Tech Law Journal Daily E-Mail Alert
July 19, 2002, 9:00 AM ET, Alert No. 473.
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Select Committee to Mark Up Homeland Security Bill on Friday
7/18. Rep. Dick Armey (R-TX), Chairman of the House Select Committee on Homeland Security, released a brief summary of a revised version of HR 5005, the Homeland Security Act of 2002, that he intends to offer at the Select Committee's mark up of the bill on July 19. This is known as the "Chairman's mark".
The Chairman's mark makes many technology related changes to the President's original proposal. It would keep the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) at the NIST, create the new position of Undersecretary for Science and Technology at the Department of Homeland Security (DHS), create the new position of Privacy Officer at the DHS, provide for a more limited Freedom of Information Act (FOIA) exemption for certain information shared with the DHS than the original bill, and provide that the federal government will not have the authority to nationalize drivers' licenses and other ID cards.
The Select Committee is scheduled to mark up HR 5005 on Friday, July 19, at 9:30 AM. The full House will likely pass the bill next week. The Senate has yet to take up the bill.
Armey Bill Would Keep Computer Security Division at NIST
7/18. Rep. Dick Armey (R-TX), Chairman of the House Select Committee on Homeland Security, announced that his proposed amendments to HR 5005, the Homeland Security Act of 2002, would keep the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) at the NIST, rather than move it to the new Department of Homeland Security (DHS), as proposed by the President.
The House Science Committee reported its version of the bill last week. It deleted the language from the original bill that would move the CSD to the DHS. Rep. Sherwood Boehlert (R-NY), Chairman of the House Science Committee said in a release that "I'm extremely pleased that Chairman Armey's mark is in line with the Science Committee's two major recommendations: the creation of an Undersecretary for Science and Technology and the removal of the proposed transfer of NIST's Computer Security Division".
Ken Wasch, President of the Software & Information Industry Association (SIIA), stated in a release that "Had the transfer occurred, as originally proposed in H.R. 5005, the move would have been counterproductive to the Administration's goals by reducing confidence American technology products both domestically and abroad."
Groups that represent technology companies, and technophiles in the House, had argued against moving the CSD to the DHS.
House Technophiles Oppose Moving Computer Security Division to DHS
7/17. Rep. Bob Goodlatte (R-VA), Rep. Rick Boucher (D-VA), and other Members of Congress, wrote a letter to Rep. Dick Armey (R-TX), the Chairman of the House Select Committee on Homeland Security, asking that the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) not be transferred to the new Department of Homeland Security.
The letter states that "While we support the Administration's efforts to make our country more secure in the face of terrorist threats, we are concerned that this provision would unravel years of collaboration between the CSD and the private sector to enhance the level of confidence in computer security practices. We are concerned that this reduced collaboration would be counterproductive to the Administration's  goals by reducing confidence in American made IT systems thereby making our critical infrastructure more vulnerable to terrorist attack."
The letter continues that "The credibility and success of the NIST's CSD depends on effective independence from and appropriate collaboration with law enforcement and national security agencies in the U.S. and abroad. We believe that this independence could not be maintained in the new Department of Homeland Security."
It adds that even with the CSD at the NIST, there has been "inappropriate influence of law enforcement and national security in the development of standards".
The letter cites as an example the recent battles over encryption. It states that "the CSD's lack of responsiveness to the IT community led to a proposed encryption standard that was overbroad and unduly burdensome to American companies and completely unworkable. There is a strong national interest in ensuring that strong encryption software is available to protect our critical infrastructure from attack. The widespread use of encryption promotes our national security and prevents crime by ensuring the security, confidentiality and authenticity of electronic networks, information and users."
The letter adds that "Moreover, we are concerned about provisions that would unnecessarily give the new Department authority to impose technical measures, duplicative testing requirements and unproductive certification requirements."
The letter was signed by Representives Bob Goodlatte (R-VA), Rick Boucher (D-VA), Sherwood Boehlert (R-NY), Howard Coble (R-NC), John Conyers (D-MI), Chris Cox (R-CA), Tom Davis (R-VA), Vernon Ehlers (R-MI), Anna Eshoo (D-CA), Bob Etheridge (D-NC), Barney Frank (D-MA), Bart Gordon (D-TN), Gene Green (D-TX), Ralph Hall (D-TX), Mike Honda (D-CA), Steve Horn (R-CA), Sheila Lee (D-TX), Zoe Lofgren (D-CA), Ed Markey (D-MA), Jim Moran (D-VA), Connie Morella (R-MD), Ileana Ros Lehtinen (R-FL), James Sensenbrenner (R-WI), Pete Sessions (R-TX), Adam Smith (D-WA), Lamar Smith (R-TX), Billy Tauzin (R-LA), Mark Udall (D-CO), Gerry Weller (R-IL), and others whose signatures are illegible.
Armey Bill Includes Limited FOIA Exemption
7/18. Rep. Dick Armey (R-TX), the Chairman of the House Select Committee on Homeland Security, released a short summary of his proposed amendments to HR 5005, the Homeland Security Act of 2002.
He wrote that "Our Founders intended that the operations of our government be open. The Chairman's mark retains this principle, while ensuring that openness does not decrease our security." He also wrote that "FOIA Protections Limited to the Department Only" and "When individuals and businesses provide new information to the Department so that the Secretary can assess vulnerabilities, that information will be protected (not subject to FOIA). This will not erode the oversight protections provided by FOIA in any other government departments."
HR 5005, as introduced, provides, at Section 204, that "Information provided voluntarily by non-Federal entities or individuals that relates to infrastructure vulnerabilities or other vulnerabilities to terrorism and is or has been in the possession of the Department shall not be subject to section 552 of title 5, United States Code."
The House Government Reform Committee reported its version of the bill on July 11 with a new Section 214 that provides detailed language regarding the FOIA exemption.
SEC Official Addresses Accounting, Governance, and Reporting
7/11. Alan Beller, Director of the Securities and Exchange Commission's (SEC) Division of Corporation Finance, gave a speech to the American Society of Corporate Secretaries in Toronto, Ontario.
He reviewed recent accounting scandals involving Enron, WorldCom and other companies. He then addressed increased accountability for corporate CEOs and CFOs, including certification of annual and quarterly reports, corporate governance issues, and expanding the reporting requirements on Form 8-K.
With respect to filing requirements, Beller stated that "In this era of investor access to sophisticated trading and information technology and instant communications, investors demand and require more current information regarding the most important events about a company. Today we are facing an environment where preventing unfair informational advantage, which has historically been the objective of many of the Commission's disclosure requirements, is not enough. We must promote affirmative current disclosure to enable investors to make the best capital allocation and investment decisions."
Senate Judiciary Committee Approves Anti Counterfeiting Bill
7/18. The Senate Judiciary Committee amended and approved S 2395, the Anticounterfeiting Amendments of 2002. The Committee adopted an amendment in the nature of a substitute. The bill, sponsored by Sen. Joe Biden (D-DE), would make it easier for law enforcement agencies, and copyright holders, to shut down software, CD and DVD counterfeiters, by revising existing law regarding labels, authentication features, and packaging.
S 2395 amends 18 U.S.C. § 2318, pertaining to trafficking in counterfeit labels, illicit authentication features, and packaging for copyrighted computer programs, CDs and DVDs. The bill does not affect the underlying interests of copyright holders under Title 17. Rather, it bolsters the provisions of Title 18, the criminal code, for preventing the use of certain tools used by pirates, including counterfeit labels and illicit authentication features. In addition, the bill creates a new private right of action.
Current Law. The current statute reads "Whoever ... knowingly traffics in a counterfeit label affixed or designed to be affixed to a phonorecord, or a copy of a computer program or documentation or packaging for a computer program, or a copy of a motion picture or other audiovisual work, and whoever, in any of the circumstances described in subsection (c) of this section, knowingly traffics in counterfeit documentation or packaging for a computer program, shall be fined under this title or imprisoned for not more than five years, or both."
The statute currently does not address "authentication features". The current statute's prohibition of counterfeit documentation or packaging applies to computer programs, but not records and movies. And, the current statute provides for no private right of action.
S 2395. The Biden bill provides that "Whoever ... knowingly traffics in (1) a counterfeit label affixed to ... (2) an illicit authentication feature affixed to or embedded in, or designed to be affixed to or embedded in" a phonorecord, copy of a computer program, copy of a movie, or copy of documentation or packaging shall be fined or imprisoned for up to five years, or both. The language regarding illicit authentication features is new.
It also provides for fine or imprisonment of "Whoever ... knowingly traffics in ...counterfeit documentation or packaging". This is no longer limited to computer programs.
Authentication Features. The bill defines "authentication feature" as "any hologram, watermark, certification, symbol, code, image, sequence of numbers or letters, or other feature that either individually or in combination with another feature is used by the respective copyright owner to verify that a phonorecord, a copy of a computer program, a copy of a motion picture or other audiovisual work, or documentation or packaging is not counterfeit or otherwise infringing of any copyright".
Illicit Authentication Features. The bill further elaborates on the meaning of "illicit authentication feature". It includes an authentication feature that is "is genuine in origin, but, without the authorization of the respective copyright owner, has been tampered with or altered for the purpose of inducing a third party to reproduce or accept distribution of" a record, computer program, movie, or documentation or packaging.
It also includes an authentication feature that "is genuine, but has been distributed, or is intended for distribution, without the authorization of the respective copyright owner and not in connection with the lawfully made copy or phonorecord to which such authentication feature was intended to be affixed or embedded by the respective copyright owner". Finally, it includes an authentication feature that "appears to be genuine, but is not".
Private Right of Action. The bill also adds a new subsection providing a civil cause of action in federal court by any copyright owner who is injured by, or threatened with injury by, violation of § 2318. This new subsection provides for both injuctive relief, impoundment, and either statutory or actual damages.
DMCA Anti Circumvention Rights Unaffected. The bill also provides that "Nothing in this section shall enlarge, diminish, or otherwise affect liability under section 1201 or 1202 of title 17".
House CIIP Subcommittee Holds Hearing on USPTO
7/18. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property held an oversight hearing titled "The U.S. Patent and Trademark Office: Fee Schedule Adjustment and Agency Reform".
Rep. Howard Coble (R-NC), the Chairman of the Subcommittee, said in his prepared statement the "We need to pursue strategies that will place the agency in the best possible position to maximize its administrative efficiencies, which ultimately translates into enhancing patent and trademark quality first, and reducing pendency and backlogs second. Only then can we play a stronger hand when requesting more funds on behalf of PTO."
James Rogan, Director of the U.S. Patent and Trademark Office (USPTO), reviewed the USPTO's 21st Century Strategic Plan in his prepared testimony.
Michael Kirk, Executive Director of the American Intellectual Property Law Association (AIPLA), stated in his prepared testimony that the AIPLA opposes the diversion of USPTO fees to fund other government programs, and opposes the USPTO's fee bill. Kathryn Park, EVP of the International Trademark Association (INTA), stated in her  prepared testimony that the INTA opposes proposed trademark fee increases. See also, prepared testimony of Charles Baker of the ABA.
Appeals Court Rules for Cellular Company in Antenna Tower Case
7/18. The U.S. Court of Appeals (1stCir) issued its opinion in Omnipoint Communications v. Plainville, a case regarding a local zoning board's refusal to permit construction of a cellular antenna tower. The Appeals Court affirmed the District Court's decision that Plainville's refusal violated the Communications Act.
Plainville is a suburb of Boston. Omnipoint Communications (now VoiceStream) is a provider of wireless telephone services. It sought permission from Plainville to construct an antenna tower to close a gap in its coverage. Plainville denied zoning permits and variances to Omnipoint.
OmniPoint filed a complaint in U.S. District Court (DMass) against the Plainville Zoning Board of Appeals, and its members, alleging violation of 47 U.S.C. § 332(c)(7)(B)(v), and 42 U.S.C. § 1983. The District Court ruled for Omnipoint. Plainville appealed. The Appeals Court ruled that Plainville violated the Communications Act by prohibiting the provision of wireless services.
People and Appointments
7/18. Robert Pittman resigned as Chief Operating Officer of AOL Time Warner. The company announced in a release that "Don Logan, formerly Chairman and Chief Executive Officer of Time Inc., becomes Chairman of the new Media & Communications Group, comprising America Online, Time Inc. and Time Warner Cable, as well as the AOL Time Warner Book Group and Interactive Video unit. Jeff Bewkes, formerly Chairman and CEO of HBO, becomes Chairman of the new Entertainment & Networks Group, comprising HBO, New Line Cinema, The WB, Turner Networks, Warner Bros. and Warner Music." Richard Parsons remains CEO.
7/18. The Senate Banking Committee held a hearing on the nominations of Paul Atkins and Harvey Goldschmid to be Commissioners of the Securities and Exchange Commission (SEC).
7/18. The Senate Commerce Committee held a hearing on the nominations of Kathie Olsen and Richard Russell to be Associate Directors of the Office of Science and Technology Policy.
Friday, July 19
The House will meet at 9:00 AM for legislative business. No votes expected after 6:00 PM.
9:30 AM. The House Select Committee on Homeland Security will meet to mark up HR 5005, the Homeland Security Act of 2002. Webcast. Location: Room 210, Cannon Building.
11:00 - 11:30 AM. USPTO Director James Rogan will hold an online press conference "to discuss how America’s innovators will be assured high quality patents within an examination period of 18 months and trademarks within 12 months". See, USPTO notice.
12:30 PM. SEC Chairman Harvey Pitt will give a luncheon speech. Location: Ballroom, National Press Club, 529 14th St. NW, 13th Floor.
CONTINUED FROM JULY 18. 5:00 PM. Hearing before the U.S. District Court (DC) in EPIC v. Department of Defense, a Freedom of Information Act case. The Electronic Privacy Information Center (EPIC) seeks records from the Defense Advanced Research Projects Agency (DARPA) regarding its Information Awareness Office (IAO). The IAO web site states that its mission is to "imagine, develop, apply, integrate, demonstrate and transition information technologies, components and prototype, closed loop, information systems that will counter asymmetric threats by achieving total information awareness useful for preemption; national security warning; and national security decision making." This hearing concerns whether the DOD can charge the EPIC fees. This is Case Number 02-1233. Judge Bates is presiding. Location: Courtroom 21, 4th Floor, 333 Constitution Ave., NW.
Deadline to submit applications to the Department of Education for Community Technology Centers Program grants for Fiscal Year 2002 to create or expand community technology centers that will provide disadvantaged residents of economically distressed urban and rural communities with access to information technology and related training. See, notice in the Federal Register.
Deadline to submit comments to the State Department regarding the effects of the privatization of Inmarsat and INTELSAT on U.S. industry, jobs, and industry access to the to the global marketplace. See, notice in the Federal Register, July 5, 2002, Vol. 67, No. 129, at Pages 44920 - 44921.
Monday, July 22
Day one of a two day seminar hosted by the American Intellectual Property Law Association (AIPLA) on the Patent Cooperation Treaty. See, online brochure [PDF]. Location: Crystal Gateway Marriott, Arlington, VA.
2:00 - 4:00 PM. The FCC's Advisory Committee for the 2003 World Radiocommunication Conference (WRC-03 Advisory Committee) will hold a meeting. See, notice in Federal Register, June 25, 2002, Vol. 67, No. 122, at Page 42773. Location: FCC, 6th Floor South Conference Room (6-B516), 445 12th Street, SW.
Deadline to submit comments to the FCC in response to its Notice of Proposed Rule Making (NPRM) "regarding the sunset of the statutory requirements under section 272 imposed on Bell Operating Companies (BOCs) when they provide in-region, interLATA services and seeks comment on whether, and if so, under what conditions, the structural and nondiscrimination safeguards established in section 272 should be extended by the Commission either generally or with respect to specific states." See, notice in the Federal Register.
Tuesday, July 23
11:00 AM. The Cato Institute will host a panel discussion titled "Who Rules the Root? ICANN, Domain Names, and the Battle over Internet Governance". The scheduled speakers are Milton Mueller (author of Ruling the Root: Internet Governance and the Taming of Cyberspace), Ira Magaziner (SJS Advisors), Michael Roberts (The Darwin Group), and Harold Feld (Media Access Project). Lunch will follow. See, Cato notice. Location: 1000 Massachusetts Avenue, NW.
2:00 PM. The Senate Judiciary Committee will hold a hearing on pending nominations. Press contact: Mimi Devlin at 202 224-9437. Location: Room 226, Dirksen Building.
Deadline to file reply comments with the FCC's Spectrum Policy Task Force in response to its request for comments on spectrum policy, including taking steps toward market oriented allocation and assignment policies, interference, efficient use of spectrum, public safety communications, and international issues. See, Public Notice [PDF].
Day two of a two day seminar hosted by the American Intellectual Property Law Association (AIPLA) on the Patent Cooperation Treaty. See, online brochure [PDF]. Location: Crystal Gateway Marriott, Arlington, VA.
Wednesday, July 24
9:00 AM. Day one of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The meeting will be partially open, and partially closed to the public. The agenda of the open portion of the meeting includes (1) a presentation on encryption in network management software, (2) a presentation on changes to the mass market encryption regulation, and (3) a discussion of the GAO report on advances in China's semiconductor industry. The BIS was formerly known as the Bureau of Export Administration (BXA). See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
2:30 PM. The Senate Commerce Committee's Subcommittee on Science, Technology, and Space will hold a hearing to examine women in science and technology. Location: Room 253, Russell Building.
Thursday, July 25
9:00 AM. Day two of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. See, notice in the Federal Register. Location: Hoover Building, Room 3884, 14th Street between Pennsylvania Ave. and Constitution Ave. NW.
More News
7/18. Nancy Victory gave a speech to the Media Institute in Washington DC titled "The Quest for a New Golden Age: The Challenges of Building a Digital Mass Media". Victory is Director of the Department of Commerce's National Telecommunications and Information Administration (NTIA). She reviewed the NTIA's DTV related activities in spectrum management, standards development, and promotion.
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