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January 11, 2007, Alert No. 1,518.
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FCC Releases Orders on Requests for Waivers of FCC's Set Top Box Rules

1/10. The Federal Communications Commission's (FCC) Media Bureau (MB) released several orders on requests for waivers for the FCC's rules regarding separable security in set top boxes.

The MB released a Memorandum Opinion and Order [8 pages in PDF] granting a request filed by Cablevision. This order states that "we temporarily grandfather Cablevision's SmartCard-based approach to separated security and issue a two-year waiver of Section 76.1204(a)(1) of the Commission’s rules to allow Cablevision to use their separated security, SmartCard, solution until July 1, 2009." This order is DA 07-48 in CS Docket No. 97-80.

The MB released a Memorandum Opinion and Order [11 pages in PDF] conditionally granting a request filed by Bend Cable Communications, LLC, d/b/a, BendBroadband (Bend). This order is DA 07-47 in CS Docket No. 97-80.

The MB released a Memorandum Opinion and Order [16 pages in PDF] denying Comcast's waiver request, but granting Comcast leave to amend its request. This order is DA 07-49 in CS Docket No. 97-80.

The MB also released a Public Notice [5 pages in PDF] stating that cable operators that prefer not to employ a separable security option may use a downloadable conditional access solution to comply with FCC rules. It also states that Beyond Broadband Technology, LLC (BBT) has already developed such a solution. This item is DA 07-51.

Section 629 of the Telecommunications Act of 1996, which is codified at 47 U.S.C. § 549(a), provides, in part, that the FCC "shall ... adopt regulations to assure the commercial availability, to consumers of multichannel video programming and other services offered over multichannel video programming systems, of converter boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video programming systems, from manufacturers, retailers, and other vendors not affiliated with any multichannel video programming distributor."

FCC Chairman Kevin Martin released a statement in which he summarized the history of this issue. He wrote that pursuant to the statute, Congress wrote rules two years later that "required cable operators to separate their security functions (putting them into a CableCARD, which can be used in televisions and set-top boxes made by other manufacturers). By separating out security functions in a format used by cable operators and electronics makers alike, the Commission hoped a viable market for truly cable ready televisions and set-top boxes could flourish. Back then, Congress and the Commission envisioned consumers being able to walk into their local retail store and buy televisions and set-top boxes from any manufacturer that would work on any cable system." (Parentheses in original.)

The FCC's rules are codified at 47 C.F.R. § 76.1204(a)(1).

Martin continued that the FCC "originally gave cable operators seven years, followed by two further extensions, to achieve this separable security and common reliance. During this period, the cable operators twice challenged the Commission's rules in court. And, twice the court upheld them. And yet, almost ten years later, cable operators have never fully implemented the Commission's set-top box requirement. In fact, faced with a deadline of July 1, 2007, many cable operators have requested a third extension. This inaction has served to hinder innovation, deter competition and harm consumers."

Moreover, wrote Martin, "electronics manufacturers are beginning to seize the opportunity to roll out new products."

Martin continued that the MB's orders "implement the statutory requirements to facilitate a competitive market for set-top boxes in a reasonable manner. The Bureau denies Comcast's broad waiver request but provides for several ways it could amend its request.  It grants Cablevision's request by grandfathering the implementation of its own separated security solution for two years. The Bureau also grants BendBroadband's request conditioned on its commitment to go all digital by December 2008 -- a significant benefit to consumers. Finally, the Bureau reiterates that a downloadable security solution would comply with our rules now, and notes that at least one company has already developed such a solution."

Gary Shapiro, head of the Consumer Electronics Association (CEA), stated in a release that "The FCC has taken a strong stand for consumers and we applaud Chairman Martin for his dedication to the public interest. Competitive device manufacturers are eager to offer exciting new content devices to cable customers, and the FCC has assured consumers that innovation will not be stifled. By taking this action, the FCC ensures that consumers will finally realize the benefits of a competitive market for products that can connect to cable systems."

Brian Dietz, spokesman for the National Cable and Telecommunications Association (NCTA) wrote in a statement released just prior to the FCC's announcement that "The denial of cable's waiver requests would mean that, starting in July, consumers would be paying a new $600 million tax, costing cable customers another 2-3 dollars per month. It is incomprehensible that the FCC would deny these waiver requests at a time when Congress and the Administration have made the digital transition a national priority and are trying to manage the costs to consumers. We urge the Chairman and the Commission to move in another direction on this issue and grant cable's requests to relieve consumers of this potential burden."

Also, Randy May, head of the Free State Foundation, wrote in a release that "this is a case for common sense regulatory relief, with the cost of imposing the integration ban in July far exceeding any consumer benefits".

FCC Releases Agenda for January 17 Event

1/10. The Federal Communications Commission (FCC) released an agenda [PDF] for its event on Wednesday, January 17, 2007, titled "Open Meeting". The agenda states that the FCC will adopt nothing. Rather, there will be four panel presentations regarding the activities and operations of the FCC.

The first panel will include the Managing Director and the Chief of the FCC's Consumer & Governmental Affairs Bureau (CAGB).

The second panel will include the Chiefs of the FCC's Enforcement Bureau (EB) and Public Safety and Homeland Security Bureau (PSHSB).

The third panel will include the Chiefs of the Wireless Telecommunications Bureau (WTB), Office of Engineering and Technology (OET), and the International Bureau (IB).

The fourth panel will include the Chiefs of the Media Bureau (MB) and Wireline Competition Bureau (WCB).

The event is scheduled to begin at 9:30 AM on Wednesday, January 17, 2007, in the FCC's Commission Meeting Room, Room TW-C305, 445 12th Street, SW. The event will be webcast by the FCC. The FCC does not always follow its published agenda. The FCC sometimes adds items to the agenda without providing the "one week" notice required 5 U.S.C. § 552b. The FCC does not always start its events at the scheduled time, or at all.

People and Appointments

1/11. Alan Slobodin was named Republican chief counsel for the House Commerce Committee's (HCC) Subcommittee on Oversight and Investigations. He has worked for the HCC since 1995.

1/10. Adam Isles was named Deputy Chief of Staff at the Department of Homeland Security (DHS). See, DHS release.

1/9. Steven Berry was named executive vice president for government and consumer affairs at the Direct Marketing Association. He was previously President of Steven K. Berry, LLC, and a consultant to The Livingston Group.

1/9. President Bush nominated Robert Lenhard to be a Member of the Federal Election Commission (FEC) for a term expiring April 30, 2011. See, White House release.

1/9. President Bush nominated David Mason to be a Member of the Federal Election Commission (FEC) for a term expiring April 30, 2009. See, White House release.

1/9. President Bush nominated Hans von Spakovsky to be a Member of the Federal Election Commission (FEC) for a term expiring April 30, 2011. See, White House release.

1/9. President Bush nominated Steven Walther to be a Member of the Federal Election Commission (FEC) for a term expiring April 30, 2009. See, White House release.

More News

1/11. The Federal Communications Commission (FCC) released the text [21 pages in PDF] of its Declaratory Ruling (DR) in its proceeding titled "In the Matter of Telecommunications Relay Services and Speech-to-Speech Services for Individuals with Hearing and Speech Disabilities Internet-based Captioned Telephone Service". The FCC adopted, but did not release, this item on December 20, 2006. This item is FCC 06-182 in CG Docket No. 03-123.

1/11. The U.S. District Court (NDIowa) sentenced Michael Millette to serve over three years in prison following his plea of guilty to conspiring to dispense Schedule III and Schedule IV controlled substances without a legitimate medical purpose and outside the usual course of medical practice. He prescribed controlled substances for distribution by internet based companies. The U.S. Attorneys Office (NDIowa) stated in a release that "Millette is the ninth doctor to be sentenced in the Northern District of Iowa's Internet pharmacy investigation". Three more await sentencing. While these prosecutions are being handled in Iowa, the defendants reside in locations around the U.S.

1/9.The House approved HR 1 by a vote of 229-128. See, Roll Call No. 15. All of the votes against the bill were cast by Republicans. See also, story titled "9/11 Commission Bill Includes Privacy and Civil Liberties Provisions" in TLJ Daily E-Mail Alert No. 1,515, January 8, 2007. The bill also addresses interoperable emergency communications grants. The Senate has taken no action on this bill.

1/8. The Supreme Court denied certiorari in Blue Cross Blue Shield v. Abbott Laboratories. The Supreme Court wrote that "The motion of Bluecross Blueshield of Massachusetts, et al. for leave to file a brief as amici curiae is granted. The motion of Law Professors Myriam Gilles and Guy Charles for leave to file a brief as amici curiae is granted. The petition for a writ of certiorari is denied." See, Order List [35 pages in PDF] at page 26, and Supreme Court docket. This lets stand the May 3, 2006, unpublished opinion [3 pages in PDF] of the U.S. Court of Appeals (11thCir). See also, story titled "11th Circuit Applies Antitrust Analysis to Agreements Regarding Patents" in TLJ Daily E-Mail Alert No. 740, September 16, 2003. This case is Blue Cross Blue Shield of Florida, Inc., et al. v. Abbott Laboratories, et al., Sup. Ct. No. 06-475, a petition for writ of certiorari to the U.S. Court of Appeals for the 11th Circuit, App. Ct. No. 05-14054. The Court of Appeals heard an appeal from an appeal from the U.S. District Court for the Southern District of Florida, D.C. No. 99-01317-MD-PAS.

1/8. The Office of the U.S. Trade Representative (OUSTR) announced that it has elevated Chile from its Watch List to its Priority Watch List as a result of its out of cycle Special 301 Review. Section 182 of the Trade Act of 1974 requires the USTR to identify countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. The OUSTR stated in a release that "Chile remains unwilling to address the concerns of patent holders, who report that Chile has authorized the marketing of patent-infringing pharmaceutical products and has failed to provide an appropriate and effective mechanism through which patent holders may seek to prevent marketing in such cases". The OUSTR also stated that there are "increased rates of pirated sound recordings, software and films, as well as an expansion of internet-based piracy". It added that "Chile is overdue in enacting legislation to implement certain intellectual property-related obligations reflected in the U.S.-Chile Free Trade Agreement (FTA)."

1/8. The National Telecommunications and Information Administration (NTIA) released a presolicitation notice regarding its Digital-to-Analog Converter Box Coupon Program.

1/8. The Progress and Freedom Foundation (PFF) released a short paper titled "Power Gridlock". It discusses the "insatiable energy needs of technology firms and creating adequate power supplies for the new economy". The authors are Raymond Gifford and Adam Peters.

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Washington Tech Calendar
New items are highlighted in red.
Thursday, January 11

The House will meet at 10:00 AM for legislative business. It will consider HR 3, a bill related to stem cell research. See, House Majority Leader's weekly calendar [PDF].

TIME? The Department of Homeland Security's (DHS) Homeland Security Advisory Council will hold a partially closed meeting. See, notice in the Federal Register, December 22, 2006, Vol. 71, No. 246, at Page 77039. Locations: the open portions of the meeting will be held in the Congressional Room, Lobby Floor, Hyatt Regency Washington, 400 New Jersey Ave., NW. The closed portions will be held in the Thornton Room of the Hyatt Regency Washington, and at an undisclosed location.

? 9:30 AM - 5:00 PM. The Antitrust Modernization Commission (AMC) will meet to "deliberate on its report and/or recommendations to Congress and the President regarding the antitrust laws." See, notice in the Federal Register, December 15, 2006, Vol. 71, No. 241, at Pages 75495-75496. Location: Morgan Lewis, Main Conference Room, 1111 Pennsylvania Ave., NW.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "Prescription Drug Pricing and Negotiation: An Overview and Economic Perspectives for the Medicare Prescription Drug Benefit". See, notice. Location: Room 215, Dirksen Building.

12:00 NOON - 1:30 PM. The DC Bar Association will host a program titled "Current Topics in Patent Law: Vanquishing the Patent Troll". The speakers will include Robert Resis (Banner & Witcoff). The price to attend ranges from $20 to $30. For more information, call 202-626-3463. See, notice. Location: DC Bar Conference Center, 1250 H St NW B-1 Level.

12:15 - 1:40 PM. The Federal Communications Bar Association's (FCBA) Transactional Practice Committee will host a brown bag lunch and fee based continuing legal education (CLE) seminar titled "Outsourcing Transactions". The FCBA stated that this lunch will address "Why do telecom companies do outsourcing transactions, what are they trying to accomplish, what issues arise in negotiating and drafting the agreements, and what are the best practices for addressing those issues?" The speakers will be Jonathan Spencer (VP and General Counsel of Shenandoah Telecommunications) and Glynna Christian (LeBoeuf Lamb). The price to attend ranges from $25 to $60. See, registration form [PDF]. Registrations and cancellations are due by 5:00 PM on January 9. For more information, contact Teresa Lloyd at tlloyd at llgm dot com or 202-986-8184 Location: Paul Hastings, 875 15th St., NW.

6:00 - 8:15 PM. The DC Bar Association will host a continuing legal education (CLE) seminar titled "Trade Secrets in the District of Columbia, Maryland and Virginia". The speakers will include Milton Babirak (Babirak Vangellow & Carr). The price to attend ranges from $80 to $135. For more information, call 202-626-3488. See, notice. Location: DC Bar Conference Center, 1250 H St NW B-1 Level.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its 7th Further Notice of Proposed Rulemaking in its proceeding titled "Advanced Television Systems and Their Impact Upon the Existing Television Broadcast Service". This item proposes a new DTV Table of Allotments providing all eligible stations with channels for DTV operations after the DTV transition. The FCC adopted this item on October 10, 2006, and released it on October 20, 2006. See, story titled "FCC Adopts NPRM Proposing New DTV Table of Allotments" in TLJ Daily E-Mail Alert No. 1,473, October 23, 2006. This item is FCC 06-150 in MB Docket No. 87-268. See, notice in the Federal Register, November 15, 2006, Vol. 71, No. 220, at Pages 66591-66631.

Extended deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the intercarrier compensation reform plan known at the Missoula Plan. This proceeding is titled "Developing a Unified Intercarrier Compensation Regime" and numbered CC Docket No. 01-92. See, notice in the Federal Register: September 13, 2006, Vol. 71, No. 177, at Pages 54008-54009, and extension notice in the Federal Register, December 6, 2006, Vol. 71, No. 234, at Pages 70709-70710.

Friday, January 12

TIME CHANGE. The House will meet at 9:00 AM for legislative business. It will consider HR 4, a bill related to prescription drugs. See, House Majority Leader's weekly calendar [PDF].

12:15 - 1:45 PM. The Federal Communications Bar Association's (FCBA) Legislative and Mass Media Practice Committees will host a brown bag titled "Media Ownership Issues in the 110th Congress". For more information, contact Amy Levine at amy dot levine at mail dot house dot gov or 225-3861. Location: undisclosed.

2:30 PM. The National Science Foundation's (NSF) National Science Board's (NSB) Vannevar Bush Award Committee will hold a closed meeting. The NSB's web site states that this is awarded for "public service activities in science and technology". See, notice in the Federal Register, December 22, 2006, Vol. 71, No. 246, at Page 77071. Location: teleconference and NSF, 4201 Wilson Blvd., Arlington, VA.

5:00 PM. Deadline to submit requests to the Copyright Office (CO) to participate in the January 31, 2007, meeting of the Section 108 Study Group in Chicago, Illinois. See, 17 U.S.C. § 108 and notice in the Federal Register, December 4, 2006, Vol. 71, No. 232, at Pages 70434-70440.

EXTENDED FROM DECEMBER 15. Extended deadline to submit initial comments to the Federal Communications Commission (FCC) to assist the Wireless Telecommunications Bureau (WTB) in drafting a report on the ability of persons with hearing disabilities to access digital wireless telecommunications. This proceeding is WT Docket No. 06-203. See, original FCC Public Notice [4 pages in PDF] (DA 06-2285) and Public Notice (DA 06-2498) extending deadlines.

Monday, January 15

Martin Luther King's Birthday.

The Federal Communications Commission (FCC) and other federal offices will be closed. See, Office of Personnel Management's (OPM) list of federal holidays and 5 U.S.C. § 6103.

The National Press Club will be closed.

Tuesday, January 16

11:00 AM - 12:00 NOON. The President's National Security Telecommunications Advisory Committee (NSTAC) will meet by teleconference. The "NSTAC members will receive comments from their DHS stakeholders related to National Security/Emergency Preparedness communications issues. The committee will also discuss and vote on the NSTAC's Emergency Communications and Interoperability Task Force Report, and discuss the work of the International Task Force". See, notice in the Federal Register, December 29, 2006, Vol. 71, No. 250, at Page 78451.

12:00 NOON. The Federal Communications Bar Association's (FCBA) International Telecommunications Committee will host a brown bag lunch titled "Results of the ITU Plenipotentiary Conference". The speakers will be John Kneuer (head of the NTIA) and David Gross (Department of State). For more information, contact Fiona Alexander at falexander at ntia dot doc dot gov. Location: Verizon, 1300 I Street, NW, Suite 400 West.

Second extended deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) regarding its media ownership rules. The FCC adopted this FNPRM on July 21, 2006, and released the text [36 pages in PDF] on July 24, 2006. See also, story titled "FCC Adopts FNPRM on Rules Regulating Ownership of Media" in TLJ Daily E-Mail Alert No. 1,397, June 22, 2006. This FNPRM is FCC 06-93 in MB Docket No. 02-277, MM Docket No. 01-235, MM Docket No. 01-317, MM Docket No. 00-244, and MB Docket Nos. 06-121. See also, original notice in the Federal Register, August 9, 2006, Vol. 71, No. 153, at Pages 45511-45515, order [PDF] extending deadlines, and order [PDF] further extending reply comment deadline.

Deadline to submit reply comments to the Office of the US Trade Representative regarding the operation, implementation and effectiveness of all trade agreements regarding telecommunications products and services to assist it in preparing its annual Section 1377 report. See, notice in the Federal Register, November 15, 2006, Vol. 71, No. 220, at Pages 66563-66564.

Wednesday, January 17

The House will meet. It may consider legislation related to student loans.

9:00 AM - 4:00 PM. Day one of a two day public meeting of the Federal Accounting Standards Advisory Board (FASAB). See, notice in the Federal Register, July 12, 2006, Vol. 71, No. 133, at Pages 39318. Location: Room 7C13, GAO Building, 441 G St., NW.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Aviation Security -- Reviewing the Recommendations of the 9/11 Commission". See, notice. Location?

12:00 NOON - 2:00 PM. The DC Bar Association will host a panel discussion titled "A Practitioner’s Guide to the CFIUS Review Process". The speakers will include Michael Gallagher (Perkins Coie), Lynn Charytyn (Wilmer Cutler), Kent Bressie (Harris Wiltshire & Grannis), Christopher Simkins (DOJ's Criminal Division), Theodore Kassinger (O’Melveny & Myers), Carolyn Brandon (CTIA-The Wireless Association), and Jonathan Frankel (Wilmer Cutler). The price to attend ranges from $15 to $20. For more information, call 202-626-3463. See, notice. Location: DC Bar Conference Center, 1250 H St NW B-1 Level.

12:30 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host a planning and organizational meeting. For more information, contact Chris Fedeli at chrisfedeli at dwt dot com or 202-828-9874. Location: Davis Wright Tremaine, 1919 Pennsylvania Ave., NW, Suite 200.

1:00 - 3:30 PM. The Environmental Protection Agency (EPA) will hold a meeting to solicit comments and feedback on its project to share and publish information on locations of environmental interest through commercial internet services. The meeting agenda includes "Presentation on EPA's Geospatial Data Access Project" and "Presentation on the XML Schema and Tag Definitions". See, notice in the Federal Register, December 26, 2006, Vol. 71, No. 247, at Page 77395. Location: EPA, 1 Potomac Yard, First Floor Conference Center, 2777 Crystal Drive, Arlington, VA.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the petition for declaratory ruling filed by One Stop Financial, Inc., Group Discounts, Inc., 800 Discounts, Inc., and Winback & Conserve Program, Inc. pertaining to the AT&T tariff at issue, and "any other issues left open by the D.C. Circuit’s Opinion in AT&T Corp. v. FCC", 394 F.3d 933. This proceeding is WC Docket No. 06-210. See, FCC Public Notice [3 pages in PDF] (DA 06-2360).

Thursday, January 18

The House will meet. It may consider energy related legislation.

9:00 AM - 4:00 PM. Day two of a two day public meeting of the Federal Accounting Standards Advisory Board (FASAB). See, notice in the Federal Register, July 12, 2006, Vol. 71, No. 133, at Pages 39318. Location: Room 7C13, GAO Building, 441 G St., NW.

10:00 AM. The Senate Banking Committee will hold its organizational meeting for the 110th Congress. See, notice. Location: Room 538, Dirksen Building.

10:00 AM. The President's Export Council will meet. The deadline to register to attend is January 12, 2007. See, notice in the Federal Register: December 26, 2006, Vol. 71, No. 247, at Page 77386. Location: Department of Commerce, Room 4832, 1401 Constitution Ave., NW.

12:00 PM. The Cato Institute will host a book forum. The speakers will by Jim Harper (author of Identity Crisis: How Identification Is Overused and Misunderstood), James Lewis (Center for Strategic and International Studies), and Jay Stanley (American Civil Liberties Union). See, notice. Lunch will follow the program. Location: Cato, 1000 Massachusetts Ave., NW.

12:00 NOON. The Federal Communications Bar Association (FCBA) will host a lunch. The speaker will be FCC Commissioner Michael Copps. The deadline to register is 5:00 PM on January 12. See, registration form [PDF]. Location: Capital Hilton Hotel, 1001 16th St., NW.