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April 16, 2007, Alert No. 1,565.
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FCC Fines Radio Broadcast Companies for Selling Airtime

4/13. The Federal Communications Commission (FCC) released a set of four orders that adopt consent decrees negotiated by the FCC and broadcast companies. The FCC fined four radio broadcast companies for engaging in commercial transactions in which radio broadcasters exchanged the broadcast of music recordings for consideration from record companies.

These orders adopting consent decrees require the payment of fines (that is, impose "voluntary contributions") of $3,000,000 on CBS, $2,000,000 on Citadel Broadcasting, $3,500,000 on Clear Channel Communications, and $4,000,000 on Entercom Communications.

In each of these orders adopting consent decrees the FCC agrees to terminate its investigation. In return, the broadcast companies agreed that it "takes seriously its responsibilities as a licensee", and agreed to implement various business practices with respect to sponsorship identification.

Robert McDowell wrote in his statement accompanying these orders that the FCC "takes seriously its responsibility to enforce the law governing sponsorship identification".

Chairman Kevin Martin wrote in his statement that the FCC "will not tolerate non-compliance with its rules".

Commissioner Jonathan Adelstein asserted in his statement that this "ends an era of laissez faire pay-for-play".

Commissioner Michael Copps used this occasion to rail against both the business practices of broadcast coompanies, and concentration of ownership of broadcasters. He wrote that "Musical genius in this country runs deep and wide. But, by and large, our airwaves do not reflect it. Concentration of radio ownership has ushered in a new and especially challenging age of payola."

See, CBS Radio order [19 pages in PDF], Citadel Broadcasting order [19 pages in PDF], Clear Channel Communications order [19 pages in PDF], and Entercom Communications order [PDF].

Copyright Office Announces Notice of Inquiry Regarding Cable and Satellite Statutory Licenses

4/16. The Copyright Office (CO) published a notice in the Federal Register that announces, describes and sets comment deadlines for a Notice of Inquiry (NOI) regarding the operation of, and continued necessity for, the cable and satellite statutory licenses under the Copyright Act.

See, Federal Register, April 16, 2007, Vol. 72, No. 72, at Pages 19039-19055. Written comments are due by July 2, 2007. Reply comments are due by September 13, 2007.

The CO is required to make recommendations to the Congress by the Satellite Home Viewer Extension and Reauthorization Act of 2004 (SHVERA), which was enacted into law as part of HR 4818 (108th Congress), the Consolidated Appropriations Act of 2004. This is now Public Law No. 108-447. The SHVERA requires the CO to offer its legislative recommendations by June 30, 2008.

The CO also announced in this notice that it will "hold hearings on matters raised in this NOI later this year to further supplement the record".

There are three statutory licenses in the Copyright Act that govern the retransmission of distant and local broadcast station signals.

There is a cable statutory licensed, which is codified at 17 U.S.C. § 111, that permits a cable operator to retransmit both local and distant radio and television signals to its subscribers who pay a fee for such service. There is a satellite carrier statutory license, which is codified at 17 U.S.C. § 119, that permits a satellite carrier to retransmit distant television, but not radio, signals to its subscribers for private home viewing as well as to commercial establishments. There is also a satellite carrier statutory license, which is codified at 17 U.S.C. § 122, that permits satellite carriers to retransmit local television, but not radio, signals into the stations' local market on a royalty free basis.

Section 109 of the SHVERA requires the CO to provide to the two Judiciary Committees its "findings and recommendations on the operation and revision" of these three statutory licenses.

The SHVERA requires the CO to make "A comparison of the royalties paid by licensees under such sections, including historical rates of increases in these royalties, a comparison between the royalties under each such section and the prices paid in the marketplace for comparable programming."

It also requires "An analysis of the differences in the terms and conditions of the licenses under such sections, an analysis of whether these differences are required or justified by historical, technological, or regulatory differences that affect the satellite and cable industries, and an analysis of whether the cable or satellite industry is placed in a competitive disadvantage due to these terms and conditions."

It also requires "An analysis of whether the licenses under such sections are still justified by the bases upon which they were originally created."

It also requires "An analysis of the correlation, if any, between the royalties, or lack thereof, under such sections and the fees charged to cable and satellite subscribers, addressing whether cable and satellite companies have passed to subscribers any savings realized as a result of the royalty structure and amounts under such sections."

Finally, it requires "An analysis of issues that may arise with respect to the application of the licenses under such sections to the secondary transmissions of the primary transmissions of network stations and superstations that originate as digital signals, including issues that relate to the application of the unserved household limitations under section 119 of title 17, United States Code, and to the determination of royalties of cable systems and satellite carriers."

Trade Officials Discuss Doha Round Negotiations

4/16 Numerous government officials responsible for trade and commerce issues attended meeting, issued statements, and gave speeches regarding Doha round trade negotiations in the past four days.

Susan Schwab, the head of the Office of the U.S. Trade Representative (OUSTR), traveled to India to promote Doha round trade negotiations. Negotiations stalled last year, in part over continuing insistence by developing nations, including India, in protecting their agricultural sectors.

Schwab gave a speech [5 pages in PDF] in New Dehli on April 13, 2007, in which she acknowledged the importance of India to conclusion of successful negotiations. She argued that India has much to gain from free trade in all sectors.

She also praised India's recent action regarding telecom foreign direct investment (FDI). She said that "The Indian Government recently announced its guidelines for increasing FDI in the telecommunications sector to 74% -- opening the way for partnerships with U.S. companies and fueling the continued growth of India’s telecommunications infrastructure."

Schwab also met with her counterpart, Kamal Nath, India's Minister of Commerce and Industry. See also, USTR release.

Nath then traveled to the People's Republic of China (PRC), where he met with Bo Xilaio, the PRC's Minister of Commerce. On April 16, the two issued a Joint Ministerial Statement regarding Doha round trade negotiations.

It states that "the major issue holding back and impeding the progress in Round is the lack of movement by the developed countries in terms of early removal of distortions, caused by huge subsidies and significant market access barriers in developed countries. They were categorical that unless the outcome of the negotiations upholds the proposals of developing countries resulting in real and effective reduction of trade distorting domestic support coupled with meaningful disciplines, substantial improvement in market access by developed countries and eliminations of all form of export subsidies the aspirations of the developing countries, as built in the mandate, will not be fulfilled."

Meanwhile, on April 16, Hu Xiaolian, Deputy Governor of the People's Bank of China, in Washington DC for World Bank and International Monetary Fund meetings, stated that "With trade protectionism pressures growing, measures taken by certain countries -- under the pretext of righting global imbalances -- will hinder the trade liberalization process". She added that nations should "resolutely oppose protectionism, promote progress in the Doha Round". See, PRC Ministry of Commerce release.

On April 15, Henry Paulson, the Secretary of the Treasury, issued a statement at the World Bank Development Committee Meeting in Washington DC. He wrote that "We need to continue pushing forward on the trade agenda, including a successful Doha Round of negotiations, to keep all our economies growing. The case for trade liberalization is clear and compelling. And if we want more people to support it, we need to ease anxieties and help more people realize the benefits of trade. The Aid for Trade agenda launched at the Hong Kong Ministerial can help allay these fears."

Pascal LamyPascal Lamy (at right), Director General of the World Trade Organization (WTO), gave a speech at the International Monetary and Financial Committee (IMFC) Meeting in Washington DC on April 15.

He said that "The decision by WTO Members in February to resume the Doha trade negotiations across the board has not yet led to the incisive breakthrough needed in order to bring the Round to a successful conclusion by the end of this year." He argued that "Failure of the Round would strip the global economy of one of its most powerful and enduring sources of strength and stability."

He added that "Sending out a message that the Doha Round cannot be completed would undermine the system and weaken the ability of member governments, individually and collectively, to stand firm against trade protectionism."

See also, Lamy's April 15, 2007, speech to the World Bank Development Committee Meeting in Washington DC.

People and Appointments

4/16. The Federal Trade Commission (FTC) issued a release that announces several recent appointments and promotions. The FTC previously announced some of these appointments and promotions. The FTC again stated that Karen Grimm was appointed Assistant General Counsel for Policy Studies in the Office of General Counsel (OGC). She previously worked for the law firm of Sutherland Asbill & Brennan. She specialized in antitrust and ATM and other payment system networks. Shira Minton was promoted to Assistant General Counsel for Ethics in the OGC. Suzanne Michel was promoted to Assistant Director of the Bureau of Competition's (BOC) Office of Policy and Coordination (OPC). She has worked on intellectual property issues. James Mongoven was promoted to Deputy Assistant Director of the OPC. Norman Armstrong was appointed Counsel to the Director of the BOC; he was previously a staff attorney in the Mergers I Division. Sarah Friedman was appointed Counsel to the Director of the BOC; she was previously a staff attorney in the Mergers IV Division. Patricia Bak was appointed Counsel to the Director of the Bureau of Consumer Protection (BCP). Thomas Pahl was appointed Assistant Director in the BCP's Division of Financial Practices.

4/13. Federal Communications Commission (FCC) Commissioner Michael Copps announced in a release that John Branscome, "who has been detailed to his office to assist in spectrum and international issues, will be returning to be Chief of the FCC’s Spectrum and Competition Policy Division".

4/12. The Senate Judiciary Committee approved the nomination of Halil Suleyman Ozerden to be a Judge of the U.S. District Court for the Southern District of Mississippi.

4/11. The Senate confirmed James Clapper to be under Secretary of Defense for Intelligence.

More News

4/16. The U.S. Patent and Trademark Office (USPTO published a notice in the Federal Register that announces, describes, recites, and sets the effective date (May 16, 2007) for, its revisions to its rules of practice relating to ex parte and inter partes reexamination. See, Federal Register, April 16, 2007, Vol. 72, No. 72, at Pages 18892-18907.

4/16. The U.S. Patent and Trademark Office (USPTO published a notice in the Federal Register that announces, describes, recites, and sets the effective date (May 16, 2007) for, its revision to its rules of practice to change the address for correspondence with the USPTO's Madrid Processing Unit. See, Federal Register, April 16, 2007, Vol. 72, No. 72, at Pages 18907-18909.

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Washington Tech Calendar
New items are highlighted in red.
Monday, April 16

The House will return from recess at 2:00 PM. It will consider several non-technology related items under suspension of the rules. Votes will postponed until 7:00 PM. See, Rep. Hoyer's weekly calendar.

The Senate will meet at 2:00 PM. It will resume consideration of of S 372, the Intelligence Authorization Act for Fiscal Year 2007.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) in response to its notice of proposed rulemaking regarding amending 37 CFR 2.64 to require a request for reconsideration of an examining attorney's final refusal or requirement to be filed through the Trademark Electronic Application System (TEAS) within three months of the mailing date of the final action. See, notice in the Federal Register, February 14, 2007, Vol. 72, No. 30, at Pages 6984-6986.

Tuesday, April 17

The House will meet at 10:30 AM for morning hour, and at 12:00 NOON for legislative business. The House will consider numerous items under suspension of the rules, including HR 1677, the "Taxpayer Protection Act of 2007". This bill provides, in part, that if the IRS learns "in the course of an investigation under section 7206 (relating to fraud and false statements) or 7207 (relating to fraudulent returns, statements, or other documents)" that "there may have been an unauthorized use of the identity of the taxpayer or dependents", then the IRS shall "as soon as practicable and without jeopardizing such investigation, notify the taxpayer of such determination". See, Rep. Hoyer's weekly calendar.

8:30 - 10:30 PM. The DC Bar Association will host a lecture titled "Entertainment Law: The Year In Review". The speaker will be Stan Soocher (University of Colorado at Denver). The price to attend ranges from $20 to $37.50. For more information, call 202-626-3463. See, notice. Location: DC Bar Conference Center, 1250 H St NW B-1 Level.

? 10:00 AM. The House Appropriations Committee's (HAC) Subcommittee on Financial Services will hold a hearing on the FY 2008 budget for the Federal Communications Commission (FCC). The witness will be FCC Chairman Kevin Martin. See, HAC calendar. Location: Room 2220, Rayburn Building.

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

ROOM CHANGE. 10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Department of Justice Oversight". The witness will be Attorney General Alberto Gonzales. 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 216, Hart Building.

11:00 AM. The Cato Institute will host a panel discussion titled "Calm before the Storm? Developments in U.S. Trade Remedy Laws". The speakers will be Rep. Phil English (R-PA), David Hartquist (Committee to Support U.S. Trade Laws), Daniel Porter (Vinson & Elkins), and Daniel Ikenson (Cato). See, notice. Lunch will be served after the program. Location: Cato, 1000 Massachusetts Ave., NW.

12:00 NOON. Deputy Secretary of the Treasury Robert Kimmitt will give a speech titled "U.S.-Japan Economic Relationship". Location: Room 325, Russell Building (Caucus Room).

12:30 PM. Rep. Charles Rangel (D-NY), Chairman of the House Ways and Means Committee, will give a speech. Location: National Press Club, 529 14th St. NW, 13th Floor.

TIME? The Computer and Communications Industry Association (CCIA) will host an event titled "Policy in a New Congressional Environment". Location: Willard Intercontinental Hotel.

Day one of a three day workshop hosted by the National Institute of Standards and Technology (NIST) and others titled "6th Annual PKI R&D Workshop: Applications-Driven PKI (It's The Apps, Stupid!)". See, notice. Location: NIST, Red Auditorium, 100 Bureau Drive, Gaithersburg, MD.

TIME? The Department of Defense's (DOD) Defense Science Board Task Force on Integrating Sensor-Collected Intelligence will meet in closed session regarding intelligence, surveillance and reconnaissance systems. See, notice in the Federal Register, April 2, 2007, Vol. 72, No. 62, at Page 15659. Location: Science Applications International Corporation, 4001 N. Fairfax Drive, Arlington, VA.

Wednesday, April 18

The House will meet at 10:00 AM for legislative business. See, Rep. Hoyer's weekly calendar.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Is ``Free Trade´´ Working?". See, notice. Location: Room 253, Russell Building.

10:00 AM. The House Oversight and Government Reform Committee's Subcommittee on Information Policy, Census and National Archives will hold a hearing titled "Ensuring Fairness and Accuracy in Elections Involving Electronic Voting Systems". Location: Room 2154, Rayburn Building.

12:00 NOON - 2:00 PM. The Federal Communications Bar Association (FCBA) will host an lunch titled "2nd Annual Diversity and Young Lawyers Committees Mentoring Luncheon". For more information contact, Colin Sandy at 202-682-2496 or csandy at neca dot org. Location: Arnold & Porter, 10th Floor, 555 12th St. NW.

2:00 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 363, the "Sowing Seeds Through Science and Engineering Research Act". Location: Room H-313, Capitol Building.

4:00 - 5:30 PM. Klaus Kleinfeld, P/CEO of Siemens AG, will give a speech. See, registration page. Prices vary. Location: U.S. Chamber of Commerce, 1615 H St., NW.

Day one of a three day meeting of the ABA Section of Antitrust Law titled "55th Annual Spring Meeting". Press contact: Debbie Weixl at 312-988-6126 or orweixld at staff dot abanet dot org. See, ABA release and conference web site. Location: J.W. Marriott, 1331 Pennsylvania Ave., NW.

Day two of a three day workshop hosted by the National Institute of Standards and Technology (NIST) and others titled "6th Annual PKI R&D Workshop: Applications-Driven PKI (It's The Apps, Stupid!)". See, notice. Location: NIST, Red Auditorium, 100 Bureau Drive, Gaithersburg, MD.

TIME? The Department of Defense's (DOD) Defense Science Board Task Force on Integrating Sensor-Collected Intelligence will meet in closed session regarding intelligence, surveillance and reconnaissance systems. See, notice in the Federal Register, April 2, 2007, Vol. 72, No. 62, at Page 15659. Location: Science Applications International Corporation, 4001 N. Fairfax Drive, Arlington, VA.

Thursday, April 19

The House will meet at 10:00 AM for legislative business. The House may consider HR 363, the "Sowing Seeds Through Science and Engineering Research Act". See, Rep. Hoyer's weekly calendar.

9:00 AM - 2:30 PM. The Federal Communications Bar Association's (FCBA) Ad Hoc Committee on on Homeland Security and Public Safety will host a continuing legal education (CLE) seminar titled "Regulatory and Policy Approaches to Address Emergency Response and Disaster Recovery". See, registration form [PDF]. The price to attend ranges from $100-$300. Location: Wiley Rein, 1776 K St., NW.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Courts, the Internet, and Intellectual Property will hold a hearing titled "Oversight Hearing on Federal Judicial Compensation". Location: Room 2141, Rayburn Building.

10:00 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing titled "The Digital Future of the U.S.: Part 3: Spectrum Opportunities and the Future of Wireless". Location: Room 2123, Rayburn Building.

10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "U.S. Competitiveness Through Basic Research". The witnesses will be John Marburger (Office of Science and Technology Policy), Arden Bement (National Science Foundation), and William Jeffrey (National Institute of Standards and Technology). See, notice. Location: Room 253, Russell Building.

? 10:00 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The agenda includes consideration of HR 740, the "Preventing Harassment through Outbound Number Enforcement (PHONE) Act of 2007". The agenda also includes consideration of several judicial nominees: Frederick Kapala (to be a Judge of the U.S. District Court for the Northern District of Illinois) and Benjamin Hale Settle (U.S.D.C. Western District of Washington). The SJC rarely follows its published agenda. See, notice. Press contact: Tracy Schmaler at 202-224-2154 or Tracy_Schmaler at judiciary dot senate dot gov. Location: Room 226, Dirksen Building.

10:00 AM - 12:00 NOON. The Department of State's (DOS) Advisory Committee on International Communications and Information Policy will meet to discuss the U.S. preparations, including formation of the U.S. delegation, for the 2007 World Radiocommunication Conference (WRC-07) that will take place in Geneva, Switzerland, October 22 through November 16, 2007. See, notice in the Federal Register, April 5, 2007 Vol. 72, Number 65, Notices, at Pages 16867-16868. See also, WRC-07 conference web site. Location: Dean Acheson Auditorium, Harry Truman Building, 2201 C St., NW.

2:00 - 4:00 PM. The House Science Committee's (HSC) Subcommittee on Research & Science Education will meet to mark up HR __, a bill to authorize appropriations for FY 2008, 2009 and 2010 for the National Science Foundation (NSF). Location: Room 2318, Rayburn Building.

Day two of a three day conference hosted by the ABA Section of Antitrust Law titled "55th Annual Spring Meeting". Press contact: Debbie Weixl at 312-988-6126 or orweixld at staff dot abanet dot org. See, ABA release and conference web site. Location: J.W. Marriott, 1331 Pennsylvania Ave., NW.

Day three of a three day workshop hosted by the National Institute of Standards and Technology (NIST) and others titled "6th Annual PKI R&D Workshop: Applications-Driven PKI (It's The Apps, Stupid!)". See, notice. Location: NIST, Red Auditorium, 100 Bureau Drive, Gaithersburg, MD.

Friday, April 20

The House will meet at 10:00 AM for legislative business. The House may consider HR 363, the "Sowing Seeds Through Science and Engineering Research Act". See, Rep. Hoyer's weekly calendar.

9:00 AM - 4:00 PM. The Federal Communications Commission's (FCC) Public Safety and Homeland Security Bureau (PSHSB) will host an event titled "First Responders Summit: Interoperable and Reliable Public Safety Communications". The event will be audio webcast by the FCC. Location: FCC, Commission Meeting Room (TW-C305).

9:00 AM. - 5:00 PM. The American Enterprise Institute (AEI) and the Brookings Institute (BI) will host a conference titled "Is Excessive Regulation and Litigation Eroding U.S. Financial Competitiveness?". Commissioner Paul Atkins of the Securities and Exchange Commission will be the luncheon speaker. Judge Douglas Ginsburg of the U.S. Court of Appeals (DCCir) will speak on a panel titled "Shareholder Rights". See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

2:00 - 3:00 PM. The Information Technology Association of America (ITAA) will host a webcast continuing legal education (CLE) seminar titled "When is an Email an Export? The ABCs of U.S. Export Controls". The speakers will be Linda Weinberg and Karen McGee (Barnes & Thornburg). For more information, contact Mark Uncapher at muncapher at itaa dot org. Audio download copies will be sold after the event.

6:00 PM. Deadline to submit to the Federal Communications Commission (FCC) Applications to participate in Phase II 220 MHz Service Spectrum Auction No. 72. Bidding for Auction No. 72 is scheduled to begin on June 20, 2007. See, notice in the Federal Register, March 28, 2007, Vol. 72, No. 59, at Pages 14555-14572.

Day three of a three day conference hosted by the ABA Section of Antitrust Law titled "55th Annual Spring Meeting". Press contact: Debbie Weixl at 312-988-6126 or orweixld at staff dot abanet dot org. See, ABA release and conference web site. Location: J.W. Marriott, 1331 Pennsylvania Ave., NW.

Monday, April 23

8:30 AM - 5:00 PM. Day one of a two day workshop hosted by the Federal Trade Commission (FTC) titled "Proof Positive: New Directions in ID Authentication". See, FTC release and notice in the Federal Register, February 26, 2007, Vol. 72, No. 37, at Pages 8381-8383. Location: FTC, Satellite Building Conference Center, 601 New Jersey Ave., NW.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Wireless Committee will host a luncheon panel discussion titled "Perspectives on the International MVNO Market". The speakers will include Esther Nunes (Pinheiro Neto-Advogados), a representative of Deloitte Touche, and others. See, registration form [PDF]. The price to attend is $15. The deadline for registrations and cancellations is 12:00 NOON on April 19. Location: Wiley Rein, main conference room, 1776 K St., NW.

Day one of a three day conference hosted by the National Institute of Standards and Technology (NIST) titled "Interoperability Week". See, notice. Location: NIST, Red Auditorium, 100 Bureau Drive, Gaithersburg, MD.

Extended deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) in its proceeding titled "In the Matter of Effects of Communications Towers on Migratory Birds". This NPRM [40 pages in PDF] is FCC 06-164 in WT Docket No. 03-187. The FCC adopted this NPRM on November 3, 2006. It released it on November 17, 2006. See, notice of extension [PDF].