floor, Crystal Park 2, Room 200, 2121 Crystal Drive, Arlington, VA.
More News
5/9. President Bush urged Senate Democrats to stop delaying hearings and confirmations of his judicial nominees. He stated that "We have a vacancy crisis in America. There are too many seats that aren't filled with judges and, therefore, America hurts, America is not getting the justice it needs. Ours is a system that relies upon an independent court system, and when there is vacancies, the American people suffer. And I call upon the Senate to approve -- at least give hearings to people we've sent up to the Senate." See, transcript of press conference, and White House release.
5/8. Lori Richards, Director of the Securities and Exchange Commission's (SEC) Office of Compliance Inspections and Examinations, gave a speech titled "Analysts Conflicts of Interest: Taking Steps to Remove Bias". She spoke to the Financial Women's Association in New York, New York.
5/7. Bruce Mehlman, Assistant Secretary for Technology Policy at the Commerce Department, gave a speech titled "Innovation in America 2002: What's the Role for Our Federal Labs?". He spoke to the Federal Lab Consortium in Little Rock, Arkansas. He said that "Knowledge development and technology commercialization are the new drivers of economic growth, both in the U.S. and around the world. Our ability to create new innovations and harness their power will directly impact our national prosperity, security and global influence."
5/9. A jury of the U.S. District Court (NDCal) returned a guilty verdict against Keith Kim on one count of making a material false statement to the Securities and Exchange Commission (SEC), in violation of 18 U.S.C. 1001. The statement was made during the SEC's investigation into the trading in shares of Meridian Data, Inc., based upon insider information that Meridian and Quantum Corp. were in merger negotiations. See, USAO release.
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