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November 16, 2005, 8:00 AM ET, Alert No. 1,254
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Rep. Pelosi Announces House Democratic Innovation Initiative

11/15. Rep. Nancy Pelosi (D-CA), the House Minority Leader, announced a House Democratic initiative titled "Innovation Agenda: A Commitment to Competitiveness to Keep America #1". This initiative, like previous announcements from both Democrats and Republicans over the years, contains many vague statements, but lacks specificity on many issues, and is silent on other issues.

Rep. Nancy Pelosi

Rep. Pelosi (at right) stated at an event in Washington DC that "over the past several months, we’ve sought out the best possible thinking on how to secure America’s place as the world leader in innovation. We went outside of Washington, and met with leaders and CEOs from many fields: academia, venture capital, and entrepreneurs from the high-tech, biotech, and telecommunications sectors who are creating the jobs of tomorrow."

She added that "We held forums with these leaders in Silicon Valley, Washington state, Chicago, Boston, Northern New Jersey, North Carolina’s Research Triangle, and we will hold more."

The initiatives proposes to "ensure that ... every American has access to affordable broadband Internet service and communications technology". To accomplish this, it advocates implementing "a national broadband policy that doubles federal funding to promote broadband for all Americans, especially in rural and underserved communities; create new avenues of Internet access including wireless broadband technologies, broadband over power lines, and affordable community-based options".

The initiative addresses federal spending on research and development. It proposes to "Double overall funding for the National Science Foundation, basic research in the physical sciences across all agencies, and collaborative research partnerships; restore the basic, long-term research agenda at the Defense Advanced Research Projects Agency (DARPA) to conduct long-range, high-risk, and high-reward research."

The initiative also proposes to "Modernize and permanently extend a globally competitive R&D tax credit". Republicans and Democrats have long advocated making permanent the research and development tax credit. However, for decades, the Congress has merely enacted a series of short temporary extensions.

The initiative proposes "promoting broad-based stock options for rank-and-file employees". However, it is silent regarding the expensing of employee stock options.

The initiative proposes to "Protect the intellectual property of American innovators worldwide, strengthen the patent system, and end the diversion of patent fees". It is notable that this initiative advocates ending the diversion of U.S. Patent and Trademark Office (USPTO) user fees to fund other government programs. However, the proposal is silent on a host of copyright and patent bills pending in the House and Senate.

The initiative proposes "doubling funding for the Manufacturing Extension Partnership (MEP) and the Advanced Technology Program (ATP)".

The initiative advocates training more math and science teachers. It advocates "tuition assistance to talented undergraduates and by paying competitive salaries to established teachers working in the fields of math and science". It advocates creating "a special visa for the best and brightest international doctoral and postdoctoral scholars in science, technology, engineering and mathematics". And, it proposes to "make college tuition tax-deductible for students studying math, science, technology, and engineering".

The initiative also advocates making "college tuition tax-deductible for students studying math, science, technology, and engineering."

The initiative is silent on promoting free trade. It does not address free trade agreements, protection of intellectual property rights in other countries, market access issues, international e-commerce, or the Doha Development Agenda.

The initiative is silent on a range of tax issues. For example, it does not address the excise tax on communications.

The initiative is also silent on support for preserving freedom of speech online, and particularly in the context of Federal Election Commission (FEC) regulation of bloggers.

Reaction. Robert Holleyman, P/CEO of the Business Software Alliance (BSA), stated in a release that "We support any effort in Congress -- by either political party -- to ensure continued investment in innovation for the future."

William Archey, P/CEO of the American Electronics Association (AEA) stated in a release that "We are impressed with both the content and the nonpartisan tone of this initiative".

Walter McCormick, P/CEO of the USTA, stated in a release that "The House Democrats’ innovation agenda outlines several important issues that must be addressed to restore American leadership in the global economy. We appreciate Leader Pelosi’s interest in these issues and believe that the best way to spur job creation, investment and innovation is to update the nation’s telecom laws. We look forward to working with all House members to enact legislation this Congress that reflects the realities of today’s competitive marketplace."

Bush Announces Plans for Zero Tariffs on Multi-chip Integrated Circuits

11/15. President Bush sent a message to the U.S. Congress in which he stated that he intends to enter into an agreement with the Japan, Korean, Taiwan and the EU to apply zero tariffs to multi-chip integrated circuits.

He wrote that it is his intent "to enter into an agreement with the European Union, Japan, the Republic of Korea, and Taiwan on tariff treatment for multi-chip integrated circuits. Multi-chip integrated circuits are semiconductor devices used in computers, cell phones, and other high-technology products."

Bush continued that the US, Korea, Taiwan and the EU "will apply zero duties on these products as of an agreed date. The target date for entry into force of the Agreement is January 1, 2006. Japan already applies zero duties on these products and expects to ratify the Agreement formally in 2006."

He added that "although all major producers of multi-chip integrated circuits will be parties to the Agreement, we will seek to build on this Agreement by joining together to work in the World Trade Organization to increase the number of countries granting duty-free treatment to these products."

The message, which is dated November 14, was released in the White House web site on November 15.

Bush traveled to Japan on November 15. He will also visit Korea, the People's Republic of China, but not Taiwan, on this trip. See, transcript of statements by Bush and Japanese Prime Minister Koizumi in Kyoto, Japan, on November 15.

Bush also released a statement in Anchorage, Alaska, while en route to Japan, on November 14, regarding Doha round negotiations. He stated that "Prime Minister Blair has challenged World Trade Organization members to ensure that the Doha Development Agenda fulfills its market-opening potential that would help lift hundreds of millions of people out of poverty. I welcome and endorse his call for action to ensure a successful outcome to the Doha Round. ..."

Senate Approves Stop Counterfeiting in Manufactured Goods Act

11/10. The Senate amended and approved S 1699, the "Stop Counterfeiting in Manufactured Goods Act". Sen. Arlen Specter (R-PA) introduced this bill on September 14, 2005. The Senate Judiciary Committee (SJC) amended and approved the bill on November 3, 2005.

The House has yet to approve this bill. However, on May 23, 2005, the House approved HR 32, which is also titled the "Stop Counterfeiting in Manufactured Goods Act". It is very similar, but not identical, to S 1699. See, story titled "House Approves Bill Regarding Trafficking in Counterfeit Marks" in TLJ Daily E-Mail Alert No. 1,141, May 24, 2005.

S 1699 would amend 18 U.S.C. § 2320, which pertains to "Trafficking in counterfeit goods or services". It would criminalize trafficking in counterfeit labels. The first sentence of § 2320(a) provides that "Whoever intentionally traffics or attempts to traffic in goods or services and knowingly uses a counterfeit mark on or in connection with such goods or services shall, if an individual, be fined not more than $2,000,000 or imprisoned not more than 10 years, or both, and, if a person other than an individual, be fined not more than $5,000,000."

This bill would insert the phrase "or intentionally traffics or attempts to traffic in labels, patches, stickers, wrappers, badges, emblems, medallions, charms, boxes, containers, cans, cases, hangtags, documentation, or packaging of any type or nature, knowing that a counterfeit mark has been applied thereto, the use of which is likely to cause confusion, to cause mistake, or to deceive".

Sen. Patrick Leahy (D-VT), the ranking Democrat on the SJC, and a cosponsor of the bill, stated in the Senate that "this bill that will give law enforcement improved tools to fight counterfeit trademarks, and that it could work a significant change in the efforts to combat this type of theft". See, Congressional Record, November 10, 2005, at Pages S12714-5.

Sen. Leahy also summarized its content. He said that it "makes several improvements to the U.S. Code. The bill strengthens 18 U.S.C. 2318, the part of the criminal code that deals with counterfeit goods and services, to make it a crime to traffic in counterfeit labels or packaging, even when counterfeit labels or packaging are shipped separately from the goods to which they will ultimately be attached. Savvy counterfeiters have exploited this loophole to escape liability. This bill closes that loophole."

18 U.S.C. § 2318 criminalizes trafficking "in a counterfeit label affixed or designed to be affixed to a phonorecord, or a copy of a computer program or documentation or packaging for a computer program, or a copy of a motion picture or other audiovisual work".

Sen. Leahy added that "The bill will also make counterfeit labels and goods, and any equipment used in facilitating a crime under this part of the code, subject to forfeiture upon conviction. Any forfeited goods or machinery would then be destroyed, and the convicted infringer would have to pay restitution to the lawful owner of the trademark.

Sen. Specter elaborated that the "loophole was exposed by the Tenth Circuit Court of Appeals in United States v. Giles, 213 F.3d 1247--10th Cir. 2000. In this case, the United States prosecuted the defendant for manufacturing and selling counterfeit Dooney & Bourke labels that third parties could later affix to generic purses. Examining Title 18, section 2320, of the United States Code, the Tenth Circuit held that persons who sell counterfeit trademarks that are not actually attached to any ``goods or services'' do not violate the federal criminal trademark infringement statute. Since the defendant did not attach counterfeit marks to ``goods or services,'' the court found that the defendant did not run afoul of the criminal statute as a matter of law. Thus, someone caught red-handed with counterfeit trademarks walked free."

Sen. Specter also stated that "I would like to make it clear for the record that this bill is not intended to apply to ``good actor´´ Internet service providers that serve as third party intermediaries to online transactions and take demonstrable steps to prevent the exchange or trafficking of counterfeit goods on their networks."

Senate Approves Protecting American Goods and Services Act of 2005

11/10. The Senate amended and approved S 1095, and untitled bill pertaining to trademark crimes. the "Protecting American Goods and Services Act of 2005". Sen. John Cornyn (R-TX) introduced this bill on May 20, 2005. The Senate Judiciary Committee (SJC) amended and approved the bill on November 3, 2005.

The version approved by the Senate contains no title. However, earlier versions of the bill included the title "Protecting American Goods and Services Act of 2005".

Sen. Patrick Leahy (D-VT), the ranking Democrat on the SJC, stated that this bill "will help to combat this growing scourge. It amends the definition of trafficking in the counterfeit law to criminalize the possession of counterfeit goods with the intent to sell or traffic in those goods, as well as to include any distribution of counterfeits with the expectation of gaining something of value -- criminals should not be able to skirt the law simply because they barter illegal goods and services in exchange for their illicit wares. Finally, the bill's new definition will criminalize the importation and exportation of counterfeit goods, as well as of bootleg copies of copyrighted works into and out of the United States." See, Congressional Record, November 10, 2005, at Pages S12712-4.

This bill would amend 18 U.S.C. § 2320(e) to provide that the term "traffic" means "to transport, transfer, or otherwise dispose of, to another, for purposes of commercial advantage or private financial gain, or to make, import, export, obtain control of, or possess, with intent to so transport, transfer, or otherwise dispose of".

It would also amend this section to provide that "the term `financial gain´ includes the receipt, or expected receipt, of anything of value''.

More News

11/15. The Senate Homeland Security and Governmental Affairs Committee announced that it will hold a hearing titled "Ensuring Protection of American Intellectual Property Rights for American Industries in China" on Monday, November 21, 2005, in Beverly Hills, California. See, notice.

11/09. The House Judiciary Committee (HJC) approved HR 2791, the "United States Patent and Trademark Fee Modernization Act of 2005".

Washington Tech Calendar
New items are highlighted in red.
Wednesday, November 16

The House will meet at 10:00 AM for legislative business. The House may take up HR 1036, regarding copyright royalty judges, and/or HConRes 268, which expresses the sense of the Congress that "the authoritative root zone server should remain physically located in the United States and the Secretary of Commerce should maintain oversight of ICANN" and "Internet governance discussions in the World Summit should focus on the real threats to the Internet's growth and stability, and not recommend changes to the current regime of domain name and addressing system management and coordination on political grounds unrelated to any technical need". The House may also take up motions to appoint conferees, and conference reports. See, Republican Whip Notice.

The Senate will meet at 9:30 AM for morning business. It will then begin consideration of S 1783, the pension reform bill.

9:00 AM - 1:30 PM. The U.S. Chamber of Commerce will host an event titled "Erosion of the Attorney-Client Privilege: What Does the Future Hold?". See, notice. The price to attend ranges from free to $145. For more information, contact Andrew Persson at 202 463-5500. Location: Grand Hyatt Washington, 1000 H Street, NW.

9:00 AM - 5:30 PM. Day three of a four day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. See, notice in the Federal Register, October 25, 2005, Vol. 70, No. 205, at Page 61606. Location: NIST, Administration Building, Room A1038, Gaithersburg, MD.

10:00 AM. The House Commerce Committee's (HCC) Subcommittee on Commerce, Trade, and Consumer Protection will hold a hearing titled "Fair Use: Its Effects on Consumers and Industry". The witnesses will be Prudence Adler ( Association of Research Libraries), Paul Aiken, ( Authors Guild), Jonathan Band (NetCoalition), James DeLong (Progress and Freedom Foundation), Frederic Hirsch (Entertainment Software Association), Peter Jaszi (American University law school), Gary Shapiro (Consumer Electronics Association), and Gigi Sohn (Public Knowledge). Rep. Cliff Stearns (R-FL) will preside. See, notice. The hearing will be webcast by the HCC. Press contact: Larry Neal (Barton) at 202 225-5735 or Paul Flusche (Stearns) at 202 225-5744. Location: Room 2123, Rayburn Building.

10:30 AM. The Senate Banking Committee will hold a a business meeting. The agenda may include consideration of the nomination of Ben Bernanke to be Chairman of the Federal Reserve Board. See, notice. Location: Room 538, Dirksen Building.

11:30 AM. Supporters of HConRes 268 will hold a news conference to discuss the resolution, which opposes United Nations regulation of the internet. The speakers will be Rep. John Doolittle (R-CA), Rep. Rick Boucher (D-VA), Rep. Bob Goodlatte (R-VA), John Berthoud (President of National Taxpayers Union), and Steve DelBianco (Association for Competitive Technology). For more information, contact Amada Potter (Boucher) at 202 225-3861. Location: Room 2322, Rayburn Building.

12:30 - 2:00 PM. The DC Bar Association will host a panel discussion titled "Regulatory and Economic Implications of Delivery of Video Via IP Technology: Burdens, Barriers, and Costs of Doing Business". The speakers will include Brent Olson (SBC Services), Michael Schooler (National Cable & Telecommunications Association), David Young (Verizon), and Ryan Wallach (Willkie Farr & Gallagher). The price to attend ranges from $15-$30. For more information, call 202 626-3463. See, notice. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

2:00 - 3:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for meetings of the Organization for Economic Cooperation and Development/Committee for Information, Computer and Communications Policy (OECD/ICCP) Working Parties ITU-D Telecommunication Development Advisory Group (TDAG). See, notice in the Federal Register, October 26, 2005, Vol. 70, No. 206, at Page 61876. Location: DOS, Harry Truman Building, Room 2533A.

2:30 PM. The Senate Judiciary Committee's (SJC) Subcommittee on Administrative Oversight and the Courts may hold a hearing on creation of new federal judgeships. See, notice. The SJC frequently cancels or postpones meetings without notice. 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.

? 6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) seminar titled "Negotiating Telecommunications Service Agreements for Enterprise Clients". Location: __.

Effective date of the Federal Communications Commission's (FCC) rules adopted in its Report and Order (R&O) and Notice of Proposed Rulemaking (NPRM) of August 5, 2005. The R&O classified wireline broadband internet access services as information services. The NPRM proposes to impose new regulatory burdens on information services. This item is FCC 05-150 in WC Docket No. 05-271, CC Docket No. 02-33, CC Docket No. 01-337, CC Docket Nos. 95-20 and 98-10, and WC Docket No. 04-242. See, story titled "FCC Classifies DSL as Information Service" in TLJ Daily E-Mail Alert No. 1,190, August 8, 2005. The FCC released the text [133 pages in PDF] of this item on September 23, 2005. See, notice in the Federal Register, October 17, 2005, Vol. 70, No. 199, at Pages 60222 - 60234.

Deadline to submit comments to the Office of the U.S. Trade Representative (USTR) regarding significant barriers to U.S. exports of goods, services and overseas direct investment, to assist the USTR in preparing the annual National Trade Estimate Report on Foreign Trade Barriers (NTE). See, notice in the Federal Register, September 20, 2005, Vol. 70, No. 181, at Pages 55204 - 55205.

Thursday, November 17

The House will meet at 10:00 AM for legislative business. The House may take up HConRes 268, regarding internet governance, and/or HR 1036, regarding copyright royalty judges, under suspension of the rules. The House may also take up motions to appoint conferees, and conference reports. See, Republican Whip Notice.

9:00 AM - 3:00 PM. Day four of a four day closed meeting of the National Institute of Standards and Technology's (NIST) Judges Panel of the Malcolm Baldrige National Quality Award. See, notice in the Federal Register, October 25, 2005, Vol. 70, No. 205, at Page 61606. Location: NIST, Administration Building, Room A1038, Gaithersburg, MD.

9:30 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The SJC frequently cancels of postpones meetings without notice. See, notice. 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.

9:30 AM. The Antitrust Modernization Commission (AMC) will meet. The topic will be "Merger Enforcement". The morning panel will be from 9:30 to 11:30 AM. The afternoon panel will be from 12:45 to 2:45 PM. See, AMC notice and notice in the Federal Register, October 21, 2005, Vol. 70, No. 203, at Page 61247. Location: Federal Trade Commission, Conference Center, 601 New Jersey Ave., NW.

10:00 AM - 12:00 NOON. The House Science Committee will hold a hearing titled "Environmental and Safety Impacts of Nanotechnology: What Research is Needed?" The witnesses will be Clayton Teague (National Nanotechnology Coordination Office), Richard Denison (Environmental Defense), Krishna Doraiswamy (DuPont Central Research and Development), Matthew Nordan (Lux Research Inc.), and David Rejeski (Smithsonian Institution). Press contact: Joe Pouliot, Deputy Communications Director, at Joe dot Pouliot at mail dot house dot gov or 202 225-6371. For more information, contact Marty Spitzer (Republican staff) at 202 225-7858, or Jim Wilson or Christal Sheppard (Democratic staff) at 202 225-6375. Location: Room 2318, Rayburn Building.

10:00 AM. The Heritage Foundation will host a panel discussion titled "Let the UN Govern the Internet?". The speakers will be Sen. Norm Coleman (R-MN), Rep. John Doolittle (R-CA), Adam Thierer (Progress and Freedom Foundation), John Tkacik (Asian Studies Center of the Heritage Foundation), and James Gattuso (Heritage Foundation). See, notice. Location: Allison Auditorium, Heritage Foundation, 214 Massachusetts Ave., NE.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for meetings of the ITU-D Telecommunication Development Advisory Group (TDAG). See, notice in the Federal Register, October 26, 2005, Vol. 70, No. 206, at Page 61876. Location: DOS, Harry Truman Building, Room 2533A.

10:30 AM. The Senate Intelligence Committee will hold a closed hearing on the nomination of Dale Meyerrose to be the Chief Information Officer (CIO) of the Office of the Director of National Intelligence. Location: Room 219, Hart Building.

12:00 NOON - 2:00 PM. The DC Bar Association will host a panel discussion titled "Remedies In Trademark Infringement And Unfair Competition Cases". The speakers will include John Dabney (McDermott Will & Emery) and Anita Polott (Morgan Lewis). The price to attend ranges from $20-$40. For more information, call 202 626-3488. See, notice. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 Level.

RESCHEDULED FROM NOVEMBER 15, AND LOCATION CHANGE. 12:00 NOON. Rep. Lee Terry (R-NE) and Rep. Rick Boucher (D-VA) will hold a briefing on the discussion draft of HR __, the "Universal Service Reform Act of 2005". For more information, contact Amanda Potter (Boucher) at 202 225-3861. Location: Room 2218, Rayburn Building.

2:30 PM. The Senate Commerce Committee will hold a business meeting. The agenda includes consideration of several bills, including S 687, the "Software Principles Yielding Better Levels of Consumer Knowledge Act". This bill, which is also known as the SPY BLOCK Act, pertains to spyware and other matters. The Committee will also consider the nominations of William Kovacic and Thomas Rosch to be a members of the Federal Trade Commission (FTC). See, notice. Press contact: Melanie Alvord (Stevens) at 202 224-8456, Aaron Saunders (Stevens) at 202 224-3991, or Andy Davis (Inouye) at 202 224-4546. Location: Room 216, Hart Building.

Friday, November 18

The House may meet at 9:00 AM to take up motions to appoint conferees, and to approve conference reports. See, Republican Whip Notice.

9:00 AM - 4:00 PM. The Federal Communications Commission's (FCC) Consumer Advisory Committee will meet. See, FCC notice and agenda [PDF] of November 14, 2005, and notice in the Federal Register, October 26, 2005, Vol. 70, No. 206, at Page 61823. Location: FCC, 445 12th Street, SW.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Future of Science". The witnesses will be Peter Agre (Duke University), Eric Cornell (National Institute of Standards and Technology), James Heath (California Institute of Technology), and Samuel Ting (Massachusetts Institute of Technology). The SCC stated in a release that these witnesses will "address concerns that the U.S. is slipping in research, technology innovation, and education". Press contact: Melanie Alvord (Stevens) at 202 224-8456, Aaron Saunders (Stevens) at 202 224-3991, or Andy Davis (Inouye) at 202 224-4546. Location: Room 562, Dirksen Building.

10:00 - 11:30 AM. The Center for Democracy and Technology (CDT) will hold a briefing on the status of data security bills pending in the Congress. A late breakfast will be served. The speakers will be Ari Schwartz, David Sohn and Nancy Libin, all of the CDT. RSVP to David McGuire at dmcguire at cdt dot org or 202 637-9800 x106. Location: CDT, conference room, 11th floor, 1634 I St., NW.

12:00 NOON - 2:00 PM. The Progress and Freedom Foundation (PFF) will host a panel discussion titled "Gutenberg meets Google: The Debate About Google Print". The speakers will be Alan Davidson (Google), Allan Adler (Association of American Publishers), Keith Kupferschmid (Software & Information Industry Association), and Solveig Singleton (PFF). See, notice and registration page. Location: Room B-369, Rayburn Building, Capitol Hill.

Saturday, November 19

? The House may meet to take up motions to appoint conferees, and to approve conference reports. See, Republican Whip Notice.

Monday, November 21

2:00 PM. The Information Technology Association of America (ITAA) will host a webcast event titled "China Transactions: The IP Paradigm". The speakers will be Chris Cooper & Ken DeWoskin of Price Waterhouse Coopers. See, notice. For more information, contact Mark Uncapher at muncapher at itaa dot org.

Deadline to submit nominations to the Department of Commerce's (DOC) Technology Administration for its 2006 Commerce Science and Technology Fellowship (ComSci) Program. Only full time career federal employees in a professional or management series at the GS/GM-13 level or above are eligible. See, notice.

Wednesday, November 23

Deadline to submit comments to the Internal Revenue Service (IRS) regarding its notice of proposed rulemaking (NPRM) regarding the source of income derived from international communications activity. See, notice in the Federal Register, September 19, 2005, Vol. 70, No. 180, at Pages 54859 - 54878.

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