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May 23, 2006, Alert No. 1,376.
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Reps. Issa and Schiff Introduce Bill to Create Pilot Program for Specialized Patent Judges

5/18. Rep. Darrell Issa (R-CA) and Rep. Adam Schiff (D-CA) introduced HR 5418, an untitled bill that would establish a ten year pilot program in a least five U.S. District Courts to develop expertise in judges and court staff in patent and plant variety cases. This pilot program would further facilitate, but not require, the assignment of patent and plant variety case to judges participating in the pilot program.

The bill would also authorize the appropriation of $5 Million per year for training judges participating in the pilot program, and for "compensation of law clerks with expertise in technical matters arising in patent and plant variety protection cases, to be appointed by the courts designated under subsection (b) to assist those courts in such cases".

The program is limited. It would not require that patent cases to be assigned to certain judges. Rather, judges in the participating districts would elect whether or not to be in the program. Any participating judge who is randomly assigned a patent case would keep that case. Any non-participating judge who is randomly assigned a patent case would have the option of having that case reassigned to a participating judge.

The bill was assigned to the House Judiciary Committee, of which both Rep. Issa and Rep. Schiff are members.

Rep. Issa and Rep. Schiff issued a joint release. Rep. Issa stated that "Roughly forty percent of all patent case appeals of federal district court decisions are reversed and ultimately decided by the Federal Circuit Court of Appeals ... This legislation is designed to help courts reduce errors that lead to appeals."

Rep. Adam SchiffRep. Schiff (at right) stated that "Patent litigation in the federal court system has become expensive, time-consuming, and uncertain ... By providing our courts with the resources they need to carefully consider patent cases, we will ease the work load for our Federal Appeals Courts, which will ultimately save the American taxpayer money."

Robert Holleyman, P/CEO of the Business Software Alliance (BSA), stated in a release that the "BSA commends the leadership of Representatives Darrell Issa and Adam Schiff for proposing legislation to improve the expertise of district court judges in adjudicating complex patent law cases. In recent years, the tech industry has seen a sharp increase in litigation due to patent trolls and others seeking to abuse the legal system. Given the high stakes of each and every case, we must do everything we can to ensure judges have the tools and resources to decide what can often be very technical and complex legal matters."

BSA Releases Estimates of Piracy Rates and Loses in 97 Nations

5/22. The Business Software Alliance (BSA) released its annual report [21 pages in PDF] that estimates software piracy rates among nations. The report estimates that the global piracy rate did not change between 2004 and 2005. While there are declines in the PR China, Russia and the Ukraine, piracy rates went up in most of the nations of Central and South America. See also, BSA release.

The report provides piracy rates for 97 nations, including the U.S. (21%), Germany (27%), United Kingdom (27%), Japan (28%), Canada (33%), South Korea (46%), France (47%), Italy (53%), India (72%), Russia (83%), Ukraine (85%), PR China (86%), and Indonesia (87%).

Piracy is lowest in the nations of northern Europe (excluding France), as well as in the U.S., Canada (33%), Australia (31%), New Zealand (23%), and Japan. Rates are higher in Mediterranean and Eastern European nations. Piracy rates are higher still in Latin American, African, Middle Eastern nations, with a few exceptions: South Africa (36%), UAE (34%), and Israel (32%). Piracy rates in Russia and other nations that were once a part of the Soviet Union are 83% or higher, with the exception of the Baltic states, which have piracy rates ranging from 54% to 57%. There is considerable variation among the Asian Pacific nations.

The BSA report also lists estimates for piracy rates in the two previous years, 2003 and 2004. It also estimates the loss, measured in dollars, from piracy.

PR China's piracy rate has declined from 92% to 86% in two years. However, since the Chinese economy is growing so rapidly, the estimated losses show a slight increase over two years. The report states that "Visitors to the country can readily find pirated software for consumers, but within the government and business sectors piracy is decreasing. Earlier this year the government mandated that PC manufacturers supplying China ship only PCs with legitimately licensed operating systems, a move which could decrease piracy further."

The Ukraine's piracy rate has declined from 91% to 86%. Russia's has decreased from 87% to 83%.

Piracy rates, and estimated loses, have grown in Latin American nations. Notably, piracy in Venezuela has grown from 72% to 82% in two years, while piracy in Argentina has grown from 71% to 77%.

The BSA study was conducted by IDC. It attempted to measure piracy among "all software that runs on personal computers, including desktops, laptops and ultraportables. The categories include operating systems, systems software such as databases and security packages, and applications software such as office automation packages, finance and tax packages, PC computer games and industry-specific applications."

The report also explains how it estimates piracy rates. It is based upon a comparison of computer shipments to software sales.

9th Circuit Rules in Quicken Loans v. Wood

5/22. The U.S. Court of Appeals (9thCir) issued its opinion [PDF] in Quicken Loans v. Wood, a case regarding whether the state of California's efforts to regulate Quicken Loans' mortgage lending practices under the California Residential Mortgage Lending Act is preempted by various federal statutes.

The Act prohibits the charging of interest in excess of one day prior to recordation of a deed of trust. However, Quicken sometimes takes more than a day between the disbursement of loan funds to the borrower and recordation of the deed of trust, as interpreted by the Commissioner of the California Department of Corporations. During this time Quicken assesses interest on the disbursed loans.

The U.S. District Court (EDCal) held that California law is preempted by the federal Depository Institutions Deregulation and Monetary Control Act (DIDMCA), which is codified at 12 U.S.C. § 1735f-7a, but denied Quicken's request for a permanent injunction. It also held that California law is not preempted by the federal Alternative Mortgage Transaction Parity Act, which is codified at 12 U.S.C. §§ 3801-06.

The Court of Appeals vacated the judgment for Quicken on the DIDMCA claim, and held that California's per diem statutes are not expressly preempted, do not directly conflict with, and do not impede Congress’ purposes in enacting the Parity Act. The per diem statutes therefore are not preempted by the Parity Act.

This case is Quicken Loans, Inc. v. William Wood, U.S. Court of Appeals for the 9th Circuit, App. Ct. Nos. 04-16244 and 04-16312, appeals from the U.S. District Court Eastern District of California, D.C. No. CV-03-00256-GEB, Judge Garland Burrell presiding. Judge Alfred Goodwin wrote the opinion of the Court of Appeals, in which Judges Stephen Reinhardt and Michael Hawkins joined.

More News

5/22. The Department of Commerce's (DOC) Bureau of Industry and Security (BIS) announced the formation of a Deemed Export Advisory Committee (DEAC). The BIS also seeks private sector members for the DEAC. See, notice in the Federal Register, May 22, 2006, Vol. 71, No. 98, at Pages 29301-29303.

5/22. The Supreme Court denied certiorari in John Jorgensen v. Sony Music, et al., Sup. Ct. No. 05-10333, a copyright case. See, Order List [10 pages in PDF], at page 5, and Supreme Court docket.

5/22. The U.S. Department of Veterans Affairs announced in its web site that it lost a laptop computer containing personal data of "26.5 million veterans and some spouses", including names, birthdays, and social security numbers.

5/19. The U.S. District Court (EDVa) sentenced Derek A. Borchardt, Aaron O. Jones, and George S. Hayes, to short terms of imprisonment and home confinement. Each plead guilty to criminal copyright infringement, or conspiracy to commit criminal copyright infringement. The Department of Justice (DOJ) stated in a release that these are the first sentencings of members of pre-release music piracy groups as a part of its Operation FastLink. The DOJ added that this is an "ongoing federal crackdown against the organized piracy groups responsible for most of the initial illegal distribution of copyrighted movies, software, games and music on the Internet. Operation FastLink has resulted, to date, more than 120 search warrants executed in 12 countries; the confiscation of hundreds of computers and illegal online distribution hubs; and the removal of more than $50 million worth of illegally-copied copyrighted software, games, movies and music from illicit distribution channels. As of today, Operation FastLink has yielded felony convictions for 30 individuals."

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Washington Tech Calendar
New items are highlighted in red.
Tuesday, May 23

The House will meet at 9:00 AM for morning hour, and at 10:00 AM for legislative business. It will consider the agriculture appropriations bill. See, Republican Whip Notice.

The Senate will meet at 9:45 AM. It will resume consideration of S 2611, the "Comprehensive Immigration Reform Act of 2006".

9:00 - 11:00 AM. The American Enterprise Institute (AEI) will host a panel discussion titled "U.S.-Chile Free Trade Agreement: Building on Success". See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

POSTPONED. 9:30 AM. The Senate Judiciary Committee (SJC) may hold a hearing titled "Reconsidering Our Communications Laws: Ensuring Competition and Innovation".

9:30 AM - 5:00 PM. The Antitrust Modernization Commission (AMC) will hold a public meeting to deliberate on possible recommendations regarding the antitrust laws. The AMC states that preregistration by 12:00 NOON on May 22 is a prerequisite for attendance. Contact: 202-233-0701. See, notice in the Federal Register, May 8, 2006, Vol. 71, No. 88, at Pages 26735. Location: Morgan Lewis, Main Conference Room, 1111 Pennsylvania, Ave., NW.

CANCELLED. 10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Crime may hold a hearing on HR __, the "Internet Stopping Adults Facilitating the Exploitation of Today's Youth (SAFETY) Act of 2006." This bill contains a data retention mandate. Press contact: Jeff Lungren or Terry Shawn at 202-225-2492.

? 10:00 AM. The House Small Business Committee will hold a hearing titled "Data Protection and the Consumer". Location: Room 2360, Rayburn Building.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for the CITEL PCC.II (Radiocommunication including Broadcasting) meetings on June 20-23, 2006, in Lima, Peru, and on October 17-20, 2006, in San Salvador, El Salvador. See, notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Page 15798. Location: __.

2:00 PM. The Senate Judiciary Committee's (SJC) Subcommittee on Intellectual Property may hold a hearing titled "Perspectives on Patents: Post-Grant Review Procedures and Other Litigation Reforms". See, notice. The SJC frequently cancels or postpones hearings without notice. Location: Room 226, Dirksen Building.

RESCHEDULED FOR JUNE 22. 2:00 PM. The House Ways and Means Committee's Subcommittee on Select Revenue Measures will hold a hearing titled "Hearing on the Impact of International Tax Reform on U.S. Competitiveness". See, notice. Location: Room 1100, Longworth Building.

6:00 - 8:00 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host an event titled "Happy Hour". For more information, contact Natalie Roisman at natalie dot roisman at fcc dot gov. Location: Georgia Brown's, 950 15th Street, NW (between I and K Streets, NW).

Wednesday, May 24

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

9:00 AM - 4:35 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) seminar titled "Enforcement CLE Seminar". The participants will include FCC Commissioner Jonathan Adelstein and FCC Enforcement Bureau Chief Kris Monteith. Reservations and cancellations are due by May 23 at 12:00 NOON. Prices vary. See, registration form [PDF]. Location: Holland & Knight, 2099 Pennsylvania Ave., NW.

9:30 - 11:30 AM. The House Science Committee's (HSC) Subcommittee on Environment, Technology, and Standards will hold a hearing titled "Views of the NIST Nobel Laureates on Science Policy". The witnesses will be William Phillips (Nobel Laureate, Physics, 1997), Eric Cornell (Physics, 2001), and John Hall (Physics, 2005). The hearing will be webcast by the HSC. Location: Room 2318, Rayburn Building.

10:00 AM. The House Financial Services Committee will meet to mark up several bills, including HR 4127, the "Data Accountability and Trust Act (DATA)". Location: Room 2128, Rayburn Building.

RESCHEDULED FOR MAY 25. 1:00 PM. The House Judiciary Committee (HJC) will meet to mark up several technology related bills: HR 5417, the "Internet Freedom and Nondiscrimination Act of 2006", HR 4777, the "Internet Gambling Prohibition Act"; HR 4411, the "Unlawful Internet Gambling Enforcement Act of 2006", HR 4894, a bill "To provide for certain access to national crime information databases by schools and educational agencies for employment purposes, with respect to individuals who work with children", HR 5318, the "Cyber-Security Enhancement and Consumer Data Protection Act of 2006", and HR 4127, the "Data Accountability and Trust Act (DATA)".

2:00 PM. The Senate Judiciary Committee (SJC) may hold a hearing on judicial nominations. See, notice. The SJC frequently cancels or postpones hearings without notice. Location: Room 226, Dirksen Building.

4:00 PM. The House Judiciary Committee's (HJC) Subcommittee on Courts, the Internet and Intellectual Property (CIIP) will meet to mark up several bills, including HR __, the "Orphan Works Act of 2006". See also, Copyright Office's report [133 pages in PDF] titled "Report on Orphan Works". See, notice. The meeting will be webcast by the HJC. Press contact: Jeff Lungren or Terry Shawn at 202-225-2492. Location: Room 2141, Rayburn Building.

4:00 PM. The House Ways and Means Committee (HWMC) will meet to mark up HR 4157, the "Health Information Technology Promotion Act of 2005". Location: Room 1100, Longworth Building.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the National Exchange Carrier Association's (NECA) annual payment formula and fund size estimate for the Interstate TRS Fund. The NECA is the Interstate Telecommunications Relay Service (TRS) Fund Administrator. This proceeding is CG Docket No. 03-123. See, notice in the Federal Register, May 10, 2006, Vol. 71, No. 90, at Pages 27252-27253.

Thursday, May 25

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

9:00 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The SJC frequently cancels or postpones meetings without notice. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Commerce Committee (SCC) will hold the second of three hearings on S 2686 [135 pages in PDF], the "Communications, Consumer's Choice, and Broadband Deployment Act of 2006". See, notice of hearing, statement [5 pages in PDF] by Sen. Stevens, and Sen. Stevens' section by section summary [7 pages in PDF]. See also, stories titled "Stevens Introduces Telecom Reform Bill" and "Section by Section Summary of Sen. Stevens' Telecom Reform Bill" in TLJ Daily E-Mail Alert No. 1,362, May 2, 2006. Press contact: Aaron Saunders (Stevens) at 202-224-3991 or Andy Davis (Inouye) at 202-224-4546. The hearing will be webcast by the SCC. Location: Room 106, Dirksen Building.

RESCHEDULED FROM MAY 24. 10:00 AM. The House Judiciary Committee (HJC) will meet to mark up several technology related bills: HR 5417, the "Internet Freedom and Nondiscrimination Act of 2006", HR 4777, the "Internet Gambling Prohibition Act"; HR 4411, the "Unlawful Internet Gambling Enforcement Act of 2006", HR 4894, a bill "To provide for certain access to national crime information databases by schools and educational agencies for employment purposes, with respect to individuals who work with children", HR 5318, the "Cyber-Security Enhancement and Consumer Data Protection Act of 2006", and HR 4127, the "Data Accountability and Trust Act (DATA)". See, notice. The meeting will be webcast by the HJC. Press contact: Jeff Lungren or Terry Shawn at 202-225-2492. Location: Room 2141, Rayburn Building.

1:00 PM. The House Financial Services Committee (HFSC) will hold a hearing titled "Protecting Investors and Fostering Efficient Markets: A Review of the S.E.C. Agenda". Location: Room 2128, Rayburn Building.

2:00 - 4:00 PM. The Department of State's International Telecommunication Advisory Committee will meet to prepare for meetings of the Organization for Economic Co-operation and Development (OECD) WPIE and CISP committee meetings of May 29-31, 2006. See, notice in the Federal Register, April 19, 2006, Vol. 71, No. 75, at Pages 20153-20154. Location: Room 2533, Harry Truman Building, 2201 C Street, NW.

Friday, May 26

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

Deadline to submit comments to the Federal Communications Commission (FCC) regarding the April 27, 2006, recommendations of the World Radiocommunication Conference Advisory Committee (WRC-07 Advisory Committee). See, FCC notice [145 pages in PDF], with the recommendations attached. This proceeding is IB Docket No. 04-286.

Monday, May 29

Memorial Day.

The House will not meet on Monday, May 29, through Friday, June 2. See, Majority Whip's calendar.

The Senate will not meet on Monday, May 29, through Friday, June 2. See, 2006 Senate calendar.

The Federal Communications Commission (FCC) and other federal offices will be closed. See, Office of Personnel Management's (OPM) list of federal holidays.

Tuesday, May 30

8:30 AM - 5:30 PM. Day one of a two day workshop on public participation in nanotechnology hosted by the National Nanotechnology Coordination Office (NNCO). See, notice in the Federal Register, May 3, 2006, Vol. 71, No. 85, at Page 26117. Location: Westin Arlington Gateway Hotel, 801 North Glebe Road, Arlington, VA.

12:00 NOON - 5:00 PM. The American Enterprise Institute (AEI) will host an event titled "The SEC's
Interactive Data Revolution: Improved Disclosure for Investors, Less Expensive Reporting for Companies
". Lunch will be served at 12:00 NOON. Peter Wallison (AEI) will introduce the program at 12:45 PM. Chris Cox, Chairman of the Securities and Exchange Commission (SEC), will give the keynote address at 12:45 PM. At 1:45 PM there will be a panel titled "XBRL, the New Computer Language: How It Creates Interactive Data". The speakers will be Richard Daly (Automatic Data Processing, Inc.), Mark Schnitzer (Morgan Stanley), Louis Thompson (National Investor Relations Institute), Mike Willis (Pricewaterhouse Coopers), and James Glassman (AEI). At 3:30 PM there will be a panel titled "Enhanced Business Reporting: Why It Is Necessary and How It Works with XBRL". The speakers will be Alan Anderson (Franklin Templeton Investments, Inc.), Robert Eccles (Advisory Capital Partners), John Philip (Infosys Technologies Limited), Mike Willis (PWC), and Peter Wallison (AEI). See, notice and registration page. Location: AEI, 1150, 17th Street, NW.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding licensing and use of frequencies in the 904-909.75 and 919.75-928 MHz portions of the 902-928 MHz band that are used for the provision of multilateration Location and Monitoring Service (M-LMS band). This NPRM is FCC 06-24 in WT Docket No. 06-49. See, text [24 pages in PDF] of NPRM; notice in the Federal Register, March 29, 2006, Vol. 71, No. 60, at Pages 15658-15666; and story titled "FCC Releases NPRM on M-LMS Systems" in TLJ Daily E-Mail Alert No. 1,325, March 8, 2006.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) in response to its notice of proposed rulemaking (NPRM) regarding changes to the rules of practice relating to ex parte and inter partes reexamination. See, notice in the Federal Register, March 30, 2006, Vol. 71, No. 61, at Pages 16072-16086.