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March 4, 2003, 9:00 AM ET, Alert No. 616.
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Rep. Stearns Introduces Bill to Preempt State Regulation of Digital Commercial Transactions
2/26. Rep. Cliff Stearns (R-FL), Rep. Adolphus Towns (D-NY), Rep. Charles Bass (R-NH), Rep. Nathan Deal (R-GA), and Rep. Greg Walden (R-OR), introduced HR 945, the Jurisdictional Certainty Over Digital Commerce Act. The bill provides that "Responsibility and authority to regulate digital commercial transactions is reserved solely to the Federal Government". It also preempts state rules, and bans delegation of authority to the states.

The bill provides that "No State or political subdivision thereof may enact or enforce any law, rule, regulation, standard, or other provision having the force or effect of law that regulates, or has the effect of regulating, digital commercial transactions." It also provides that "Any responsibility or authority to regulate digital commercial transactions that, pursuant to subsection (a), is retained by the Federal government may not be delegated, by any Federal agency or officer, to any State or political subdivision thereof."

Rep. Cliff StearnsRep. Stearns (at right) addressed this issue at a hearing on September 26, 2002. He stated then that "It is essential that the growth of e-commerce is not stymied by laws and or regulation that were enacted or promulgated before the full scope of e-commerce was understood." See, TLJ story titled "House Subcommittee Holds Hearing on State Impediments to E-Commerce", September 26, 2002.

Rep. Stearns and other introduced a substantially similar bill in the 107th Congress. See, HR 2421 (107th), introduced on July 16, 2001. HR 945 has been referred to both the House Committee Commerce and the House Judiciary Committee.

Rep. Pence Introduces Truth in Domain Names Act
2/26. Rep. Mike Pence (R-IN) introduced HR 939, the Truth in Domain Names Act. The bill would amend the criminal code to provide that "Whoever knowingly uses a misleading domain name with the intent to attract a minor into viewing a visual depiction of sexually explicit conduct on the Internet shall be fined under this title or imprisoned not more than 2 years, or both."

Rep. Mike PenceRep. Pence (at right) spoke in the House in support of his bill. He stated that "the Internet can be a force for good, but it can also be a force for evil." See, Cong. Record, Feb. 26, 2003, at H1363. See also, Pence release.

"The reality is that there is also the worst of the Internet, equally accessible to our children. The Internet can actually be used to deceive children into viewing inappropriate material. According to a survey conducted in the year 2000 by the Crimes Against Children Research Center, they found that 71 percent of teenagers had accidentally come across inappropriate sexual material on the Internet", said Rep. Pence.

This bill is substantially similar to a bill introduced by Rep. Pence in the 107th Congress. See, HR 4658 (107th). That bill had 38 cosponsors, but was not reported out of Committee. HR 939 (108th), like HR 4658 (107th), was referred to the House Judiciary Committee. Rep. Pence is a member.

Solicitor General to Participate in Oral Argument in Lanham Act Case
3/3. The Supreme Court granted the motion of the Solicitor General for leave to participate in oral argument as amicus curiae in Dastar Corporation v. Twentieth Century Fox Film, No. 02-428. See, Order List [11 pages in PDF], at page 2. The case is scheduled for oral argument on April 2, 2003.

This is a Lanham Act, reverse passing off, case. However, some of the participants' briefs offer arguments regarding copyright law and the patent and copyright clause of the Constitution. Dastar made a video that copied extensively, without crediting the source, from a TV program of Twentieth Century Fox, which had failed to renew the copyright, thus allowing the program to enter into the public domain. (The book publisher of the book upon which the program was based did renew its copyright, but that is not at issue in this Supreme Court proceeding.) Twentieth Century Fox prevailed below on a Lanham Act claim. The U.S. Court of Appeals (9thCir) did not require a finding of likelihood of consumer confusion.

Hence, this appeal involves whether Section 43(a) of the Lanham Act, codified at 15 U.S.C. § 1125(a), requires an independent showing that consumers will likely be confused by a defendant’s false designation of origin or false or misleading description or representation of fact?

See, brief [69 pages in PDF] of Dastar. See also, amicus curiae brief [29 pages in PDF] of the American Intellectual Property Law Association (AIPLA) urging reversal, and amicus brief [38 pages in PDF] of the International Trademark Association (INTA) urging reversal.

See also, amicus brief of the American Library Association (ALA), Computer & Communications Industry Association (CCIA), Public Knowledge, and other groups, and Bloomberg L.P. urging reversal. The ALA brief argues that "In Feist Publications, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340 (1991), the Court held that the Constitution’s Intellectual Property Clause precluded copyright protection for facts. A publisher may copy raw facts at will and include them in a new database. The lower courts' interpretations of Section 43(a) of the Lanham Act could sharply limit the practical effect of Feist by requiring a publisher to provide detailed attribution of the source of each fact that it included in its new database. This could have a negative impact on scientific research and commercial activity."

The ALA brief further argues that "Feist already is in danger of death from a thousand cuts: shrink-wrap licenses, trespass to chattels, the Computer Fraud and Abuse Act, and sui generis database legislation. The Court should not compound this danger by allowing Section 43(a) to impose an attribution requirement on facts copied from another source."

GAO Reports on Internet Based Training at DOD
3/3. The General Accounting Office (GAO) released its report [69 pages in PDF] titled "Military Transformation: Progress and Challenges for DOD's Advanced Distributed Learning Programs". The report examines the Department of Defense's (DOD) use of Advanced Distributed Learning (ADL) Programs, which replace schoolhouse based training with computer and Internet based training.

The report states that "The increased rate of deployments in recent years of DOD’s forces, which often involve rapid, unplanned movements to locations around the world, highlights the need for the services to provide training on demand to soldiers and units deployed worldwide." It also states that the DOD has responded by developing its ADL program.

However, the report finds that the "DOD faces cultural, technological, policy and financial challenges that affect the ADL programs' ability to fully achieve the benefits of enhanced learning and performance and of improved readiness."

The cultural problem is that "not all senior military and civilian leadership is committed to ADL, preferring the traditional, schoolhouse-focused approach to learning." The technological problems are that "bandwidth is generally insufficient to support interactive, multimedia learning content and simulations; and unresolved network security concerns stifle utility." The policy problem is that "Some of DOD's training policies are obsolete". Finally, there are financial limitations: "DOD program officials project that over $2.2 billion will be needed for ADL programs through fiscal year 2007 but currently have programmed about $1.6 billion, a more than $600 million funding gap."

GAO Report on Cyber Threats to Financial Services Sector
3/3. The General Accounting Office (GAO) released its report [59 pages in PDF] titled "Critical Infrastructure Protection: Efforts of the Financial Services Sector to Address Cyber Threats".

The report concludes that "The types of cyber threats that the financial services sector faces are similar to those faced by other critical infrastructure sectors: attacks from individuals and groups with malicious intent, such as crime, terrorism, and foreign intelligence. However, the potential for monetary gains and economic disruptions may increase its attractiveness as a target. At the same time, sector representatives believe that financial institutions recognize and work to mitigate the threat in order to adhere to federal and state regulations and maintain public confidence in their ability to protect and manage customer assets. However, financial services institutions have experienced cyber incidents that have had some impact on their operations, which demonstrates a continuing threat to the industry. In addition, the financial services sector faces vulnerability because of its dependence on other critical infrastructures. For example, threats facing the telecommunications and power sectors could directly affect the financial services industry."

The report also reviews federal involvement. It also recommends that "Treasury should assess the need for grants, tax incentives, regulation, or other public policy tools to assist the industry in meeting the sector's goals."

People and Appointments
3/3. Rashmi Doshi was named Chief of the Federal Communications Commission's (FCC) Office of Engineering and Technology's (OET)  Laboratory Division. This Division is responsible for performing technical studies and designing test procedures for equipment in support of regulatory policies. See, FCC release [PDF].
More News
2/28. Federal Communications Commission (FCC) Commissioner Kathleen Abernathy gave a speech [PDF] regarding children's television and V-chips.

3/3. The U.S. District Court (EDVa) approved the proposed settlement of a civil antitrust lawsuit filed by the Department of Justice (DOJ) against MathWorks and Wind River Systems. The DOJ filed a complaint on June 21, 2002 alleging violation of Section 1 of the Sherman Act. It alleged that MathWorks and Wind River were competitors in the development and sale of dynamic control system design software tools, and that they entered into an agreement that gave MathWorks the exclusive right to sell Wind River's MATRIXx products and required Wind River to stop its own development and marketing. See, DOJ June 21 release. Pursuant to the settlement, MATRIXx will be sold to National Instruments Corporation. See, DOJ March 3 release.

3/3. The Rural Utilities Service (RUS) published a notice in Federal Register announcing its Distance Learning and Telemedicine Program application window for funding in FY2003. $17 Million is available for grants; $200 Million is available for loans; and $110 Million is available for combination grants and loans. Applications for grants must be postmarked by May 2, 2003. Applications for loans or combination loans and grants may be submitted at anytime up to July 31, 2003, and will be processed on a first come, first serve basis. See, Federal Register, March 3, 2003, Vol. 68, No. 41, at Page 9973.

2/28. The Office of the U.S. Trade Representative (USTR) submitted to the Congress the 2003 Trade Policy Agenda and 2002 Annual Report of the President of the United States on the Trade Agreements Program. See USTR page with hyperlinks to PDF copies of the components of this submission. See also, USTR release.

2/27. The Federal Trade Commission (FTC) announced that it filed, and settled, complaints against Hershey Foods Corporation and Mrs. Fields Famous Brands alleging violation of the Children's Online Privacy Protection Act (COPPA) and the Children's Online Privacy Protection Rule by operating web sites targeted at children that collected personal information from children without first obtaining parental consent. See, complaint filed in the U.S. District Court (MDPenn) against Hershey, and Consent Decree. See also, complaint filed in U.S. District Court (CDUtah) against Mrs. Fields, and Consent Decree. The two companies agreed to fines of $85,000 and $100,000, respectively. See also, FTC release.

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Notices & Disclaimers
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Tuesday, March 4
The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislative business. It will consider several non tech related items under suspension of the rules.

Day one of a three day conference titled "Securing Your Cyber Frontier Through Awareness, Training and Education" hosted by the National Institute of Standards and Technology (NIST) and the Federal Information Systems Security Educators' Association (FISSEA). See, conference web site. Location: The Hilton Hotel, 8727 Colesville Road, Silver Spring, MD.

9:00 AM. The Bureau of Industry and Security's (BIS) Regulations and Procedures Technical Advisory Committee will hold a partly open and partly closed meeting. The agenda includes a discussion of encryption regulation recommendations. See, notice in the February 18, 2003, Vol. 68, No. 32, at Page 7765. Location: Room 3884, Hoover Building, 14th Street between Constitution and Pennsylvania Avenues, NW.

9:30 AM. The Senate Judiciary Committee will hold a hearing titled "The War Against Terrorism: Working Together to Protect America." The scheduled witnesses are Attorney General John Ashcroft, FBI Director Robert Mueller, and Homeland Security Secretary Tom Ridge. See, notice. Location: Room 106, Dirksen Building.

10:00 AM. The Senate Commerce Committee will hold a hearing on several pending nominations, including that of Charles McQueary to be Under Secretary of Homeland Security for Science and Technology. Location: Room 253, Russell Building.

POSTPONED TO MARCH 13. 10:00 AM. The House Government Reform Committee's Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census will hold a hearing titled "Federal E-Government Initiatives: Are We Headed in the Right Direction?" The scheduled witnesses are Mark Forman (Office of Management and Budget), Joel Willemssen (General Accounting Office), David McClure (The Council for Excellence in Government), and Leonard Pomata (webMethods). Press contact: Bob Dix at 202 225-6751.

12:30 PM. The House Homeland Security Committee will hold its organizational meeting. Press contact: Kate Whitman at 202 225-5611. Location: Room 2172, Rayburn Building.

2:00 PM. Secretary of Commerce Donald Evans will host an event titled "Launch of Digital Freedom Initiative". The other participants will include John Morgridge (Chairman of Cisco Systems), Carly Fiorina (Ch/CEO of Hewlett Packard), John Bridgeland (Director of USA Freedom Corps), Andrew Natsios (Administrator of USAID), Gaddi Vasquez (Director of the Peace Corps), and Henando de Soto (President of the Institute for Liberty and Democracy). The Department of Commerce notice contains this restriction: "Members of the press without White House press credentials who want to cover the event must fax your name (as it appears on your driver's license), social security number and date of birth on company letterhead to (202) 456-9720 no later than 5:00 p.m. on Monday, March 3. You do not need to confirm receipt. You will be cleared for access to the White House via the Northwest Gate and will proceed to the Press Briefing Room. You must be in the Press Briefing Room by 1:30 p.m. on Tuesday, March 4." Location: Room 450, Eisenhower Building.

12:30 PM: EU Trade Commissioner Pascal Lamy will speak at a luncheon conference organized by the Congressional Economic Leadership Institute (CELI) titled "EU and US Trade Relations: Challenges Ahead". RSVP to 202 546-5007 or pm@celi.org. Location: 201 Massachusetts Ave., NE.

2:30 PM. 11:30 AM. EU Trade Commissioner Pascal Lamy will hold a press briefing. See, EU notice. Location: EU Delegation.

Deadline to submit comments to the General Services Administration (GSA) in response to its notice of proposed rulemaking regarding Section 211 of the E-Government Act of 2002. Section 211 authorizes the Administrator of GSA to provide for the use by States or local governments of its Federal Supply Schedule for "automated data processing equipment (including firmware), software, supplies, support equipment, and services ...'' See, Federal Register, January 23, 2003, Vol. 68, No. 3220, at Pages 3220-3225.

Extended deadline to submit reply comments to the Federal Communications Commission (FCC) regarding SBC's Section 271 application to provide in-region interLATA service in the state of Michigan. This is WC Docket No. 03-16. See, FCC notice.

Wednesday, March 5
9:30 AM. The Senate Commerce Committee's Communications Subcommittee will hold a hearing on implementation of E-911 services for wireless phones. The scheduled witnesses include Sen. Hillary Clinton (D-NY), Rep. John Shimkus (R-IL), Rep. Anna Eshoo (D-CA), David Koon (New York State Assembly), Kathleen Abernathy (FCC), Jonathan Adelstein (FCC), Jenny Hanson (State of Montana), John Melcher (National Emergency Number Association), Thera Bradshaw (International Associated Public Safety Communications Officials), Michael Amarosa (TruePosition, Inc.), and Mark Tuller (Verizon Wireless). Location: Room 253, Russell Building.

POSTPONED. 9:30 AM. The Senate Judiciary Committee will hold a hearing on judicial nominations. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Finance Committee will hold a hearing on the Bush administration's trade agenda. Location: Room 215, Dirksen Building.

The Supreme Court will hear oral argument in U.S. v. American Library Association, No. 02-361. This is the CIPA case.

Deadline to submit reply comments to the Copyright Office (CO) in response to its notice of proposed rulemaking (NPRM) regarding the form, content, and manner of service of notices of termination under Section 203 of the Copyright Act. 17 U.S.C. § 203 pertains to the termination of transfers and licenses granted by the author. See, notice in the Federal Register, December 20, 2002 Vol. 67, No. 245, at Pages 77951 - 77955. For more information, contact David Carson, CO General Counsel, at 202 707-8380.

Day one of a three day conference hosted by the International Economic Development Council (IEDC) titled "Annual Economic Development Summit". See, program. Location: Washington Hilton.

Day two of a three day conference titled "Securing Your Cyber Frontier Through Awareness, Training and Education" hosted by the National Institute of Standards and Technology (NIST) and the Federal Information Systems Security Educators' Association (FISSEA). See, conference web site. Location: The Hilton Hotel, 8727 Colesville Road, Silver Spring, MD.

Thursday, March 6
The Commerce Department's Bureau of Information and Security (BIS), formerly known as the Bureau of Export Administration (BXA), will host a one day seminar in Washington DC titled Essentials of Export Controls. The seminar will cover how to comply with the Export Administration Regulations (EAR). The price to attend is $100. For more information, contact Douglas Bell at 202 482-6031.

9:30 AM. The Senate Commerce Committee will hold a hearing on the Federal Communications Commission's (FCC) Spectrum Policy Task Force's (SPTF) report and spectrum issues. The scheduled witnesses include Steven Berry (Cellular Telecommunications and Internet Association), Kevin Kahn (Intel), Paul Kolodzy (former Chair of the FCC SPTF), Gregory Rosston (Stanford), Michael Calabrese (New America Foundation). Location: Room 253, Russell Building.

9:30 AM. The Senate Judiciary Committee will hold an executive business meeting. See, notice. Location: Room 226, Dirksen Building.

9:30 AM - 1:30 PM. The Communitarian Network will host a conference titled "Improving Identification: Enhancing Security, Guarding Privacy". See, agenda. Location: Room 188, Russell Building.

10:00 AM. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will hold a hearing titled "Copyright Piracy Prevention and the Broadcast Flag". Webcast. Location: Room 2237, Rayburn Building.

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.

12:00 NOON. The Congressional Internet Caucus Advisory Committee will host a panel discussion on online privacy issues. The topics will include "whether online and offline collection should be treated the same, federal preemption, private rights of action and the impact of the Fair Credit Reporting Act and Gramm Leach Bliley debates." To attend, RSVP to rsvp@netcaucus.org or 202 638-4370. Lunch will be served. Location: Reserve Officers Association, 1st and Constitution, NE.

3:30 PM. Graeme Dinwoodie (Professor of Law, Chicago Kent College of Law, Illinois Institute of Technology) will give a lecture titled "Internationalizing Intellectual Property Law: Soft Law, Soft Power and Other Mechanisms". For more information, contact Julie Cohen at jec@law.georgetown.edu. Location: Georgetown University Law Center, Faculty Lounge, 600 New Jersey Ave., NW.

Day two of a three day conference hosted by the International Economic Development Council (IEDC) titled "Annual Economic Development Summit". See, program. Location: Washington Hilton.

Day three of a three day conference titled "Securing Your Cyber Frontier Through Awareness, Training and Education" hosted by the National Institute of Standards and Technology (NIST) and the Federal Information Systems Security Educators' Association (FISSEA). See, conference web site. Location: The Hilton Hotel, 8727 Colesville Road, Silver Spring, MD.

Friday, March 7
The Commerce Department's Bureau of Information and Security (BIS), formerly known as the Bureau of Export Administration (BXA), will host a half day seminar in Washington DC titled How Do I Classify My Item?. The seminar will cover export control classification numbers (ECCNs). The price to attend is $50. For more information, contact Douglas Bell at 202 482-6031.

Day three of a three day conference hosted by the International Economic Development Council (IEDC) titled "Annual Economic Development Summit". See, program. At 10:00 AM, there will be a panel discussion titled "Technological Innovation". The scheduled speakers include Chris Israel (Deputy Assistant Secretary of Commerce for Technology Policy, Technology Administration), Marc Stanley (Acting Director, Advanced Technology Program, Technology Administration), and Bill Brundage (Commissioner, Office for the New Economy, State of Kentucky). Location: Washington Hilton.

Monday, March 10
The Supreme Court will begin a recess that will continue through March 23.

9:00 AM. The General Services Administration (GSA) will hold a public meeting the implementation of Section 211 of the E-Government Act of 2002. The GSA published a notice of proposed rulemaking in the Federal Register, January 23, 2003, Vol. 68, No. 3220, at Pages 3220-3225. Section 211 authorizes the Administrator of GSA to provide for the use by States or local governments of its Federal Supply Schedule for "automated data processing equipment (including firmware), software, supplies, support equipment, and services ..." See, notice of meeting in Federal Register, February 21, 2003, Volume 68, No. 35, at Page 8486-8487. Location: 1931 Jefferson Davis Highway, Crystal Mall Building 3, Room C-43, Arlington, VA. The closest Metro station is Crystal City.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in United Church of Christ v. FCC, No. 02-1039. Judges Randolph, Rogers and Williams will preside. Location: 333 Constitution Ave., NW.

9:30 AM - 4:30 PM. The Consumer Electronics Association (CEA) will host a conference titled "Surmounting the HDTV Summit". See, schedule and information and registration page. Location: Renaissance Washington Hotel.

2:00 PM. The Information Technology Association of America (ITAA) will host a webcast event titled "RIAA's Litigation Against Verizon". The speaker will be Sarah Deutsch, VP and Associate General Counsel of Verizon Communications. See, registration page. For more information, contact Mark Uncapher at muncapher@itaa.org. On January 21, 2003, the U.S. District Court (DC) issued its opinion in RIAA v. Verizon, ruling that copyright holders can obtain subpoenas pursuant to 17 U.S.C. § 512(h) that require ISPs to reveal the identities of their customers who infringe copyrights on peer to peer filing sharing systems. Verizon had argued that 512(h) subpoenas were only available with respect to infringers who stored infringing content on the servers of the ISP. See also, TLJ story titled "District Court Rules DMCA Subpoenas Available for P2P Infringers", January 21, 2003.

Extended deadline to submit reply comments to the Copyright Office (CO) in response to its current rulemaking proceeding concerning exemptions to the anti-circumvention provisions of the Digital Millennium Copyright Act (DMCA). Initial comments proposing exemptions for specific classes of works were due by December 18, 2002. Reply comments were due February 19. Static Control Components (SCC) filed a late petition [14 pages in PDF] requesting that the CO also consider the following additional proposed exemptions in its pending rulemaking proceeding: "1. Computer programs embedded in computer printers and toner cartridges and that control the interoperation and functions of the printer and toner cartridge 2. Computer programs embedded in a machine or product and which cannot be copied during the ordinary operation or use of the machine or product 3. Computer programs embedded in a machine or product and that control the operation of a machine or product connected thereto, but that do not otherwise control the performance, display or reproduction of copyrighted works that have an independent economic significance." The CO granted this petition and extended the deadline. See, the CO's original Notice of Inquiry in the Federal Register, October 15, 2002, Vol. 67, No. 199, at Pages 63578-63582, and notice of extension in the Federal Register, February 10, 2003, Vol. 68, No. 27, at Pages 6678-6679.