| House Passes Conference
                  Report on DOJ Authorization Bill, With Tech Provisions | 
               
              
                9/26. The House passed HR 2215,
                  the 21st Century Department of Justice Appropriation
                  Authorization Act, by a vote of 400-4. See, Roll
                  Call No. 422. The bill does far more than authorize the Department of Justice (DOJ).
                  It is also the vehicle for passage of numerous other tech
                  related items.
                   
                  It requires the DOJ to annually report certain information to
                  the Congress regarding use of the Carnivore e-mail
                  surveillance system; it changes the procedure for serving
                  certain search warrants upon ISPs; and, it modifies the
                  process for extending H1B visas for high tech workers. See,
                  stories below.
                   
                  The DOJ authorization bill also amends the Copyright Act to
                  facilitate distance learning (TEACH Act); it amends the Patent
                  Act regarding inter partes reexamination, and other matters;
                  and, it includes the Madrid Protocol Implementation Act. See,
                  stories in tomorrow's issue.
                   
                  The House passed an earlier version of HR 2215 on July
                  23, 2001. The Senate later passed its own version of the bill
                  on December 20, 2001. Hence, a conference committee was
                  required to adjust the differences between the two versions of
                  the bill. House and Senate conferees reached agreement on
                  September 25. The text of conference report is printed in the
                  Congressional Record for September 25, at pages H6586-6649.
                   
                  The House has now passed the conference report. The Senate is
                  likely to pass it during the week of September 30, with the
                  President's signature shortly thereafter.
                   
                  Rep. James
                  Sensenbrenner (R-WI), the Chairman of the House Judiciary
                  Committee (HJC), stated on the House floor on September 26
                  that "This conference report represents the first
                  Department of Justice authorization that will be signed into
                  law since 1979. The Department has gone for 23 years without
                  an authorization. This legislation will help the Congress to
                  do better oversight over the Department of Justice and will
                  allow the Department of Justice to do better oversight over
                  itself through improvements in the Inspector General's
                  Office."
                   
                  He stated that "H.R. 2215 also ensures effective
                  market competition by making important improvements to federal
                  antitrust statues, and establishes a Commission to review the
                  adequacy of existing antitrust laws."
                   
                  The bill provides, at Section 102, that "There are
                  authorized to be appropriated for fiscal year 2003, to carry
                  out the activities of the ... Antitrust Division:
                  $141,855,000." (Cong. Rec., at H6588.)
                   
                  Rep. Sensenbrenner also said that the bill "promotes
                  America's economic competitiveness by strengthening
                  protections for intellectual property, modernizing the
                  application process at the Patent and Trademark Office, and
                  ensuring that holders of U.S. trademarks are accorded the full
                  protection of international law."
                   
                  See also, HJC
                  release and HJC summary
                  of the conference report. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | DOJ Authorization Bill
                  Changes Procedure for Service of Search Warrants on ISPs | 
               
              
                9/26. The House passed the conference report on HR 2215,
                  the 21st Century Department of Justice Appropriation
                  Authorization Act, by a vote of 400-4 on September 26. The
                  Senate will likely pass the bill during the week of September
                  30. The bill includes, among other things, a provision
                  regarding persons authorized to serve search warrants on
                  Internet Service Providers (ISPs). It removes the requirement
                  that a law enforcement officer be present.
                   
                  Under current law, 18 U.S.C. § 3105 covers persons authorized
                  to serve search warrants. It specifies "an officer
                  authorized by law". Section 11010 of HR 2215 would
                  add a new subsection to 18 U.S.C. § 2703. This section is a
                  part of Title 121, which pertains to "Stored Wire and
                  Electronic Communications and Transactional Records
                  Access". This title was revised last year by the USA
                  PATRIOT Act.
                   
                  The new subsection 2703(g) provides, in full, that "(g)
                  PRESENCE OF OFFICER NOT REQUIRED. -- Notwithstanding section
                  3105 of this title, the presence of an officer shall not be
                  required for service or execution of a search warrant issued
                  in accordance with this chapter requiring disclosure by a
                  provider of electronic communications service or remote
                  computing service of the contents of communications or records
                  or other information pertaining to a subscriber to or customer
                  of such service."
                   
                  Thus, law enforcement authorities will be able to serve search
                  warrants on ISPs by fax, without having to travel in person
                  around the country. Likewise, ISPs will be more able to keep
                  law enforcement officers off of their premises. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | DOJ Authorization Bill
                  Includes Carnivore Reporting Provisions | 
               
              
                9/26. The House passed the conference report on HR 2215,
                  the 21st Century Department of Justice Appropriation
                  Authorization Act, by a vote of 400-4 on September 26. The
                  Senate will likely pass the bill during the week of September
                  30. The bill includes, among other things, a provision
                  requiring the Department of
                  Justice (DOJ) to prepare annual reports for the Congress
                  regarding its use of the Carnivore. Carnivore is a
                  surveillance system installed on the facilities of Internet
                  Service Providers (ISPs). It is also known as DCS 1000. The
                  relevant language is found in Section
                  305 of the bill.
                   
                  Currently, 18 U.S.C. § 3126 requires the DOJ to submit annual
                  reports to the Congress on the number of pen register orders
                  and trap and trace device orders.
                   
                  These are both old telephone industry concepts. Originally, a
                  pen register recorded the numbers that were dialed or punched
                  into a telephone. Similarly, a trap and trace device captured
                  the number from which a communication was received. Prior to
                  passage of the USA PATRIOT Act, the definitions covered
                  "wire" communications only.
                   
                  The issuance of pen register and trap and trace orders is
                  covered by § 3123. The terms pen register and trap and
                  trace device are defined at § 3127. The Congress amended
                  these sections last year in the USA PATRIOT Act. In
                  particular, the definitions of pen register and trap and trace
                  device were expanded to include electronic communications,
                  thus encompassing technologies such as the DOJ's Carnivore.
                  That it, law enforcement authorities may capture the
                  "To:" and "From:" addresses in e-mail
                  communications.
                   
                  Also, currently, 18 U.S.C. § 2519 requires the DOJ to submit
                  reports pertaining to wiretap orders. These orders, also known
                  as Title III orders, allow the government to obtain the
                  content phone conversations, and now, electronic
                  communications. (Procedure for wiretap orders is covered in
                  § 2518.)
                   
                  Section 305 of the DOJ authorization bill, amends both
                  reporting requirements of both § 3126 and § 2519.
                   
                  § 3126, regarding pen register and trap and trace devices,
                  would be amended to also require the DOJ to report such things
                  as "the period of interceptions authorized by the order
                  ... the offense specified in the order ... the number of
                  investigations involved ... the number and nature of the
                  facilities affected ... the identity of the applying
                  investigative or law enforcement agency making the application
                  for an order" and "the specific persons authorizing
                  the use of the DCS 1000 program".
                   
                  § 2519, regarding wiretap orders, would be amended to require
                  the DOJ to report a larger number of items. One of the
                  additional items would be "the number of orders in which
                  encryption was encountered and whether such encryption
                  prevented law enforcement from obtaining the plain text of
                  communications intercepted pursuant to such order". The
                  bill would also require reporting of information pertaining to
                  the numbers of resulting arrests, trials, convictions, and
                  motions to suppress (and grants).
                   
                  However, there is nothing in the new Section 305 pertaining to
                  reporting to the Congress regarding orders issued under the
                  Foreign Intelligence Surveillance Act (FISA). | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | DOJ Authorization Bill
                  Modifies Extension Procedure for H1B Visas | 
               
              
                9/26. The House passed the conference report on HR 2215,
                  the 21st Century Department of Justice Appropriation
                  Authorization Act, by a vote of 400-4 on September 26. The
                  Senate will likely pass the bill during the week of September
                  30. The bill includes, among other things, a provision
                  regarding extension of H-1B visas.
                   
                  These visas commonly enable technology companies to employ
                  aliens in positions for which there is a worker shortage among
                  U.S. citizens. Section 11030A of the bill provides for an
                  extension of H-1B status for aliens with lengthy
                  adjudications.
                   
                  Rep. Lamar Smith
                  (R-TX) was the Chairman of the House Immigration Subcommittee
                  when the House passed the American Competitiveness in the 21st
                  Century Act (Public Law 106-313), also known as
                  "AC21", during the previous Congress. He explained
                  this new section during the floor debate. He said that it
                  "will permit H-1B aliens who have labor certification
                  applications caught in lengthy agency backlogs to extend their
                  status beyond the 6th year limitation or, if they have already
                  exceeded such limitation, to have a new H-1B petition approved
                  so they can apply for an H-1B visa to return from abroad or
                  otherwise re-obtain H-1B status."
                   
                  He continued that "Either a labor certification
                  application or a petition must be filed at least 365 days
                  prior to the end of the 6th year in order for the alien to be
                  eligible under this section." The problem, said Smith, is
                  the the AC21 Act has an unforeseen defect. The Act provides
                  for an extension of H-1B status beyond 6 years in one year
                  increments, as long as an employment based immigrant visa
                  petition or employment based adjustment of status application
                  has been filed and at least 365 days have elapsed since the
                  filing of the petition or a labor certification application.
                  Smith said that the Department of Labor has slowed down its
                  processing, making this process useless for many otherwise
                  qualified applications. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | FCC to Hold Hearing on
                  Financial State of Telecom Industry | 
               
              
                9/27. The Federal
                  Communications Commission (FCC) announced that it will
                  hold an en banc hearing on "the current state of the
                  telecommunications sector and to discuss steps needed to
                  restore its financial health". It will be held on Monday,
                  October 7, from 2:00 - 4:00 PM, in the Commission Meeting
                  Room.
                   
                  FCC Chairman Michael Powell
                  stated in a release
                  [PDF] that "The purpose of this hearing is to bring
                  together key voices from the financial and research
                  communities to discuss the financial state of the industry and
                  what measures need to be taken to revitalize and restore the
                  financial health of the telecommunications industry, restore
                  public trust and prevent further erosion from the current
                  financial turmoil in this sector". The FCC did not
                  release a list of participants. | 
               
             
           | 
         
       
     | 
     | 
    
      
        
          
            
              
                | Sen. Baucus Calls WTO
                  Dispute Settlement Process a "Kangaroo Court" | 
               
              
                9/26. Sen. Max Baucus
                  (D-MT), the Chairman of the Senate Finance
                  Committee, gave a speech
                  [PDF] titled "U.S. Trade Law and the WTO". He that a
                  growing number of World Trade
                  Organization (WTO) panels "have inappropriately ruled
                  against U.S. trade laws ... I am deeply troubled about what
                  has been going on in the WTO dispute settlement process. These
                  proceedings are looking more and more like a kangaroo court
                  against U.S. trade laws. This trend must stop."
                   
                   Sen.
                  Baucus (at right) reviewed the creation of the WTO dispute
                  settlement process. He said that "During the Uruguay
                  Round negotiations, the U.S. fought for and achieved a system
                  of binding dispute resolution. We also fought for and won a
                  deferential standard of review for trade remedy cases. This
                  standard requires dispute settlement panels to defer to
                  national authorities when they make reasonable interpretations
                  of fact and WTO provisions. It was supposed to apply to all
                  trade remedy cases, but it has been improperly narrowed. And
                  even where notionally applied, it has been disrespected. As a
                  nation with trade laws that are transparent, fair, and
                  consistent with the express language of WTO agreements, we
                  thought we had little to fear and much to gain from a system
                  that would require our trading partners to bring their
                  practices into compliance with WTO standards."
                   
                  Sen. Baucus next discussed the Foreign Sales Corporation (FSC)
                  tax regime, and its replacement, the Extraterritorial Income (ETI)
                  regime. The WTO has held that both of these constitute illegal
                  trade subsidies. On August 30 the WTO released a Decision
                  of the Arbitrator [46 pages in PDF] that authorizes the EU
                  to impose $4 Billion in countermeasures, or retaliatory
                  tariffs. On September 13 the European Union published a document
                  [14 pages in PDF] that lists thousands of product category
                  numbers that identify products that may be subject to
                  retaliatory tariffs. It includes many tech products.
                   
                  Sen. Baucus stated that while the FSC/ETI matter "is not
                  a case involving trade laws, it is one more example of
                  arbitrary decision making. Of course, I believe the EC was
                  wrong even to bring this case. But on the merits, the
                  Appellate Body's decisions make an unworkable distinction
                  between countries that rely primarily on direct taxes (like
                  income taxes) and countries that rely primarily on indirect
                  taxes (like the VAT). Even though the Appellate Body
                  acknowledged countries' sovereign right to set their own tax
                  systems, they interpret WTO rules in a way that heavily favors
                  one particular model."
                   
                  He added that he and Sen.
                  Charles Grassley (R-IA), the ranking Republican on the
                  Finance Committee, "convened a working group on FSC this
                  week, and I am hopeful that working together with our
                  colleagues in Congress and with the Administration, we can
                  evaluate all options and come up with possible
                  solutions."
                   
                  The U.S. could avoid the imposition of retaliatory tariffs, by
                  repealing the ETI tax regime. Rep. Bill Thomas
                  (R-CA), the Chairman of the House Ways and Means
                  Committee, introduced HR 5095,
                  the American Competitiveness and Corporate Accountability Act
                  of 2002, on July 11, 2002, to address the WTO's rulings
                  regarding the FSC and ETI. However, no action has been taken
                  on the bill. Also, neither Sen. Baucus, nor any other member
                  of the Senate, has yet introduced a bill in that body.
                   
                  Sen. Baucus asked rhetorically, "So, why have we lost all
                  these cases? What is going on here?" He answered that the
                  "WTO dispute settlement panels are legislating. They are
                  ignoring the deferential standard of review. They are
                  exceeding their powers to add to the obligations and diminish
                  the rights of the United States. In sum, they are making up
                  rules out of whole cloth -- substituting their judgment for
                  the negotiated agreement. They are making up rules that the
                  United States never negotiated, that Congress never approved,
                  and, I suspect, that Congress would not approve."
                   
                  He concluded that "Overall, one thing is clear. WTO
                  proceedings must be governed by the rule of law, not simply an
                  abiding dislike on the part of our trading partners for some
                  aspects of U.S. trade policy. If this trend is not addressed,
                  this will be the next major trade issue. And it absolutely
                  threatens the legitimacy of the WTO." | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | House Subcommittee Holds
                  Hearing on Berman P2P Piracy Bill | 
               
              
                9/26. The House
                  Judiciary Committee's Subcommittee on Courts, the Internet
                  and Intellectual Property held a hearing on HR 5211,
                  sponsored by Rep.
                  Howard Berman (D-CA). The bill is sometimes referred to as
                  the "peer to peer piracy protection act", or as the
                  "Berman bill".
                   
                  The bill would add a new Section 514 to Chapter 5 (pertaining
                  to copyright infringement and its remedies) of Title 17 (the
                  Copyright Act).
                   
                  The bill provides, in part, that "Notwithstanding any
                  State or Federal statute or other law, ... a copyright owner
                  shall not be liable in any criminal or civil action for
                  disabling, interfering with, blocking, diverting, or otherwise
                  impairing the unauthorized distribution, display, performance,
                  or reproduction of his or her copyrighted work on a publicly
                  accessible peer-to-peer file trading network, if such
                  impairment does not, without authorization, alter, delete, or
                  otherwise impair the integrity of any computer file or data
                  residing on the computer of a file trader."
                   
                  See also, story titled "Rep. Berman Introduces Bill to
                  Legalize Self Help Technologies to Disable P2P Piracy" in
                  TLJ
                  Daily E-Mail Alert No. 478, July 26, 2002.
                   
                   Rep. Berman (at right)
                  said in his opening
                  statement that while there have been "some truly
                  outrageous press attacks", the basic premise of the bill
                  is "that copyright owners should be able to use
                  reasonable, limited self help measures to thwart rampant,
                  notorious P2P piracy."
                   
                  He continued that "Unauthorized distribution or
                  downloading of copyrighted works on public P2P networks is
                  illegal. To paraphrase the 9th Circuit in the Napster case:
                  public P2P users ``infringe at least two of the copyright
                  holders' exclusive rights: the rights of reproduction and
                  distribution. P2P users who upload file names to the search
                  index for others to copy violate a copyright holder's
                  distribution rights. P2P users who download files containing
                  copyrighted music violate a copyright holder's reproduction
                  rights.´´ Any attempt to say otherwise is a bald-faced
                  attempt to rewrite well settled law."
                   
                  "Massive theft of copyrighted works is the predominant
                  use for public P2P networks today," said Rep. Berman.
                  "Rather than looking for solutions to piracy, P2P
                  companies are designing their systems to be better piracy
                  tools. Both Morpheus and KaZaA have upgraded their software
                  specifically to impair the ability of copyright owners to
                  proliferate decoy files through the networks. Based on these
                  facts, what can an objective person conclude other than that
                  P2P companies plan to profit from piracy, and have no intent
                  or desire to stop it?"
                   
                  He stated that his bill "says that copyright owners
                  should not be liable for thwarting the piracy of their works
                  on P2P networks IF they can do so without causing harm."
                  He added that this is necessary because "a variety of
                  state and federal statutes can be read to create liability for
                  copyright owners engaging in such harmless self help."
                   
                  Rep. Howard Coble
                  (R-NC), the Chairman of the Subcommittee, condemned critics of
                  the bill for using "scare tactics" and accusing the
                  bill's supporters of being "in the pockets of
                  Hollywood". Rep. Coble, who is an original cosponsor of
                  the bill, said in his opening
                  statement that Recent technological advances have created
                  a digital environment that is almost solely devoted to the
                  unauthorized use of copyrighted works. In other words, P-2-P
                  network customers are primarily using the program to obtain
                  music, movies, software, photographs and other works without
                  paying for the product."
                   
                  Rep. Berman also wrote a speech
                  for delivery at a Cato
                  Institute panel discussion on peer to peer piracy on
                  September 19. However, he was unable to attend, and the
                  Minority Counsel for the Subcommitte, Alec French, delivered
                  the speech in his place.
                   
                  Rep. Rick Boucher
                  (D-VA), a leading critic of HR 5211, said in his opening
                  statement that "I question at the outset what it is
                  the industry wants to do under the provisions of the bill that
                  it cannot do under current law. Spoofing is allowed now.
                  Decoys are allowed now. Redirection to legitimate websites is
                  allowed now."
                   
                  He raised several questions about the bill. He stated:
                  "Would any of these intended self help mechanisms harm
                  innocent Internet users by slowing down the speed of a shared
                  network such as a cable modem service? Would any of these
                  mechanisms permit the recording industry to intrude into the
                  personal computer space of an Internet user?  If so, what
                  are the implications of such intrusions for the privacy rights
                  of individuals? If any damage is done to hardware, software or
                  data owned by an Internet user, how would the damaged party
                  know who to proceed against? After all, no notice to him is
                  required under the bill that his space is being invaded or who
                  is doing the invading. What assurance will there be that
                  material which is protected under the fair use doctrine will
                  not be blocked or disables by a self help invasion?"
                   
                  He stated that the music industry should "simply place
                  entire inventories on the Web for permanent portable
                  downloading at a reasonable price". He also promoted his
                  own legislative proposal "to facilitate the lawful
                  distribution of music across the Internet in a manner that
                  assumes that all owners of copyright are paid. Mr. Cannon and
                  I have introduced a comprehensive measure, the Music Online
                  Competition Act, each of the elements of which if enacted into
                  law would help achieve that goal." The two introduced
                  this bill, HR 2724,
                  or the "MOCA" bill, on August 2, 2001.
                   
                  Rep. Zoe Lofgren
                  (D-CA), who represents a Silicon Valley district, also spoke
                  in opposition to the bill. She said that peer to peer
                  applications are the "next killer app", and give
                  consumers an incentive to embrace broadband.
                   
                  Rep. Darrell Issa
                  (R-CA) and Rep. Robert
                  Wexler (D-FL) both delivered emphatic excoriations of peer
                  to peer piracy.
                   
                  Rep. Marty Meehan
                  (D-MA) called the bill a "good first step". Rep. Bob Goodlatte
                  (R-VA) expressed support for efforts to combat piracy, and
                  criticized misuse of peer to peer networks. However, he also
                  said, "I have not yet cosponsored this bill."
                   
                  Rep. Anthony Weiner
                  (D-CA) reflected on the parties to the debate. He said that
                  "there is an intramural battle going on in the technology
                  community." He added that for some companies that provide
                  both equipment and content, such as Sony, "it is not even
                  clear that companies are on the same page".
                   
                  "Congress is not going to sit and watch this go on much
                  longer," said Rep. Weiner. He conclude that "no one
                  has made a good argument to me why this should be allowed to
                  continue."
                   
                  See also, prepared statements of witnesses: Hilary
                  Rosen (CEO of the RIAA), Randy
                  Saaf (President of Media Defender), Phil
                  Galdston (songwriter), and Gigi Sohn
                  (founder of Public
                  Knowledge).
                   
                  This hearing was likely Rep. Coble's last as Chairman of the
                  Subcommittee on Courts, the Internet and Intellectual
                  Property. He has served the maximum six years permitted by
                  House Republicans. Members took the opportunity to praise Rep.
                  Coble's hard work, fairness, and bipartisanship. Although,
                  most of the praise came from the Democrats on the
                  Subcommittee. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | FCC and NextWave Argue Over
                  Pleadings on Eve of Oral Argument | 
               
              
                9/27. The Supreme
                  Court will hear oral argument in FCC v. Nextwave, Case No.
                  01-653, and Arctic Slope Corp. v. Nextwave, Case No. 01-657,
                  on Tuesday, October 8. On September 27, the Federal Communications Commission
                  (FCC) filed a pleading with the Supreme Court titled
                  "Response of the Federal Communications Commission to the
                  Respondents' Motion to File Supplemental Appendix". The
                  FCC stated in this latest pleading that the respondents'
                  September 20 "Motion to File a Supplemental
                  Appendix" is in fact a "sur-reply not provided for
                  by this Court's rules", and that the Court should not
                  accept it. The Acting Solicitor General, who is counsel for
                  the FCC, is shocked that someone else would raise matters in
                  an untimely manner.
                   
                  NextWave obtained
                  spectrum licenses at FCC auctions in 1996. The FCC permitted
                  NextWave to obtain the licenses, and make payments under an
                  installment plan, thus creating a debtor creditor relationship
                  between NextWave and the FCC. NextWave did not make payments
                  required by the plan, and filed a Chapter 11 bankruptcy
                  petition. The FCC cancelled the licenses. It then proceeding
                  to re-auction the disputed spectrum. The U.S. Court of Appeals
                  (DCCir) ruled in its June 22, 2001 opinion
                  that the FCC is prevented from canceling the spectrum licenses
                  by §525
                  of the Bankruptcy Code. The FCC petitioned the Supreme Court
                  for writ of certiorari. The Court granted certiorari.
                   
                  The FCC argued in its May 6 Brief
                  that §525 "does not displace the FCC's exclusive
                  regulatory authority over spectrum licensing and the license
                  allocation mechanism established in 47
                  U.S.C. § 309(j)." See also, August
                  12 Reply
                  Brief [PDF]. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | More News | 
               
              
                9/27. The General Accounting
                  Office (GAO) released a report
                  [PDF] titled "Information Technology: Greater Use of Best
                  Practices Can Reduce Risks in Acquiring Defense Health Care
                  System". This report examines the Defense Department's
                  acquisition of the $1 Billion Composite Health Care System
                  (CHCS) II.
                   
                  9/27. The Commerce Department's Bureau of Industry and Security
                  (BIS), formerly known as the Bureau of Export Administration
                  (BXA), published a notice
                  in the Federal Register that it is requesting comments on its
                  foreign policy based export controls set forth in the Export
                  Administration Regulations (EAR). This includes, among other
                  things, high performance computers and encryption products.
                  Comments are due by November 29, 2002. See, Federal Register,
                  September 27, 2002, Vol. 67, No. 188, at Pages 61047 - 61049.
                   
                  9/27. The Federal Trade
                  Commission (FTC) announced that it has conditionally
                  approved Shell Oil Company's proposed acquisition of Pennzoil
                  Quaker State Company, subject to certain divestitures. See, FTC
                  release. Specifically, the FTC filed an administrative
                  complaint [5 page in PDF] against Shell and Pennzoil
                  Quaker State alleging that their merger plan violates Section
                  5 of the Federal Trade Commission Act, 15 U.S.C. § 45, and
                  Section 7 of the Clayton Act, 15 U.S.C. § 18. Then, the
                  parties simultaneously settled the matter. See, Agreement
                  Containing Consent Order [4 pages in PDF], Decision and
                  Order [10 pages in PDF], and Order to Hold
                  Separate and Maintain Assets [17 pages in PDF]. See also,
                  the FTC's summary
                  [PDF] of the proceeding.
                   
                  9/27. The New
                  Millennium Research Council hosted a panel discussion
                  titled "A WorldCom Phoenix: Is Bankruptcy a Tool for
                  Competitive Advantage?" See, release. | 
               
             
           | 
         
       
     | 
     | 
    
      
        
          
            
              
                | House to Vote on Internet
                  Gambling Bill | 
               
              
                9/27. The House of Representatives has scheduled a vote on HR 556,
                  the Unlawful Internet Gambling Funding Prohibition Act, for
                  Tuesday, October 1. It will be considered under a suspension
                  of the rules, which means that no amendments are in order, and
                  that passage requires two thirds of those voting.
                   
                  HR 556 is sponsored by Rep.
                  James Leach (R-IA). It provides, in part, that "No
                  person engaged in the business of betting or wagering may
                  knowingly accept, in connection with the participation of
                  another person in unlawful Internet gambling (1) credit, or
                  the proceeds of credit, extended to or on behalf of such other
                  person (including credit extended through the use of a credit
                  card); (2) an electronic fund transfer or funds transmitted by
                  or through a money transmitting business, or the proceeds of
                  an electronic fund transfer or money transmitting service,
                  from or on behalf of the other person; (3) any check, draft,
                  or similar instrument which is drawn by or on behalf of the
                  other person and is drawn on or payable at or through any
                  financial institution; or (4) the proceeds of any other form
                  of financial transaction as the Secretary may prescribe by
                  regulation which involves a financial institution as a payor
                  or financial intermediary on behalf of or for the benefit of
                  the other person."
                   
                  The House
                  Financial Services Committee approved the bill by a vote
                  of 34-18 on October 31, 2001. See, story titled "House
                  Committee Passes Internet Gambling Funding Bill" in TLJ
                  Daily E-Mail Alert No. 299, Nov. 1, 2002.
                   
                  There is another, broader, bill aimed at Internet gambling
                  pending in the House -- HR 3215,
                  the Combating Illegal Gambling Reform and Modernization Act.
                  It is sponsored by Rep.
                  Bob Goodlatte (R-VA).
                   
                  HR 3215 contains language similar to the above quoted language
                  of HR 566. However, HR 3215 contains much more. For
                  example, it would amend 18 U.S.C. §§ 1081 and 1084, which
                  contain the definitions and prohibition, respectively, of the
                  Wire Act. The Wire Act currently criminalizes the use of
                  "wire communications facilities" in interstate
                  commerce for gambling. The Wire Act does not ban gambling.
                  This is a matter of state law. HR 3215 expands the
                  prohibition to cover all communications between states or with
                  other foreign countries. It maintains the principle that
                  gambling is otherwise a matter of state law. Hence, under
                  HR 3215, use of the Internet for gambling purposes would
                  become illegal (if interstate or foreign). | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | Monday, September 30 | 
               
              
                The House will meet at 2:00 PM in pro forma session.
                   
                  The Senate will meet at 1:00 PM for morning business. At 2:00
                  PM the Senate will resume consideration of HR 5005,
                  the Homeland Security Act.
                   
                  9:00 AM - 4:30 PM. The President's
                  Council of Advisors on Science and Technology (PCAST) will
                  hold an open meeting. The agenda includes: the science and
                  technology of combating terrorism, federal investment in
                  science and technology research and development, and
                  "demand issues that can speed the deployment of a 21st
                  Century broadband infrastructure". See, notice
                  in the Federal Register for pre-clearance requirements and
                  other information. Location: Loy Henderson Conference Room,
                  Department of State, 2201 C St., NW. The public must use the
                  23rd Street entrance.
                   
                  Third of three deadlines to submit proposals to the NIST
                  for FY 2002 Advanced
                  Technology Program (ATP) funds. See, notice
                  in Federal Register.
                   
                  Deadline to submit comments to the FCC in response
                  to it Public
                  Notice [7 pages in PDF] regarding relief for the Auction
                  No. 35 winners. The FCC asks for public comments regarding two
                  possible scenarios for providing relief to the winning bidders
                  in the January 2001 re-auction of spectrum previously
                  auctioned to NextWave: full refund and option to dismiss all
                  pending applications, and selective opt out for pending
                  applications.
                   
                  Deadline to submit comments and Notices of Intention to
                  Participate to the Copyright
                  Office "royalty fees collected for calendar year 2000
                  under the section 111 cable statutory license". The CO
                  seeks comments "as to whether a Phase I or Phase II
                  controversy exists as to the distribution of those fees, and a
                  Notice of Intention to Participate in a royalty distribution
                  proceeding." See, notice
                  in the Federal Register.
                   
                  Deadline to submit comments and proposals to the Copyright Office (CO)
                  regarding data format and delivery for record keeping
                  requirements to be established by the CO for the Section 112
                  and 114
                  statutory licenses. See, notice
                  [8 pages in PDF]. | 
              
           | 
         
        
           | 
         
        
          
            
              
                | Tuesday, October 1 | 
               
              
                The House will meet at 10:30 AM for morning hour and at
                  12:00 NOON for legislative business. No votes are expected
                  before 6:30 PM. The House will consider numerous of measures
                  under suspension of the rules, including HR 556,
                  the Unlawful Internet Gambling Funding Prohibition Act,
                  sponsored by Rep. James
                  Leach (R-IA). See, Whip
                  Notice.
                   
                  9:30 AM. The Senate
                  Commerce Committee will hold a hearings to examine the
                  government's role in promoting the future of the
                  telecommunications industry and broadband deployment.
                  The scheduled witnesses include Reed Hundt (former FCC
                  Chairman), Michael Price (Evercore Partners), Lawrence Lessig
                  (Stanford University), Peter Huber (Manhattan Institute), and
                  Craig Mundie (Chief Technical Officer of Microsoft). Location:
                  Room 253, Russell Building.
                   
                  10:00 AM. The House
                  Commerce Committee's Subcommittee on Telecommunications
                  and the Internet will hold a hearing titled "Recording
                  Industry Marketing Practices: A Check-Up". Location:
                  Room 2123, Rayburn Building.
                   
                  10:00 AM. The House
                  Government Reform Committee's Subcommittee on Technology
                  and Procurement Policy will hold a hearing titled
                  "Ensuring Coordination, Reducing Redundancy: A Review of
                  OMB's Freeze on IT Spending at Homeland Security
                  Agencies". Web cast. Location: Room 2154, Dirksen
                  Building.
                   
                  10:00 AM. The Senate
                  Judiciary Committee will hold a hearing titled
                  "Narrowing the Nation's Power: The Supreme Court Sides
                  with the States". Sen.
                  Charles Schumer (D-NY) will preside. The Committee has not
                  yet released an agenda or witness list. Nevertheless, the
                  scope of the hearing could include the 1996 ruling in Seminole
                  Tribe of Florida v. Florida that the Congress lacks
                  authority under Article I of the Constitution to abrogate the
                  States' 11th Amendment immunity from suit in federal courts.
                  The Supreme Court extended this to the context of intellectual
                  property in the 1999 rulings in Florida
                  Prepaid v. College Savings Bank (invalidating the Patent
                  and Plant Variety Protection Remedy Clarification Act) and College
                  Savings Bank v. Florida Prepaid (invalidating the
                  Trademark Remedy Clarification Act). Sen. Patrick Leahy (D-VT)
                  and others have introduced S 2031,
                  the Intellectual Property Protection Restoration Act of 2002,
                  to stop states from evading liability for infringing
                  intellectual property rights by asserting 11th Amendment
                  immunity. Location: Room 226, Dirksen Building.
                   
                  12:30 PM. U.S. Trade
                  Representative (USTR) Robert
                  Zoellick will give a luncheon address. Location: National Press Club,
                  Ballroom, 529 14th St. NW, 13th Floor. | 
              
           | 
         
        
           | 
         
        
          
            
              
                | Wednesday, October 2 | 
               
              
                The House will meet at 10:00 AM for legislative business.
                  The agenda includes several non tech related matters. See, Whip
                  Notice.
                   
                  10:00 AM. The Senate
                  Judiciary Committee will hold a hearing titled
                  "Stopping Child Pornography: Protecting our Children and
                  the Constitution". See, notice.
                  Location: Room 226, Dirksen Building.
                   
                  1:30 - 3:30 PM. The FCC's WRC-03
                  Advisory Committee Informal Working Group 7: Regulatory Issues
                  and Future Agendas will meet. Location: Boeing Company,
                  Arlington, VA. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | Thursday, October 3 | 
               
              
                The House will meet at 10:00 AM for legislative business.
                  The agenda includes several non tech related matters. See, Whip
                  Notice.
                   
                  10:00 AM - 12:00 NOON. The AEI Brookings Joint Center will
                  host an event titled "High Stakes Antitrust: The
                  Clinton Legacy". Location: Stein Room, Brookings
                  Institution, 1775 Massachusetts Ave., NW.
                   
                  1:00 - 3:00 PM. The FCC's Office
                  of Engineering and Technology will host a tutorial titled
                  "Free Space Optical Communications". FSO is
                  the practice of transmitting information, or data by means of
                  modulated beams of light through the atmosphere, rather than
                  through fiber optical cables. John Schuster, CTO of Terabeam Corporation, will
                  speak. See, notice
                  [PDF]. Location: FCC, Commission Meeting Room (TW-C305), 445
                  12th Street, SW.
                   
                  The George Mason University (GMU) Tech Center and the
                  Federalist Society will host a one day conference on cyber
                  crime. Registration is free, except for persons seeking
                  CLE credit, who must pay $50. A continental breakfast and
                  buffet lunch will be provided. See, notice.
                  Location: GMU School of Law, 3301 Fairfax Drive, Arlington,
                  VA. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | Friday, October 4 | 
               
              
                Target adjournment date for the House and the Senate.
                   
                  The House will meet at 9:00 AM for legislative business. The
                  agenda includes several non tech related matters. See, Whip
                  Notice.
                   
                  9:30 AM. The U.S.
                  Court of Appeals (DCCir) will hear oral argument in Seven
                  Company Services, Inc. v. FCC, No. 01-1326. This is a
                  petition for review of a final order of the FCC regarding 47
                  U.S.C. § 224 (Section 703 of the 1996 Act) and rates,
                  terms and conditions of access for attachments by cable
                  operators and telecommunications carriers to utility poles,
                  ducts, conduits and rights of way. See, FCC order [78 pages in
                  PDF in three parts: 1
                  | 2
                  | 3]
                  titled "Consolidated Partial Order on
                  Reconsideration", released on May 25, 2001. This in the
                  proceedings titled "In the Matter of the Commission's
                  Rules and Policies Concerning Pole Attachments" (CS
                  Docket No. 97-98), and "In the Matter of the
                  Implementation of Section 703(e) of the Telecommunications Act
                  of 1996" (CS Docket No. 97-151). Judges Edwards, Rogers
                  and Garland will preside. Location: 333 Constitution Ave., NW.
                   
                  9:30 - 10:45 AM. Paul Gallant (Chair of the FCC's Media
                  Ownership Working Group) will participate on a panel titled,
                  "Media Ownership and the Public Interest: The Role of the
                  FCC" at a Consumer
                  Federation of America's conference on energy and
                  communications regulation. Location: Radisson Barcelo Hotel.
                   
                  12:15 PM. The FCBA's
                  Wireless Committee will host a luncheon titled "Wireless
                  Industry Consolidation: Is It Needed? Will It Happen?"
                  The scheduled speakers are Chris Murphy (Consumers Union), Rudy
                  Baca (Precursor Group),
                  and Lauren Patrich (FCC Commercial Wireless Division). The
                  price to attend is $15. RSVP to wendy@fcba.org. Registrations and
                  cancellations due by 5:00 PM on October 1. Location: Sidley Austin, 1501
                  K Street, NW, Conference Room 6E. | 
               
             
           | 
         
        
           | 
         
        
          
            
              
                | 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. | 
               
             
           | 
         
       
     |