2/2. The Bush administration released it budget proposals for fiscal year 2005. It contains proposals for appropriations for the operation of government. See, links to the budget proposal by agency in PDF, and links to the summaries of the budget by agency in HTML. The summaries are shorter, less technical, and more polemical than the actual budget proposals.

2/2. The Bush administration's proposed budget for FY 2005 for the Department of Commerce (DOC) contains appropriation, fee, and policy information for many of the technology related entities in the federal government, including the USPTO, NTIA, BIS, OTP, and NIST. See, the proposed budget summary in HTML for the DOC, and the proposed budget [45 pages in PDF] for the DOC.

USPTO. The President's budget proposal for the U.S. Patent and Trademark Office (USPTO) contains several significant statements. It proposes to make $1,533 Million available to the USPTO in FY 2005. It also proposes no fee diversion in FY 2005. See, related story in this issue titled "Bush Budget Proposes Ending USPTO Fee Diversion".

NTIA. The President's proposed budget for the National Telecommunications and Information Administration (NTIA) would reduce funding from $48 Million in FY 2004 to $25 Million in FY 2005. This is part on a continuing downward trend. However, NTIA salaries and expenses have grown from 12 Million in FY 02 to 22 Million (proposed) in FY 05. The decreases in the overall NTIA funding is the result of the Bush administration's phasing out of grant programs administered by the NTIA.

The budget summary states that it "continues to strengthen the spectrum management capabilities" of the NTIA "by providing funding for laboratory upgrades, and spectrum management and research in support of the Administration's Spectrum for the 21st Century Initiative. In addition, the Administration will again propose legislation to streamline the current process for reimbursing Federal agencies that must relocate from spectrum auctioned to commercial users."

It also states that "The Budget provides no funds for Public Telecommunications Facilities, Planning and Construction grants. This program has recently targeted most of its funding toward the purchase of digital transmission equipment by public broadcasting stations. The Budget proposes that a portion of the Corporation for Public Broadcasting’s already enacted 2005 funding be made available for this purpose."

BIS/BXA. The administration proposal provides $76,516,000 for the Bureau of Industry and Security (BIS), which is also still known as the Bureau of Export Administration (BXA). This is up from $68,203,000 in FY 2004.

The budget proposal states that "The export administration program safegards U.S. national and economic security, nonproliferation, and trade interests by effectively administering U.S. export control laws relating to dual-use technologies and weapons of mass destruction; removes outdated export controls; develops, promotes, and implements policies which ensure a strong and technologically superior defense industrial base; oversees compliance by the U.S. business community with the Chemical Weapons Convention (CWC); and implements the Nation's computer and encryption export policy."

The dual use technologies affected by the BIS administered export control regime include certain computers and software products.

OTP. The administration proposal for the Technology Administration's Office of Technology Policy (OTP) is  $8,294,000, up from $6,411,000 in FY 2004.

The President's budget summary states that "The Technology Administration (TA) is the principal civilian technology agency working with industry to improve U.S. industrial competitiveness and serves as an advocate for U.S. industry in the Executive Branch, before Congress, and in international fora. It discharges this role through the leadership of the Under Secretary for Technology; through the Office of Technology Policy's analysis, formulation, and advocacy of policies to maximize the contribution of technology to economic growth; through the technology development, diffusion, and commercialization programs of the National Institute of Standards and Technology; and through the dissemination of technological information by the National Technical Information Service."

That is, OTP personnel write reports and give speeches. But, the OTP has no rule making, adjudicatory, grant making, standard setting, or other, authority.

NIST. The President proposes to reduce funding for the National Institute of Standards and Technology (NIST) from $610 Million in FY 2004 to $521 Million in FY 2005.

The President's budget summary states that this budget proposal "provides increased funding for NIST laboratories in order to meet Commerce’s challenge of promoting state-of-the-art industrial standards that support technological innovation. NIST laboratories specialize in electronics, manufacturing, engineering, chemical science, physics, materials science, building and fire research, and information technology. The upgrade to NIST’s lab facilities continues with $31 million to equip and operate the Advanced Measurement Laboratory, a new facility designed to meet cutting edge research requirements, and $25 million for continued renovations of NIST’s Boulder, Colorado facilities."

It also states that "The fundamental scientific research and advanced facilities capabilities of NIST support the innovation priorities of the interagency National Nanotechnology Initiative at $53 million and Networking and Information Technology Research and Development (R&D) at $33 million. The Budget provides funding for NIST’s ongoing research efforts in homeland security standards development related to biometric identification, threat detection, and high-rise safety. These activities will provide more accurate identification of individuals seeking to enter the United States, improve the capability to detect nuclear and radiological weapons and help prevent smuggling of these weapons across our borders, and update building and fire standards along with operational guidance for building owners and emergency responders."

Summary Data for the
Department of Commerce,
FY 2002-2005 (in Millions)

2/2. The Bush administration's summary of the proposed budget for FY 2005 for the Department of Commerce (DOC) provides for no user fee diversion in FY 2005.

The summary of the proposed budget contains the following statement regarding the U.S. Patent and Trademark Office (USPTO): "This Budget supports the fee legislation and a spending level of $1.5 billion that will allow PTO to continue implementation of its strategic plan. This proposal provides PTO full access to its fee collections in 2005."

Also, the USPTO issued a release that states that "The President’s FY 2005 budget submission allocates to the USPTO all of the $1.533 billion in fees it is projected to raise next year. This marks the first time since FY 1998 that a President’s proposed budget allows the USPTO to retain all of its fees in the year collected."

The USPTO is funded solely from user fees. However, since 1990 a part of the fees collected by the USPTO have been diverted to subsidize other government programs. Some companies that own intellectual property, trade groups, and proponent of innovation, have never liked this arrangement. They have called it a hidden tax, and a tax on innovation.

The President merely makes proposals. The Congress may still pass an appropriations bill that continues the practice of fee diversion. Moreover, this budget proposal merely proposes that there be no fee diversion in FY 2005; it does not include an express proposal to permanently end the practice of fee diversion.

Jon Dudas is the acting head of the USPTO. (Former Director James Rogan left last month.) Dudas stated that "The Administration has delivered on its promise ... American innovators have long fought for an end to fee diversion."

The USPTO release adds that "The President's proposed FY 2005 budget assumes enactment of the USPTO fee proposal to finance the agency’s 21st Century Strategic Plan. Without the new fees, full implementation of the plan is not possible. USPTO has been doing significant cost cutting to ensure implementation of elements of the plan’s critical quality and e-government initiatives. However, without the new fee schedule, pendency will increase and the backlog of unexamined cases will grow beyond the current inventory of 500,000 patent applications."

It adds that "The President's proposed FY 2005 budget puts the strategic plan back on track, allowing the agency to make its processes simpler and faster, deliver patents and trademarks of superior quality, and enhance overall productivity by:
 • E-Government - continuing migration to full electronic processing of patents and trademarks.
 • Productivity-hiring 900 new highly-qualified patent examiners.
 • Efficiency-finalizing the agency’s move to consolidated space in Alexandria, Va."

The actual proposed budget [45 pages in PDF] for the DOC contains the implementing language. (The USPTO language is at pages 227-9 of the proposed budget document, and at the 27th-29th pages of the PDF file containing the DOC portion of the budget.)

It provides the following. (Note that the terms with brackets are FY 2004 provisions.)

"For necessary expenses of the United States Patent and Trademark Office provided for by law, including defense of suits instituted against the Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, [$1,222,460,000] $1,314,653,000, to remain available until expended, which amount shall be derived from offsetting collections assessed and collected pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41 and 376, and shall be retained and used for necessary expenses in this appropriation: Provided, That the sum herein appropriated from the general fund shall be reduced as such offsetting collections are received during fiscal year [2004] 2005, so as to result in a fiscal year [2004] 2005 appropriation from the general fund estimated at $0: Provided further, That during fiscal year [2004] 2005, should the [total] amount of offsetting [fee] fees [collections] collected under this paragraph be less than [$1,222,460,000] $1,314,653,000, [the total amounts available to the United States Patent and Trademark Office] this amount of $1,314,653,000 shall be reduced accordingly: Provided further, That from amounts provided herein, not to exceed $1,000 shall be made available in fiscal year [2004] 2005 for official reception and representation expenses:"

It further provides that "Upon enactment of authorization to increase fees collected pursuant to 35 U.S.C. 41, any resulting increased receipts may be collected and credited to this account as offsetting collections: Provided, That not to exceed $218,754,000 derived from such offsetting collections shall be available until expended for authorized purposes: Provided, That the total amount appropriated from fees collected in fiscal year 2005, including such increased fees, shall not exceed $1,533,407,000: Provided, That beginning in fiscal year 2005 and thereafter, from the amounts made available for ‘‘Salaries and Expenses’’ for the United States Patent and Trademark Office (PTO), the amounts necessary to pay (1) the difference between the percentage of basic pay contributed by the PTO and employees under section 8334(a) of title 5, United States Code, and the normal cost percentage (as defined by section 8331(17) of that title) of basic pay, of employees subject to subchapter III of chapter 83 of that title; and (2) the present value of the otherwise unfunded accruing costs, as determined by the Office of Personnel Management, of post-retirement life insurance and postretirement health benefits coverage for all PTO employees, shall be transferred to the Civil Service Retirement and Disability Fund, the Employees Life Insurance Fund, and the Employees Health Benefits Fund, as appropriate, and shall be available for the authorized purposes of those accounts."

2/2. The Bush administration's proposed budget summary for "Other Agencies" includes the President's proposal for the Federal Trade Commission (FTC). It proposes $206 Million for FY 05, up from $186 Million in FY 04.

This proposal states that this "will be primarily offset by fee collections from businesses for merger filings and from telemarketers for access to the Do-Not-Call list in order to avoid calling registered phone numbers."

Both the FTC Competition Bureau and Consumer Protection Bureau are involved in technology related matters. The Competition Bureau enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition and harm consumers. This includes mergers and business practices involving technology companies. The Consumer Protection Bureau enforces consumer protection laws that prevent fraud, deception and unfair business practices, and promotes consumer choice. The work of this Bureau increasingly involves communications, information technology, and online fraud.

The President's proposal states that the "FTC funding includes $20 million for FTC to continue enforcing the National Do-Not-Call Registry, in partnership with States and the Federal Communications Commission."

The proposal also addresses spam. It states that "Unsolicited commercial e-mails (spam) account for nearly half of all global e-mail traffic, and the FTC found that 66 percent of spam contains false, fraudulent, or misleading information. Recently, the President signed the CAN-SPAM Act, which establishes a framework of administrative, civil and criminal tools to help America’s consumers, businesses, and families combat spam. The Administration fully supports the fight against spam, and FTC has a major role in this fight. The President’s Budget provides additional funds for FTC to enforce the CAN-SPAM Act and to prepare a plan to establish a Do Not E-Mail Registry that will protect consumers and businesses from unwanted and fraudulent e-mail."

In addition, "Identity theft has affected the lives of more than 27.3 million victims over the past five years and has resulted in billions of dollars in losses for businesses and consumers. In response, the President recently signed the Fair and Accurate Credit Transactions Act, which places new identity theft and consumer credit protection responsibilities with FTC." The administration proposal adds that "To meet these new requirements, the Budget includes $12 million in additional funds for FTC to guard against identity theft, to combat spam, and to better combat Internet fraud."

2/2. The President's budget proposals for FY 2005 contain further proposals for technology related agencies and offices.

Antitrust Division. The Department of Justice (DOJ) budget proposal [42 pages in PDF] proposes $136,463,000 for the Antitrust Division, up from $133,133,000 in FY 2004. See, 10th page of this PDF file, or page 672 of the proposed budget document.

USTR. The proposed budget [9 pages in PDF] for the Executive Office of the President provides $39,552,000 for the Office of the U.S. Trade Representative (USTR). This is a decrease from $41,994,000 in FY 2004.

OSTP. The proposed budget [9 pages in PDF] for the Executive Office of the President provides $7,081,000 for the Office of Science and Technology Policy (OSTP). This is up from $7,027,000 in FY 2004.

NSF. The proposed budget [5 pages in PDF] for the National Science Foundation (NSF) provides $4,452,310,000, up from $4,276,600,000 in FY 2004.

1/29. The U.S. Court of Appeals (10thCir) issued its opinion in Dominion Video Satellite v. Echostar Satellite Corporation, a contract dispute between DBS providers EchoStar and Dominion over an exclusivity provision, and whether injunctive relief is available (as stipulated by their contract) for breach of this provision.

Overview. EchoStar and Dominion have a contract that provides that EchoStar will lease and partially lease back satellite transponders, that Dominion customers will use DISH equipment to receive signals, and that EchoStar will not provide predominantly Christian channels. EchoStar then provided two predominantly Christian channels. When Dominion sued for injunctive relief, EchoStar argued, notwithstanding its contract stipulation of irreparable harm, that injunctive relief is unavailable because of the absence of irreparable harm.

The District Court granted injunctive relief. The Appeals Court reversed. This case serves as precedent on the effectiveness of contract stipulations regarding the availability of injunctive relief, and on the availability of injunctive relief for breach of exclusivity provisions. This case also provides guidance for entities contemplating negotiating contracts with EchoStar.

Background. EchoStar Satellite Corporation and Dominion Video Satellite, Inc. both operate direct broadcast satellite (DBS) systems. EchoStar runs the DISH Network with over 150 channels. Dominion runs the SkyAngel network, which provides predominantly Christian programming, with 20 channels.

The satellite is EchoStar's. But, it has more transponders (devices on the satellite that receive signals from the ground, and then transmit them back to the ground for reception over a broad area) than it is permitted to use under its Federal Communications Commission (FCC) license. So, EchoStar has entered into a contract with Dominion under which Dominion leases eight transponders, and then subleases six back to EchoStar. Dominion uses two to broadcast to its SkyAngel subscribers.

Another provision of the contract is that SkyAngel subscribers must purchase DISH brand equipment. The contract also provides that Dominion has the exclusive right to transmit Christian programming. The contract also addresses remedies. It stipulates that breach of the contract would result in irreparable harm, and that therefore, injunctive relief is available. It also provides for arbitration.

This dispute arose when EchoStar began transmitting two predominantly Christian channels, Daystar and FamilyNet.

District Court. Dominion filed a complaint in U.S. District Court (DColo) against EchoStar alleging breach of contract and seeking an injunction. Also, a third party, Daystar Television Network, moved to intervene.

The District Court granted Dominion a preliminary injunction. It rejected Dominion's argument that it suffered irreparable harm as a result of EchoStar's broadcast of the two Christian channels. Rather, it based its preliminary injunction upon the contract stipulation regarding irreparable harm, and Dominion's loss of exclusivity in broadcasting Christian Channels. It also denied Daystar's motion to intervene, and ordered the parties to begin arbitration. EchoStar and Daystar then brought the present appeal.

Court of Appeals. The Appeals Court reversed the entry of the preliminary injunction. It began its analysis with a recitation of the elements required to obtain a preliminary injunction: "(1) it will suffer irreparable harm if the injunction is not granted, (2) its threatened injury outweighs the harm caused to the opposing party as a result of the injunction, (3) the injunction is not adverse to the public interest, and (4) it has a substantial likelihood of success on the merits of the case."

The Court reversed because it held that Dominion did not meet the irreparable harm requirement.

It held that while irreparable harm often arises from the breach of a contract's exclusivity provisions, a showing of irreparable harm is still necessary, and Dominion did not make this showing.

Also, the Court refused to base a finding of irreparable harm on the contract stipulation. It wrote that "While courts
have given weight to parties' contractual statements regarding the nature of harm and attendant remedies that will arise as a result of a breach of a contract, they nonetheless characteristically hold that such statements alone are insufficient to support a finding of irreparable harm and an award of injunctive relief."

This case is Dominion Video Satellite, Inc. v. Echostar Satellite Corporation, U.S. Court of Appeals for the 10th Circuit, Nos. 03-1274 and 03-1303, appeals from the U.S. District Court for the District of Colorado, D.C. No. 03-K-607 (CBS).

2/3. The U.S. Court of Appeals (7thCir) issued its opinion [4 pages in PDF] in Adco v. Rovell. This case involves legal malpractice in the negotiation of the transfer of intellectual property rights (IPR), and legal malpractice in subsequent litigation over legal malpractice in the negotiation of the transfer of IPR. The issue on appeal is whether the company that developed the process that constitutes IPR had standing to sue, after it had assigned its claim. The District Court held that it lacked standing. The Court of Appeals its claim lacked substance, and affirmed. This case is Adco Oil Company v. Michael Rovell, U.S. Court of Appeals for the 7th Circuit, No. 03-2575, an appeal from the U.S. District Court for the Northern District of Illinois, Eastern Division, D.C. No. 03 C 341, Judge James Moran presiding.

1/29. The U.S. Court of Appeals (6thCir) issued its opinion in Eagles v. American Eagle Foundation, a trademark case involving the use of the term "Eagles" and the domain eagles.org. The plaintiffs are corporate entities affiliated with the ancient country rock band known as the Eagles. (It songs include Take It Easy, Peaceful Easy Feeling, and Hotel California). The defendant is a foundation dedicated to the preservation of the large birds known as eagles. The foundation filed a trademark application with the U.S. Patent and Trademark Office (USPTO) for "American Eagles Records". The band filed an opposition. The band also filed a complaint in U.S. District Court alleging trademark infringement, dilution, and other causes of action under the Lanham Act. As trial approached, the band was touring in Europe, and moved to dismiss the action. This case involves residual issues, including the effect of the dismissal on the award of attorneys fees, and disposition of the USPTO proceeding. This case is Eagles, Ltd. and Eagles Recording Co., v. American Eagle Foundation f/k/a National Foundation to Protect America’s Eagles, U.S. Court of Appeals for the 6th Circuit, No. 02-5560, an appeal from the U.S. District Court for the Eastern District of Tennessee, at Knoxville, D.C. No. 98-00090, Judge Leon Jordan presiding.

2/2. The Bush administration's proposed budget summary for "Other Agencies" includes the President's proposal for the Federal Communications Commission (FCC). It proposes a budget of $292,958,000, $273 million of which would be offset directly by regulatory fees.

The FY 2004 budget is $273,958,000. See, HR 2673, the omnibus appropriations bill, signed by President Bush on January 23, 2004. This is an increase of $19 Million, or 6.9%, which covers increases in salaries and benefits.

The actual proposed budget [110 pages in PDF] for the FCC is at pages 1125-1128 of the budget document, and the 41st-44th pages of the PDF file containing the portion of the budget covering independent agencies.

The FCC issued a release [PDF] that states that "The requested FY 2005 funding level will cover mandatory increases for salaries and benefits and inflationary increases for office space rental, supplies, printing, postage and contractual services. The budget level also includes funds for maintenance and modernization of technology systems that directly further all aspects of our performance; information technology equipment to support our multiyear lifecycle management program; replacement monitoring vehicles; technical monitoring and test equipment to ensure the Commission has up-to-date tools to achieve the agency's Spectrum and Homeland Security initiatives; and skills based training for critical FCC program areas."

The House will meet at 10:00 AM. At 11:00 AM Jose Maria Anzar, President of Spain, will address a joint session of the Congress. The House will then take up HR 3030, the "Improving the Community Services Block Grant Act of 2003". See, Republican Whip Notice.

The Senate will resume consideration of S 1072, the "Safe, Accountable, Flexible and Efficient Transportation Equity Act", at 1:00 PM. The Senate office buildings (Russell, Hart and Dirksen) will be closed due to the presence of ricin in a mailroom in the Dirksen Building.

10:00 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing titled "The Current State of Competition in the Communications Marketplace". The hearing will be webcast. See, notice. Press contact: Ken Johnson or Jon Tripp at 202 225-5735. Location: Room 2322, Rayburn Building.

10:00 AM. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will hold an oversight hearing on titled "Internet Domain Name Fraud -- New Criminal and Civil Enforcement Tools". The hearing will be webcast. Location: Room 2141, Rayburn Building.

10:00 AM. The House Financial Services Committee's Subcommittee on Capital Markets will hold a hearing titled "The Role of Attorneys in Corporate Governance". Location: Room 2128, Rayburn Building.

CANCELLED. 10:00 AM. The Senate Budget Committee will hold a hearing to examine President Bush's FY 2005 budget proposals. Secretary of the Treasury John Snow will testify. Location: Room 608, Dirksen Building.

CANCELLED. 10:00 AM. The Senate Judiciary Committee will hold a hearing on several pending judicial nominations, including William Gerry Myers (to be a Judge of the U.S. Court of Appeals for the 9th Circuit), William Duffey (Northern District of Georgia), Lawrence Stengel (Eastern District Pennsylvania). See, notice. Location: Room 226, Dirksen Building.

RESCHEDULED FOR FEBRUARY 11. 10:30 AM. The House Ways and Means Committee will hold a hearing on President Bush's FY 2005 budget proposal. The witness will be Office of Management and Budget (OMB) Director Joshua Bolten. Location: Room 1100, Longworth Building.

10:30 AM - 12:00 NOON. The Department of State's (DOS) U.S. International Telecommunication Advisory Committee (ITAC) will hold a meeting to discuss matters related to the International Telecommunications Union's (ITU) World Summit on the Information Society (WSIS), which took place on December 10-12, 2003, in Geneva, Switzerland, including the follow-up to the WSIS. See, notice in the Federal Register, January 16, 2004, Vol. 69, No. 11, at Pages 2643 - 2644. Location: auditorium, Historic National Academy of Science Building, 2100 C St. NW.

1:00 PM. The House Armed Services Committee will hold a hearing on President Bush's FY 2005 defense authorization budget request for the Department of Defense. Location: Room 2118, Rayburn Building.

1:00 PM. The House International Relations Committee will hold a hearing titled "L Visas: Losing Jobs Through Laissez-Faire Policies?" Location: Room 2172, Rayburn Building.

1:30 PM - 3:30 PM. The Federal Communications Commission's (FCC) World Radioconference 2007 (WRC-07) Advisory Committee, Informal Working Group 2: Satellite Services and HAPS, will meet. See, notice [PDF]. Location: Room 6-B516, 6th Floor, South Conference Room, 445 12th Street, SW.

2:00 PM. The House Budget Committee will hold a hearing on President Bush's FY 2005 budget proposal. Secretary of the Treasury John Snow will testify. Location: Room 210, Cannon Building.

Day two of a two day Continuing Legal Education (CLE) program titled "Communications Law 101: Everything You Wanted (or Didn't Want) to Know About Communications Technology". The event is sponsored by the Federal Communications Bar Association (FCBA) and the Georgetown University Law Center (GULC). Location: GULC.

4:00 PM. Stacey Dogan (Northeastern University School of Law) will present a paper titled "The Social Norms of Copyright: Sticky or Stuck". For more information, contact Robert Brauneis at 202 994-6138 or rbraun@law.gwu.edu. Location: George Washington University Law School, Faculty Conference Center, Burns Building, 5th Floor, 716 20th Street, NW.

7:00 PM. Chris Israel (Department of Commerce, Technology Administration, Deputy Assistant Secretary) will speak on "outsourcing as it applies to IT industry and the impact on U.S. competitiveness" at an event hosted by the Technology Management Education Association. Location: George Mason University, Fairfax, VA.

The Senate office buildings (Russell, Hart and Dirksen) will be closed due to the discovery of the presence of ricin in a mailroom in the Dirksen Building.

10:30 AM - 12:00 NOON. The Federal Communications Commission's (FCC) World Radioconference 2007 (WRC-07) Advisory Committee, Informal Working Group 1: Terrestrial and Space Science Services, will meet. See, notice [PDF]. Location: Room 8-B516, 8th Floor, South Conference Room, 445 12th Street, SW.

Day one of a two day event hosted by the U.S. Chamber of Commerce titled "Strategic Leadership Forum: Mitigating the Impact of Intellectual Property Theft and Counterfeiting". This is an invitation only event; for more information, contact Aaron Guiterman or Scott Griset at 202 463-5500. See, notice.

The Senate office buildings (Russell, Hart and Dirksen) will be closed due to the presence of ricin in a mailroom in the Dirksen Building.

9:30 AM - 11:00 AM. The Progressive Policy Institute (PPI) will host a program titled "Reversing Rural America's Economic Decline: The Case for a National Balanced Growth Strategy". The speakers will be Robert Atkinson (PPI VP) and Dee Davis (President, Center for Rural Strategies). The program will not be about technology policy. However, Atkinson is Director of the PPI's Technology and New Economy Project, and among the topics that he will cover will be broadband as an enabler of rural growth, and how technology provides new challenges and opportunities with respect to where companies locate. Breakfast will be served. RSVP to 202 547-0001. Location: PPI, 600 Pennsylvania Ave., SE, Suite 400.

12:00 NOON - 1:30 PM. The Cato Institute will host a Capitol Hill briefing titled "Internet Taxation: The State of the Debate". The speakers will be Sen. George Allen (R-VA), Lee Goodman (Wiley Rein & Fielding), and Adam Thierer (Cato). Location: Room 325, Russell Building.

12:00 NOON - 2:00 PM. The DC Bar Association will host a luncheon program titled "The Copyright Office Speaks: The Ninth Annual Event with the Honorable Marybeth Peters -- Register of Copyrights". Prices vary. For more information, call 202 626-3463. Location: City Club of Washington, 555 13th Street, NW.

12:00 NOON. The Progress and Freedom Foundation (PFF) will host a luncheon on voice over internet protocol (VOIP) technology. The speaker will be Vonage Ch/CEO Jeffrey Citron. To attend, contact Brooke Emmerick at 202 289-8928 or bemmerick@pff.org. See, PFF notice. Location: Salon D, J.W. Marriott Hotel, 1331 Pennsylvania Avenue, NW.

Day two of a two day event hosted by the U.S. Chamber of Commerce titled "Strategic Leadership Forum: Mitigating the Impact of Intellectual Property Theft and Counterfeiting". This is an invitation only event; for more information, contact Aaron Guiterman or Scott Griset at 202 463-5500. See, notice.

Extended deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking [35 pages in PDF] regarding unlicensed devices. See, notice in the Federal Register, December 10, 2003, Vol. 68, No. 237, at Pages 68823 - 68831. The FCC adopted this NPRM on September 10, 2003. See, FCC release [PDF]. The FCC released the NPRM [35 pages in PDF] on September 17, 2003. This NPRM is FCC 03-223 in ET Docket No. 03-201. See also, stories titled "FCC Announces NPRM Regarding Unlicensed Devices" in TLJ Daily E-Mail Alert No. 739, September 15, 2003, and "FCC Announces Deadlines for Comments on Unlicensed Devices NPRM" in TLJ Daily E-Mail Alert No. 800, December 16, 2003. See also, FCC order [PDF] extending the deadline for reply comments from January 26 to February 7.

10:00 AM. The Senate Governmental Affairs Committee will hold a hearing to examine the Department of Homeland Security's budget for FY 2005. Location: Room 342, Dirksen Building.

Day one of a two day conference hosted by the National Institute of Standards and Technology (NIST) titled "Knowledge Based Authentication: Is it Quantifiable?". See, notice and event web site. Location: NIST, Administration Building, Green Auditorium, Gaithersburg, MD.

12:15 PM. The Federal Communications Bar Association (FCBA) Cable and Legislative Practice Committees will host a brown bag lunch. The speakers Bill Bailey (Majority Counsel for the Senate Commerce Committee) and James Assey (Minority Counsel for the Senate Commerce Committee). For more information, contact Catherine Bohigian at Catherine.Bohigian@fcc.gov. RSVP to Wendy Parish at wendy@fcba.org. Location: Willkie Farr & Gallagher, 1875 K Street, NW.

7:00 AM - 5:00 PM. Day one of a two day conference hosted by the National Telecommunications and Information Administration (NTIA) titled "Public Safety Spectrum Management Forum". See, notice. Location: Omni Shoreham Hotel, 2500 Calvert Street, NW.

9:30 AM. The Senate Armed Services Committee will hold a hearing on President Bush's defense authorization request for FY 2005 and the future years defense program. See, notice. Location: Room 325, Russell Building.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) in response to its notice of proposed rulemaking (NPRM) regarding "Changes to Representation of Others Before the United States Patent and Trademark Office". See, notice in the Federal Register, December 12, 2003, Vol. 68, No. 239, at Pages 69441-69562. See also, USPTO release.

Day two of a two day conference hosted by the National Institute of Standards and Technology (NIST) titled "Knowledge Based Authentication: Is it Quantifiable?". See, notice and event web site. Location: NIST, Administration Building, Green Auditorium, Gaithersburg, MD.

Deadline to submit comments regarding the workshop to be hosted by the Department of Justice's (DOJ) Antitrust Division and the Federal Trade Commission (FTC) on application of the Horizontal Merger Guidelines on February 17-19. See, notice.

7:00 AM - 5:00 PM. Day two of a two day conference hosted by the National Telecommunications and Information Administration (NTIA) titled "Public Safety Spectrum Management Forum". See, notice. Location: Omni Shoreham Hotel, 2500 Calvert Street, NW.

10:00 AM. Federal Reserve Board Chairman Alan Greenspan will deliver the Federal Reserve's semiannual report on monetary policy to the House Financial Services Committee. Location: Room 2128, Rayburn Building.

10:00 AM - 12:00 NOON. The Federal Communications Commission's (FCC) Wireless Telecommunications Bureau (WTB) will hold an event titled "Presentation for New ULS Online Services, MDS and ITFS". Location: FCC, 445 12th Street, SW, Room 3-B516 (3rd Floor South Conference Room).

12:00 NOON - 1:00 PM. The New America Foundation (NAF) will host a brown bag lunch. The speaker will be David Dorman (Ch/CEO of AT&T). The topic will be "Making the Right Choices about the Future of Communications". See, notice. Location: NAF, 7th Floor, 1630 Connecticut Ave., NW.

12:15 PM. The Federal Communications Bar Association's (FCBA) Online Communications Practice Committee will host a brown bag lunch titled "Legislative and Regulatory Update on Internet and E-Commerce Privacy Issues". The speakers will be Chris Hoofnagel (EPIC) and Heidi Salow (Nextel). For more information, contact Vincent Paladini, Karlyn Stanley (CRB, 202 828-9835), or Amy Wolverton. Location: Cole Raywid & Braverman, 1919 Pennsylvania Ave., NW, Suite 200.

2:00 PM. The House Ways and Means Committee will hold a hearing on President Bush's FY 2005 budget proposal. The witness will be Office of Management and Budget (OMB) Director Joshua Bolten. Location: Room 1100, Longworth Building.

5:00 - 7:00 PM. The Congressional Internet Caucus's Advisory Committee will host a reception and technology fair. For more information contact Megan Kinnaird at 202 638-4370. See, notice. Location: Room 902, Hart Building.

2/3. The European Commission (EC) released a communication [17 pages in PDF] titled "Connecting Europe at high speed: recent developments in the sector of electronic communications". It summarizes developments pertaining to information and communications technologies (ICTs), including electronic communications, broadband and Third Generation (3G) technologies. It contains a review of industry developments, economic analysis, and a discussion of policy.

Erkki Liikanen (at left), the EC's Information Society Commissioner, summarized the communication in a release. He stated that "Our report takes the temperature of the sector. It shows considerable improvement over the last year, largely due to continuing growth in mobile, broadband and Internet services. For 2004, demand for mobile data services may replace broadband as a key force for recovery. The regulatory framework and technologies are now there, but to exploit their full potential what we now need is clear and renewed political commitment at the highest level to making eEurope a reality."

The communication addresses the relationship between use of information technologies and gains in worker productivity, and hence, economic growth. He stated that "production of ICTs contributes directly to overall productivity growth and has strongly contributed to the acceleration in performance in the United States. A similar effect is evident also in some European countries, although the size of the ICT-producing sector is smaller."

It adds that "the diffusion of ICTs is a prime contributor to productivity growth elsewhere in the economy. However, simply investing in computers and modern communications is not enough. Productivity gains are only achieved when firms reorganise their business processes and invest in training. This takes time and, as European companies invested less and later in ICTs than their American competitors, productivity gains are expected with a lag.".

Consequently, the communication suggests less regulation. It makes a plea for "flexibility in product and labour markets facilitating the take up of new technologies, the reorganisation of business practices and the re-skilling of the workforce."

The communications states that "Further deployment of new services is primarily up to the market. However, incentives to invest are also affected by public policies: the new regulatory framework for electronic communications aims at enhancing competition and stimulating investment by providing a clear and predictable legal environment; national broadband strategies include public intervention to bridge the digital divide and to improve demand through the connection of relevant public administrations; the roll-out of 3G networks requires public action to address the removal of the remaining regulatory and technological barriers."