|AMD Files Antitrust Complaint Against Intel
6/27. Advanced Micro Devices (AMD) filed a
[PDF] in U.S.
District Court (DDel) against Intel alleging
violation of Section 2 of the Sherman Antitrust Act, Sections
4 and 16 of the Clayton Act, and the California Business and Professions
Hector Ruiz, Ch/P/CEO of AMD, stated in a
release that "Everywhere in the world, customers deserve freedom of choice and
the benefits of innovation -- and these are being stolen away in the microprocessor market
... Whether through higher prices from monopoly profits, fewer choices in the marketplace
or barriers to innovation -- people from Osaka to Frankfurt to Chicago pay the price in
cash every day for Intel’s monopoly abuses." See also,
open letter from
P/CEO of Intel, stated in a release that "Intel has always respected the laws of
the countries in which we operate ... We compete aggressively and fairly to
deliver the best value to consumers. This will not change. Over the years, Intel
has been involved in other antitrust suits and faced similar issues. Every one
of those matters has been resolved to our satisfaction. We unequivocally
disagree with AMD’s claims and firmly believe this latest suit will be resolved
favorably, like the others."
The complaint alleges that Intel forced major customers to accept exclusive
deals, withheld rebates and marketing subsidies as a means of punishing
customers who buy more than prescribed quantities of processors from AMD,
threatened retaliation against customers doing business with AMD, establishing
quotas keeping retailers from selling the computers they want, and forced PC
makers to boycott AMD product launches.
The prayer for relief requests that the Court "Find that Intel is wrongfully
maintaining its monopoly in the x86 Microprocessor Market in violation of
Section 2 of the Sherman Act and award AMD treble damages in an amount to be
proven at trial, pursuant to Section 4 of the Clayton Act, 15 U.S.C. § 15(a)".
The complaint further requests that the Court "Find that Intel has made
secret payments and allowances of rebates and discounts, and secretly and
discriminatorily extended to certain purchasers special services or privileges,
all in violation of California Business & Professions Code § 17045, and pursuant
thereto award AMD treble damages for its resulting lost profits in an amount to
be proven at trial".
The complaint further requests that the Court "Find that Intel has
intentionally interfered with valuable business relationships of AMD to its
economic detriment and award AMD damages in an amount to be proven at trial for
its resulting losses, as well as punitive damages, as permitted by law".
The complaint further requests that the Court "Grant injunctive relief
prohibiting Intel and all persons, firms and corporations acting on its behalf
or under its direction or control from engaging in any further conduct unlawful
under Section 2 of the Sherman Act or Section 17045 of the California Business
and Professions Code".
The complaint further requests that the Court "Award AMD such other, further
and different relief as may be necessary or appropriate to restore and maintain
competitive conditions in the x86 Microprocessor Market"
Japan Fair Trade Commission. Thomas McCoy, EVP Legal Affairs for AMD,
stated that "You don't have to take our word for it when it comes to Intel’s abuses;
the Japanese government condemned Intel for its exclusionary and illegal
misconduct ... We encourage regulators around the world to take a close look at
the market failure and consumer harm Intel's business practices are causing in
their nations. Intel maintains illegal monopoly profits at the expense of
consumers and computer manufacturers, whose margins are razor thin. Now is the
time for consumers and the industry worldwide to break free from the abusive
This is a reference to the recommendation of the
Japan Fair Trade Commission (JFTC)
regarding Intel's Japanese subsidiary, Intel Kabushiki Kaisha (IJKK), earlier
this year. The JFTC wrote in a March 8 English language
release that it "requires IJKK to cease and desist its
conducts which violate Section 3 of the Antimonopoly Act". On March 31, 2005
Intel announced that it accepts the March 8 recommendation of the JFTC.
See also, story titled "Intel Accepts Recommendation of Japanese FTC
Regarding Anticompetitive Marketing Practices" in
TLJ Daily E-Mail
Alert No. 1,107, April 1, 2005.
AMD's attorney of record is the Delaware law firm of
Richards Layton & Finger.
This case is Advanced Micro Devices, Inc. and AMD International Sales &
Service, Ltd. v. Intel Corporation and Intel Kabushiki Kaisha, U.S. District
Court for the District of Delaware, D.C. No. 05-441.
|House Rural Caucus Seeks Expansion of
Universal Service Taxes and Subsidies and Interconnection Regulation
6/28. Rep. Gil Gutnecht (R-MN),
Rep. Bart Stupak (D-MI), and
fifty-five other Representatives with rural constituents wrote a
letter [PDF] to Rep. Joe Barton
(R-TX) and Rep. John Dingell (D-MI),
the Chairman and ranking Democrat on the
House Commerce Committee (HCC),
urging that any rewrite of the Communications Act include an expansion of
universal service subsidies, an expansion of the universal service tax base, and an
expansion of interconnection regulation.
The Rural Caucus wants universal service subsidies to be expanded to include
broadband DSL, cable internet access, and other services. The Rural Caucus also
wants to expand the services subject to universal service taxes to all two way
communications. The Rural Caucus also wants to the impose interconnection
regulation upon non-telecommunications services.
The letter states that "As the United States moves into the broadband age, it
is imperative that we do not forget the principles that have served us so well.
Let's make sure that the commitment to universal service access to
communications services is protected during a rewrite so that all Americans can
have access to advanced communications, such as DSL, cable, wireless, and
The letter further requests that the HCC "incorporate the principles on the
reverse when drafting legislation re-writing the Telecommunications Act. If
incorporated, these principles will help ensure that all Americans have access
to advanced broadband services at affordable rates."
The letter also includes an attached list of principles. It provides that
"The base of contributors to universal service must be expanded to include
everyone who uses the infrastructure. This includes, but is not limited to: all
providers of 2-way communications regardless of technology used ...".
It also states that "The universal service fund must continue to be an
industry funded mechanism and not supported through general tax revenues." And,
"The fund must also not be subject to the Anti-Deficiency Act."
It further states that "All providers must continue to have the obligation to
allow other providers to interconnect with their networks regardless of the
47 U.S.C. § 251 requires, and regulates, interconnection by
"telecommunications carriers". While telecommunications carriers have been
subject to an interconnection mandate, and government regulation of the prices
and terms of interconnection, the internet has successfully
interconnected through voluntary agreements, without government mandates or
regulation. The Rural Caucus proposal's use of the phrase "regardless of the
technology" implies expansion of the interconnection requirement.
The Rural Caucus letter also proposes that "Carriers must be compensated for all traffic utilizing their
The Independent Telephone
and Telecommunications Alliance (ITTA), the
National Telecommunications Cooperative Association (NTCA), the
Organization for the Promotion and Advancement
of Small Telephone Companies (OPASTCO), and the
Western Telecommunications Alliance (WTA)
all praised the Rural Caucus proposal. See,
Steve Largent, P/CEO of the Cellular
Telecommunications and Internet Association (CTIA), stated in a
that "Since wireless consumers are significant and disproportionate payers into
the universal service and intercarrier compensation systems, the wireless
industry agrees with the Rural Caucus in supporting a universal service system
that collects from all segments of the communications industry. CTIA appreciates
the Rural Caucus's support for rules that ensure accountability of these
systems. Consumers shouldn't have to pay any more into the universal service and
intercarrier compensation systems than is necessary to provide them with the
high quality and affordable services they deserve. To that end, CTIA supports
regulatory reforms to the universal service and intercarrier compensation
systems that would encourage and reward efficiency, while ensuring that the
goals of universal service are maintained. In addition, CTIA wholeheartedly
agrees that the principle of competitive neutrality must be maintained in any
Telecommunications Act re-write."
Walter McCormick, P/CEO of the U.S. Telecom
Association (USTA), wrote diplomatically in a
release that "This endeavor illustrates yet another influential group
acknowledging the critical need for meaningful telecom reform now."
|Bush Nominates McCormick and Jackson for
Export Control Office
6/28. President Bush nominated
to be Under Secretary of Commerce for Export Administration. That is, he has been selected
to lead the Department of Commerce's (DOC) Bureau of
Industry and Security (BIS). The BIS was previously named the Bureau of Export
Administration (BXA). See, White House
McCormick currently is the President of Ariba,
Inc., a software company. He is a graduate of the U.S. Military Academy at West Point.
The previous head of the BIS was
Juster. Juster is now the EVP of Legal Affairs and Corporate Development at
Salesforce.com. The acting head of the BIS
is Peter Lichtenbaum.
The BIS regulates exports, and other activities, for national security, and
other, purposes. This includes regulation of the export of dual use items, such
as computers, microprocessors, software and encryption products. This BIS also
regulates business practices that it identifies as "deemed exports", such as
employment of foreign nationals, use of software by foreign nationals, and
access to technical data by foreign nationals. The BIS has also used its
regulation of exports to attempt to control domestic production and sales.
In addition, President Bush nominated
Jackson to be the Assistant Secretary of Commerce (Export Enforcement).
Jackson is a partner in the Washington DC office of the law firm of
Arnold & Porter. His firm
biography states that he handles civil litigation and white collar criminal
defense. However, it makes no reference to export enforcement.
The previous Assistant Secretary for Export Enforcement was Julie Myers.
The acting Assistant Secretary is
|Groups Debate Impact of DTV
6/29. The Consumers Union (CU)
and Consumer Federation of America (CFA),
Washington DC based interest groups, released a
report [11 pages in PDF] titled "Estimating the Consumer Costs of the
Federally Mandated Digital TV Transition".
This report states that, based on a survey of 1,007 U.S. households conducted
on June 10-13, 2005, there are over 80 Million over the air TV sets, and that
15% of U.S. households have only over the air TV.
The CU/CFA stated in a
release that "Congress is considering legislation to require a firm deadline
for the transition to digital-only television broadcasting which will eliminate
analog signals that most televisions sets are designed to receive. Unless those
sets are connected to cable or satellite services, they will stop receiving
broadcasts after the final transition. Congress is also debating whether and how
much to compensate consumers who must buy converter boxes to prevent their
televisions from going dark."
The CU/CFA report also compares its survey results to other recent survey
The Consumer Electronics Association (CEA),
a Washington DC based trade group that has also conducted a survey, responded that
the CU/CFA report is methodologically flawed.
The CEA's Michael Petricone stated in a
that the CU/CFA survey "appears to assume that any TV not connected to cable or
satellite is connected to a broadcast antenna. In fact, as our most recent (May
2005) survey found, a minimum of 31 million sets are not connected to broadcast
antennas and are used exclusively for video games, DVDs or other purposes. For
this reason, the CU and CFA survey appears to significantly overstate the number
of televisions used to view OTA broadcasting." (Parentheses in original.)
6/28. Microsoft stated in a
release that "it has signed a Technical Cooperation Agreement with the
High-Tech Crime Technology Division, Info-Communications Bureau of the National
Police Agency (NPA) of Japan. Under this agreement, Microsoft will help support
the division's cybercrime-fighting efforts by providing security training and a
hot line for sharing technical information."
|Washington Tech Calendar
New items are highlighted in red.
|Thursday, June 30
The House will meet at 10:00 AM for legislative business. See,
Republican Whip Notice.
The Senate will meet at 9:00 AM. It will resume consideration of S 1307, the
8:00 AM. The Discovery Institute will
host a "private breakfast" for "respected members of the media".
George Gilder will discuss telecom reform. RSVP to 202 682-1201 or lgage
at discovery dot org. Location: The University Club, 1135 16th Street, NW.
House Judiciary Committee's Subcommittee on Courts, the Internet and Intellectual
Property (CIIP) will meet to mark up
HR 2795, the
"Patent Act of 2005".
Rep. Lamar Smith (R-TX), the Chairman of
the CIIP Subcommittee, announced this meeting at a hearing on June 9, 2005. See,
"House CIIP Subcommittee Holds Hearing on Patent Bill" in TLJ Daily E-Mail
Alert No. 1,151, June 10, 2005. Location: Room 2141, Rayburn Building.
9:30 AM. Federal
Communications Commission (FCC) Commissioner Kathleen Abernathy
will host and event titled "press breakfast". Location: FCC, Room 8B115, 445
12th Street SW.
9:30 AM. The Senate Judiciary
Committee (SJC) is scheduled to hold an executive business meeting. The SJC
frequently cancels meetings without notice. The agenda includes
consideration of several bills, including S __, the "Personal Data Privacy
and Security Act of 2005", sponsored by
Sen. Arlen Specter (R-PA) and Sen. Patrick
S 751, the "Notification of Risk to Personal Data Act",
sponsored by Sen. Diane Feinstein (D-CA),
and S 1326, the "Notification of Risk to Personal Data Act",
sponsored by Sen. Jeff Sessions
notice and agenda. The SJC rarely follows its published agenda. Press contact:
Blain Rethmeier (Specter) at 202 224-5225, David Carle (Leahy) at 202 224-4242
or Tracy Schmaler (Leahy) at 202 224-2154. Location: Room 226, Dirksen Building.
TIME CHANGE. 9:30 AM. The
Senate Commerce Committee's Subcommittee on
Technology, Innovation, and Competitiveness will hold a hearing on health information
technology. The witnesses will be Sen. Mike Enzi
(R-WY), Sen. Debbie Stabenow (D-MI), David
Brailer (Department of Health and Human Services), Carolyn Clancy (DHHS), Hratch Semerjian
(National Institute of Standards and Technology),
Jonathan Perlin (Department of Veterans Affairs), Susan Bostrom (Cisco Systems), John
Glaser (Partners HealthCare System), Peter Basch (MedStar Health), Pamela Pure (McKesson
Corporation), and Karen Ignagni (America’s Health Insurance Plans). See,
notice. The hearing
will be webcast. Press contact: Melanie Alvord (Stevens) at 202 224-8456 or Melanie_Alvord
at commerce dot senate dot gov, or Andy Davis (Inouye) at 202 224-4546 or Andy_Davis at
commerce dot senate dot gov. Location: Room 253, Russell Building.
10:00 AM. The
House Ways and Means Committee
will meet to mark up
the "Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act". See,
notice. Location: Room 1100, Longworth Building.
11:00 AM - 12:00 PM. The National Science
Foundation's (NSF) National Science Board's Committee on Programs and Plans will
meet. The agenda includes "Review of NSF draft Cyber Infrastructure Vision
document" and "Next steps for developing a Board-approved High Performance
Computing Strategy for NSF". See,
notice in the Federal Register: June 22, 2005, Vol. 70, No. 119, at Page 36213.
Location: NSF, Public Meeting Room 130, 4201 Wilson Boulevard, Arlington, VA.
12:00 NOON - 1:30 PM. The Advisory Committee to the
Congressional Internet Caucus will host a panel discussion titled "The U.S.
Patriot Act and E-Surveillance". The speakers will be William Moschella
(Department of Justice), James Dempsey (Center for Democracy
and Technology), and Emily Sheketoff, (American Library
Association). See, notice.
Lunch will be served. RSVP to
firstname.lastname@example.org or 202 638-4370. Location: Room HC-5, Capitol Building.
Day three of a four day conference of the
Wireless Communications Association International (WCA) titled "WCA 2005".
See, notice. Location:
Marriott Wardman Park Hotel.
Deadline to submit initial comments to the
Copyright Office's Copyright Royalty
Board regarding its interim regulations governing the organization, administration,
and procedures of the Copyright Royalty Board. See,
notice in the Federal Register, May 31, 2005, Vol. 70, No. 103, at Pages
30901 - 30916.
|Friday, July 1
The House may meet at 9:00 AM for morning hour. See,
Republican Whip Notice.
Day four of a four day conference of the
Wireless Communications Association International (WCA) titled "WCA 2005".
See, notice. Location:
Marriott Wardman Park Hotel.
Effective date of the final rule of the Department of the Treasury's (DOT)
Office of the Comptroller of the Currency (OCC), the DOT's Office of Thrift
Supervision (OTS), the Federal Reserve System, and the Federal Deposit Insurance
Corporation (FDIC) implementing § 216 of the Fair and Accurate Credit Transactions
Act of 2003, which is also known as the FACT Act. The FACT Act was
in the 108th Congress. It is now Public Law No. No. 108-159. § 216 of the FACT
Act adds a new § 628 to the Fair Credit Reporting Act (FCRA) that pertains to
protecting consumers against the risks associated with unauthorized access to
information about the consumer contained in a consumer report, such as fraud
and related crimes, including identity theft. The FCRA is codified at 15
U.S.C. § 1681 et seq. The new section is codified at 15 U.S.C. § 1681w. See,
notice in the Federal Register, December 28, 2004, Vol. 69, No. 248,
at Pages 77610 - 77621. See also, story titled "Financial Regulators Publish
Notice of Final Rule Implementing Section 216 of FACT Act" in TLJ Daily E-Mail
Alert No. 1046, December 29, 2004.
Deadline to submit comments to the Antitrust
Modernization Commission (AMC) in response to the AMC's request for public comments
regarding the Robinson-Patman Act. See,
notice in the Federal Register: May 19, 2005, Vol. 70, No. 96, at Pages
28902 - 28907.
Deadline to submit initial comments to the
Federal Communications Commission (FCC) in response
to its public notice regarding refreshing the record on issues raised in the Further
Notice of Proposed Rulemaking (FNPRM) related to carrier identification code (CIC)
conservation and the definition of "entity" as found in section 1.3 of the CIC
Assignment Guidelines. This public notice is DA 05-1154 in CC Docket No. 92-237; it
was released on April 26, 2005. See,
notice in the Federal Register, June 1, 2005, Vol. 70, No. 104, at Pages
31405 - 31406.
Deadline for states and telecommunications relay services (TRS) providers to
file with the Federal Communications Commission (FCC)
their annual consumer complaint log summaries. See, FCC
|Wednesday, July 6
10:00 AM. The U.S. Court of
Appeals (FedCir) will hear oral argument in Sicom Systems v. Agilent
Technologies, a case regarding standing to sue for patent infringement. See,
October 5, 2004
Memorandum Opinion [PDF] of the U.S. District Court (Del). This is D.C. No.
03-1171-JJF, and App. Ct. No. 05-1066. Location: U.S. Court of Appeals, LaFayette
Square, 717 Madison Place, Courtroom 201.
12:00 NOON - 2:00 PM. The DC Bar Association
will host a program titled "File Sharing and Copyright Infringement after MGM
Studios v. Grokster". The price to attend ranges from $10-$20. For more
information, contact 202-626-3463. See,
Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.
|Thursday, July 7
10:00 AM. The U.S. Court of Appeals (FedCir)
will hear oral argument in Ericsson Inc. v. Harris Corp., No. 04-1444.
Location: U.S. Court of Appeals, LaFayette Square, 717 Madison Place, Courtroom 201.
10:00 AM - 12:00 NOON. The Department of State's
(DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare
for the Americas Regional Preparatory Meeting for the World Telecommunication Development
Conference (WTDC-06) in Lima, Peru, from August 9-11, 2005. See,
notice in the Federal Register, June 22, 2005, Vol. 70, No. 119, Page
36224. Location: DOS, Room 2533A.
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