7/31. The Federal Communications Commission (FCC) adopted, but did not release, a Second Report and Order (2ndR&O) regarding the 700 MHz band

The FCC issued a release [5 pages in PDF] that describes this 2nd R&O, and a band plan chart [PDF]. Also, all five Commissioners issued separate statements.

The 700 MHz band (698-806 MHz) is television broadcast spectrum that will be made available for public safety and commercial wireless services as a result of the digital television (DTV) transition.

The just announced 2ndR&O revises the band plan and service rules for the 700 MHz band. The FCC will auction 62 MHz for commercial uses early next year.

The 2ndR&O contains open access requirements. In the Upper C Block, the FCC will auction 22 MHz of paired spectrum by 12 Regional Economic Area Groupings (REAGs) with both open devices and open applications requirements. However, the FCC's release does not define or explain the meaning of two requirements. Commissioner McDowell wrote a long statement dissenting from these open access mandates. There will also be a limited build out requirement (40% of the population within 4 years) for this spectrum.

The 2ndR&O also provides for a "Public/Private Partnership". The commercial licensee would build a nationwide broadband interoperable network for use by public safety entities. However, it would then have preemptible secondary access to the spectrum.

Chairman Kevin Martin (at right) wrote in his statement [MS Word] that "While I also would have supported a network exclusively for the use of public safety, the simple reality is that there currently is no way to fund such an enterprise. The use of a public safety-private partnership, however, creates an opportunity to provide state-of-the-art technologies to our Nation’s first responders in a timely and affordable manner."

The FCC will use anonymous bidding procedures. It will use package bidding procedures when auctioning the 12 licenses in the Upper C Block.

The 2ndR&O also sets auction reserve prices. If the Upper C Block does not elicit a $4.6 Billion bid, it will be auctioned a second time without the open access requirements.

The 2ndR&O imposes no wholesale obligations on licencees.

The Digital Television and Public Safety Act of 2005 requires the FCC to conduct an auction of the commercial spectrum in this band by January 28, 2007.

This 2ndR&O is FCC 07-132 in WT Docket Nos. 06-150, 01-309, 03-264, 06-169, and 96-86, CC Docket No. 94-102, and PS Docket No. 06-229.

Commercial Spectrum. The FCC's release states that under the new band plan the FCC will auction 62 MHz of spectrum for commercial uses, in five blocks, designated A through E.

The new band plan provides that the FCC will auction as A Block 12 MHz of paired spectrum (698-704 and 728-734 MHz). It will be auctioned by Economic Areas (EA) in 176 licenses. (757-758 and 787-788, also in the A Block, have already been auctioned, but are being relocated.)

The plan provides that the FCC will auction as B Block 12 MHz of paired spectrum (704-710 and 734-740 MHz). It will be auctioned by Cellular Market Areas (CMA) in 734 licenses. (775-776 and 805-806, also in the B Block, have already been auctioned, but are being relocated.)

The plan provides that the FCC will auction as C Block 22 MHz of paired spectrum (746-757 and 776-787). It will be auctioned by Regional Economic Area Groupings (REAGs) in 12 licenses. (710-716 and  740-746, also in the C Block, have already been auctioned.)

The plan provides that the FCC will auction as D Block 10 MHz of paired spectrum (758-763 and 788-793). It will be auctioned as one nationwide license, and will be associated with the Public/Private Partnership. (716-722, also in the D Block, has been auctioned.)

The plan provides that the FCC will auction as E Block 6 MHz of unpaired spectrum (722-728). It will be auctioned by Economic Areas (EA) in 176 licenses.

The FCC's release also states that the FCC imposes restrictions on the use of the commercial spectrum.

First, there is an open devices and applications requirement for the C Block spectrum to be auctioned. The FCC's release states that "licensees of the Upper 700 MHz Band C Block of spectrum will be required to provide a platform that is more open to devices and applications. This would allow consumers to use the handset of their choice and download and use the applications of their choice in this spectrum block, subject to certain reasonable network management conditions that allow the licensee to protect the network from harm."

However, the FCC has not yet released the text of its 2ndR&O, and the release provides little guidance as to the meaning of these mandates. Moreover, these requirements would be subject to revision over time by the FCC.

Google and others had asked the FCC to mandate that licensees in this block provide "1) open applications, (2) open devices, (3) open services, and (4) open access". See, for example, July 9, 2007, comment [9 pages in PDF] to the FCC. Google had committed to bid, if its conditions were adopted by the FCC. However, Google only obtained part of its request. Hence, it is under no obligation to bid.

Second, there are build out requirements for commercial licensees. The release states that for spectrum auctioned by CMAs and EAs, "licensees are required to provide service sufficient to cover at least 35 percent of the geographic area of their license within four years, and 70 percent of this area by the end of the license term."

For REAGs (that is, the Upper C Block), "licensees must provide service sufficient to cover at least 40 percent of the population of their license area within four years, and 75 percent of the population of the license area by the end of the license term."

Public Safety and Public/Private Partnership. The FCC's release states that the 2ndR&O "establishes a framework for a 700 MHz Public Safety/Private Partnership between the licensee for one of the commercial spectrum blocks and the licensee for the public safety broadband spectrum."

It continues that "As part of the Partnership, the commercial licensee will build out a nationwide, interoperable broadband network for the use of public safety. This network will facilitate effective communications among first responders not just in emergencies, but as part of cooperative communications plans that will enable first responders from different disciplines, such as police and fire departments, and jurisdictions to work together in emergency preparedness and response."

It adds that "Under the Partnership, the Public Safety Broadband Licensee will have priority access to the commercial spectrum in times of emergency, and the commercial licensee will have preemptible, secondary access to the public safety broadband spectrum."

763-775 and 793-805 are public safety broadband spectrum. (This reflects a downward shift of one MHz, from 764-776 and 794-806 to protect public safety narrowband operations in the Canadian border areas.)

The FCC's release states that "The 10-megahertz Upper D Block", which is 758-763 and 788-793, "will be licensed on a nationwide basis and will become part of a 700 MHz Public Safety/Private Partnership."

It adds that "There will be a single, nationwide license for the public safety broadband spectrum, assigned to a Public Safety Broadband Licensee, which will work with the adjacent commercial D Block licensee as part of the 700 MHz Public Safety/Private Partnership."

Commissioners' Statements. Chairman Martin defended the open access mandates in his statement. He wrote that "I am committed to ensuring that the fruits of wireless innovation swiftly pass into the hand of consumers.  Currently, American consumers are too often asked to throw away their old phones and buy new ones if they want to switch cell phone carriers. And when they buy that new phone, it is the wireless provider, not the consumer, who chooses what applications the consumer will be allowed to use on that new handset."

Commissioner Robert McDowell dissented from the open access requirements for the Upper C Block commercial spectrum. He wrote in his separate statement [7 pages in PDF] that "Large wealthy corporations interested in a particular business plan do not need the government's help in this auction". He wrote that he favors "a market-based pro-competition solution to the challenges raised in this proceeding over a prescriptive regulatory approach".

McDowell (at left) predicted that "the encumbered spectrum structure supported by the majority will force large wealthy bidders away from the Upper Band and into the smaller, unencumbered blocks in the Lower Band. Smaller players, especially rural companies, will be unable to match the higher bids of the well-funded giants. Depriving the nascent 700 MHz market place of smaller new entrants will result in less innovation and competition, not more. Consumers could be short-changed as a result."

He added that the FCC "has received no assurances that any company is actually interested in bidding on the encumbered spectrum." As a result, he suggested, perhaps no company will bid on it.

He also stated that he has "not heard a convincing argument refuting why wealthy Silicon Valley new entrants are not as capable of bidding on unencumbered spectrum as other wealthy companies".

Commissioner Deborah Tate wrote in her statement [PDF] that she supports the open access mandates, but that "I interpret our decision to pertain to ``unlocking and unblocking´´ legal devices and applications as used by the consumer, while also recognizing and specifically allowing for protection of the network, and nothing more."

Commissioner Jonathan Adelstein wrote in his statement that the open access requirements are a modest step in the right direction.

Commissioner Michael Copps wrote in his statement [PDF] that the FCC should have also imposed a "wholesale requirement on the 22 MHz C-block". He argued that "requiring licensees to offer network capacity on non-discriminatory terms would have been an enormous shot in the arm for smaller companies". He added that it would have "leveled the playing field for companies that want to get into the network business but cannot break through the defenses erected by the massive incumbents who dominate the industry."

Congressional Reaction. Rep. John Dingell (D-MI), the Chairman of the House Commerce Committee (HCC), stated in a release that "the FCC voted to provide consumers with more choices when selecting a wireless carrier, a wireless device, and the applications that run on that device. I am pleased that the Commission chose to empower consumers in this fashion, and I will be vigilant to make sure that consumers reap the benefits."

"I am also pleased that the Commission adopted a creative mechanism to fund the construction of a wireless network for use by public safety entities nationwide. The Commission must exercise active oversight of the public/private partnership to help make this venture a success."

Rep. Joe Barton (R-TX), the ranking Republican on the HCC, stated in a release that "I commend Commissioner McDowell for sticking to free-market principles and dissenting from Chairman Martin's wireless network neutrality mandate. Unencumbered auctions have raised tens of billions of dollars and resulted in the vigorously competitive and innovative wireless industry we have today. The FCC's decision to rig the 700 MHz auction at the suggestion of companies such as Google will harm wireless service and rob taxpayers."

Rep. Barton continued that "This is not your grandparents' (or Ma Bell's) communications market. When the FCC imposed Carterfone regulations on the old wireline network in 1968, AT&T was a vertically integrated monopoly with the ability and incentive to control both phone service and phone equipment. By contrast, 98 percent of Americans now live in counties served by at least three wireless providers".

Furthermore, wrote Rep. Barton, "an array of independent, competitive manufacturers make and market wireless devices. Google and others are free to use the spectrum under their proposed business models if they pay fair market value in an honest auction. Google alone has a market cap of approximately $160 billion, almost $40 billion more than Verizon. There is no reason to give anyone a leg up or create a convoluted scheme that requires reserve prices and a potential re-auction."

Industry Reaction. Steve Largent, head of the CTIA/Wireless Association, stated in a release that "The FCC's considerable deliberation over the 700 MHz auction rules has left us pleased in a number of respects and still concerned in others. Specifically, we believe the Commission has taken the appropriate approach by recognizing the importance of not restricting the number of auction entrants, nor requiring them to fulfill wholesale licensing requirements or requiring geographic build-out on all the licenses. In these regards the FCC has replicated past auctions".

However, Largent continued that "we are disappointed that a significant portion of this valuable spectrum will be encumbered with mandates that could significantly reduce the number of interested bidders. We remain committed to the principle that wireless consumers and American taxpayers are best served when such a valuable commodity is auctioned in a fair and competitive manner with no strings attached, and we commend Commissioner Robert McDowell for his belief in flexible auction rules and the free-market system."

He lamented that the FCC deviated from its "market-oriented flexible-use policies".

Frontline Wireless (FW) praised the FCC's order. CEO Haynes Griffin stated in a release [PDF] that "we can roll up our sleeves and get to work building the business of our dreams".

FW Chairman Janice Obuchowski praised the "open networks and a public private partnership" aspects of the order. However, she added that "in areas where the Commission did not go far enough, such as including wholesale in open access requirements and in the scope of the designated entity definition, we will be reviewing the FCC’s decision closely and considering petitioning for reconsideration."

FW's Jim Barksdale stated that without wholesale obligations, "The risk is that this spectrum will simply be warehoused by the largest carriers rather than turned loose to meet public safety’s needs."

Gary Shapiro, head of the Consumer Electronics Association (CEA), stated in a release that the CEA supports "consumers' right to connect their choice of devices to networks so long as these devices cause no harm".

He continued that "With today's decision, consumers will soon enjoy the right to attach devices and download applications of their choosing to a portion of this spectrum. We urge the Commission to ensure that the auction of this spectrum remains on track so that consumers can quickly begin enjoying the benefits realized by the timely conclusion of the DTV transition."

Gigi Sohn, head of the Public Knowledge, stated in a release that "Consumers should be pleased with part of the FCC’s decision today. In the new wireless services created as a result of this decision, they won’t be forced to abandon cell phones or other devices they have purchased when they change service providers. It will be up to the FCC to make certain these rules are enforced and that consumers don’t fall victim to the smallest of print in service contracts. We are disappointed, however, that the FCC will lift those requirements if their reserve price is not met. This condition leaves a broad opening for the industry to avoid these pro-consumer policies."

However, Sohn argued that the FCC should have pursued a "full `open access´ policy".

7/31. The Federal Communications Commission (FCC) released a Public Notice [3 pages in PDF] that requests public comments on two studies written by the FCC's Office of Engineering and Technology (OET) that assess the potential for interference from low power devices operating in television spectrum that is not being used by television broadcasters, which spectrum is also known as TV white space. This is DA 07-3457 in ET Docket No. 04-186. Initial comments are due by August 15, 2007. Reply comments are due by August 27, 2007. See, OET report [86 pages in PDF] titled "Initial Evaluation of the Performance of Prototype TV-Band White Space Devices" and OET report [28 pages in PDF] titled "Direct-Pickup Interference Tests of Three Consumer Digital Cable Television Receivers Available in 2005".

7/31. The Federal Communications Commission (FCC) announced on July 24, 2007, that it would consider a Report and Order (R&O) regarding roaming obligations of CMRS providers at its July 31, 2007, event titled "Open Meeting". The FCC announced in a release [PDF] on July 31, 2007, that it deleted this item from its agenda. This pertains to the proceedings tilted "Reexamination of Roaming Obligations of Commercial Mobile Radio Service Providers" and "Automatic and Manual Roaming Obligations Pertaining to Commercial Mobile Radio Services", and numbered WT Docket No. 05-265 and WT Docket No. 00-193, respectively.

7/31. The Federal Communications Commission (FCC) released a Public Notice [4 pages in PDF] that announces that the FCC seeks comments on ten studies related to FCC regulation of ownership of media entities. Initial comments are due by October 1, 2007. Reply comments are due by October 16, 2007. This item is DA 07-3470 in MB Docket Nos. 06-121 and 02-277, and MM Docket Nos. 01-235, 01-317, and 00-244. FCC Commissioners Jonathan Adelstein and Michael Copps wrote in a statement [PDF] that this Public Notice is "unfair, unnecessary, and ultimately unwise".

7/30. The Federal Communications Commission (FCC) released a Notice of Proposed Rulemaking (NPRM) [22 pages in PDF] in its proceeding titled "In the Matter of DTV Consumer Education Initiative". This NPRM seeks comments on several proposals relating to consumer education about the digital television transition. The FCC adopted this NPRM on July 21, 2007, and released it on July 30, 2007. It is FCC 07-128 in MB Docket No. 07-148. Initial comments will be due within 30 days of publication of a notice in the Federal Register. Reply comments will be due within 45 days. This publication had not take place as of the July 31, 2007, issue of the Federal Register. See also, FCC release [PDF].

7/30. The Progress and Freedom Foundation (PFF) released a paper [14 pages in PDF] titled "Has Deregulation Affected Investment in Special Access?". It is a statistical analysis of the impact of the Federal Communications Commission's (FCC) 1999 framework for deregulating the high capacity connections that provide voice and data for businesses and government entities. The author is the PFF's Scott Walsten. He finds that "at the state level the number of special access lines provided by the ILEC increases the larger is the share of a state's population living in areas in which the ILEC has been granted pricing flexibility. The limited data on prices and complete lack of information from competitors, however, make it impossible to reach definitive conclusions."

The House will meet at 9:00 AM for morning hour, and at 10:00 AM for legislative business. See, Rep. Hoyer's weekly calendar [PDF].

The Senate will meet at 10:00 AM for morning business. It will then consider HR 976 [LOC | WW].

9:00 AM - 4:30 PM. The U.S.-China Economic and Security Review Commission (USCC) will hold a hearing. The USCC web site stated that the title is "Freedom of Expression in China: Internet and Media Controls". The USCC's notice in the Federal Register states that the hearing is titled "Access to Information in the People's Republic of China", and that it will examine "developments in Chinese information control mechanisms". See, Federal Register, July 18, 2007, Vol. 72, No. 137, at Pages 39479-39480. Location: Room 385, Russell Building, Capitol Hill.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "The Leegin Decision: The End of the Consumer Discounts or Good Antitrust Policy". This pertains to the June 28, 2007, opinion [55 pages in PDF] of the Supreme Court of the U.S. (SCUS) in Leegin Creative Leather Products v. PSKS, an antitrust case regarding minimum resale price maintenance by manufacturers and intermediate distributors. See, story titled "SCUS Holds That All Vertical Price Restraints Are Subject to Rule of Reason" in TLJ Daily E-Mail Alert No. 1,603, June 28, 2007. The witnesses will be Pamela Harbour (FTC Commissioner), Robert Pitofsky (Arnold & Porter), Marcy Syms (SYMS), Stephan Bolerjack (Dykema Gossett, for the National Association of Manufacturers), and Janet McDavid (Hogan & Hartson). See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Federal Communications Commission (FCC) will hold an event titled "Open Meeting". The FCC stated that it will adopt rules regarding the upcoming auction of spectrum usage rights in 700 MHz band for wireless services (WT Docket No. 06-150, etc.), and an order regarding roaming obligations of CMRS providers (WT Docket Nos. 05-265 and 00-193). See, FCC agenda [2 pages in PDF] and notice in the Federal Register, July 27, 2007, Vol. 72, No. 144, at Pages 41326-41327. The event will be webcast by the FCC. The FCC does not always follow its published agenda. Location: FCC, Commission Meeting Room, Room TW-C305, 445 12th St., SW.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Courts, the Internet and Intellectual Property (SCIIP) will hold a hearing titled "Ensuring Artists Fair Compensation: Updating the Performance Right and Platform Parity for the 21st Century". The witnesses will be Rep. Paul Hodes (D-NH), Marybeth Peters (Register of Copyright), Judy Collins (recording artist), Charles Warfield (ICBC Broadcast Holding, Inc.), and Sam Moore (recording artist). See, notice. Location: Room 2141, Rayburn Building.

POSTPONED. The House Judiciary Committee's (HJC) Subcommittee on Crime and Subcommittee on Commercial and Administrative Law will hold a joint hearing titled "Protecting Consumer Privacy and Combating Identity Theft". Location: Room 2141, Rayburn Building.

2:30 PM. The Senate Commerce Committee (SCC) will hold a hearing titled "Oversight of Telemarketing Practices and the Credit Repair Organizations Act (CROA)". The witnesses will be Lydia Parnes (Director of the Federal Trade Commission's Bureau of Consumer Protection), Richard Johnson (AARP), Joanne Faulkner, Robin Holland (Equifax), and Steve St. Clair (Assistant Attorney General, Iowa). See, notice. Location: Room 253, Russell Building.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its Draft Special Publication 800-53A [PDF] titled "Guide for Assessing the Security Controls in Federal Information Systems".

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

9:00 AM - 1:30 PM. The U.S. Chamber of Commerce will host a conference titled "Lawsuits and Global Competitiveness: Is the U.S. Litigation System a Beacon or Barrier to Foreign Investment?". See, notice. Prices vary. For more information, contact Danielle Walker at 202-463-5500 or ncfevents at uschamber dot com. Location: Chamber, 1615 H St., NW.

9:30 AM - 3:00 PM. Day one of a two day meeting of the U.S.-China Economic and Security Review Commission to consider drafts of material for its 2007 end of year report to the Congress. See, notice in the Federal Register, July 30, 2007, Vol. 72, No. 145, at Page 41584. Location: Conference Room 333, Hall of the States, 444 North Capitol St., NW.

10:00 AM. The Senate Homeland Security and Government Affairs Committee will hold a business meeting. It will mark up S 1000 [LOC | WW], the "Telework Enhancement Act of 2007". It will also consider the nomination of Jim Nussle to be Director of the Office of Management and Budget (OMB). See, agenda [PDF]. Location: Room 342, Dirksen Building.

12:00 NOON. The University of Baltimore School of Law's Student Chapter of the Federalist Society will host an event titled "The Future of Internet Regulation: Will Free Speech and Property Rights Prevail?" The speaker will be Randy May (Free State Foundation). See, notice. Location: Miles & Stockbridge, 10 Light Street, 13th Floor, Baltimore, MD.

12:30 PM. Sen. Joe Biden (D-DE), Chairman of the Senate Foreign Relations Committee, will give a speech. Location: Ballroom, National Press Club, 529 14th St. NW, 13th Floor.

2:30 PM. The Senate Commerce Committee (SCC) will hold a hearing titled "Oversight of the U.S. Department of Commerce". See, notice. Location: Room 253, Russell Building.

Deadline to submit applications to the Federal Communications Commission's (FCC) Media Bureau requests seeking preemption flexibility in connection with the children's television obligations of digital television broadcasters. See, FCC's July 27, 2007, Public Notice (DA 07-3386).

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

9:00 AM. The House Ways and Means Committee's Subcommittee on Trade will hold a hearing titled "Legislation Related to Trade with China". See, notice. Location: Room 1100, Longworth Building.

9:30 AM - 4:00 PM. Day two of a two day meeting of the U.S.-China Economic and Security Review Commission to consider drafts of material for its 2007 end of year report to the Congress. See, notice in the Federal Register, July 30, 2007, Vol. 72, No. 145, at Page 41584. Location: Conference Room 333, Hall of the States, 444 North Capitol St., NW.

10:00 AM. The Senate Commerce Committee (SCC) will meet in executive session. The agenda lists four bills, including S 781 [LOC | WW], a bill to extend the authority of the Federal Trade Commission (FTC) to collect Do-Not-Call Registry fees to fiscal years after fiscal year 2007, and S 602 [LOC | WW], the "Child Safe Viewing Act of 2007". See, notice. Location: Room 253, Russell Building.

The House will meet at 9:00 AM for legislative business. See, Rep. Hoyer's weekly calendar [PDF].

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) in response to its requests for comments regarding its collection of information to facilitate its forecasting the number of future patent applications. See, notice in the Federal Register, June 4, 2007, Vol. 72, No. 106, at Pages 30777-30779.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Dolby Labs v. Lucent Technologies, App. Ct. No. 2006-1583, a patent infringement case. Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in PostX Corp. v. Secure Data in Motion, Inc., App. Ct. No. 2006-1565. See, Federal Circuit calendar. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Overview Books v. U.S., App. Ct. No. 2006-5138. This is an appeal from the U.S. Court of Federal Claims, in a inartfully plead and argued challenge to the Library of Congress's (LOC) Cataloging in Publication (CIP) program, which discriminates against certain small publishers. See, Federal Circuit calendar. Location: Courtroom 201, 717 Madison Place, NW.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its request for comments regarding what constitutes a "near reservation" area for federal Lifeline and Link-Up support purposes. See, DA 07-1239 in CC Docket No. 96-45, and notice in the Federal Register, July 5, 2007, Vol. 72, No. 128, at Pages 36706-36708.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in US Philips v. Iwasaki Electric, App. Ct. No. 2007-1117, a patent infringement case. See, Federal Circuit calendar. Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Samsung Electronics v. Rambus, App. Ct. No. 2006-1579, a patent case. See, Federal Circuit calendar. Location: Courtroom 201, 717 Madison Place, NW.

6:00 - 9:15 PM. Day one of a two day continuing legal education (CLE) seminar hosted by the DC Bar Association titled "Software Patent Primer: Acquisition, Exploitation, Enforcement and Defense". The speakers will be Stephen Parker (Watchstone P+D), Brian Rosenbloom (Rothwell Figg Ernst & Manbeck), David Temeles (Temeles & Temeles), and Martin Zoltick (Rothwell Figg). See, notice. For more information, call 202-626-3488. The price to attend ranges from $105-$160. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

Day one of a two day conference hosted by the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) titled "Federal Computer Security Program Managers' Forum Annual OffSite Meeting". See, notice. July 31 is the deadline to register. Location: Bethesda North Marriott Hotel and Conference Center, 5701 Marinelli Road, North Bethesda, MD.

7/26. The House Foreign Affairs Committee's Subcommittee on Terrorism, Nonproliferation, and Trade held a hearing titled "Exports Controls: Are We Protecting Security and Facilitating Exports?".

Rep. Tom Lantos (D-CA) wrote in his opening statement that "the Administration is preparing changes to both munitions and so-called ``dual-use´´ licensing procedures. I strongly advise the Administration to reflect on past experiences and to consult with Congress this time around -- especially the Foreign Affairs Committees of the House and the Senate -- before finalizing these changes."

Rep. Brad Sherman (D-CA) wrote in his opening statement that the Department of State's (DOS) and Department of Commerce's (DOC) export control offices are understaffed and underfunded, and that "There are also turf battles between State and Commerce." He continued that "I am concerned that we are placing U.S. companies on a playing field dominated by confusion, needlessly adding to our mammoth trade deficit, and creating a perverse incentive to move the development and manufacture of new defense technologies overseas."

Rep. Sherman said that the Bush administration continues to seek renewal and revision of the Export Administration Act (EAA), which expired in 2001. He said that this bill "would give BIS the solid legal and statutory basis to oversee the dual-use export control system and strengthen its ability to punish violators, while laying the groundwork for more comprehensive reform in the future."

He also said that "Export controls must not place an undue burden on U.S. companies, thereby undermining America’s economic and technological competitiveness."

Ann Barr of the Government Accountability Office (GAO) wrote in her prepared testimony [37 pages in PDF] that there are two vulnerabilities in the export control system. "First, State and Commerce have yet to clearly determine which department controls the export of certain sensitive items. Unclear jurisdiction lets exporters -- not the government -- determine which export restrictions apply and the type of government review that will occur. Not only does this create an unlevel playing field among U.S. companies, it also increases the risk that items will fall into the wrong hands."

Second, wrote Barr, "a lack of clarity on exemption use has limited the government’s ability to ensure that unlicensed exports comply with export laws and regulations. These weaknesses compound an already challenged enforcement community, which has had difficulty coordinating investigations, balancing multiple priorities, and leveraging finite resources."

See also, prepared testimony of Christopher Padilla (head of the Department of Commerce's Bureau of Industry and Security), prepared testimony of Stephen Mull (Department of State), prepared testimony of John Douglass (head of the Aerospace Industries Association of America), and prepared testimony of Will Lowell (Lowell Defense Trade).

7/30. The U.S. Patent and Trademark Office (USPTO) announced in a release that the USPTO and the Japan Patent Office (JPO) "have launched a free service that will allow the two offices to electronically exchange patent application priority documents and help further streamline the patent application process."

7/30. The U.S. Patent and Trademark Office (USPTO) published a notice in the Federal Register that announces, describes, recites, and sets the comment deadline for its proposed changes to its rules governing practice before the Board of Patent Appeals and Interferences in ex parte patent appeals. The notice states that "The proposed rules seek to provide examiners and Office reviewers with a clear and complete statement of an appellant's position at the time of filing an appeal brief so as to enhance the likelihood that appealed claims will be allowed without the necessity of further proceeding with the appeal, minimize the pendency of appeals before the Office, minimize the need for lengthy patent term adjustments in cases where claims become allowable as a result of an action by the Board in an appeal, provide uniform treatment of requests for an extension of time filed after an appeal brief is filed, and make the decision-making process more efficient." Comments are due by September 28, 2007. The USPTO will hold no hearing. See, Federal Register, July 30, 2007, Vol. 72, No. 145, at Page 41472-41490.

7/30. The Department of Justice (DOJ) filed a criminal information in U.S. District Court (CDCal) that charges Samuel Shangteh Peng with violation of the Export Administration Regulations (EAR), which implement the Export Administration Act, as expired. It states that Peng was the International Sales Manager and export control officer for Endevco Corporation, a company that produces electronic sensors and vibration testing equipment that have both military and non-military applications. It further states that, without a license from the Department of Commerce's (DOC) Bureau of Industry and Security (BIS), Peng exported controlled items to Hindustan Aeronautics, Ltd. (HAL), in Bangalore, India, which was a prohibited entity listed on the DOC's Entity List at the time of the export. The DOJ added in its release that HAL was subsequently removed from the Entity List. The DOJ added that "Peng has agreed to plead guilty to the charges".

7/30. The Federal Trade Commission (FTC) announced in a release that its is seeking comments on the uses of Social Security Numbers (SSNs) in the private sector. The FTC seeks comments "on the various uses of SSNs by the private sector, the necessity of those uses, alternatives available, the challenges faced by the private sector in moving away from using SSNs, and how SSNs are obtained and used by identity thieves". The deadline to submit comments is September 5, 2007. The FTC also announced that it will host one or more public forums on the topic. However, it did not set any dates.

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