2/20. The Federal Communications Commission (FCC) announced, but did not release, an order that conditionally grants in part and denies in part the petition for forbearance filed by Qwest Communications International seeking relief from statutory and regulatory obligations that apply to Qwest’s provision, on an integrated basis, of in-region, interstate, interLATA telecommunications services.

This forthcoming order conditionally grants forbearance to allow Qwest to provide long distance services on an integrated basis and subject to non-dominant carrier regulations.

The FCC released a Public Notice [6 pages in PDF] that describes this forthcoming order. This is DA 07-12 in WC Docket No. 05-333.

The FCC wrote in this notice that "In order to avoid dominant carrier regulation of its in-region, interstate, interLATA services, Qwest currently must provide these services through separate affiliates that meet the requirements of section 272 of the Communications Act and the Commission’s implementing rules. The Commission’s Order conditionally allows Qwest to provide these services through its BOC or through other Qwest affiliates that do not comply with section 272 or the Commission’s rules implementing that section, without those services becoming subject to dominant carrier regulation." (Footnote omitted.)

FCC Commissioners Jonathan Adelstein and Michael Copps wrote in a joint concurring statement [PDF] that they support the order because the FCC "must take into account the rapidly changing long distance market and the unique competitive position of the petitioner", but that they merely concur because "we remain concerned that the Commission has not completed its industry-wide review of these issues and does not have in place a comprehensive mechanism for monitoring changes in the marketplace (e.g., in the long distance, wireless, and access markets) that would enable the Commission to reliably make decisions in this area." (Parentheses in original.)

Qwest's Gary Lytle stated in a release that "With this historic, unanimous vote, the FCC recognized that competition in Qwest's service territory is thriving. We applaud the FCC for freeing us from legacy requirements imposed on our long-distance service that had hindered our ability to deliver service to customers."

Lytle added that "Consumers benefit from the robust communications marketplace where cable, wireless, VoIP and other long-distance providers compete for their business. Residential, government, and business customers will realize improved services and cost savings as a result."

Randy May of the Free State Foundation, a group that advocates free markets and deregulation, wrote in a release that this decision is appropriate, and that the FCC should use its forbearance authority more often.

May added this: "doesn't the notion of having a plethora of regulatory requirements based on a distinction between ``long distance´´ and ``local´´ services seem outdated in an era when people increasingly buy buckets of minutes priced irrespective of distance? Not only do the cellular, cable, and VoIP providers sell plans with buckets of ``anywhere´´ minutes, so do the telephone companies. Most people under thirty don't even know what you mean if you say, ``I'm going to make a long distance call.´´"

2/20. The Securities and Exchange Commission (SEC) filed a civil complaint [PDF] in U.S. District Court (DC) against Veritas Software alleging Section 10b fraud, and other violations of federal securities laws, in connection with its alleged inflated reporting of revenues.

The SEC simultaneously announced in a release that it settled the case with Veritas. In this settlement, Veritas admits no wrong doing, pays no fine, and merely consents to entry of a judgment enjoining it from violating federal securities laws.

The complaint alleges that Veritas "artificially inflated reported revenues in connection with a $20 million round-trip transaction with America Online, Inc. ("AOL") and smaller round-trip transactions with two other Internet companies in 2000. In addition, to produce what it believed were exceptional or "museum quality" financial results, Veritas systematically manipulated its financial results through 2002 by (a) periodically recording and maintaining excess accrued liabilities or cushions in its accrual accounts; (b) cutting off professional service revenue upon reaching internal targets; and (c) inflating its deferred revenue balance."

It adds that Veritas reported materially false and misleading financial results in periodic reports filed with the SEC.

The four count complaint alleges:

• fraud in violation of Section 10b of the Exchange Act, and rule 10b-5 thereunder, and Section 17 of the Securities Act.
• reporting violations under of Section 13 of the Exchange Act, and rules thereunder.
• record keeping violations under Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and rules thereunder.
• aiding and abetting fraud in violation of Section 10b of the Exchange Act, and rule 10b-5 thereunder.

This case is Securities and Exchange Commission v. Veritas Software Corporation, U.S. District Court for the District of Columbia, D.C. No. 1:07CV00364, Judge Ricardo Urbino presiding.

2/22. A trial jury of the U.S. District Court (SDCal) returned a Special Verdict Form [PDF] in Lucent v. Microsoft, finding patent infringement by Microsoft, and awarding $1.52 Billion in damages to Lucent, which is now Alcatel-Lucent.

Tom Burt, Microsoft's Deputy General Counsel, stated in a release that "We think this verdict is completely unsupported by the law or the facts. We will seek relief from the trial court, and if necessary appeal." He added that "Like hundreds of other companies large and small, we believe that we properly licensed MP3 technology from its industry recognized licensor -- Fraunhofer. The damages award seems particularly outrageous when you consider we paid Fraunhofer only $16 million to license this technology." Burt also stated that "today's outcome is disappointing for us and for the hundreds of other companies who have licensed MP3 technology. We are concerned that this decision opens the door for Alcatel-Lucent to pursue action against hundreds of other companies who purchased the rights to use MP3 technology from Fraunhofer, the industry-recognized rightful licensor."

This case is Lucent Technologies, Inc., and Multimedia Patent Trust v. Microsoft Corporation, et al., U.S. District Court for the Southern District of California, D.C. Nos. 02cv2060-B, 03cv0699-B, and 03cv1108-B.

2/22. Secretary of Commerce Carlos Gutierrez gave a speech in Washington DC to the U.S.-India High Technology Cooperation Group.

Guitierrez (at right), who just returned from a trip to India, stated that "I talked with government business leaders about opening India's market further, and forging ahead with a reform agenda to attract more investment and maintain the strong pace of growth."

He reviewed the relaxation of US controls on exports to India. He also said that "There are other reforms -- opening markets in sectors where obstacles remain, further reducing tariffs and getting tougher on enforcing IPR and protecting IP and pharmaceutical test data -- that will benefit India's economy and consumers, while maintaining the current growth trajectory."

He also discussed Doha round trade negotiations. He said that "In my meetings in India , I stressed the importance of India's full participation in the Doha round of global trade talks. Simply put: India's leadership is required to achieve an agreement. India has a tremendous opportunity to play an active and positive role in pushing these talks ahead. We are willing to make difficult choices. But we have a shared responsibility to make the round a success."

He also said that "we ... are working with the new Congress to renew President Bush's Trade Promotion Authority, which is currently set to expire at the end of June."

2/22. The National Telecommunications and Information Administration (NTIA) and the Department of Homeland Security (DHS) released a memorandum of understanding [PDF] regarding implementation of a public safety interoperable communications grant program. The NTIA wrote in a release that this MOU provides that the "DHS’s Office of Grants and Training will provide grants management services to NTIA for the PSIC grant program. DHS, among other things, will: (1) develop policies, procedures and regulations to govern the PSIC program; (2) develop a timetable to complete actions so that grants may be awarded by the established dates; (3) develop and distribute program application and guidance materials; (4) publicize the availability of grant opportunities; (5) provide technical assistance to applicants; (6) notify recipients of grant awards; (7) award grant funds by September 30, 2007; and (8) conduct site visits to verify progress and completion of funded projects." This grant program was created by the Digital Television Transition and Public Safety Act of 2005, which was Section 3006 of the Deficit Reduction Act of 2005, which is now Public Law No. 109-171. The MOU was executed on February 16, and released on February 22.

Tech Law Journal publishes a free access web site and subscription e-mail alert. The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year. However, there are discounts for subscribers with multiple recipients. Free one month trial subscriptions are available. Also, free subscriptions are available for journalists, federal elected officials, and employees of the Congress, courts, and executive branch. The TLJ web site is free access. However, copies of the TLJ Daily E-Mail Alert are not published in the web site until one month after writing. See, subscription information page.

Contact: 202-364-8882.
P.O. Box 4851, Washington DC, 20008.

Privacy Policy
Notices & Disclaimers
Copyright 1998 - 2006 David Carney, dba Tech Law Journal. All rights reserved.

The House will not meet on the week of February 19-23. See, House 2007 calendar.

The Senate will not meet on the week of February 19-23. See, Senate 2007 calendar.

8:30 AM - 5:30 PM. The U.S.- China Economic and Security Review Commission will meet. See, notice in the Federal Register, February 12, 2007, Vol. 72, No. 28, at Pages 6668-6669. Location: Room 562 Dirksen Building, Capitol Hill.

10:00 - 11:30 AM. The Heritage Foundation and the Center for Strategic and International Studies (CSIS) will host a panel discussion titled "Listening For Terrorists: Surveillance Program - Lessons Learned and the Way Ahead". The speakers will be Mary DeRosa (CSIS), Todd Gaziano (Heritage), Suzanne Spaulding (Bingham Consulting Group), John Yoo (UC Berkeley School of Law, and author of book [Amazon] titled "War by Other Means: An Insider's Account of the War on Terror"), and James Carafano (Heritage). See, notice. Location: Heritage, Massachusetts Ave., NE.

12:00 NOON - 2:00 PM. The DC Bar Association, Federal Communications Bar Association's (FCBA) Communications Law, Copyright & Digital Rights Management Practice Committee, and the D.C. Chapter of the Copyright Society of the United States will host a brown bag lunch titled "Digital Rights Management and Copy Protection Issues". The speakers will be Adam Goldberg (Pioneer North America), Rob Kasunic (U.S. Copyright Office), Ryan Triplette (Senate Judiciary Committee), Troy Dow (Walt Disney, Co.), Natalie Roisman (moderator, Akin Gump). RSVP to Ben Golant at bgol at loc dot gov or 202-707-9127. See, DC Bar notice. Location: DC Bar Conference Center, B-1, 1250 H St., NW.

12:00 NOON - 2:00 PM. The New America Foundation (NAF) will host a panel discussion titled "Wireless Future: What is the Best Way to Bring Ubiquitous Broadband Access to All Americans?". The speakers will be John Muleta (M2Z Networks), Morgan O'Brien (Cyren Call), Chris Guttman-McCabe (CTIA - The Wireless Association), Ben Scott (Free Press), John Scrivner (Wireless Internet Service Providers Association), and Michael Calabrese (NAF). Lunch will be served. See, notice. Location: Room 385, Russell Building, Capitol Hill.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to the Petition for Declaratory Ruling [8 pages in PDF] regarding number portability submitted by T-Mobile USA and Sprint Nextel Corporation on December 20, 2006. They seek a declaratory ruling that carriers obligated to provide number portability may not obstruct or delay the porting process by demanding information from requesting carriers beyond that required to validate the customer request and accomplish the port. See, FCC's Public Notice [3 pages in PDF] (DA 07-39). This proceeding is WC Docket No. 95-116.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the National Exchange Carrier Association's (NECA) proposed modification of average schedule formulas for interstate settlements. See, FCC's Public Notice [PDF] (DA 07-306). This proceeding is WC Docket No. 06-223.

5:00 PM. Deadline to submit comments to the Office of the U.S. Trade Representative (OUSTR) regarding the adequacy and effectiveness of intellectual property rights (IPR) protection and enforcement at the provincial level in the People's Republic of China. The OUSTR is particularly interested in details about Beijing City, Fujian Province, Guangdong Province, Jiangsu Province, Shanghai City, and Zhejiang Province. See, notice in the Federal Register, January 24, 2007, Vol. 72, No. 15, at Pages 3170-3171.

Deadline to submit written comments to the Federal Trade Commission (FTC) regarding its January 25, 2007, workshop on online marketing of negative options. See, FTC release and notice [PDF] to be published in the Federal Register.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Ninth Notice of Proposed Rulemaking in its proceeding titled "Implementing a Nationwide, Broadband, Interoperable Public Safety Network in the 700 MHz Band". The FCC adopted this item at its December 20, 2006, meeting. It is FCC 06-181 in PS Docket No. 06-229 and WT Docket No. 96-86. See, FCC's Public Notice [3 pages in PDF] (DA 07-41) and notice in the Federal Register, January 10, 2007, Vol. 72, No. 6, at Pages 1201-1204.

Extended deadline to submit reply 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. See, FCC's notice of extention [2 pages in PDF] (DA 07-38) and notice in the Federal Register, January 26, 2007, Vol. 72, No. 17, at Page 3777.

Deadline to submit reply comments to the Federal Communications Commission's (FCC) Media Bureau (MB) in response to its 7th Further Notice of Proposed Rulemaking regarding revisions to the proposed new DTV table of allotments. See, notice in the Federal Register, January 19, 2007, Vol. 72, No. 12, at Pages 2485-2487. This 7thFNPRM is FCC 06-150 in MB Docket No. 87-268.

Deadline to submit initial comments to the Federal Communications Commission's (FCC) Wireless Telecommunications Bureau (WTB) regarding the request submitted by Hand Held Products for a determination that the hearing aid compatibility obligations in Part 20 do not apply to its mobile computing line of devices. See, FCC's Public Notice [PDF] (DA 07-103). This proceeding is WT Docket No. 01-309.

9:00 AM - 4:45 PM. Day one of a two day meeting of the Department of Energy's (DOE) Advanced Scientific Computing Advisory Committee. See, notice in the Federal Register, February 12, 2007, Vol. 72, No. 28, at Pages 6547-6548. Location: American Geophysical Union, 2000 Florida Ave., NW.

Day two of a two day meeting of the Department of Energy's (DOE) Advanced Scientific Computing Advisory Committee. See, notice in the Federal Register, February 12, 2007, Vol. 72, No. 28, at Pages 6547-6548. Location: American Geophysical Union, 2000 Florida Ave., NW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Comprehensive Immigration Reform". The witnesses will be Attorney General Alberto Gonzales and Secretary of Homeland Security Michael Chertoff. Location: Room 216, Hart Building.

11:30 AM. The Federal Communications Bar Association's (FCBA) HLS/Emergency Communications Committee will host a brown bag lunch. The speaker will be David Boyd (Director, Command, Control and Interoperability in the Department of Homeland Security). For more information, contact Robert Gurss at gurssr at apcomail dot org or 202-833-3800  Location: Akin Gump, 1133 New Hampshire Ave., NW.

2:00 PM. The House Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will hold a hearing titled "H.R. 251, the Truth in Caller ID Act of 2007". See, HR 251. Location: Room 2322, Rayburn Building.

3:00 PM. The House Judiciary Committee's (HCC) Antitrust Task Force will hold a hearing titled "Competition and the Future of Digital Music". This hearing will examine the proposed XM Sirius merger. See, notice and release. Location: Room 2141, Rayburn Building.

Extended deadline to submit comments to the Federal Bureau of Investigation's (FBI) Electronic Surveillance Technology Section (ESTS) regarding its Communications Assistance for Law Enforcement Act of 1994 (CALEA) related cost recovery process information collection activities. See, original notice in the Federal Register, November 29, 2006, Vol. 71, No. 229, at Pages 69146-69147, which set the original comment deadline of January 29, 2007, and notice of extension in the Federal Register, January 29, 2007, Vol. 72, No. 18, at Pages 4045-4046.

5:00 PM. Deadline to submit comments to the National Institute of Standards and Technology (NIST) regarding its Draft Special Publication 800-104 [9 pages in PDF] titled "A Scheme for PIV Visual Card Topography". It contains recommendations for federal agencies in the color coding of Personal Identity Verification (PIV) Cards.

LOCATION CHANGE. 10:00 AM. The Senate Judiciary Committee (SJC) may hold a business meeting. The agenda includes consideration of S 236, the "Federal Agency Data Mining Reporting Act of 2007", and S 316, the "Preserve Access to Affordable Generics Act", a bill to prohibit brand name drug companies from compensating generic drug companies to delay the entry of a generic drug into the market. The agenda also includes consideration of several judicial nominees: Thomas Hardiman (to be a Judge of the U.S. Court of Appeals for the 3rd Circuit), John Preston Bailey (U.S.D.C., Northern District of West Virginia), Otis Wright (U.S.D.C., Central District of California), and George Wu (U.S.D.C., Central District of California). The SJC rarely follows its published agendas. Press contract, Tracy Schmaler (Leahy) at 202-224-2154 or Courtney Boone (Specter) at Courtney_Boone at judiciary-rep dot senate dot gov or 202-224-2984. See, notice. Location: Room S-216, Capitol Building.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Universal Service". See, notice. Location: Room 253, Russell Building.

10:00 AM - 1:00 PM. The Progress and Freedom Foundation (PFF) will host an event titled "Universal Service Reform: Are Reverse Auctions the Answer?". The speakers will be Shyamal Ghosh (former Director of the Indian Department of Telecommunications), Paul Milgrom (Stanford University), Vernon Smith (George Mason University), and Dennis Weller (Chief Economist of Verizon). See, notice. Location: Oriental Ballroom B, Mandarin Oriental Hotel, 1330 Maryland Ave., SW.

10:30 AM (or 15 minutes after the conclusion of a full Committee markup scheduled for 10:00 AM). The House Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will hold a hearing titled "Digital Future of the United States: Part I -- The Future of the World Wide Web". Location: Room 2123, Rayburn Building.

11:30 AM - 1;00 PM. The U.S. Chamber of Commerce (USCC) will host a lunch titled "The Sarbanes Oxley Act with Michael Oxley". See, notice. For more information, contact Patrick O'Neill at poneill at uschamber dot com or 202-463-3104. Location: USCC, 1615 H St., NW.

12:00 PM. Secretary of the Treasury Henry Paulson will give a speech on trade at an event hosted by the Economic Club of Washington (ECW). See, Treasury notice. Press contact: Judi Irastorza (ECW) at pcom2 at cox dot net or 703-765-6881. Location: Renaissance Mayflower Hotel, Grand Ballroom, 1127 Connecticut Ave., NW.

Deadline for local exchange carriers, providers of wired or wireless broadband connections, and non-reseller CMRS providers to submit Form 477 [MS Excel] to the Federal Communications Commission (FCC). See, FCC's Public Notice [PDF] (DA 07-117) and FCC's Form 477 instructions [17 pages in PDF].

Deadline to submit to the Federal Communications Commission's (FCC) Wireless Telecommunications Bureau (WTB) the sixth annual reports from the 700 MHz Guard Band Managers and the fifth annual report from Access 220, LLC, a 220 MHz Band Manager. See, FCC's Public Notice [PDF] (DA 07-107).

12:00 NOON - 1:30 PM. The Federal Communications Bar Association's (FCBA) Cable Committee will host a brown bag lunch titled "The Future of Program Access Regulation". For more information, contact Daphney Sheppard at dsheppard at sidley dot com or 202-736-8019. Location: Sidley Austin, 6th floor, 1501 K St., NW.

12:00 NOON - 1:30 PM. The U.S. Chamber of Commerce (USCC) will host an event titled "Sarbanes-Oxley: Costs, Benefits, and the Ongoing Debate". For more information, contact Henrietta Treyz at 202-463-5864 or htreyz at uschamber dot com. See, notice. Location: Room 2158 (Gold Room), Rayburn Building, Capitol Hill.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) in its TV white space proceeding. This FNPRM is FCC 06-156 in ET Docket Nos. 04-186 and 02-380. The FCC adopted this item at an October 12, 2006, meeting, and released it on October 18, 2006. See, story titled "FCC Adopts Order and FNPRM Regarding TV White Space" in TLJ Daily E-Mail Alert No. 1,467, October 12, 2006, and notice in the Federal Register, November 17, 2006, Vol. 71, No. 222, at Pages 66897-66905.