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June 2, 2005, 9:00 AM ET, Alert No. 1,146.
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Rep. Cox to Replace Donaldson as SEC Chairman

William Donaldson6/2. William Donaldson (at right), Chairman of the Securities and Exchange Commission (SEC), announced his resignation, effective June 30, 2005. See, June 1 SEC release. On June 2, President Bush announced his intent to nominate Rep. Chris Cox (R-CA) to be the next SEC Chairman. See, White House release.

President Bush stated in a release that "Bill Donaldson took on a tough job at a tough time, and he delivered for the American people. He vigorously and fairly enforced our Nation's securities laws and helped rebuild the public trust in corporate America that has been important to our economic recovery."

President Bush spoke at a White House event on June 2. He stated that "I've given Chris a clear mission: To continue to strengthen public trust in our markets so the American economy can continue to grow and create jobs. The nation is increasingly a nation of stock holders. A generation ago, only a small percentage of American families invested in stocks and bonds. Today, more than half of households are investing -- for their families and for their futures. Now more than ever, we must make sure Americans can rely upon the integrity of our markets." See, transcript.

Rep. Cox is the Chairman of the House Homeland Security Committee (HSSC). Hence, if confirmed, the position of Chairman of that Committee would be open.

Chris CoxRep. Cox (at left) was for a long time a member of the House Commerce Committee. He had retained the prerogative of returning to that Committee, with seniority, at the expiration of his Chairmanship of the HHSC. He had been the most free market, anti-regulatory, member of the Commerce Committee, and its Subcommittee on Telecommunications and the Internet.

He had long argued against expanding Federal Communications Commission (FCC) authority to new information technologies and services.

In May of 2004 he stated at a hearing that the FCC should be abolished, because it was created to regulate communications markets characterized by scarcity and lack of competition -- conditions which no longer exist. See, story titled "Rep. Cox Suggests Shutting Down the FCC" in TLJ Daily E-Mail Alert No. 902, May 20, 2004.

At a hearing last fall, he excoriated the FBI for its efforts to obtain authority to pre-approve new information technologies under the guise of the Communications Assistance for Law Enforcement Act (CALEA).

Rep. Cox has also long been the leading proponent in the House of legislation banning internet access taxes, and discriminatory taxes on e-commerce.

If confirmed, Cox would not be present in the House to play a significant role in the debate over any rewrite of the Communications Act, the CALEA, or internet taxation laws.

Rep. Cox's departure is the latest in a string of departures of tech friendly Representatives. During the mid and late 1990s there was a group of Representatives who zealously opposed many efforts to regulate or tax new information technologies and services. Some went to the Senate, such as Sen. Ron Wyden (D-OR). Some lost elections, such as Rick White (R-WA). Some lost other elections, such as Tom Campbell (R-CA). Some lost their zeal.

On the other hand, Chris Cox might accelerate modernization of SEC rules, which remain largely based on 1930s concepts of securities trading. For example, rules and statutes might be revised to take into consideration internet based dissemination of information.

GAO Reports on Doha Development Agenda

6/1. The Government Accountability Office (GAO) released a report [72 pages in PDF] titled "World Trade Organization: Global Trade Talks Back on Track, but Considerable Work Needed to Fulfill Ambitious Objectives".

The report states that "the Doha Round is behind schedule, but the global trade talks have regained their footing and achieved some forward momentum since the failed Cancun ministerial."

It adds that "Agriculture remains the top issue for many participants, and dissatisfaction with progress on agriculture has held up movement on the other 18 issues on the negotiating agenda."

While agriculture and other non-technology related issues have been the most contentious, the 2001 Doha ministerial declaration sets forth a broad work program that covers nineteen negotiating areas. Several of these do affect the technology related sectors, including trade related aspects of intellectual property rights, e-commerce, services, market access, competition policy, and government transparency. The present GAO report does address progress on market access and services. However, it has little to say about the other issues.

GAO Reports That DHS Has Failed To Address Cyber Security

5/26. The Government Accountability Office (GAO) released a report [78 pages in PDF] titled "Critical Infrastructure Protection: Department of Homeland Security Faces Challenges in Fulfilling Cybersecurity Responsibilities".

The report finds that the Department of Homeland Security (DHS) has thirteen responsibilities related to cyber security, but that it has "not fully addressed any" of these. For example, it finds that the DHS "has not yet developed national cyber threat and vulnerability assessments or government/industry contingency recovery plans for cybersecurity, including a plan for recovering key Internet functions."

The report adds that the DHS "continues to have difficulties in developing partnerships -- as called for in federal policy -- with other federal agencies, state and local governments, and the private sector."

The report also finds that the DHS "faces a number of challenges that have impeded its ability to fulfill its cyber CIP responsibilities. Key challenges include achieving organizational stability; gaining organizational authority; overcoming hiring and contracting issues; increasing awareness about cybersecurity roles and capabilities; establishing effective partnerships with stakeholders (other federal agencies, state and local governments, and the private sector); achieving two-way information sharing with these stakeholders; and demonstrating the value DHS can provide." (Parentheses in original.)

Rep. Zoe Lofgren (D-CA) commented on the report in a release. She said that "This GAO report only confirms what we have known all along -- the DHS has failed to meet the responsibility for critical infrastructure protection. And even worse, this report proves that a national plan to secure our cyber networks is virtually nonexistent."

Rep. Zoe LofgrenRep. Lofgren (at right) continued that "There is no doubt that these vulnerabilities will continue to hamper our homeland security efforts if we do not make cyber security a major priority. As long as our critical infrastructures are interconnected and interdependent, the likelihood that a cyber attack will disrupt major services or cripple our economy will remain and the threat will increase."

Rep. Logren represents a Silicon Valley district. She is also a cosponsor of HR 285, the "Department of Homeland Security Cybersecurity Enhancement Act of 2005". An amended version of HR 285 was added to HR 1817, the "Department of Homeland Security Authorization Act for Fiscal Year 2006", which the House approved on May 18, 2005. See,  311-314 of HR 1817, as enacted. See also, story titled "House to Take Up DHS Authorization Act, With Amended DHS Cybersecurity Enhancement Act" in TLJ Daily E-Mail Alert No. 1,136, May 16, 2005.

FCC News

6/1. The Federal Communications Commission (FCC) released a public notice [37 pages in PDF] that requests public comments on its plan to review rules adopted by the FCC in 1993, 1994 and 1995, pursuant to the Regulatory Flexibility Act of 1980, which is codified at 5 U.S.C. 610. This public notice lists the rules to be reviewed. Comments are due by September 1, 2005. This public notice, which is dated May 31, 2005, is numbered DA-05-1524.

5/31. The Federal Communications Commission's (FCC) Wireline Competition Bureau released an order [2 pages in PDF] that extends the deadline for reply comments in its proceeding titled "In the Matter of Developing a Unified Intercarrier Compensation Regime". The deadline was June 22, 2005. The extended deadline is July 20, 2005. This order is DA 05-1553 in CC Docket No. 01-92. The FCC adopted its Further NPRM on February 10, 2005. See, story titled "FCC Adopts FNPRM in Intercarrier Compensation Proceeding" in TLJ Daily E-Mail Alert No. 1,076, February 14, 2005.

5/27. The Federal Communications Commission's (FCC) Wireless Telecommunications Bureau issued a public notice [5 pages in PDF] that announces that 800 MHz band reconfiguration will begin on June 27, 2005, in the National Public Safety Planning Advisory Committee (NPSPAC) regions assigned to Wave 1. The FCC adopted a report and order on July 8, 2004 that addressed the problem of interference to 800 MHz public safety communications systems from Commercial Mobile Radio Services (CMRS) providers operating systems on channels in close proximity. See, story titled "FCC Adopts Report and Order Regarding Interference in the 800 MHz Band" in TLJ Daily E-Mail Alert No. 936, July 13, 2004. This public notice is DA 05-1546 in WT Docket No. 02-55. See also, public notice number DA No. 05-1542, accepting the requests to withdraw pleading submitted by Mobile Relay Associates and Skitronics, LLC.

People and Appointments

5/31. Maureen Ohlhausen was named Director of the Federal Trade Commission's (FTC) Office of Policy Planning. She has been the acting Director since July 2004. See, FTC release.

More News

6/1. Microsoft, the U.S., and various state plaintiffs, filed a pleading with the U.S. District Court (DC) titled "Joint Status Report on Microsoft's Compliance with the Final Judgments". The District Court will hold a status conference on June 6, 2005.

6/1. Vice President Richard Cheney gave a speech at the Air Force Academy in the state of Colorado in which he spoke about technology and the Air Force. He said that "We all remember the images from Afghanistan of Air Force airmen on horseback. They were there with laser designators and laptop computers, taking readings on enemy coordinates, transmitting them to a cockpit more than 32,000 feet overhead, and calling in precision air strikes within minutes." He noted that the graduating cadets took courses "from biology to physics, from law to computer science, from philosophy to astronautical engineering." He also said that "Our task is to continue building on America's advantages -- our technological superiority, our ability to project force across great distances, our precision strike capabilities, a space program second to none." And, he said that the Air Force mindset now includes problem solving, innovation, and creativity.

Washington Tech Calendar
New items are highlighted in red.
Thursday, June 2

The House will not meet on Monday, May 30 through Friday, June 3. See, House calendar. The House will next meet at 2:00 PM on Monday, June 7. See, Republican Whip Notice.

The Senate will not meet on Monday, May 30 through Friday, June 3. See, Senate calendar.

The Supreme Court will next meet on Monday, June 6, 2005. See, Order List [10 pages in PDF] at page 10.

9:00 AM. The Center for Democracy and Technology (CDT) and the Institute for Politics, Democracy and the Internet (IPDI) will host a news conference regarding the Federal Election Commission's (FEC) notice of proposed rulemaking (NPRM) regarding regulation of internet related speech. The speakers will be John Morris (CDT), Carol Darr (IPDI), Mike Krempasky (RedState.Org), and Michael Bassik (MSHC Partners). See, the CDT/IPDI web page regarding this NPRM. There will be a light breakfast. Please RSVP to Danielle Wiblemo dani at cdt dot org or 202 637-9800. Location: 1634 I St. NW, Suite 1100.

10:00 AM - 11:30 AM. The Federal Communications Commission's (FCC) Media Security and Reliability Council (MSRC) will meet. See, notice [PDF]. Location: Commission Meeting Room, FCC, 445 12th Street, SW.

12:15 - 2:30 PM. The DC Bar Association will host a panel discussion titled "The Nuts And Bolts Of Transfers Of Control At The FCC". The speakers will be Jim Bird (FCC Office of General Counsel), William Dever (FCC Wireline Competition Bureau), Susan O'Connell (FCC International Bureau), Nina Shafran (FCC Media Bureau), and Jeff Tobias (FCC Wireless Telecommunications Bureau). The price to attend ranges from $10-$20. For more information, contact 202-626-3463. See, notice. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

Day one of a two day conference titled "Broadband Policy Summit 2005: A New Leadership Blueprint" hosted by Pike & Fischer. See, notice. Location: Willard InterContinental Hotel.

Friday, June 3

Deadline to submit comments to the Federal Election Commission's (FEC) in response to its notice of proposed rulemaking (NPRM) regarding regulation of internet related speech.

Monday, June 6

The Senate will return from its Memorial Day recess. See, Senate calendar.

TIME? The U.S. District Court (DC) will hold a status conference in U.S. v. Microsoft, D.C. No. 98-1232 (CKK). Location: Prettyman Courthouse, 333 Constitution Ave., NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Sandisk v. Memorex, a patent infringement case involving flash memory technology. This is App. Ct. No. 04-1422. It is an appeal from the U.S. District Court (NDCal). Location: U.S. Court of Appeals, LaFayette Square, 717 Madison Place, Courtroom 203.

12:00 NOON. The Federal Communications Bar Association's (FCBA) will hold an event titled "Annual Meeting and Luncheon". The speaker will be Sen. Ted Stevens (R-AK), the Chairman of the Senate Commerce Committee. See, registration form [MS Word]. Prices range from $35-$65. Location: Capital Hilton, Congressional Ballroom, 16th and K Streets, NW.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) [15 pages in PDF] regarding implementation of the satellite broadcast carriage requirements in the noncontiguous states, as required by Section 210 of the Satellite Home Viewer Extension and Reauthorization Act of 2004 (SHVERA). The FCC adopted this NPRM at its April 29, 2005 meeting. This NPRM is FCC 05-92 in MB Docket No. 05-181. See, notice in the Federal Register, May 20, 2005, Vol. 70, No. 97, at Pages 29252-29253.

Tuesday, June 7

8:00 AM. The U.S. Chamber of Commerce will host a breakfast. The speaker will be Rep. Bill Thomas (R-CA), the Chairman of the House Ways & Means Committee. The price to attend ranges from free to $55. See, notice. Location: US Chamber, 1615 H Street, NW.

8:30 AM - 5:00 PM. Day one of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). See, notice in the Federal Register, May 20, 2005, Vol. 70, No. 97, at Page 29279. Location: Doubletree Hotel and Executive Meeting Center, 1750 Rockville Pike, Rockville, MD.

9:00 AM. The Bureau of Industry and Security's (BIS) Regulations and Procedures Technical Advisory Committee (RPTAC) will meet. The agenda includes updates on encryption controls, AES, and the proposed rule on deemed export related regulatory requirements. See, notice in the Federal Register, May 23, 2005, Vol. 70, No. 98, at Page 29478. Location: Room 3884, Hoover Building, 14th Street between Constitution and Pennsylvania Avenues, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in International Rectifier Corp. v. Samsung. This is App. Ct. No. 04-1429. This is an appeal from the U.S. District Court (CDCal) in a patent case. Location: U.S. Court of Appeals, LaFayette Square, 717 Madison Place, Courtroom 402.

12:00 NOON - 1:30 PM. The DC Bar Association will host a panel discussion titled "Current Intellectual Property Issues in Europe". The speakers will be Alexander Leisten, Peter Ruess, and Barbara Berschler. The price to attend ranges from $10-$30. For more information, contact 202-626-3463. See, notice. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

2:30 PM. The Senate Foreign Relations Committee's Subcommittee on East Asian and Pacific Affairs will hold a hearing titled "The Emergence of China Throughout Asia: Security and Economic Consequences for the U.S." See, notice. Location: Room 419, Dirksen Building.

Wednesday, June 8

8:30 AM - 5:00 PM. Day two of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). See, notice in the Federal Register, May 20, 2005, Vol. 70, No. 97, at Page 29279. Location: Doubletree Hotel and Executive Meeting Center, 1750 Rockville Pike, Rockville, MD.

TENTATIVE. 3:00 - 5:00 PM. The Federal Communications Commission's (FCC) WRC-07 Advisory Committee's Informal Working Group 1 (Terrestrial and Space Science Services) will meet. See, notice [PDF]. Location: Lockheed Martin, 1550 Crystal Drive, Suite 300, Arlington, VA.

Thursday, June 9

8:30 AM - 12:00 NOON. Day one of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). See, notice in the Federal Register, May 20, 2005, Vol. 70, No. 97, at Page 29279. Location: Doubletree Hotel and Executive Meeting Center, 1750 Rockville Pike, Rockville, MD.

9:30 AM. The Federal Communications Commission (FCC) will hold a meeting. The event will be webcast by the FCC. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Broadcast Innovation v. Charter Communications. This is App. Ct. No. 05-1008. It is a patent infringement case appealed from the U.S. District Court (DColo). Location: U.S. Court of Appeals, LaFayette Square, 717 Madison Place, Courtroom 203.

12:15 PM - 2:00 PM. The Forum on Technology will host a luncheon panel discussion titled "Basic Research - The Foundation of the Innovation Economy". See, notice. Location: Room 902, Hart Building, Capitol Hill.

6:00 - 8:00 PM. The Federal Communications Bar Association (FCBA) will host an event titled "2nd Annual Spring Reception with FCC Commissioners and Legal Advisors". The price to attend ranges from $30 to $60. The FCBA requests an RSVP. See, registration form [PDF]. Location: Washington Hilton Hotel, 1919 Connecticut Ave., NW.

The Federal Trade Commission (FTC), American Intellectual Property Law Association (AIPLA), and National Academies' Board on Science, Technology, and Economic Policy (STEP) will jointly host a public meeting on patent reform. See, FTC notice. See also, story titled "FTC, AIPLA, and National Academies to Host Series of Public Meetings on Patent Reform" in TLJ Daily E-Mail Alert No. 1,043, December 23, 2004.

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