|House Judiciary Committee Approves Internet
5/14. The House Judiciary
Committee amended and approved
the "Unlawful Internet Gambling Funding Prohibition Act of 2003".
The vote on reporting the bill was 16-15. The final vote broke down mostly along party
lines, with Republicans supporting the bill.
The bill would attempt to bar internet gambling operations access to the U.S.
financial services system by banning the use of credit cards, wire transfers, or
any other bank instrument to fund illegal gambling transactions. The bill does
not ban gambling. This is a matter of state law.
Much of the debate at the meeting focused on an amendment offered by
Rep. Chris Cannon (R-UT). The bill as
introduced, and as reported last week by the Crime
Subcommittee, provided, in its definitional section, that "The term ``bets or
wagers´´ ... (E) does not include --- (ix) any lawful transaction with a
business licensed or authorized by a State." The Cannon amendment simply strikes
the line "any lawful transaction with a business licensed or authorized by a
Rep. Cannon (at right),
who represents a state that bans
all gambling, argued that this exception creates a carve out for state approved
gambling on horse racing, dog racing, and jai alai.
He also stated that he opposes the bill because of "the burden that this bill
would create on the internet".
Rep. Ric Keller (R-FL) argued that
the Cannon amendment makes the bill "unnecessarily controversial", and would
likely kill the bill on the House floor.
Rep. Bob Goodlatte (R-VA)
argued for passing the bill without the Cannon amendment, because otherwise the
dog, horse and jai lai gambling groups would oppose the bill in the full House.
He said that rejecting the Cannon amendment would keep these groups on the
The Cannon amendment passed by a vote of 16-15.
Opponents of the bill offered many of the same arguments that they presented
at the Crime Subcommittee's mark up session on May 6. See,
titled "House Crime Subcommittee Approves Internet Gambling Bill", May 6, 2003.
For example, Rep. Bobby Scott (D-VA)
predicted that the bill "will be ineffective", because gamblers will miscode
credit card transactions and use e-cash transactions to evade the
prohibitions contained in the bill.
Rep. Scott also offered an amendment that he stated would "make individuals
subject to the provisions of the bill". It failed on a voice vote.
Rep. Sheila Lee (D-TX) offered
an amendment that would have stricken Section 3 from the bill. This is the
section containing the prohibitions.
Rep. James Sensenbrenner
(R-WI), the Chairman of the Committee, stated that "this
amendment strikes the guts of the bill". It failed on a voice vote. Rep. Lee
also offered an amendment that she stated "removes credit cards from the scope
of HR 21". It too failed on a voice vote.
The Committee then voted on reporting the bill, as amended. It passed by a
vote of 16-15. The Cannon amendment also passed by a vote of 16-15. However,
the same 16 member did not make up the majority on both votes. First, some members
were present only for the vote on the Cannon amendment, while some
other members were present only for the vote on reporting the bill.
Also, there was some strategic voting on the Cannon amendment. That is, while
the Cannon amendment expanded the scope of the prohibition of the bill, some members
who opposed the underlying bill nevertheless voted for the Cannon amendment in
order to report a bill that would be less likely to pass in the full House or
Senate. These members voted for the Cannon amendment, but against reporting the
bill. Similarly, some members who likely supported the concept of the Cannon
amendment as well as the underlying bill, nevertheless voted against the
amendment because they wanted to report a bill that would pass in the House and
More Information. See, story titled "House Subcommittee Holds Hearing
on Internet Gambling Bills" in TLJ Daily E-Mail Alert No. 654, May 2, 2003. The
House Financial Services
Committee, which has jurisdiction over the bill along with the House
Judiciary Committee, approved it on March 13. See, story titled "House Committee
Approves Internet Gambling Bill" in
TLJ Daily E-Mail
Alert No. 623, March 14, 2003. See also, story titled "Rep. Leach Introduces
Internet Gambling Bill" in
TLJ Daily E-Mail
Alert No. 579, January 9, 2003. The companion bill in the Senate is
S 627. See,
titled "Senate Committee Holds Hearing on Internet Gambling Bill", March 18,
|Federal Circuit Rules in StorageTek v. Cisco
5/13. The U.S.
Court of Appeals (FedCir) issued its
Word] in StorageTek v. Cisco,
a patent infringement case involving communication networks.
Background. Storage Technology
Corporation (StorageTek) sells storage products, including tape storage
systems, disk storage systems, and software and services. It is the assignee of
two patents that relate to the forwarding of packets by a network device:
U.S. Patent No. 5,842,040 titled "Policy caching method and apparatus for
use in a communication device based on contents of one data unit in a subset of
related data units", and
U.S. Patent No. 5,566,170 titled "Method and apparatus for accelerated
packet forwarding". Both
Cisco Systems makes networking products.
Its NetFlow Feature Acceleration
technology and Multi-Protocol Label Switching (MPLS) technology are at issue in
District Court. StorageTek filed a complaint in U.S. District Court (WDWisc)
against Cisco alleging patent infringement. It alleged that Cisco's NetFlow
Feature Acceleration technology and Multi-Protocol Label Switching (MPLS)
technology infringe the '040 and '170 patents. Cisco moved to transfer venue
pursuant to 28 U.S.C. § 1404(a). The District Court (WDWisc) transferred the
case to the U.S. District Court (NDCal).
The District Court (NDCal) conducted a Markman hearing, and entered a claim
construction order. It then granted summary judgment of non-infringement to
Cisco. StorageTek appealed.
Court of Appeals. The Court of Appeals affirmed the decision to
transfer the case (becaues most of Cisco's witnesses are in Northern California),
and the summary judgment as to the '170 patent. However, it
held that the District Court erred in its construction of certain limitations in
the '040 patent. It vacated the judgment of non-infringement of this patent, and
remanded to the District Court.
|Report Offers Recommendations for
5/14. The Center for Democracy and Technology
(CDT) released a
titled "Interim Report: Privacy Principles for Authentication Systems".
It states that authentication systems must build trust in
consumer initiated transactions and government services and be consistent with
applicable law. To accomplish this, the report offers six recommendations, which
are as follows:
"1) Provide User Control -- The informed consent of the individual should be
obtained before information is used for enrollment, authentication and any
"2) Support a Diversity of Services -- Individuals should have a choice of
authentication tools and providers in the marketplace. While convenient
authentication mechanisms should be available, privacy is put at risk if
individuals are forced to use one single identifier for various purposes."
"3) Use Individual Authentication Only When Appropriate -- Authentication
systems should be designed to authenticate individuals by use of identity only
when such information is needed to complete the transaction. Individual identity
need not and should not be a part of all forms of authentication."
"4) Provide Notice -- Individuals should be provided with a clear statement
about the collection and use of information upon which to make informed
"5) Minimize Collection and Storage -- Institutions deploying or using
authentication systems should collect only the information necessary to complete
the intended authentication function.
"6) Provide Accountability -- Authentication providers should be able to
verify that they are complying with applicable privacy practices."
The report is supported by a working group comprised of the CDT, Consumer
Action, Corporate Privacy Group,
eBay, Hewlett-Packard, Intel, Liberty Alliance, Microsoft, NeuStar, TRUSTe, and
|PPI Report Addresses Native American IPR and
5/14. The Progressive
Policy Institute (PPI), a Washington DC based Democratic think tank,
short report titled "Main Obstacles to Native American
Trade: Digital Divide and Intellectual Property Piracy".
The report states that native Americans face higher unemployment and poverty
than the population as a whole, but that "electronic commerce
and trade promotion programs, by enabling rural and geographically isolated
communities to reach world markets, can help tribes both with economic
development and cultural continuity." That is, as native Americans market
"traditional jewelry, textiles, and pottery" they face "significant obstacles in
the form of digital divides and intellectual property piracy". The "reservations
suffer more than most communities from the 'digital divide,' and thus are less
able to reach overseas customers. Traditional arts are also highly vulnerable to
intellectual property piracy." For example, "Hopis estimate losses to piracy at
$44 million, or four times sales."
The report offers no legislative or policy recommendations.
The Senate Indian Affairs Committee held a hearing on May
17, 2000 that addressed piracy of native American arts and crafts. See,
witnesses, with hyperlinks to prepared testimony.
5/13. The Internet Corporation for Assigned
Names and Numbers (ICANN) published in its web site a
memorandum titled "Staff Manager's Issues Report on Privacy Issues Related
5/14. The Federal Communications Commission
(FCC) released a
report [2.1 MB PDF file] titled "Statistics of the Long Distance
Telecommunications Industry". The report contains data on revenues, market
shares, and number of companies. It also contains data on residential long
distance calling, focusing on usage patterns, market shares, prices, and
expenditures. See, also
release [2 pages in PDF] summarizing the findings of the report.
5/14. The Office of Science and Technology
Policy (OSTP) published a
notice in the Federal Register stating that it wants "white papers" from the
public regarding its High End Computing Revitalization Task Force (HECRTF).
Also, it wants them within one week. The deadline to submit papers is May 21,
2003. See, Federal Register, May 14, 2003, Vol. 68, No. 93, at Page 25888.
5/14. The General Accounting Office (GAO)
released a report [pages
in PDF] titled "Free Trade Area of the Americas: United States Faces Challenges
as Co-Chair of Final Negotiating Phase and Host of November 2003 Ministerial".
|Thursday, May 15
The House will meet at 9:00 AM. It will consider
the National Transportation Safety Board Reauthorization.
8:45 - 10:30 AM. The Global Business
Dialogue (GBD) will hold a press conference titled "Singapore Issues". The
speakers will be James Mendenhall (Office of the U.S. Trade Representative),
Petros Sourmelis (European Commission), Seong-bong Lee (Institute for
International Economic Policy in Seoul), and Melissa Haslam (JBC
International). For more information, contact Judge Morris at 202 463-5074.
The GDB states that there is a "$35 general admission ($25 for members of the
National Foreign Trade Council). GBD members are prepaid for this event, and
there is no charge for press or for US Government staff."
Location: First Amendment Lounge, National
Press Club, 529 14th St. NW, 13th Floor.
9:30 AM. The Federal Communications
Commission (FCC) will hold a meeting. Location: FCC, 445 12th Street, SW,
Room TW-C05 (Commission Meeting Room).
9:30 AM. The Senate Judiciary
Committee will hold an executive business meeting. The agenda includes
consideration of the nomination of Michael Chertoff to be a Judge of
the U.S. Court of Appeals (3rdCir). See,
Press contact: Margarita Tapia at 202 224-5225. Location: Room 226, Dirksen
10:00 AM. The Senate Banking
Committee will hold a hearing to examine the
Fair Credit Reporting Act (FCRA) and issues presented by the re-authorization
of the expiring preemption provisions. Location: Room 538, Dirksen Building.
10:00 AM. The House Judiciary
Committee will hold a hearing on
the Class Action Fairness Act of 2003. The hearing will be webcast. Press
contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141,
11:00 AM. Representatives of the Federal
Trade Commission (FTC) and other government entities will hold a press
conference to announce spam related enforcement actions. The event will be in
Dallas, Texas. However, the FTC states that "Reporters who cannot attend can
participate by calling: Phone Number: 1- 888-532-2243 Confirmation Number:
16950466". See, notice.
12:00 NOON. Stratton Sclavos, Ch/CEO of VeriSign, will speak at a
Congressional Internet Caucus
luncheon. RSVP to firstname.lastname@example.org
or 202 638-4370. Lunch will be served. Location: Mansfield Room (S-207),
|Friday, May 16
12:00 NOON. The Federal Communications Bar
Association's (FCBA) Diversity Committee will host a brown bag lunch. The
speakers will be Bill Bailey and Toni Cook Bush. RSVP to Harry Wingo at 202
418-1783 or email@example.com. Location: Room
253, Russell Building.
Extended deadline to submit reply comments to the
Federal Communications Commission (FCC) in response to its
Notice of Inquiry (NOI) [MS Word] regarding "Additional Spectrum for
Unlicensed Devices Below 900 MHz and in the 3 GHz Band". Unlicensed devices
would include, among other things, 802.11. See,
notice in Federal Register, January 21, 2003, Vol. 68, No. 13, at Pages
2730-2733. See also, story titled "FCC Announces Notice of Inquiry Re More
Spectrum for Unlicensed Use" in
TLJ Daily E-Mail
Alert No. 566, December 12, 2002. For more information, contact Hugh Van
Tuyl in the FCC's Office of Engineering & Technology at
firstname.lastname@example.org or 202 418-7506. This
is OET Docket No. 02-380. See,
notice of extension [PDF].
|Tuesday, May 20
6:00 - 8:15 PM. The Federal Communications
(FCBA) will host a continuing legal education (CLE) program titled "What
Every Communications Practitioner Should Know About Sarbanes Oxley and
Corporate Compliance". The speakers will include Tom Hickey (Assistant
General Counsel, Nextel), Barry Summer (Assistant Director, Division of
Corporation Finance, SEC), and Andrew Hruska (Office of the Deputy Attorney
General). Location: Dow Lohnes & Albertson, 1200 New Hampshire Avenue, NW,
Deadline to submit reply comments to the Federal
Communications Commission (FCC) regarding AOL Time Warner's
petition [58 pages in PDF]
requesting relief from the FCC's January 22, 2001 Memorandum Opinion and Order
(MOO) approving the merger of AOL and Time Warner, and imposing conditions upon AOL
Time Warner regarding instant messaging services. Specifically, AOL Time Warner seeks
relief from the condition restricting its ability to offer internet users streaming
video advanced Instant Messaging based high speed services (AIHS) via AOL Time
Warner broadband facilities.
Deadline to submit requests to the U.S. Patent
and Trademark Office (USPTO) to present oral testimony at it May 30 hearing
regarding its notice of proposed rulemaking (NPRM) to amend its regulations to
implement the Madrid Protocol Implementation Act of 2002 (MPIA). See,
notice in the Federal Register, March 28, 2003, Vol. 68, No. 60, at Pages
15119 - 15138.
|Wednesday, May 21
9:00 - 11:00 AM. The U.S. Patent and
Trademark Office (USPTO) and the U.S. Copyright Office (CO) will hold a
meeting to discuss the preparation of a new text of the Hague Jurisdiction and
Enforcement of Judgments Convention. See,
notice. Location: USPTO, 2121 Crystal Drive, Crystal Park 2, Suite 902,
10:00 AM. The Senate Judiciary
Committee will hold a hearing on the nomination of
Hewitt Pate to be
Assistant Attorney General in charge of the Department of Justice's
Antitrust Division. Location: Room
226, Dirksen Building.
10:00 AM. The Senate Banking
Committee will hold a hearing titled "National Export Strategy". The
witnesses will be Donald Evans (Secretary of Commerce), Philip Merrill
(President of the Export Import Bank of the United States), Thelma Askey
(Director of theU.S. Trade and Development Agency), Peter Watson (President of
the Overseas Private Investment Corporation), Hector Barreto (Administrator of
the Small Business Administration). See,
Location: Room 538, Dirksen Building.
12:00 NOON. The Federal Communications Bar
Association's (FCBA) Transactional Practice Committee will host a brown
bag lunch. The topics will include "the purposes of opinions within the
context of various transactions and typical regulatory opinion language". The
speakers will include
Quale (Skadden Arps) and James
Rogers (Latham & Watkins). RSVP to Margery
Singleton at 202 637-2200 or
margery.singleton @lw.com Location: Latham & Watkins, 555 11th Street, NW,
12:15 PM. The Federal Communications Bar
Association's (FCBA) Mass Media Practice Committee will host a brown bag
lunch titled "Getting Ready for Radio Station License Renewal". The speakers
will include Roy Stewart, Chief of the of the
Federal Communications Commission's (FCC)
Office of Broadcast Licence
Policy, and Peter Doyle, Chief of the FCC's
Audio Division. RSVP to Wendy Parish
at email@example.com. Location: NAB, 1771 N
St., NW, 1st Fl. Confr. Rm.
6:00 - 8:00 PM. D.C. Bar Association's Intellectual Property Law Section
will host a continuing legal education (CLE) program titled "Recent
Developments in Technology Transfer with the Federal Government: Focus on
Intellectual Property". The speakers will be Paul Gottlieb (Assistant
General Counsel, Technology Transfer and Intellectual Property, Department of
Energy), Holly Svetz (Morrison & Foerster), and Richard Litman. The prices to
attend range from $70 to $90. Location: DC Bar Conference Center, 1250 H
Street NW, B-1 level.
Deadline to submit comments to the
Copyright Office (CO) in response to its
notice of proposed rules that rules would "govern SoundExchange, an
unincorporated division of the Recording Industry Association of America,
Inc., when it functions as the designated agent for the purpose of receiving
royalty payments and statements of accounts from nonexempt subscription
digital transmission services which make digital transmissions of sound
recordings under a statutory license." See, Federal Register, April 21, 2003,
Vol. 68, No. 76, at Pages 19482 - 19485.
Extended deadline to submit reply comments to the Federal
Communications Commission (FCC) in response to its
Proposed Rulemaking (NPRM) [MS Word] titled "In the Matter of Second
Periodic Review of the Commission’s Rules and Policies Affecting the Conversion
To Digital Television". This is MB Docket No. 03-15, RM 9832, and MM Docket
Nos. 99-360, 00-167, and 00-168. See also,
notice in the Federal Register, February 18, 2003, Vol. 68, No. 32, at
Pages 7737-7747. And see,
notice [PDF] extending deadlines.
Deadline to submit "white papers" to the
Office of Science and Technology Policy' (OSTP) High End Computing
Revitalization Task Force (HECRTF) regarding high end computing. See,
notice in the Federal Register, May 14, 2003, Vol. 68, No. 93, at Page
|People and Appointments
5/13. AOL announced that Kevin Conroy, who is SVP and General Manager
of AOL Entertainment, has been promoted to the new position of EVP and COO of AOL
for Broadband. He has been with AOL since January 2001. See,
5/13. Computer Associates International named Gary Fernandes to its
Board of Directors. He was previously Vice Chairman of EDS. See,
5/14. David Marventano, staff director for the
House Commerce Committee, will
leave to become Senior Vice President of Government Affairs for the
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