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January 30, 2008, Alert No. 1,707.
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FCC Releases Three NPRMs Regarding Universal Service Subsidies

1/29. The Federal Communications Commission (FCC) announced and released three Notices of Proposed Rulemaking (NPRMs) relating to reforming its subsidy program know as the universal service high cost support program.

First, the FCC released a NPRM [55 pages in PDF] regarding the recommendations [33 pages in PDF] of the Federal-State Joint Board on Universal Service (FSJBUS) regarding the FCC high cost universal service support program, which were released on November 20, 2007.

This NPRM is FCC 08-22 in WC Docket No. 05-337 and CC Docket No. 96-45

Second, the FCC released a NPRM [28 pages in PDF] regarding the recommendations of the (FSJBUS) regarding elimination of the identical support rule. This NPRM is FCC 08-4 in WC Docket No. 05-337 and CC Docket No. 96-45.

This NPRM states that "we tentatively conclude that we should eliminate the Commission's current ``identical support´´ rule -- also known as the ``equal support rule´´ -- which provides competitive ETCs with the same per-line high-cost universal service support amounts that incumbent local exchange carriers (LECs) receive. We seek comment on this tentative conclusion."

Third, the FCC released a NPRM [36 pages in PDF] regarding using reverse auctions as the disbursement mechanism for determining the amount of high cost universal service support for eligible telecommunications carriers (ETCs) serving rural, insular, and high cost areas. This NPRM is FCC 08-5 in WC Docket No. 05-337 and CC Docket No. 96-45.

This NPRM states that "We tentatively conclude that reverse auctions offer several potential advantages over current high-cost support distribution mechanisms, and that the Commission should develop an auction mechanism to determine high-cost universal service support." This NPRM seeks comments on numerous issues related to reverse auction design.

Initial comments on all three NPRMs will be due within 30 days of publication of a notice in the Federal Register. Reply comments will be due within 60 days of such publication. As of January 31, 2008, the FCC had not yet published this notice in the Federal Register.

Commissioner Deborah Tate wrote that "Going forward, the Universal Service Fund will continue to play a critical and increasing role in one of our top priorities at the Commission -- encouraging broadband deployment to all corners of America."

Chairman Kevin Martin wrote in his statement that "Changes in technology and increases in the number of carriers that receive universal service support, however, have placed significant pressure on the stability of the Fund. A large and rapidly growing portion of the high-cost support program is now devoted to supporting multiple competitors to serve areas in which costs are prohibitively expensive for even one carrier. These additional networks don’t receive support based on their own costs, but rather on the costs of the incumbent provider, even if their costs of providing service are lower. In addition to recommending an interim cap, the Joint Board has recognized the problems of maintaining this identical support rule."

And, Martin said, "I continue to believe the long-term answer for reform of high-cost universal service support is to move to a reverse auction methodology."

Commissioners Michael Copps and Jonathan Adelstein both dissented in part from the reverse auction NPRM.

Copps also wrote that "much would be accomplished if the Commission were to include broadband on both the distribution and contribution side of the ledger; eliminate the Identical Support rule; and increase its oversight and auditing of the high-cost fund. Additionally, Congressional authorization to permit the assessment of Universal Service contributions on intrastate as well as interstate revenue would be a valuable tool for supporting broadband."

Commissioner Robert McDowell wrote in his statement regarding all three NPRMs that "this system is in dire need of comprehensive reform. I have maintained that we must follow five principles when considering reforms to the Universal Service Fund. We must: (1) slow the growth of the Fund; (2) permanently broaden the base of contributors; (3) reduce the contribution burden for all, if possible; (4) ensure competitive neutrality; and (5) eliminate waste, fraud and abuse."

District Court Extends Expiring Provisions of Final Judgments in Microsoft Antitrust Case

1/29. The U.S. District Court (DC) released a Memorandum Opinion [78 pages in PDF] in State of New York v. Microsoft, the state antitrust action filed at the same time as the Department of Justice's (DOJ) 1998 action.

This opinion grants in part, and denies in part, the New York plaintiffs' and the California plaintiffs' motion to extend the final judgments against Microsoft. This opinion extends the expiring provisions of the final judgments, with the exception of Section III.B, until November 12, 2009. The states had requested an extension through 2012.

The District Court added that this extension "should not be viewed as a sanction against Microsoft; to the contrary, the Court commends Microsoft for its willingness to cooperate with the Plaintiffs in this action and in United States v. Microsoft in negotiating solutions to issues as they have arisen throughout the past five years".

The District Court also wrote that it "has never been asked to find Microsoft out of compliance with the Final Judgments".

rightBrad Smith (at right), General Counsel of Microsoft, stated in a release that "We will continue to comply fully with the consent decree. We are gratified that the court recognized our extensive efforts to work cooperatively with the large number of government agencies involved. We built Windows Vista in compliance with these rules, and we will continue to adhere to the decree’s requirements."

This case is State of New York, et al. v. Microsoft Corporation, U.S. District Court for the District of Columbia, D.C. No. 98-1233, Judge Colleen Kotelly presiding.

USTR Discusses Doha, Bilateral FTAs, TPA, and Russia

1/30. Susan Schwab, the head of the Office of the U.S. Trade Representative (OUSTR), held a news conference on January 29 at which she discussed Doha round negotiations, trade promotion authority (TPA), free trade agreements (FTAs) with Korea and other nations, and Russian accession to the World Trade Organization (WTO). See, transcript [10 pages in PDF].

President Bush stated in his January 28 state of the union speech that "We're working for a successful Doha Round of trade talks, and we must complete a good agreement this year." Also, on January 30, President Bush gave a speech in California in which he focused on urging the Congress to approve FTAs with Korea, Columbia, and Panama. He also advocated, in one sentence, a Doha round trade agreement.

Susan SchwabSchwab (at right) said on January 29 that "The President said it all last night. The President was very clear in his intent and ambition when it comes to the trade agenda. We know we have a lot we need to get done in 2008. He talked about the Doha Round".

She was asked by a reporter from an Australian publication, "What are real prospects for the Doha Round? I noticed the President made just a one-line reference, it seemed almost a glancing reference."

Schwab responded, "You've got to be kidding."

She later added that "the President's reference last night was very substantive and very significant and a signal, designed as a signal not just to the Congress and to the American people but also to our trading partners. So I hope they picked it up." She also reiterated that the U.S. wants an agreement in 2008.

Schwab also discussed TPA, under which the Congress can approve or reject, but not amend, FTAs negotiated by the President and his representatives.

She said that "no one on the Hill is going to be willing to have a serious conversation with me about TPA unless and until we get a modalities breakthrough. At that point if we get a successful outcome on modalities the Chairman of the Finance Committee and the Chairman of the Ways and Means Committee have both indicated their willingness to work with us on Trade Promotion Authority. Therefore, as soon as we have a breakthrough, if we have a breakthrough, I would intend to go up to the Hill and actively pursue Trade Promotion Authority. Recognizing at that point any vote on Trade Promotion Authority becomes de facto a proxy for the Doha development agenda."

Schwab also discussed the possibility of Russia joining the WTO. She said that she met with Russian Finance Minister Kudrin in Davos, Switzerland, earlier this month.

She also said that "Now the pace of Russia’s accession is almost entirely within Russia’s hands because there are certain decisions that have to be made and legislation and regulatory changes that need to be made, just like any other country that’s acceding to the WTO. But we are, have been and will continue to use both energy and capital to help Russia move ahead with its plans to come into the WTO. And when the time comes, we will go to the Congress and do what we need to do in terms of Jackson-Vanik."

She added that Russia is "not there yet in terms of the accession negotiations".

Schwab did not talk about trade related aspects of intellectual property rights. Nor did she discuss any telecommunications, e-commerce, or antitrust issues.

Treasury's McCormick Discusses US-PRC Relations

1/30. David McCormick, the Department of the Treasury's (DOT) Under Secretary for International Affairs, gave a lengthy speech to the Council on Foreign Relations on U.S. relations with the People's Republic of China (PRC). He did not mention intellectual property rights enforcement in the PRC.

However, he did say that "I understand and share the frustration of those who believe the Chinese are moving too slowly on many issues. On those, we must push. We must both cajole and support. We have been -- and must continue to be -- firm and clear when engaging with China that accelerated reform is as much in their interests as in ours."

David McCormickMcCormick (at right) added that "when we are unsuccessful through dialogue in resolving key differences, we will not hesitate to take cases to the WTO or to make full use of WTO-sanctioned trade remedies established under U.S. law."

The U.S. complained to the World Trade Organization (WTO) last April that the PRC does not engage in adequate criminal enforcement, does not provide US content providers with adequate civil remedies, and precludes US content providers from competing with their pirates. See, story titled "US to Complain to WTO Regarding PR China's Failure to Protect IPR" in TLJ Daily E-Mail Alert No. 1,562, April 9, 2007.

Finally, he said that "we must also take care not to vent our frustration in the form of punitive legislation or elevated rhetoric that could ultimately cost the American economy and set back the process of reform in China."

He also said that "Ensuring markets remain open to investment is every bit as important as ensuring that they remain open to trade".

More News

1/29. The Senate approved, without objection, HR 5104 [LOC | WW], a bill to extend the effective term of the Protect America Act of 2007 for 15 days. See, Congressional Record, January 29, 2008, at Page S457.

People and Appointments

Rep. Tom Davis1/30. Rep. Tom Davis (R-VA) (at right) announced that he will not seek re-election. He said that he will serve out the remainder of his term, and then return to the private sector. He is a long time member of the House Government Reform Committee, and its former Chairman. He has been active on a wide range of technology related issues, especially regarding adoption and use of information technologies by federal government agencies. See, release.

1/30. President Bush nominated Elisebeth Cook to be an Assistant Attorney General (AAG) in charge of the Department of Justice's (DOJ) Office of Legal Policy (OLP). If confirmed, she will replace Rachel Brand, who resigned last summer. See, White House release and release. Bush announced his intent to designate Cook as acting AAG last week. Before joining the DOJ, she worked for the Washington DC law firm of Cooper & Kirk.

1/30. President Bush withdrew his nomination of Dennis Carlton to be a Member of the Council of Economic Advisers. He made the original nomination on August 2, 2007. See, White House release.

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Washington Tech Calendar
New items are highlighted in red.
Thursday, January 31

The House will not meet. Day two of the three day House Democratic Retreat. See, Rep. Hoyers' schedule for the week of January 28.

The Senate will meet at 11:00 AM.

9:00 AM - 5:00 PM. The Anti-Spyware Coalition will host a public workshop titled "Spyware: What's Worked, What's Left, and What's Coming". See, notice. The price to attend ranges from free to $250. Location: Capitol Hill Hyatt Regency.

9:00 AM - 12:00 NOON. The Federal Communications Commission (FCC) will host an event titled "Digital Television Consumer Education Workshop". See, notice and agenda [PDF]. Location: FCC, 445 12th St., SW.

9:00 AM - 12:00 NOON. Day two of a two meeting of the Department of Commerce's (DOC) National Technical Information Service's (NTIS) Advisory Board. See, notice in the Federal Register, December 21, 2007, Vol. 72, No. 245, at Pages 72678-72679. Location: Room 2029, Sills Building, 5285 Port Royal Road, Springfield, VA.

10:00 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The agenda includes consideration of S 1638 [LOC | WW], the "Federal Judicial Salary Restoration Act of 2007", S 352 [LOC | WW], the "Sunshine in the Courtroom Act of 2007", and S 2450 [LOC | WW], a bill to amend the Federal Rules of Evidence to address the waiver of the attorney client privilege and the work product doctrine. The agenda also includes consideration of Mark Filip to be the Deputy Attorney General. The SJC rarely follows its published agenda. Location: Room 226, Dirksen Building.

12:00 NOON. Sen. Arlen Specter (R-PA) will give a speech on judicial appointments. Location: Murrow Room, National Press Club, 529 14th St, NW.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will meet to prepare for advice for the U.S. on positions for the February 2008 meeting of the Telecommunication Development Advisory Group (TDAG) of the International Telecommunication Union (ITU-D). See, notice in the Federal Register, December 19, 2007, Vol. 72, No. 243, at Page 71992. Location: DOS Main, Room 5804, 2201 C St., NW.

Deadline for eligible low power television broadcast stations, Class A television stations, television translator stations, and television booster stations to submit to the National Telecommunications and Information Administration (NTIA) priority applications for the Low-Power Digital Conversion Program. See, notice in the Federal Register: October 29, 2007, Vol. 72, No. 208, at Pages 61109-61114.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division regarding its Draft Special Publication 800-53A [396 pages in PDF] titled "Draft Guide for Assessing the Security Controls in Federal Information Systems".

Friday, February 1

The House will not meet. Day three of the three day House Democratic Retreat. See, Rep. Hoyers' schedule for the week of January 28.

Expiration of the temporary amendments to the Foreign Intelligence Surveillance Act (FISA) enacted by S 1927 [LOC | WW], the "Protect America Act".

Deadline to submit written comments to the U.S. International Trade Commission (USITC) to assist the USITC in preparing a report for the House Ways and Means Committee regarding government policies affecting trade with the People's Republic of China (PRC). See, notice in the Federal Register, July 31, 2007, Vol. 72, No. 146, at Pages 41773-41774.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division regarding its Federal Information Processing Standards (FIPS) Publication 186-3 [122 pages in PDF] titled "Digital Signature Standard" or DSS.

Starting date for eligible low power television broadcast stations, Class A television stations, television translator stations, and television booster stations to submit to the National Telecommunications and Information Administration (NTIA) non-priority applications for the Low-Power Digital Conversion Program. See, notice in the Federal Register: October 29, 2007, Vol. 72, No. 208, at Pages 61109-61114.

Effective date of the Department of State's (DOS) final rule regarding the use of radio frequency identification (RFID) technology in passport cards. See, notice in the Federal Register, December 31, 2007, Vol. 72, No. 249, at Pages 74169-74173. See also, story titled "Department of State Adopts Rules for Vicinity RFID Passport Cards" in TLJ Daily E-Mail Alert No. 1,695, January 4, 2008

Monday, February 4

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Poweroasis v. T-Mobile, a patent infringement case, App. Ct. No. 2007-1265, an appeal from the U.S. District Court (DNH), D.C. No. 1:2005cv00042. The Court of Appeals will also hear oral argument in and Poweroasis v. Wayport, App. Ct. No. 2007-1369. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Symantec v. Computer Associates, a patent infringement case, App. Ct. No. 2007-1201. Location: Courtroom 203, 717 Madison Place, NW.

10:30 AM - 12:00 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "The Battle for Cyberspace: Blogging and Dissidence in the Middle East". The speakers will be Mohammed Ali (Iraq the Model), Tony Badran (Foundation for the Defense of Democracies), Arash Sigarchi (Panjereh Eltehab), Hassan Mneimneh (Iraq Memory Foundation), and Michael Rubin (AEI). See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

Deadline for the National Telecommunications and Information Administration's (NTIA) and the Federal Communications Commission's (FCC) advisory committee titled "Joint Advisory Committee on Communications Capabilities of Emergency Medical and Public Health Care Facilities" to submit their report to the Congress "on the communications capabilities and needs of emergency medical and public health care facilities and the options to accommodate growth of communications services and to improve integration of communications systems used by such facilities". See, notice in the Federal Register, September 7, 2007, Vol. 72, No. 173, at Page 51418.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding allowing AM stations to use FM translator stations to rebroadcast the AM signal locally. This NPRM is FCC 07-144 in MB Docket No. 07-172. See, notice in the Federal Register, November 6, 2007, Vol. 72, No. 214, at Pages 62616-62622.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking regarding the establishment of a Commercial Mobile Alert System (CMAS). This NPRM, which was adopted and released on December 14, 2007, is FCC 07-214 in PSHSB Docket No. 07-287. See, notice in the Federal Register, January 3, 2008, Vol. 73, No. 2, at Pages 545-607. The relevant FCC proceeding is numbered CG Docket No. 03-123.

Deadline to submit initial comments to the Federal Communications Commission (FCC) regarding Hawk Relay's petition for clarification regarding the Deaf Blind Relay Service (DBRS). See, notice in the Federal Register, January 4, 2008, Vol. 73, No. 3, at Pages 863-864. The relevant FCC proceeding is numbered CG Docket No. 03-123.

Tuesday, February 5

8:30 AM - 5:00 PM. The National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology (VCAT) will meet. See, notice in the Federal Register, January 15, 2008, Vol. 73, No. 10, at Page 2458-2459. Location: Employees Lounge, Administration Building, NIST, Gaithersburg, MD.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Golden Bridge Tech v. Nokia, a patent infringement case, App. Ct. No. 2007-1215, an appeal from the U.S. District Court (EDTex), D.C. No. 2:05-cv-151. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Prism Technologies v. Verisign, a patent infringement case involving hardware keys for authentication over networks, App. Ct. No. 2007-1315. This is an appeal from the U.S. District Court (DDel), D.C. No. CA 05-214-JJF. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Nazomi Communications v. ARM, a patent infringement case, App. Ct. No. 2007-1190. Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM - 12:00 NOON. The Department of State's (DOS) International Telecommunication Advisory Committee will meet to prepare advice on U.S. positions for the April 2008 meeting of the Organization of American States (OAS) Inter-American Telecommunication Commission (CITEL) Permanent Consultative Committee II (Radiocommunication including broadcasting) (PCC.II) and on various matters associated with the Asia-Pacific Economic Cooperation (APEC). See, notice in the Federal Register, January 16, 2008, Vol. 73, No. 11, at Page 2978. Location: Room 6B516, Federal Communications Commission (FCC), 445 12th St.,  SW.

1:00 - 4:00 PM. The Architectural and Transportation Barriers Compliance Board's (ATBCB) Telecommunications and Electronic and Information Technology Advisory Committee (TEITAC) will meet by conference call. See, notice in the Federal Register, January 24, 2008, Vol. 73, No. 16, at Page 4132.

Wednesday, February 6

8:00 AM - 12:00 NOON. The National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology (VCAT) will meet. See, notice in the Federal Register, January 15, 2008, Vol. 73, No. 10, at Page 2458-2459. Location: Employees Lounge, Administration Building, NIST, Gaithersburg, MD.

8:30 AM - 5:30 PM. The Department of Justice's (DOJ) Antitrust Division and the Federal Trade Commission (FTC) will jointly host a public workshop titled "2008 International Technical Assistance Workshop: Charting the Future Course of International Technical Assistance at the U.S. Department of Justice and the Federal Trade Commission" See, notice. Location: FTC Conference Center, 601 New Jersey Ave., NW.

9:00 AM - 1:30 PM. The Federal Communications Commission's (FCC) Public Safety and Homeland Security Bureau (PSHSB) will host a "summit on issues relating to the deployment and use of Next Generation 911 technology and the coordination of those efforts among Public Safety Answering Points, the telecommunications industry and manufacturers". See, notice [PDF] and registration page. Location: Commission Meeting Room, FCC,  445 12th St., SW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in LSI Industries v. Imagepoint, a patent infringement case, App. Ct. No. 2007-1292. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in O2 Micro International v. Beyond Innovation Technologies, a patent infringement case, App. Ct. No. 2007-1302. This is an appeal from the U.S. District Court (EDTex), D.C. No. 2-04-CV-32 (TJW). See, District Court's March 21, 2007, Memorandum Opinion and Order [PDF]. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Ampex v. Eastman Kodak, a patent infringement case, App. Ct. No. 2007-1089. This is an appeal from the U.S. District Court (DDel), D.C. No. 04-1373-KAJ. Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Metropolitan Life v. Bancorp, App. Ct. No. 2007-1312. Location: Courtroom 203, 717 Madison Place, NW.

12:00 NOON - 1:30 PM. The Federal Bar Association (FBA) will host an event titled "The 9/11 Act -- Overview and Authorities". The price to attend ranges from $10-$15. See, registration page. Location: Transportation Security Administration (TSA), Town Hall, 601 S. 12th St., Arlington, VA.

6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) Cyberspace and International Practice Committees will host an event titled "Broadband Deployment and Take-up: What Are the Experiences of Various Countries?" This event offers continuing legal education (CLE) credits. See, notice and registration page. The price to attend ranges from $25 to $135. Registrations are due by 5:00 PM on February 4. Location: Dow Lohnes, 1200 New Hampshire Ave., NW.

TIME? Day one of a two day closed meeting of the Department of Defense's (DOD) Defense Science Board. The DOD has not disclosed the agenda. See, notice in the Federal Register, January 2, 2008, Vol. 73, No. 1, at Pages 173-174. Location: Pentagon, Arlington, VA.

Thursday, February 7

8:30 AM - 5:00 PM. The U.S.-China Economic and Security Review Commission will hold a public meeting titled "The Implications of Sovereign Wealth Fund Investment on National Security". See, notice in the Federal Register, January 22, 2008, Vol. 73, No. 14, at Pages 3804-3805. Location: Room 562, Dirksen Building, Capitol Hill.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Gammino v. Southwestern Bell, one of several related patent infringement cases involving an algorithm for blocking international telephone calls. This appeal, App. Ct. No. 2007-1201, is from the U.S. District Court (NDTex), D.C. No. 3:2005cv00850, which entered summary judgment for Southwestern Bell (AT&T). See, 512 F.Supp.2d 626. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Avocent Huntsville v. Aten International, a patent infringement case, App. Ct. No. 2007-1553. This is an appeal from the U.S. District Court (NDAlab). Location: Courtroom 203, 717 Madison Place, NW.

TIME? Day two of a two day closed meeting of the Department of Defense's (DOD) Defense Science Board. The DOD has not disclosed the agenda. See, notice in the Federal Register, January 2, 2008, Vol. 73, No. 1, at Pages 173-174. Location: Pentagon, Arlington, VA.