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April 7, 2004, 9:00 AM ET, Alert No. 871.
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Bush Addresses Math and Science Education

4/6. President Bush gave a speech at the South Arkansas Community College in Eldorado, Arkansas, in which he addressed math and science, education, and jobs.

"Jobs in computer and math-related fields are expected to rise by nearly 60 percent by the year 2010 in the state of Arkansas", said Bush. "In other words, there's going to be jobs. The question is, are people going to be prepared to fill those jobs. That's really what we're here to talk about today."

He then discussed some of his proposals related to math and science education. He stated that "We've got a mathematics and science partnership program. One of the problems we've got, you heard me describe the kinds of jobs that will be available in Arkansas by 2010 -- you better make sure your math programs and science programs work."

The White House Press Office also issued a release that states that the President's proposals include "Increased funding for the Mathematics and Science Partnership Program to provide extra help to middle and high school students who fall behind in math. The President's FY 2005 budget provides an additional $120 million for the Program."

Bush continued. "See, a new skill-set is necessary to fill the new jobs. And therefore, we put out a program, a math and science partnership program, which will help teachers with curriculum, but also provide extra help for kids just to make sure they don't get shuffled through. I mean, literacy is more than just being able to read. There's math literacy, as well, that we want to effect."

Bush also stated that "We've got an adjunct teacher program. That's an important way to help recruit professionals into the classroom to teach math. If you've got yourself a retired NASA employee in your neighborhood, it seems like to me you want to be able to have that person go into the classrooms and teach science or math. One of the things the superintendent may tell you here, I know I've heard it from other superintendents, is that we've got a shortage of math teachers and science teachers."

The White House Press Office release also states that the President's proposals include "Incentives to invite math and science professionals from the private sector to teach part-time in our high schools. The President's FY 2005 budget also includes $227 million in loan forgiveness for math, science and special education teachers in low-income schools."

The White House Press Office release also states that "President Bush wants to expand opportunities for math and science education in colleges and universities. The President proposes establishing a new public-private partnership to provide $100 million in grants to low-income students who study math or science. Under this plan, approximately 20,000 low-income students would receive up to $5000 each to study math or science. Students would have to be eligible for Pell Grants to receive this additional $5,000, although this new fund would be run separately from the Pell Grant program."

Cable Companies Seek Stay of Brand X Mandate

4/5. The National Cable and Telecommunications Association (NCTA), and some cable companies, filed a motion [15 pages in PDF] with the U.S. Court of Appeals (9thCir) in Brand X v. FCC. The motion, which is titled "Cable Intervenor's Motion for Stay of the Mandate", requests the Court "to stay the mandate ... pending the filing of a petition for writ of certiorari in the Supreme Court".

The motion was filed by the National Cable and Telecommunications Association, Charter Communication, Inc., Cox Communications, Inc., Time Warner, Inc., and Time Warner Cable. See also, NCTA release.

On March 14, 2002, the FCC adopted a Declaratory Ruling and Notice of Proposed Rulemaking [75 pages in PDF]. The Declaratory Ruling (DR) component of this item states that "we conclude that cable modem service, as it is currently offered, is properly classified as an interstate information service, not as a cable service, and that there is no separate offering of telecommunications service."

On October 6, 2003, the Court of Appeals issued its opinion [39 pages in PDF] (also published at 345 F.3d 1120) vacating the FCC's declaratory ruling. See, story titled "9th Circuit Vacates FCC Declaratory Ruling That Cable Modem Service is an Information Service Without a Separate Offering of a Telecommunications Service" in TLJ Daily E-Mail Alert No. 754, October 7, 2003.

On April 1, the Appeals Court denied petitions for rehearing en banc. See, story titled "9th Circuit Denies Rehearing in Brand X v. FCC" in TLJ Daily E-Mail Alert No. 868, April 2, 2004.

BIS Annual Report Addresses Encryption, IT Hardware, and Deemed Exports

4/6. Bureau of Industry and Security (BIS) released a report titled "Annual Report: Fiscal Year 2003". The BIS, which is also still known as the Bureau of Export Administration (BXA), controls exports for national security purposes, including exports of dual use items, such as computers, microprocessors, software and encryption products.

The report states that in 2004 "BIS also will work to achieve needed export policy changes. In particular, BIS expects to undertake a comprehensive examination of deemed exports and technology controls. While controls on information technology hardware - such as computers and microprocessors - have been updated regularly to keep pace with rapid technological and market changes, the corresponding technology and software controls have not always kept pace. In addition to updating information technology control parameters, BIS will work with its interagency partners in the U.S. Government to seek to revise the restrictions on transfers of technology within U.S. companies."

The report also reviews encryption export controls. It states that "U.S. encryption export control policy continues to be anchored on the technical review of encryption products prior to export, streamlined post-export reporting, and license review for certain exports of strong encryption to foreign government end-users. BIS published a rule on June 17, 2003 (68 Fed. Reg. 35783), updating U.S. export controls on dual-use encryption items. The rule implemented changes made to the Wassenaar Arrangement List of Dual-Use Goods & Technologies in December 2002, and further clarifies U.S. encryption export policy in light of the widespread use of encryption products by individuals, businesses, and governments."

The report continues that "The encryption policy published by BIS in June 2003 clarifies when encryption commodities and software may be given ``de minimis创 treatment; provides that short-range wireless devices incorporating encryption may be given ``mass market创 or ``retail创 treatment; and confirms that specially designed medical equipment and software are not controlled as encryption or ``information security创 items under the EAR. The rule also expands the authorizations according to which travelers departing the United States may take encryption items for their personal use, and provides additional guidance on when exporters are required to submit encryption review requests for new products that will be sold or otherwise exported for other than ``personal use创 overseas. Finally, this rule implements changes to the Wassenaar Arrangement List of Dual-Use Goods & Technologies (finalized in December 2002) by eliminating national security-based controls on certain types of ``personalized smart cards创 and equipment controlling access to copyright protected data." (Parentheses in original.)

The report also covers technical reviews of encryption exports. It states that "BIS processed a substantial number of pre-export encryption review requests for a variety of products with encryption features, including commodities and software for desktop and laptop computers, wireless handheld devices, e-business applications, network security, and telecommunications platforms. Commercial encryption products, except high-end networking products, source code, and products for which the cryptography has been customized or tailored to customer specification, may be exported and reexported to any destination other than a designated terrorism-supporting country after a one-time technical review."

The report adds that "In Fiscal Year 2003, BIS received over 1,400 technical review requests for 2,400 controlled encryption products, components, toolkits, and source code items. Encryption reviews comprised 34 percent of BIS's total output of commodity classifications in Fiscal Year 2003. Of the 1,759 encryption products actually reviewed during the fiscal year, 82 percent (1,444) were classified as ``retail创 (964) or "mass market" (480) encryption items, making them eligible for export and reexport without a license to government and non-government end-users in most countries."

It also states that "During Fiscal Year 2003, BIS also approved 373 license applications for ``non-retail创 encryption items (such as high-end routers and other network infrastructure equipment) and technology valued at $71.1 million." (Parentheses in original. Footnote omitted.)

Finally, the BIS annual report addresses deemed exports. It states that "Most deemed export cases involved the transfer to foreign nationals of technologies controlled for national security reasons. In addition, most deemed export cases involved foreign nationals employed in the semiconductor manufacturing, telecommunications, and computer industries. More than 69 percent of the deemed export license applications reviewed related to Chinese and Russian nationals. Additionally, over 30 percent of the deemed export license applications received in Fiscal Year 2003 were for renewals and technology upgrades of existing deemed export licenses."

More News

4/6. The National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) released its "Pre-Publication Final" draft [67 pages in PDF] of NIST Special Publication 800-37, titled "Guide for the Security Certification and Accreditation of Federal Information Systems". The deadline for public comments is April 21, 2004. Comments should be addressed to sec-cert@nist.gov. The CSD has previously released, and received comments upon, two earlier drafts of SP 800-37. The CSD stated that its final publication is expected in May.

4/2. Richard Newcomb, Director of the Department of the Treasury's (DOT) Office of Foreign Assets Control (OFAC) wrote a letter [5 page PDF scan] to counsel for the Institute of Electrical and Electronic Engineers (IEEE) stating that the OFAC does not regulate the peer review process, as well as the process of style and copy editing, with respect to scholarly papers submitted by authors in a sanctioned country. Thus, the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) do not prevent scientific communities in sanctioned countries, such as Iran and Cuba, from publishing their works in U.S. scholarly journals. See, DOT release and IEEE release.

3/30. Intel announced in a release that it "has settled the remaining issues in a patent infringement suit pending in U.S. District Court in Marshall, Texas relating to Intel's Itanium microprocessors. Under terms of the settlement Intel and Intergraph will move for dismissal of the case with prejudice. As a result, neither company has any further financial obligations under an earlier April 2002 settlement agreement." Intel added that "under terms of the current settlement Intergraph has granted Dell Inc. certain licenses to Intergraph patents and agreed to dismiss Intergraph's separate pending litigation against Dell. Intergraph sued Dell for patent infringement in December 2002. This agreement gives Dell a license to all Intergraph-owned patents, and covers past, present and future Dell products." Intergraph stated in a release that it "has resolved its patent infringement claims against Dell Inc. with regard to its Clipper patents. In addition, the settlement resolves Intergraph's dispute with Intel Corporation regarding the Company抯 Parallel Instruction Computing (PIC) patents. Under the settlement agreement, Intel will pay Intergraph $125 million on April 5, 2004. Four subsequent $25 million cash payments will be made by Intel on July 5 and October 5, 2004 as well as January 5 and April 5, 2005. Intergraph estimates its total intellectual property income for the first quarter of 2004, net of all fees and expenses, will be approximately $203 million."

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Washington Tech Calendar
New items are highlighted in red.
Wednesday, April 7

The House will be in recess from April 5 through April 16 for the Spring recess. It will next meet on Monday, April 19.

The Senate will meet at 9:45 AM for morning business, and at 10:45 AM to resume consideration of the motion to proceed to S 2207, the Pregnancy and Trauma Care Access Protection Act.

The Supreme Court is in recess until April 19, 2004.

10:00 AM. The Senate Judiciary Committee Subcommittee on Administrative Oversight and the Courts will hold a hearing on a proposal to split the Ninth Circuit. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Appropriations Committee's Subcommittee on Transportation, Treasury and General Government will hold a hearing to examine tax law enforcement and information technology challenges at the Internal Revenue Service (IRS). Location: Room 138, Dirksen Building.

12:30 - 1:30 PM. The Center Strategic and International Studies (CSIS) will host a program on cybersecurity. The speakers will be Steve Ballmer (CEO of  Microsoft), John Hamre (P/CEO of the CSIS), Robert Holleyman (P/CEO of the Business Software Alliance). Press contact: Mark Schoeff at 202-775-3242 or mschoeff@csis.org or Gina Maffei at 202-775-3167 gmaffei@csis.org. Location: CSIS, 1800 K Street, NW, B-1 conference level.

12:30 PM. Virginia Attorney General Jerry Kilgore will speak on "Technology and the Law". Location: George Mason University School of Law.

12:30 PM - 2:00 PM. The DC Bar Association's Section on Criminal Law and Individual Rights will host a brown bag lunch (with admission charge) titled "Federal Practice Series: Handling Electronic Evidence: From Authentication to Admissibility to Minimizing that Damaging E-mail". The speaker will be Adam Rosman (Zuckerman Spaeder). Prices vary. For more information, call 202 626-3463. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding its proposed rules regarding universal service subsidies for rural health clinics. Comments are due by February 23, 2004. Reply comments are due by April 7, 2004. See, notice in the Federal Register, December 24, 2003, Vol. 68, No. 247, at Pages 74538 - 74541.

Thursday, April 8

10:00 AM. The Senate Judiciary Committee will hold a hearing on several pending judicial nominations, including William Duane Benton (to be a Judge of the U.S. Court of Appeals for the 8th Circuit), Robert Bryan Harwell (District of South Carolina), George Schiavelli (Central District of California), and Curtis Gomez (Virgin Islands). See, notice. Location: Room 226, Dirksen Building.

11:00 AM. The Senate Commerce Committee will hold a business meeting. The agenda includes consideration of several non technology related bills and several nominations, including that of Theodore Kassinger to be Deputy Secretary of the Department of Commerce. Press contact: Rebecca Hanks at 202 224-2670. Location: Room 253, Russell Building.

1:30 - 3:00 PM. Federal Communications Commission (FCC) World RadioCommunication 2007 (WRC-07) Advisory Committee's Informal Working Group on Satellite Services and HAPS will meet. See, FCC notice [PDF]. Location: Leventhal Senter & Lerman, 2000 K Street, NW, 7th Floor Conference Room.

6:00 - 8:00 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) seminar titled "FCC's Environmental and Historic Preservation Action Plan - One Year Later". Prices vary. To register, contact Wendy Parish at wendy@fcba.org. Location: Wiley Rein & Fielding, 1750 K Street, NW, 10th Floor.

Sunday, April 11

Easter.

Monday, April 12

The Senate will not meet from April 12 through April 16.

10:00 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host a panel discussion titled "The Development of European Regulatory Agencies: What the European Union Should (or Shouldn抰) Learn from the American Experience". The speakers will be Judge Stephen Williams (U.S. Court of Appeals) and Greg Sidak (AEI). Location: AEI, 12th floor, 1150 17th St., NW.

Day one of a three day conference hosted by the National Institute of Standards and Technology (NIST), National Institutes of Health (NIH), Internet2, USENIX, and OASIS titled "Public Key Technology R&D Workshop". See, notice and conference website. The price to attend is $105. Location: NIST, Gaithersburg, MD.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding its Third Report and Order and Second Further Notice of Proposed Rulemaking pertaining to the administration of the FCC's e-rate subsidy program for schools and libraries. See, notice in the Federal Register, February 10, 2004, Vol. 69, No. 27, at Pages 6229 - 6238. This item is FCC 03-323 in Docket No. 02-6. The FCC adopted this item at its December 17, 2003 meeting. See, FCC release [PDF] describing this item. The FCC released the text of this item on December 23, 2003.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to the Department of Justice's (DOJ) petition for a rulemaking proceeding regarding surveillance of voice over internet protocol (VOIP), regulation of VOIP related technologies, the Communications Assistance for Law Enforcement Act (CALEA), and related issues. This is RM 10865. See, FCC notice (DA 04-700).

Deadline to submit comments to the Federal Trade Commission (FTC) in response to its notice in the Federal Register requesting comments regarding various regulations and reports required by the CAN-SPAM Act. Several provisions in the "Controlling the Assault of Non-Solicited Pormography and Marketing Act of 2003" (CAN-SPAM Act) instruct the FTC to write regulations implementing the Act. Other provisions require the FTC to prepare reports for the Congress. See, S 877, which is now Public Law No. 108-187. See also, story titled "FTC Announces CAN-SPAM Act Rulemaking" in TLJ Daily E-Mail Alert No. 855, March 15, 2004. The notice is published in the Federal Register, March 11, 2004, Vol. 69, No. 48, at Pages 11775-11782. See also, FTC release summarizing the notice.

Deadline to submit comments to the Copyright Office regarding its rule making proceeding "to amend its regulations governing the content and service of certain notices on the copyright owner of a musical work. The notice is served or filed by a person who intends to use a musical work to make and distribute phonorecords, including by means of digital phonorecord deliveries, under a compulsory license." See, notice in the Federal Register, March 11, 2004, Vol. 69, No. 48, at Pages 11566-11577.

The Copyright Office's interim regulations, announced on March 11, specifying notice and recordkeeping requirements for use of sound recordings under two statutory licenses under the Copyright Act, take effect. See, notice in the Federal Register, March 11, 2004, Vol. 69, No. 48, at Page 11515-11531.

Tuesday, April 13

Day two of a three day conference hosted by the National Institute of Standards and Technology (NIST), National Institutes of Health (NIH), Internet2, USENIX, and OASIS titled "Public Key Technology R&D Workshop". See, notice and conference website. The price to attend is $105. Location: NIST, Gaithersburg, MD.

ICANN Moves to Dismiss Most of VeriSign's Wildcard Complaint

4/5. The Internet Corporation for Assigned Names and Numbers (ICANN) filed a motion and memorandum in support [33 pages in PDF] with the U.S. District Court (CDCal) to dismiss most of Verisign's claims in its suit regarding the ICANN's reaction to Verisign's use of a wildcard.

The ICANN demanded that VeriSign undo its wildcard feature changes that caused misspelled and/or unassigned domain names with the .com or .org top level domain to be redirected to a VeriSign page. VeriSign called this its "Site Finder" service.

The ICANN argues that various of VeriSign's claims, including those for violation of Section 1 of the Sherman Act, for injunctive relief for breach of contract, for damages for breach of contract, for interference with contractual relations, for specific performance of contract, be dismissed for failure to state a claim upon which relief may be granted.

See also, stories titled "ICANN Demands That VeriSign Cease Wildcard Feature" in TLJ Daily E-Mail Alert No. 753, October 6, 2003; "VeriSign Refuses to Suspend Deployment of Wildcard Service" in TLJ Daily E-Mail Alert No. 744, September 23, 2003; and "ICANN Asks VeriSign to Suspend Wildcard Service" in TLJ Daily E-Mail Alert No. 743, September 22, 2003.

This case is Verisign, Inc. v. ICANN, U.S. District Court for the Central District of California, D.C. No. CV 04-1292 AHM (CTx), Judge Howard Metz presiding.

People and Appointments

4/6. President Bush nominated Michael Watson to be a Judge of the U.S. District Court for the Southern District of Ohio. See, White House release.

4/5. John Loiacono was named Executive Vice President of Software at Sun Microsystems, effective immediately. He was previously SVP of the operating platforms group, and was responsible for the strategic direction of the Solaris and Linux platforms, as well as the Java Enterprise System. See, Sun release.

4/5. Michael Dugan will retire from the positions of President and Chief Operating Officer of EchoStar Communications on April 30, 2004. He will join the Board of Directors on May 6, and serve as an advisor. He will replace Peter Dea on the Board of Directors. See, release.

4/5. Four persons were named to the Department of Commerce's (DOC) National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology (VCAT): Donald Keck (formerly with Corning, and now CTO at Infotonics Technology Center), Edward Noha (Chairman Emeritus of CNA Financial Corporation), Thomas Saponas (former SVP and CTO of Agilent Technologies), and James Serum (President of SciTek Ventures).

4/3. Former Federal Trade Commission (FTC) Chairman Janet Steiger died. She was Chairman from 1989 through 1995, and a Commissioner until 1997. Before that, she was head of the U.S. Postal Rate Commission. See, statement by FTC Chairman Timothy Muris.

4/1. Jeff Clarke was named Executive Vice President and Chief Financial Officer of Computer Associates International, Inc. (CA). He replaces Douglas Robinson as CFO, who has served on an interim basis for six months. Robinson will continue at CA as SVP for Finance, and will report to Clarke. See, CA release. CA's accounting practices have attracted the attention of the Securities and Exchange Commission (SEC). On January 12, 2004, CA announced in a release that it "received a ``Wells Notice创 from the staff of the SEC. The Wells Notice notifies the company that the SEC staff is considering recommending that the SEC bring a civil enforcement proceeding against CA for possible violations of the federal securities laws arising from CA's premature recognition of revenue from software license contracts in CA's fiscal year ending March 31, 2000, including revenue from contracts that were not fully executed or otherwise finalized until after the quarter in which the revenue associated with such contracts had been recognized." See also, story titled "SEC Files Complaint Against Former Computer Associates Executive" in TLJ Daily E-Mail Alert No. 823, January 26, 2004.