|USTR Zoellick Discusses IPR With PR China
|2/19. U.S. Trade Representative (USTR)
Zoellick is on a trip to Japan and PR China to discuss trade related issues.
On February 17 he held a press roundtable in Beijing regarding his talks. He
discussed intellectual property at length. See,
He stated that "the WTO accession of 2001 opens the door to build an economic
relationship for years to come. What we are now focused on is the task of WTO
implementation, getting down to the basics of business." He added that "We have
near term problems to solve so I talked to the Vice Premier and Minister Shi
about our ... intellectual property issues ..."
He met with Vice Premier Wen Jiabao (see,
Business Week bio) and Ministry
of Trade and Economic Cooperation (MOFTEC) Minister Shi Guangsheng (see,
(at right) stated that "there are a whole host of laws and rules that have to be
changed as part of the WTO implementation process. But as a general matter, I
think China has tried to follow through on this pretty well. In fact, our focus
is more on the enforcement side. I talked with
both the Vice Premier and Minister Shi about the enforcement of intellectual
property rights. But this is again why China is a particularly interesting place
because you build interests within China that recognize the benefits of
intellectual property protection because of the software development here and
the creative industries development here. As I discussed with Minister Shi, they
put a lot of laws in place. They know there has been rampant piracy. He talked
to me about some of the criminal penalties that they were putting in place,
which is very important if you're going to be effective on this. This is an area
where, frankly, our businesses will work with us and the Chinese government and
Chinese businesses share the same interest."
Zoellick also said that "In the free trade agreements we negotiated with
Chile and Singapore, what became a priority issue for a lot of the business
software industry and the entertainment industry was establishing new
intellectual property rights for a digital world, and in particular the question
of, as you downloaded software or music or movies into your memory was there a
property right even though you never had a hard copy, you never had a physical
form? Because if you didn't people could obviously send it out on networks. So
we were establishing property rights of a different type for the changing area."
He continued that "I think part of what I hope to do with the Chinese
authorities is, first, establish this as a mutual interest. And I think we are
well on our way to doing that given the creative industries here. Second, is to
encourage, and I think this part has already been well on its way, make sure you
have the right legal structure. Then third, step up the enforcement action. One
point that I think is important and is not applied in some countries, but I was
pleased again to discuss this with Minister Shi, is the need for criminal
penalties. Because, sometimes if it's just financial penalties, it becomes a
cost of doing business. So, like you, wherever I go in the world you see major
problems of pirating so this is not a problem that is done overnight. But then
the next step is, I want to try to build a culture of cooperation in
intellectual property so as we turn to the next set of issues, particularly
those related to the digital world, that we can try to establish the right
Zoellick also traveled to Tokyo, Japan to attend the
World Trade Organization (WTO) Informal
Ministerial Meeting. Afterwards, he held a press roundtable. See, February 16
He criticized the Japanese government for resisting tariff cuts in agriculture.
He stated that, "they're sacrificing
Japan's strengths on the altar of rice."
Zoellick is scheduled to testify before the
House Ways and Means Committee on
Wednesday, February 26.
|SEC Files Fraud Complaint Against Spammer
|2/19. The Securities and Exchange
Commission (SEC) filed a civil
District Court (EDNY) against Samuel Aaron Meltzer alleging securities
fraud in connection sending false and misleading spam touting stocks.
The complaint states that "Defendant Meltzer is a professional Internet
``spammer´´ who used the Internet to commit securities fraud. In return for
compensation from stock promoters and issuers, Meltzer sent millions of
unsolicited emails and created numerous websites to promote various penny
stocks. In order to conceal his identity -- and to avoid the detection of web
hosts seeking to stop Internet spam -- Meltzer operated under at least thirty
different assumed Internet identities."
The complaint further alleges that his "spam and websites made false and misleading
representations about the stock he helped to promote. First, Meltzer falsely
stated that his recommendations represented his own investment opinions based on
his review of the issuer's public filings and his interviews with the issuer's
management. In fact, Meltzer did not review the issuers' filings, did not
interview their management, and simply republished recommendations and
representations that he received from the promoters who had hired him." And,
"Second, in his emails and websites, Meltzer knowingly or recklessly made false
and misleading representations concerning the issuers' current business and
projections of future performance that had no reasonable basis in fact."
The complaint also states that "Meltzer touted the stocks of at least twelve
issuers and received at least $159,619.62 in stock and cash as ill-gotten gains
as a result of his fraudulent conduct."
The two count complaint alleges fraud in violation of Section 17(a) of the
Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934
and Rule 10b-5 thereunder. The complaint seeks an injunction against further
violations of federal securities law, an accounting, disgorgement of illegal
gains, civil penalties, and an order prohibiting Meltzer from participating in
an offering of penny stock.
The complaint alleges facts constituting undisclosed touting. However, there
is no count alleging illegal touting. Section 17(b) of the Securities Act,
codified at 15 U.S.C.
§ 77q(b), provides that "It shall be unlawful
for any person, by the use of any means or instruments of transportation or
communication in interstate commerce or by the use of the mails, to publish,
give publicity to, or circulate any notice, circular, advertisement, newspaper,
article, letter, investment service, or communication which, though not
purporting to offer a security for sale, describes such security for a
consideration received or to be received, directly or indirectly, from an
issuer, underwriter, or dealer, without fully disclosing the receipt, whether
past or prospective, of such consideration and the amount thereof."
See also, SEC
Discuss Cyber Security and IPR with EU Officials
|2/19. Rep. Bob
and Rep. Rick Boucher (D-VA)
Brussels, Belgium this week for discussions with members of the European
Parliament and European Commission regarding cyber security and
intellectual property. Reps. Goodlatte and Boucher are co-chairs of the
Congressional Internet Caucus.
Goodlatte (at right) issued a release that stated that he and Rep. Boucher
"commended the EU Commission on its recent plan to establish a European Network
and Information Security Agency to coordinate network security policy in an
effort to avert cyber-attacks, but cautioned the Commission against the agency
setting network security standards, as opposed to voluntary, industry-led
standardization." See, the EU
proposal [MS Word].
Rep. Goodlatte's release also stated that the two Congressmen "spoke in support
of a recent EU Directive on the Enforcement of Intellectual
Property Rights, which would harmonize civil and criminal penalties for
intellectual property infringement throughout the EU. However, Goodlatte and
Boucher strongly urged the expansion of the Directive to include criminal
penalties for non-commercial mass distribution of copyrighted works, similar to
Act in U.S. law, which was authored by Congressman Goodlatte." See,
January 30, 2003,
proposal for a directive [PDF].
Reps. Goodlatte, Boucher, and others regularly travel to Europe to discuss
technology related issues. Their last trip was in February of 2002. See, story
titled "Rep. Goodlatte Addresses Trip to Russia and EU" in
TLJ Daily E-Mail
Alert No. 381, March 5, 2002, and
Rep. Goodlatte's media roundtable of February 28, 2002.
|People and Appointments
|2/19. Narda Jones was named Legal Counsel to the
Federal Communications Commission's (FCC)
Wireline Competition Bureau Chief. She will provide advice on universal
service and other issues. She has been with the FCC since January of 2001.
Before that, she an Assistant Minnesota Attorney General and advised the
Minnesota Public Utilities Commission on telecommunications and energy issues.
release [MS Word].
|2/19. The Rural Utilities Service (RUS)
notice in the Federal Register stating that it has
amended its regulations on Telecommunications Standards and Specifications for
Materials, Equipment and Construction, by rescinding the current issue
of RUS Bulletin 345-22, RUS Specification for Voice Frequency Loading
Coils, PE-26. The RUS stated that "This specification has become outdated because of
advancements made in the delivery of telecommunications services to
rural subscribers." This change takes effect on March
21, 2003. See, Federal Register, February 19, 2003, Vol. 68, No. 33, at Pages 7897-7898.
2/19. The Securities and Exchange Commission
(SEC) filed a civil
in U.S. District Court (EDCal)
against Paul Moller and Moller International, Inc. alleging a fraudulent,
unregistered offering and the filing of a fraudulent Form 10-SB. The SEC's
complaint states that Moller used "E-mail, and an internet website to solicit
investor interest and sell" stock. Its states that he made fraudulent claims
regarding "Skycar" technology. This, claimed Moller, is a flying car, that can hover, or fly 400
MPH 15 feet above highways, that would sell for the price of a
luxury car. He raised $5 Million from investors. See also,
|Thursday, February 20
|The House, Senate and Supreme Court are in recess.
NEW TIME. 11:00 AM. The Federal
Communications Commission (FCC) will hold a meeting. The
includes a report and order regarding the Section 251 unbundling
obligations of incumbent local exchange carriers (ILECs). Press
contact: David Fiske at 202 418-0500.
Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).
9:00 AM - 5:00 PM. Federal Trade Commission
(FTC) workshop on cross border fraud, including Internet and e-mail
based fraud. See, notice.
Location: Room 432 (and Room 332 for overflow), FTC, 600 Pennsylvania Avenue,
10:00 AM - 12:00 PM. The Department of State's International
Telecommunication Advisory Committee (ITAC) will meet. A
notice in the Federal Register states that the purpose of this meeting is
"to begin preparations for the meeting of the ITU Telecommunications
Development Advisory Group, which will take place March 19-21, 2003 in Geneva,
Switzerland", and/or "to prepare for the 2003 meeting of the
Telecommunications Development Advisory Group (TDAG)". The notice also states
requirements for admission. See, Federal Register, February 6, 2003, Vol. 68,
at Page 6250. Location: State Department.
9:00 - 11:30 AM. The Federal Communications
Commission's (FCC) Public Safety National Coordination Committee, Interoperability
Subcommittee will meet at the FCC. Location: FCC, 445 12th Street, SW.
12:30 - 3:00 PM. The Federal Communications
Commission's (FCC) Public Safety National Coordination Committee,
Technology Subcommittee will meet. Location: FCC, 445 12th Street, SW.
1:00 PM. Mark Cooper (Consumer Federation of America), Jeff Kramer (AARP),
and a representative of the National Association of State Utility Consumer
Advocates will hold media briefing by teleconference on the Federal
Communications Commission's UNE rules. To participate, call 888 243-0812, and
provide passcode 6428858. A replay will be available through Monday, February
24 at 888 266-2081. For more information, contact Mark Cooper at 301 384-2204.
2:00 PM. Federal Communications Commission
Kathleen Abernathy will hold a press briefing. For more information,
contact Mathew Brill at 202 418-2400. Location: FCC, Room 8B-115, 445 12th
3:00 - 5:30 PM. The Federal Communications
Commission's (FCC) Public Safety National Coordination Committee,
Implementation Subcommittee will meet. Location: FCC, 445 12th Street, SW.
5:00 PM. Extended deadline to submit reply comments to the
Copyright Office (CO) in response to
its Notice of Inquiry (NOI) regarding the exemption of certain classes of works
from the prohibition against circumvention of technological measures that
control access to copyrighted works, pursuant to
17 U.S.C. § 1201.
See, CO summary of this
in the Federal Register: October 15, 2002, Vol. 67, No.199, at Pages 63578 -
comments already filed.
|Friday, February 21
|9:00 AM. The Alliance for Public Technology
(APT) will host a policy forum and awards luncheon. The scheduled speakers
include Rep. Sylvester Reyes (D-TX),
Bruce Mehlman (Assistant Secretary of Commerce for Technology Policy), Kyle
Dixon (Special Counsel to FCC Chairman Powell for Broadband Policy), and
William Kennard (former FCC Commissioner), and Brett Perlman (Commissioner of
the Texas Public Utilities Commission). The program, which is titled "2003
Broadband Forum: Delivering the Promise: Strategies for Universal Broadband
Deployment", begins at 9:15 AM. The luncheon is at 12:00 NOON. The policy
forum is free; the luncheon is a fundraiser. See,
APT notice. Location:
National Press Club, 529 14th St. NW, 13th
9:30 AM - 12:30 PM. The Federal Communications
Commission's (FCC) Public Safety National Coordination Committee will meet. See,
notice in the Federal Register, January 23, 2003, Vol. 68, No. 15, at Page
3252. Location: FCC, 445 12th Street, SW.
Deadline to submit reply comments to the Federal
Communications Commission (FCC) regarding
BellSouth's December 20, 2002
Petition for Forbearance [16 pages in PDF] from application of the separate subsidiary
provide international directory assistance service. BellSouth asked the FCC to
forbear from applying the structural separation requirements of
47 U.S.C. § 272
to allow BellSouth to provide international directory assistance service on an
integrated basis together with its local and nonlocal directory assistance
services. See, FCC
notice [2 pages in PDF]. This is CC Docket No. 97-172.
Extended extended deadline to submit reply comments to the
Federal Communications Commission (FCC) in
response to its
Notice of Proposed Rulemaking (NPRM) [15 pages in PDF] in its proceeding
titled "In the Matter of Digital Broadcast Copy Protection". This NPRM
proposes that the FCC promulgate a broadcast flag rule, and seeks comment on
this, and related questions. This is MB Docket No. 02-230. See,
FCC release [PDF] and
Order [PDF] of October 11, 2002 extending deadlines. See also,
Order [PDF] of January 3, 2003. Due to snowfall in Washington DC, the
extended deadline of February 18 was further extended to February 21. See,
February 19 order
|Monday, February 24
|The Senate will return from its one week recess at 12:00 NOON. The Supreme Court will return from the recess which it began on January
3:00 PM. The Federal Communications Commission's (FCC) Federal State Joint
Conference on Accounting Issues will hold a public meeting. See,
FCC notice [MS Word]. Location: FCC,
Commission Meeting Room (Room TW-C305), at 445 12th Street, SW.
Deadline to submit comments to the The
National Telecommunications and Information
Administration (NTIA) regarding the state uniform commercial code exception
to the Electronic Signatures in Global and National Commerce (E-SIGN) Act. The
Act provides, at §101, for the acceptance of electronic signatures in interstate
commerce, with certain enumerated exceptions. §103 of the Act provides that the
provisions of section 101 shall not apply to "the Uniform Commercial Code, as in
effect in any State, other than sections 1-107 and 1-206 and Articles 2 and 2A".
The Act also requires the NTIA to review, evaluate and report to Congress on
each of the exceptions. The E-SIGN Act is codified at
15 U.S.C. § 7001,
et seq. The exceptions are codified at
15 U.S.C. § 7003.
notice in the Federal Register, December 24, 2002, Vol. 67, No. 247, at
Pages 78421 - 78423.
|Tuesday, February 25
|The House will return from its one week recess at 2:00 PM.
9:30 AM. The U.S. Court of Appeals
(DCCir) will hear oral argument in Rice v. FCC, No. 01-1474. Judges
Ginsburg, Sentelle and Randolph will preside. Location: 333 Constitution Ave.,
12:15 PM. The FCBA's Cable Practice
Committee will host brown bag lunch. The speakers will be House Commerce
Committee counsel. RSVP to Wendy Parish at
firstname.lastname@example.org. Location: NCTA, 1724 Massachusetts Ave., NW, 2nd Floor
3:00 PM. The House Homeland Security Committee will hold its
organizational meeting. Press contact: Kate Whitman at 202 225-5611. Location:
Room 2359, Rayburn Building.
|Wednesday, February 26
|10:00 AM. The House Commerce
Committee's Telecom and Internet Subcommittee will hold a hearing titled "Health
of the Telecommunications Sector: A Perspective from the Commissioners of the
notice. Location: Room 2123, Rayburn Building.
10:30 AM. U.S. Trade Representative (USTR)
Zoellick will testify before the House Ways and Means Committee about
the administration's trade agenda. Location: Room 1100, Longworth Building.
12:15 PM. The FCBA's Online
Communications Practice Committee will host a brown bag lunch. The topic will
be "Patent Licensing: Surprising Revelations About the True Currency of a
Technology Based Economy". The speaker will be David Martin, CEO of
M.CAM. RSVP to Beatriz Zaloom at
Kelley Drye & Warren, 1200 19th St., NW, Suite 500.
Day one of a three day conference titled "Third Annual Privacy Summit"
hosted by the International
Association of Privacy Officers.
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