10/21. The Securities and Exchange Commission (SEC) filed a civil complaint [56 pages in PDF] in U.S. District Court (DColo) against Qwest Communications alleging securities fraud and other violations of federal securities laws. Qwest simultaneously agreed to the entry of a judgment that requires it to pay a civil penalty of $250 Million, which will be distributed to defrauded investors pursuant to the Fair Funds provision of the Sarbanes-Oxley Act of 2002.

The complaint alleges that "From at least the second quarter ended June 30, 1999, and continuing through the first quarter ended March 31, 2002, Qwest ... engaged in a massive financial fraud designed to mislead the investing public about its revenue and growth. In annual, quarterly, and current reports, in registration statements that incorporated Qwest's financial statements, and in other public statements, including earnings releases and investor calls, Qwest made numerous false and misleading statements about its financial condition."

The complaint continues that "Qwest fraudulently recognized approximately $3.8 billion of spurious revenue, and fraudulently excluded $231 million in expenses. The fraudulent scheme, approved and directed by Qwest’s senior management and implemented by numerous other managers and employees, was orchestrated to meet the company's outrageously optimistic revenue projections, artificially inflate Qwest’s stock price, and falsely present Qwest as a ``new technology´´ company with enormous earnings growth and potential."

The complaint alleges violation of §§ 5(a), 5(c), and 17(a) of the Securities Act of 1933, §§ 10(b), 13(a), 13(b)(2), and 14(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78m(a), 78m(b)(2), and 78n(a), and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13, 13b2-1, 14a-3, and 14a-9.

See also, SEC release and Qwest release.

10/22. The Consumer Electronics Association (CEA) announced that it conducted an online public opinion poll of 568 likely voters from October 2 through October 5, 2004. The CEA published a release describing poll results, but not the poll results. The CEA stated that it infers from the poll results that "As many as eight million U.S. households could be left out of the political polling process as a growing number of consumers move to cellular phones as their sole means of taking and making telephone calls".

CEA P/CEA Gary Shapiro stated in this release that "Number portability, advanced text messaging and voicemail features, and most importantly, falling prices for service plans are all allowing more and more consumers to cut the cord to their traditional landline services ... This trend is without question making it harder for political pollsters to get an accurate read on local, state and national races."

The CEA added that "Another factor thwarting the effectiveness of political pollsters is the practice of call-screening", and that it found that "Democrats are much more likely than Republicans to indicate they screen their calls". Finally, the CEA stated that it found that "Republicans are 25 percent more likely than Democrats to have responded to at least one poll".

10/22. The Federal Communications Commission's (FCC) Enforcement Bureau (EB) released an Order and Consent Decree [6 pages in PDF] in its investigation of complaints filed by two labor unions alleging that Comcast violated the FCC's public file rules.

The Consent Decree terminates the investigation and dismisses the complaint and all related filings. Comcast agrees to implement a Compliance Plan, which is attached to the Consent Decree. And, the FCC requires Comcast to "make a voluntary contribution (not a forfeiture or a penalty) to the United States Treasury in the amount of Two Hundred Twenty-Five Thousand Dollars ($225,000.00)." (Parentheses in original.)

FCC Commissioners Michael Copps and Jonathan Adelstein wrote in a release [PDF] that "Today's action highlights the urgent need for the Commission to reexamine the adequacy of its public file disclosure requirements. Cable operators and broadcasters should not shy away from making information about how they serve their communities widely available to their viewing public."

They added that "It's time the Commission reaffirmed the rights of viewers to receive basic information to gauge the accountability of their media. Information should be made widely available through modern means in a standard, easy-to-understand format. ... We call on the Chairman to designate this for immediate Commission action."

The Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) filed their complaint on November 26, 2003. The CWA stated in a release that "the unions are considering an appeal to the full Commission."

The FCC's Order and Consent Decree is DA No. 04-3274.

10/22. The U.S. Court of Appeals (FedCir) announced its oral arguments calendar for the month of December. Several information technology cases are on the agenda.

The list of cases to be heard in Washington DC on December 6, 2004 includes Northpoint Technology, Ltd v. MDS America, Inc., an appeal from the U.S. District Court (SDFl) involving claims infringement of patents pertaining to use of digital broadcast satellite (DBS) spectrum for terrestrial wireless services. This is App. Ct. No. 04-1249.

The schedule for December 9 includes Eolas Technologies v. Microsoft, an appeal from a judgment of the U.S. District Court (NDIll) that Microsoft infringed U.S. Patent No. 5,838,906 titled "Distributed hypermedia method for automatically invoking external application providing interaction and display of embedded objects within a hypermedia document". This case is also known as the web browser case. This is App. Ct. No. 04-1234.

See also, story titled "Jury Returns Verdict of Infringement Against Microsoft in Eolas Browser Patent Case" in TLJ Daily E-Mail Alert No. 716, August 12, 2003, and story titled "USPTO Orders Reexamination of Eolas Patent" in TLJ Daily E-Mail Alert No. 778, November 13, 2003.

The schedule for December 7 includes AT&T v. Microsoft, an appeal from the U.S. District Court (SDNY) in a patent infringement case involving voice compression technology. This is App. Ct. No. 04-1285 and D. C. No. 01 Civ. 4872. See, complaint.

The December 7 schedule also includes Block Financial v. Yodlee, Inc., a patent case involving account aggregation software, distributed object technology and internet applications. This is App. Ct. No. 04-1087.

The December 7 schedule also includes Stambler v. RSA Security, No. 04-1129.

See, Federal Circuit calendar. Arguments in all of the above listed will be heard in either Courtroom 203 or 402, 717 Madison Place, NW.

10/22. Robert Tanner was named Assistant Bureau Chief of the Federal Communications Commission's (FCC) Wireline Competition Bureau (WCB). The FCC stated in a release [PDF] that he will work "on policy matters and manage special projects". He was previously Legal Counsel to the WCB Bureau Chief. Before that, he was an Attorney Advisor in the WCB's Competition Policy Division (CPD). From 1998 through 1991, he worked for the law firm of Davis Wright Tremaine. Before that, he worked at the FCC.

10/22. Thomas Newkirk will leave the Securities and Exchange Commission (SEC) to become a partner in the Washington DC office of the law firm of Jenner & Block. He went to work for the SEC in 1986. He is currently an Associate Director of the SEC's Division of Enforcement. See, SEC release.

10/22. The Federal Trade Commission (FTC) sent warning letters [PDF] to contact lens prescribers regarding violations of the Fairness to Contact Lens Consumers Act (FCLCA), which is codified at 15 U.S.C. §§ 7601-7610, and the FTC's Contact Lens Rule, 16 C.F.R. Part 456. The letter warns prescribers that the FTC has received complaints about them, and reminds them that "the Act and the Rule require prescribers to give patients a copy of their contact lens prescription at the completion of a contact lens fitting -- even if the patient does not ask for the prescription. In addition, prescribers are prohibited from requiring their patients to purchase contact lenses from them as a condition of providing the prescription." The Congress enacted this requirement, in part, to facilitate competition in the sales of contact lenses, particularly through internet sales. See also, FTC release.

10/22. The U.S. Patent and Trademark Office (USPTO) announced two new electronic forms for filing Trademark Trial and Appeal Board (TTAB) documents online. The USPTO stated in a release that "One e-form allows parties in opposition and cancellation proceedings to notify the TTAB of an address change. Changes of address submitted electronically automatically update TTAB's electronic records. The other e-form is for certain consented motions in oppositions and cancellation proceedings. When parties use the new e-form to file consented motions to suspend proceedings or to extend discovery and testimony dates, the system will, in most cases, automatically send out a TTAB order to both parties granting the motion."

10/22. President Bush signed HR 4520, the "American Jobs Creation Act of 2004". See, White House release. This bill repeals the foreign sales corporation (FSC) tax regime, and its replacement, the extraterritorial income (ETI) tax regime, which the World Trade Organization (WTO) ruled were illegal export subsidies.

The bill also includes numerous other tax provisions, including a section that limits the deduction available under Section 170 of the Internal Revenue Code for contributions of intellectual property, such as contributions of patents to universities.

See also, stories titled "House and Senate Approve Tax Bill That Repeals FSC/ETI" and "House and Senate Approve Tax Bill That Limits Deductions for IP Contributions" in TLJ Daily E-Mail Alert No. 995, October 13, 2004.

The House is in recess until November 16, 2004. See, Republican Whip Notice.

The Senate is in recess until November 16, 2004.

Day one of a five day conference hosted by the Office of the Secretary of Defense (OSD) Networks and Information Integration (NII) and the Joint Chiefs of Staff titled "7th Annual DoD Spectrum Management Conference". See, notice. Location: Radisson Hotel, Annapolis, Maryland.

6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) seminar on the Federal Communications Commission's (FCC) DTV repacking order. The speakers will be David Donovan (MSTV), Rick Chessen (FCC), Jennifer Johnson (Covington & Burling), Lynn Claudy (NAB), Valerie Schulte (NAB). Prices vary from $50 to $125. See, registration form [PDF]. Location: Dow Lohnes & Albertson, 1200 New Hampshire Ave., NW, Suite 800.

9:30 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS/BXA) Sensors and Instrumentation Technical Advisory Committee (SITAC) will hold a partially closed meeting. The agenda includes discussion of Wassenaar Export Group proposals on semiconductor lasers and cameras. See, notice in the Federal Register, October 8, 2004, Vol. 69, No.195, at Page 60352. Location: Room 3884, DOC, 14th Street between Constitution and Pennsylvania Aves., NW.

The Department of Homeland Security (DHS) and the National Academies and Radio and Television News Directors Foundation will host a workshop titled "News and Terrorism: Communicating in a Crisis". This is the fourth in a series of ten workshops. See, DHS release. Secretary of Homeland Security Tom Ridge will speak. Press contact: Kristin Gossel at 202-282-8010 or kristin.gossel@dhs.gov. Location: WHYY-TV Station, 150 North Sixth St., Philadelphia, PA.

Day two of a five day conference hosted by the Office of the Secretary of Defense (OSD) Networks and Information Integration (NII) and the Joint Chiefs of Staff titled "7th Annual DoD Spectrum Management Conference". See, notice. Location: Radisson Hotel, Annapolis, MD.

Deadline to submit reply comments to the Library of Congress in response to its notice of proposed rulemaking (NPRM) regarding continuation, with a few modifications, of the procedures adopted by the Copyright Office in 1995 that permit copyright applicants to request reconsideration of decisions to refuse registration. See, notice in the Federal Register, July 13, 2004, Vol. 69, No. 133, at Pages 42004 - 42007.

8:30 - 11:00 AM. The New Millenium Research Council will host an event titled "The End of Regulation? Reforming Telecom Policy and Regulators' Roles to Meet New Market Realities". The speakers will include Rob Atkinson (Progressive Policy Institute), Matt Brill (Advisor to FCC Commissioner Abernathy), Jeff Carlisle (Chief of FCC's Wireline Competition Bureau), Braden Cox (Competitive Enterprise Institute), Charles Davidson (Commissioner of the Florida Public Service Commission), Susan Kennedy (Commissioner of the California Public Utilities Commission), Christopher Libertelli (Advisor to FCC Chairman Powell), Randy May (Progress and Freedom Foundation), Connie Murray (Missouri Public Service Commission), Harold Furtchgott-Roth (former FCC Commissioner), Bob Rowe (Chairman of the Montana Public Service Commission), Adam Thierer (Cato Institute), and Paul Vasington (Analysis Group). See, notice. RSVP to Ed Rovetto at 202 263-2922. Registration and breakfast begin at 8:00 AM. Location: Holeman Lounge, National Press Club, 529 14th St. NW, 13th Floor.

10:00 AM - 3:00 PM. The Federal Communications Commission's (FCC) Technology Advisory Council will meet. The topic will be ultrawideband (UWB) technology. See, FCC notice [PDF], and notice in the Federal Register, September 28, 2004, Vol. 69, No. 187, at Page 57915. Location: FCC, 445 12th St. SW., Room TW-C305.

12:15 - 1:45 PM. The New America Foundation (NAF) will host a brown bag lunch titled "Debating the Offshoring Debate: A Joust Between Contending Views About What A Healthy Economy Looks Like". The speakers will be Catherine Mann (Institute for International Economics) and Charles McMillion (MBG Information Services). See, notice. RSVP to Jennifer Buntman at 202 986-4901 or buntman@newamerica.net. Location: NAF, 1630 Connecticut Ave, 7th Floor.

2:00 - 4:00 PM. The Department of State's Telecommunication Advisory Committee (ITAC) will meet. See, notice in the Federal Register, October 14, 2004, Vol. 69, No. 198, at Page 61066.

Day three of a five day conference hosted by the Office of the Secretary of Defense (OSD) Networks and Information Integration (NII) and the Joint Chiefs of Staff titled "7th Annual DoD Spectrum Management Conference". See, notice. Location: Radisson Hotel, Annapolis, MD.

Deadline to submit comments to the Department of Commerce's Technology Administration in response to its request for comments regarding the recycling of electronics equipment, such as flat panel monitors. See, TA notice.

Day four of a five day conference hosted by the Office of the Secretary of Defense (OSD) Networks and Information Integration (NII) and the Joint Chiefs of Staff titled "7th Annual DoD Spectrum Management Conference". See, notice. Location: Radisson Hotel, Annapolis, Maryland.

8:30 - 11:30 AM. The Software and Information Industry Association (SIIA) will host a seminar titled "Software Licensing Best Practices Seminar Series: Licensing (and Other) Issues in Software Distribution". See, notice. Prices vary. Location: Mintz Levin, 12010 Sunset Hills Road, Suite 900 Reston, Virginia.

2:00 - 4:00 PM. The Federal Communications Commission's (FCC) WRC 07 Advisory Committee's Informal Working Group 3: IMT-2000 and 2.5 GHz Sharing Issues, will meet. See, FCC notice [PDF]. Location: FCC, 445 12th Street, SW, South Conference Room (8th Floor, Room 8-B516).

6:00 - 8:00 PM. The Federal Communications Bar Association (FCBA) will host the second part of a two part continuing legal education (CLE) seminar on Homeland Security. Prices vary. See, notice. Location: FCC, Commission Meeting Room, 445 12th St., SW.

Day five of a five day conference hosted by the Office of the Secretary of Defense (OSD) Networks and Information Integration (NII) and the Joint Chiefs of Staff titled "7th Annual DoD Spectrum Management Conference". See, notice. Location: Radisson Hotel, Annapolis, Maryland.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding the Emergency Alert System (EAS). The FCC adopted this NPRM at its August 4, 2004 meeting, and released it on August 12, 2004. This NPRM is FCC 04-189 in EB Docket No. 04-296. See, notice in the Federal Register, August 30, 2004, Vol. 69, No. 167, at Pages 52843 - 52847.

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