| Dingell Wins Primary
Election |
| 8/6. Rep. John
Dingell (D-MI), the ranking Democrat on the House Commerce Committee,
defeated Rep. Lynn
Rivers (D-MI) in the Democratic primary election for the
new Michigan 15th congressional district. Rep. Dingell should
easily win the general election in this overwhelmingly
Democratic district. Had Rep. Dingell lost, Rep. Henry Waxman
(D-CA) would have become the ranking Democratic on the
Commerce Committee. |
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| Sen. Lieberman Introduces
Stock Options Bill |
8/1. Sen. Joe
Lieberman (D-CT) and Sen.
Barbara Boxer (D-CA) introduced S 2877, the
"Rank and File Stock Option Act of 2002". The bill
would require that stock options be broad based, and that
stock option plans be approved by shareholders. It would not
require the expensing of stock options. It was referred to the
Senate Finance
Committee.
The bill would amend Section 162 of the Internal Revenue Code
of 1986 to provide for the denial of deduction of stock option
plans that discriminate in favor of highly compensated
employees.
The bill would also require the Securities
and Exchange Commission (SEC) to adopt rules that require
that "shareholder approval is required for stock option
plans and grants, stock purchase plans, and other arrangements
by public companies by which any person may acquire an equity
interest in the company in exchange for consideration that is
less than the fair market value of the equity interest at the
time of the exchange".
The bill also would require the SEC to "conduct an
analysis of, and make regulatory and legislative
recommendations on, the need for new stock holding period
requirements for senior executives, including ...
recommendations to set minimum holding periods after the
exercise of options to purchase stock and to set a maximum
percentage of stock purchased through options that may be sold ..."
However, the bill does not require the expensing of stock
options.
Sen. Lieberman said that his bill would provide a "tool
in the democratization of capitalism". See, Cong. Rec.,
August 1, 2002, at page S7942.
Sen. Lieberman elaborated that stock options are a
"fundamentally decent idea". He said that
"We've discovered over the last ten months that too many
companies and executives have been misusing and abusing them.
In far too many cases, options have been turned into mere feed
in the corporate trough by the greed of corporate
executives."
"They can be used well or used poorly. We've seen
corporate executives use this hammer to weaken the foundations
of their companies, build rickety and top heavy structures
ready to collapse, and build themselves nice, secure shelters
from the damage. That's unconscionable." said Sen.
Lieberman.
He explained that his bill would "correct this abuse by
ensuring that the tool of stock options is put in the hands of
more and more employees so it can be used as it was initially
intended -- to construct wealth, to build fortunes, to
strengthen companies, and to incentivize the long term
soundness and stability of a company."
Sen. Lieberman added that "The way to fix this problem is
not, as some have suggested, to require stock option expensing
at the time an option is granted. That would, in fact, make
the problem worse. It would disincentive the dissemination of
options in the first place -- and in the end, those at the top
of the corporate food chain will still take care of
themselves. No, the way to fix this problem is to ensure that
stock options are more broadly shared by more and more
employees of American corporations -- that they truly are the
democratizing tool that they can be." |
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| Ashcroft Comments on Loss
of 317 Laptops by FBI |
8/6. Attorney General John Ashcroft
issued a statement
regarding the Office of
the Inspector General (OIG) report regarding lost laptop
computers at the Federal Bureau
of Investigation (FBI) and other Department of Justice (DOJ)
components.
On August 5 the OIG audited and released a series of reports
on the control of laptop computers and weapons at five DOJ
components. It concluded that there were a total of 400
missing laptops, and 775 missing weapons. For the FBI, it
reported 317 missing laptops and 212 missing weapons.
Moreover, the OIG concluded that the FBI does not know if
sensitive data has been lost. See, Executive
Summary [43 pages in PDF].
AG Ashcroft stated that "The American people expect and
deserve absolute accountability from public officials. The
Department of Justice's component agencies are essential to
the success of the criminal justice system, and we place a
high priority on correcting any problems within these
components. Last July, I asked Inspector General Glenn Fine to
determine where accountability has faltered, especially
relating to firearms and information technology resources, and
to help the Department design a way to keep this from
recurring."
Ashcroft added that "I am also directing all of the
Department's component agencies to take specific steps to
ensure weapons and laptops computers do not fall into the
wrong hands." |
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| Bush Signs Trade Promotion
Authority Bill |
8/6. President Bush signed into law the Trade Act of 2002, a
bill granting the President trade promotion authority. Bush,
several members of his cabinet, and U.S. Trade Representative Robert
Zoellick, lobbied extensively for passive of the bill.
Bush stated in a signing speech
in Washington DC that "With trade promotion authority,
the trade agreements I negotiate will have an up or down vote
in Congress, giving other countries the confidence to
negotiate with us. Five Presidents before me had this
advantage, but since the authority elapsed in 1994, other
nations and regions have pursued new trade agreements while
America's trade policy was stuck in park."
Bush continued that "With each passing day, America has
lost trading opportunities, and the jobs and earnings that go
with them. Starting now, America is back at the bargaining
table in full force. I will use trade promotion authority
aggressively to create more good jobs for American workers,
more exports for American farmers, and higher living standards
for American families. Free trade has a proven track record
for spurring growth and advancing opportunity for our working
families."
Bush also extolled the benefits of trade for the world. He
said that "Free trade is also a proven strategy for
building global prosperity and adding to the momentum of
political freedom. Trade is an engine of economic growth. It
uses the power of markets to meet the needs of the poor. In
our lifetime, trade has helped lift millions of people, and
whole nations, and entire regions, out of poverty and put them
on the path to prosperity. History shows that as nations
become more prosperous, their citizens will demand, and can
afford, a cleaner environment. And greater freedom for
commerce across the borders eventually leads to greater
freedom for citizens within the borders."
Treasury Secretary Paul
O'Neill stated in a release
that "Trade is a critical component of our economy and
TPA will help quicken the pace of our recovery. Trade now
represents more than one quarter of our economy and trade has
created millions of jobs that pay above average wages.
It has fueled competition and innovation, and helped sustain
growth with little inflation. Just as important, it has helped
promote the truly global growth and prosperity upon which
America’s own growth and prosperity will ultimately
depend." |
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| Microsoft Hires Law Firm to
Lobby for Allocation of Unlicensed Spectrum |
7/25. The Washington DC law firm of Harris Wiltshire
filed a Lobbying Registration form with the Clerk of the U.S.
House of Representatives which lists Microsoft as its client,
and lists as the specific lobbying issues "Use and
allocation of unlicensed spectrum; H.R. 4641 Wireless
Technology Investment and Digital Dividends Act of 2002;
Future legislation pertaining to spectrum allocation
reform." The form was signed by Scott
Harris.
HR 4641
was introduced on May 2, 2002 by Rep. Ed Markey (D-MA),
the ranking Democrat on the House Telecom Subcommittee. The
bill has only two co-sponsors, Rep. Karen McCarthy
(D-MO) and Rep. John
Larson (D-CT).
The bill would require that the National Telecommunications
and Information Administration (NTIA) "shall, not
later than January 1, 2003, prepare, make publicly available,
and submit to the President, the Congress, and the Commission
a report that ... designates a 20-megahertz band of contiguous
frequencies located below 2 gigahertz, and a band of between 3
and 500 megahertz of contiguous frequencies above 2 gigahertz
and below 6 gigahertz, for reallocation to the public for
unlicensed use".
Rep. Markey wrote in his summary
of the bill that "An unlicensed area of the airwaves will
permit the public, through the use of ``smart´´ radio
technology and better receiver equipment, to harness the
airwaves for countless applications if the government is
willing to give back to the public a portion of its own
airwaves in such an unlicensed format. From ``wi-fi´´
technology and low power ``Bluetooth´´ wireless connections,
to so-called ``802.11b´´ protocols, wireless local area
networks and Net connections, utilization of publicly
available airwaves can help connect people and businesses in
cost effective and spectrum efficient ways. The ``Spectrum
Commons´´ will also help to propel economic growth and
innovation by opening up the airwaves to new marketplace entry
by individuals and entities unaffiliated with established
network providers."
However, providing for the allocation of unlicensed spectrum
is only one small part of Rep. Markey's bill. The bill would
also create a new trust fund, to be named the "Digital
Dividends Trust Fund". It would be financed with the
proceeds from the auction of spectrum licenses. This trust
fund would then be used for teacher training, research and
development, digitizing content for libraries, and other
purposes.
This bill would also require the Federal
Communications Commission (FCC) to take action to achieve
the timely transition to digital television by establishing
rules governing must carry issues, minimum programming and
broadcasting requirements, and digital television receiver
benchmarks. It would also require the FCC and NTIA to take
action to secure additional spectrum for advanced wireless
services -- including Third Generation (3G) services. |
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| FTC Takes Action Against
Phillips Electronics for False Statements Regarding Rebates |
8/5. The Federal Trade
Commission (FTC) announced that it filed an administrative
complaint
[PDF] against Phillips
Electronics North America Corporation (Phillips) alleging
violation of Section 5(a) of the Federal Trade Commission Act
(FTCA) in connection with making false statements regarding
rebates on the sale of computer peripheral products.
Section 5(a), codified at 15 U.S.C.
§ 45, provides, in part, that "Unfair methods of
competition in or affecting commerce, and unfair or deceptive
acts or practices in or affecting commerce, are hereby
declared unlawful."
The FTC and Phillips also entered into an Agreement
Containing Consent Agreement [PDF] that provides, among
other things, that Phillips "shall not ... misrepresent,
in any manner, expressly or by implication, the time in which
any rebate in the form of cash or credit towards future
purchases will be mailed, or otherwise provided, to purchasers
... fail to provide any rebate in the form of cash within the
time specified, or, if no time is specified, within thirty
(30) days ..."
Howard Beales, Director of the FTC's Bureau of Consumer
Protection, stated in a release
that "Rebates that begin as a big draw for consumers
often end up as a big drag ... Some companies are quick to
offer attractive rebates, but are slow to send them out, and
often make them so difficult to redeem that consumers simply
give up. ... the Commission alleged that the sellers changed
the rules of the game while it was being played. The FTC will
use all of its powers -- including its power to allege unfair
business practices -- to challenge such conduct." |
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| Ninth Circuit Rules on Use
of Thermal Imaging Devices |
8/6. The U.S.
Court of Appeals (9thCir) issued its opinion
[PDF] in USA
v. Huggins, a criminal case involving
application of the Fourth Amendment to the use of thermal
imaging devices.
On June 11, 2001, the Supreme
Court of the U.S. issued its opinion
[PDF] in Kyllo v. U.S., holding that the thermal imaging of a
home to detect lamps used for growing marijuana constitutes a
search within the meaning of the Fourth Amendment. The Supreme
Court further held that such searches are unreasonable under
the Fourth Amendment unless supported by probable cause and
authorized by a warrant.
In USA v. Huggins, a Drug
Enforcement Administration (DEA) agent obtained a federal
warrant to conduct a thermal imaging scan of a house and two
barns on property occupied by two defendants. Probable cause
was based upon several items, including a tip, one of the
defendants having a prior drug related conviction, use of
multiple alias names, and electricity consumption far greater
than nearby residents and prior residents of the same
property. The thermal imaging scan then heat radiation in the
middle of the night consistent with indoor cultivation. The
DEA then obtained a further warrant for a physical search of
the property. The DEA found hundreds of marijuana plants, and
related equipment, and evidence of related operations at other
locations.
Defendants sought to suppress evidence, in part, based upon
the use of the thermal imaging device. The trial court denied
the motion. The Appeals Court affirmed. |
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| More News |
8/2. The Overseas Private
Investment Corporation (OPIC), an agency of the U.S.
government, announced that it will provide $777,000 in
political risk insurance for International
Scientific Products Corporation to expand its optical
components manufacturing facility in St. Petersburg, Russia.
OPIC stated that the money will be used for "insurance to
cover against risk of expropriation and political violence for
a consignment of equipment and accessories to be used to
increase production and quality control". See, OPIC
release.
8/1. Sen. John Edwards
(D-NC) and Sen. Charles
Schumer (D-NY) introduced S 2846, a bill to establish a
commission to evaluate investigative and surveillance
technologies. It was referred to the Senate Judiciary
Committee, of which both Sen. Edwards and Sen. Schumer are
members. Sen. Edwards issued a release
which states that "In the wake of the terrorist attacks
last year, the Federal Bureau of Investigation and local
police departments have increased experimentation with video
and Internet surveillance, X-ray screening, facial
identification and other investigative tools", and that
the bill would "establish a bipartisan commission to
study these surveillance tools and find the ways to enhance
security without compromising privacy".
8/6. Political Money Online,
a web site that collects and organizes Federal Election Commission (FEC)
filings, and other materials, reported that "Jack
Grubman, telecommunications security analyst for Citigroup’s
Salomon Smith Barney, donates $100,000 to the Dem
Senatorial Campaign Cmte on 6/27, the same day he was
subpoenaed by the House Financial Services Cmte, and
the day after the SEC filed charges against Worldcom."
(Abbreviations and emphasis in original.) |
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| Wednesday, August 7 |
| 10:00 AM. The U.S. Court of
Appeals (FedCir) will hear oral argument in Honeywell
International v. Hamilton Sundstrand, No. 02-1005. This is
an appeal from the U.S. District Court (DDel) in a patent
infringement case involving aircraft turbine engines in which
the Court found Honeywell's patents valid, and awarded $46
Million in damages. Location: 717 Madison Place, NW, Courtroom
402. |
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| Thursday, August 8 |
Day one of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
9:00 AM. Qwest Communications
will release its second quarter 2002 results at approximately
6:00 AM EDT. It will host a conference call at 9:00 AM EDT.
The participants will include Ch/CEO Richard Notebaert and
VCh/CFO Oren Shaffer. The event will be web cast.
See, Qwest
release.
9:30 AM. The FCC will hold a
meeting. The agenda
includes three items: (1) consideration of a NPRM regarding
digital broadcast copy protection; (2) consideration of a
Second Report and Order and Second Memorandum Opinion
regarding its policies and rules for conversion of the
broadcast television service to digital technology; this is MM
Docket No. 00-39; and (3) consideration of a Report and Order
regarding various Part 22 rules that have become outdated due
to technological change, increased competition in CMRS, or
supervening rules; this is WT Docket No. 01-108. Press
contact: Maureen Peratino or David Fiske at 202 418-0500. See,
FCC
release.
9:45 AM. The U.S.
District Court (DC) will hold a conference hearing in EPIC
v. DOJ, D.C. No. 2002 cv 0063. The EPIC filed
a complaint
against the Justice Department and Treasury Department,
pursuant to the under the Freedom of Information Act (FOIA),
seeking records pertaining to the federal government's
purchase of personal information of individuals from private
sector database companies. Judge Colleen Kotelly will preside.
Location: 333 Constitution Ave. NW, Courtroom 11.
Deadline to submit comment to the FCC regarding
the NTIA's
July 23 document
titled "An Assessment of the Viability of Accommodating
Advanced Mobile Wireless (3G) Systems in the 1710-1770 MHz and
2110-2170 MHz Bands". The FCC has incorporated this
viability assessment into its Advanced Wireless Services proceeding
in ET Docket No. 00-258. See, public
notice [PDF]. |
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| Friday, August 9 |
Day two of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
9:00 AM - 3:00 PM. The FCC's Spectrum Policy Task Force
will hold a public workshop titled "Spectrum Rights
and Responsibilities". First, Thomas Krattenmaker (Mintz
Levin) will give an historical view of spectrum rights and
responsibilities. Second, there will be a panel titled
"New Technologies and Spectrum Usage Rights". The
moderators will be Charla Rath (Verizon Wireless) and Paul
Kolodzy (FCC); the panelists will be David Farber
(University of Pennsylvania), David
Siddall (Paul Hastings),
Peter Pitsch (Intel),
Victor Tawil (MSTV), Steve
Sharkey (Motorola),
Bruce Fette (General
Dynamics), and Gee Rittenhouse (Lucent). Third, there will
be a panel titled "Modeling Licensed and Unlicensed
Spectrum Usage Rights". The moderators will be Michele
Farquhar (Hogan & Hartson)
and David Furth (FCC); the panelists will be Martin
Cave (Warwick Business School), Tom
Hazlett (Manhattan
Institute), Steve Stroh (Focus On Broadband Wireless
Internet Access), Michael
Calabrese (New
America Foundation), Larry Miller (LMCC/ AASHTO), David
Wye (AT&T Wireless), Michael Kurtis (Kurtis & Associates),
Jennifer Warren (Lockheed
Martin), and Joe Gatusso (NTIA). See, FCC
notice [PDF]. Webcast. Location: FCC, Commission Meeting
Room, 445 12th Street, SW. |
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| Saturday, August 10 |
| Day three of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC. |
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| Sunday, August 11 |
| Day four of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC. |
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| Monday, August 12 |
Day five of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
Deadline to submit reply comments to the Federal Communications Commission
(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, June 21, 2002, Vol. 67, No. 120, at
Pages 42211 - 42215. |
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| Tuesday, August 13 |
Day six of six of the American Bar Association's annual
meeting. See, TLJ's
complete listing of technology law related events.
Location: various hotels across Washington DC.
10:00 AM - 12:00 NOON. The State Department's International
Telecommunication Advisory Committee (ITAC) will meet. See, notice
in Federal Register. Location: Room 1105, State Department. |
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