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April 28, 2008, Alert No. 1,755.
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FCC Releases Inspector General's D Block Investigation Report

4/25. The Federal Communications Commission (FCC) released a report [PDF] from FCC Inspector General (FCC/IG) Kent Nilsson to FCC Chairman Kevin Martin titled "D Block Investigation".

The D Block in the recently completed Auction No. 73 was 10 MHz of paired spectrum (758-763 and 788-793). It was auctioned as one nationwide license, and subject to a Public/Private Partnership. That is, the plan was for a commercial licensee to build a nationwide broadband interoperable network for use by public safety entities. It would then have preemptible secondary access to the spectrum. However, no bidder bid the reserve price. The Public Safety Spectrum Trust (PSST) was selected by the FCC to be the public safety licensee for this spectrum.

See, stories titled "FCC Closes 700 MHz Auction" in TLJ Daily E-Mail Alert No. 1,734, March 20, 2008, and "FCC Releases Details of 700 MHz Auction" in TLJ Daily E-Mail Alert No. 1,735, March 24, 2008.

The FCC then issued an order that announced that "Because the aggregate reserve price for the D Block was not met, there is no winning bidder for that license. Given that the reserve price was met for all other blocks, we find it is in the public interest to provide additional time to consider all options with respect to the D Block spectrum. Therefore, we elect not to re-offer the D Block license immediately in Auction 76." See, story titled "FCC Will Not Offer D Block in Auction 76" in TLJ Daily E-Mail Alert No. 1,735, March 24, 2008.

Harold Feld, of the Media Access Project (MAP), sent a letter [PDF] to Martin on March 19, 2008, in which he asked the FCC to "investigate carefully the allegations surrounding a purported meeting between Frontline, its financial backers, and Morgan O’Brien of Cyren Call that may have had the effect of preventing Frontline from attracting needed capital and discouraging other bidders."

The just released FCC/IG report states that on March 20, 2008, Martin asked the FCC/IG to open an investigation. The report states that this investigation was regarding "allegations in several online wireless newspapers and ``blogs´´ and included in" Feld's letter.

The report finds that "Cyren Call officials met with Frontline and Verizon to discuss an estimated spectrum lease payment amount of $50 to $55 million (amount varied depending on the interviewee) per year for a period of ten years. All of these meetings took place prior to the ``Quiet Period,´´ when the anti-collusion rule was in effect. (Parentheses in original. Footnote omitted.)

It also finds that "The lease payment was discussed as an estimated amount that was included in the PSST business plan, but it was clear that the actual number would result from negotiations after the auction. Frontline, as well as other entities interviewed, stated that the lease payment amount was only one of many factors it considered in deciding whether to participate in the D Block. Witnesses from all of the entities interviewed also described a host of problems and concerns with the D Block that, as a whole, deterred their participation in the D Block."

The FCC/IG concludes that "the evidence established that the lease payment discussed at Cyren Call’s meetings with Verizon and Frontline was not the only factor in the companies' decision not to bid on the D Block. Rather, potential bidders stated that the uncertainties and risks associated with the D Block, including, but not limited to, the negotiation framework with PSST, the potential for default payment if negotiations failed, and the costs of the build-out and the operations of the network, taken together, deterred each of the companies from bidding on the D Block.

Gigi Sohn, head of the Public Knowledge, stated in a release that "this narrow investigation showed that the D-block auction was fatally flawed by terms and conditions set both by the Commission and by the public safety community. The controversial $50 million lease payments suggested by the public-safety community to potential bidders were only one factor. While the Inspector General found that none of this was against the rules, the conclusion needs to be drawn that the auction was doomed to failure. The Commission should take a more active role in future auctions to make certain public safety receives the spectrum it deserves. We look forward to the Commission’s notice on the next version of the auction."

OUSTR Releases 2008 Special 301 Report

4/25. The Office of the U.S. Trade Representative (OUSTR) released its annual report [51 pages in PDF] titled "2008 Special 301 Report".

Section 301 is the statutory means by which the US asserts its international trade rights, including its rights under WTO Agreements. In particular, under the "Special 301" provisions of the Trade Act of 1974, the OUSTR identifies trading partners that deny adequate and effective protection of intellectual property or deny fair and equitable market access to U.S. artists and industries that rely upon intellectual property protection.

The report states that "The Administration's top priorities this year continue to be addressing weak IPR protection and enforcement, particularly in China and Russia. Although this year's Special 301 Report shows positive progress in many countries, rampant counterfeiting and piracy problems have continued to plague China and Russia".

The report devotes 15 of its 51 pages to the People's Republic of China (PRC), and only one page to Russia.

Susan Schwab, the U.S. Trade Representative, stated in a release that "Our bilateral engagement with China, Russia and other trading partners complement our efforts to enforce our rights through the WTO. The Administration will continue to defend vigorously American innovation".

The 2008 Priority Watch List (PWC) contains 9 nations: PRC, Russia, Argentina, Chile, India, Israel, Pakistan, Thailand, and Venezuela.

The 2008 WL contains 36 nations, including Brazil, Canada, Italy, Korea, Mexico, and Taiwan.

The composition of the PWL and WL are little changed from 2007. Pakistan was elevated from the WL to the PWL. Algeria and Norway were added to WL.

Ukraine was lowered from PWL to WL because of its efforts to deal with optical disk piracy. Egypt, Lebanon and Turkey were also lowered from the PWL to the WL.

Spain. Spain was added to the WL due to "the growing problem of Internet piracy, described by U.S. copyright industries as one of the worst in Europe."

Dan Glickman, head of the Motion Picture Association of America (MPAA), stated in a release that "I fully agree with the USTR's decision to add Spain to the Watch List ... Internet piracy in Spain has reached an epidemic level, damaging both U.S. and Spanish creators. There is strong local support in Spain for increased cooperation with Internet service providers and I hope that the new government will respond favorably."

Taiwan. With respect to Taiwan, the report states that "An Out-of-Cycle Review will be initiated in the immediate future and completed this summer to monitor progress on selected outstanding issues to consider whether Taiwan should be removed from the Watch List. Progress by Taiwan on improving its IPR regime this past year includes the June passage by the Legislative Yuan (LY) of a new law aimed at ending illegal file-sharing over peer-to-peer (P2P) platforms, which enabled officials to shut down some of the worst violators; continued efforts to establish an IP section at the Special Prosecutor’s Office; and creation and issuance in October 2007 of the Action Plan for Protecting IP Rights on School Campuses."

Korea. The report states that Korea remains on the WL. The US and Korea have negotiated a free trade agreement (FTA) that addresses in detail IPR. The report states that "Korea has agreed to strengthen considerably its IPR protection and enforcement regimes" and that "adherence to these commitments will lead to a significant improvement in IPR protection as well as a reduction in piracy and counterfeiting in the Korean market".

The report does not go on to elaborate that Congressional Democrats are blocking approval of this FTA.

Russia. Russia remains on the PWL in 2008.

The report states that "The U.S. copyright industries estimate that they lost in excess of $1.4 billion in 2007 due to copyright piracy in Russia. The U.S. copyright industries continued to report that in 2007, Russia’s optical disc production capacity was far in excess of domestic demand, with pirated products being produced both for domestic consumption and export. Due to growing broadband penetration and the continued proliferation of pirate websites, the United States remains concerned about Internet piracy in Russia."

The report finds that there is "weak enforcement against piracy and counterfeiting" in Russia, that "prosecutions and adjudications of IP cases remain sporadic and inadequate", and that there is "a lack of transparency and a failure by courts to impose deterrent penalties for IPR violators".

PR China. The report states that "China remains a top intellectual property enforcement and TRIPS compliance priority", and will remain on the PWL and subject to Section 306 monitoring.

The report states that "overall piracy and counterfeiting levels in China remained unacceptably high in 2007. The U.S. copyright industries estimate that 85 percent to 95 percent of all of their members’ copyrighted works sold in China was pirated, indicating no improvement over 2006."

The report continues that "Internet piracy is increasing, as is piracy over closed networks such as those of universities, in addition to concerns over webcasting of various kinds. The rapid increase in the Internet to over 210 million users suggests that this challenge is likely to continue to grow, with many industry groups focused predominantly on Internet piracy."

The report also states that "Industry has identified Baidu as the largest China-based ``MP3 search engine´´ offering deep links to copyright-protected music files for unauthorized downloads or streaming. Baidu is the target of ongoing infringement actions."

Neil Turkewitz, of the Recording Industry Association of America (RIAA), stated in a release that "Baidu are traded on NASDAQ, and that Baidu has just announced that it posted a 71 percent increase in 2008 first-quarter profits. Baidu's inclusion on this list of bad actors will hopefully cause it to abandon a business built on piracy. It is reported that Baidu accounts for the delivery of over 50 percent of the infringing music files in China, and its SEC disclosure gives eerie witness to the importance of its music service (providing links to infringing files) to the company’s bottom line. A 71 percent increase in profits should not be built on the back of piracy." (Parentheses in original.)

The report adds that "trade in pirated optical discs continues to thrive, supplied by both licensed and unlicensed factories and by smugglers."

It reports that "Piracy of books and journals and end-user piracy of business software also remain key concerns." And, "Chinese counterfeits include many products, such as pharmaceuticals, electronics, batteries, auto parts, industrial equipment, toys, and many other products, that pose a direct threat to the health and safety of consumers in the United States, China and elsewhere."

The report concludes that "Inadequate IPR enforcement is a key factor contributing to these shortcomings, with high criminal thresholds as well as difficulties in initiating or transferring cases for criminal prosecution resulting in limited deterrence. Civil damages are also low."

It adds that "right holders report that enforcement efforts, particularly at the local level, are hampered by poor coordination among Chinese Government ministries and agencies, local protectionism and corruption, high thresholds for initiating investigations and prosecuting criminal cases, lack of training, and inadequate and non-transparent processes."

The report also blames "China’s chronic underutilization of deterrent criminal remedies."

It recommends that the PRC "should also provide strong administrative supervision, backed by penalties, to ensure that Internet service providers take down infringing content and/or links immediately upon receipt of a notice from internationally recognized right holders’ representatives; take steps to suspend or terminate the accounts of serious or repeat infringers when they become aware of such infringers; and provide information about the identity of direct infringers to right holders (or to groups representing right holders) when requested." (Parentheses in original.)

The report also details IPR issues at the provincial and local level in the PRC.

More Reaction. Representatives of industry sectors that create conceptual property praised the OUSTR report.

Eric Smith, head of the International Intellectual Property Alliance (IIPA), stated in a release [PDF] that "China and Russia again remain the two countries that are of major concern to the copyright industries, as they were in 2007 and prior years".

He added that "While there have been some positive developments in both these key markets over the year, enforcement efforts remain inadequate, and the copyright industries continue to await truly effective and deterrent enforcement (especially criminal enforcement) in both countries, enhanced legal reform, and greater market access for legitimate copyrighted materials." (Parentheses in original.)

Patrick Ross, head of the Copyright Alliance, stated in a release that "Demand for America's copyrighted works drives the nation's economy, creates personally and financially rewarding jobs and contributes to the positive side of the trade books. But intellectual property theft on a global scale is threatening America's creators."

David Israelite, head of the National Music Publishers Association (NMPA), stated in a release that "The effects of global piracy trickle down to every songwriter, whether in lost direct sales of today’s hit songs or in lost opportunity for cultivating tomorrow's platinum talent. Music is just one piece of America’s broad copyright industries, which each year lose billions to copyright infringement worldwide."

Sen. Baucus Introduces Tax Extenders Bill that Includes R&D Tax Credit

4/17. Sen. Max Baucus (D-MT) and others introduced S 2886 [LOC | WW], the "Alternative Minimum Tax and Extenders Tax Relief Act of 2008". This is a huge bill that would, among other things, extend the research and development tax credit.

The Congress continuously extends this tax credit, which is codified at 26 U.S.C. § 41, without making it permanent. The last extension of this credit expired on December 31, 2007. Section 301 of this bill would extend it through December 31, 2009.

This bill would also revise the alternative incremental credit. It would amend 26 U.S.C. § 41(c)(5)(A) to read as follows:

    "(i) CALCULATION OF CREDIT- At the election of the taxpayer, the credit determined under subsection (a)(1) shall be equal to the applicable percentage (as defined in clause (ii)) of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined.

    (ii) APPLICABLE PERCENTAGE- For purposes of the calculation under clause (i), the applicable percentage is -- (I) 14 percent, in the case of taxable years ending before January 1, 2009, and (II) 16 percent, in the case of taxable years beginning after December 31, 2008."

Sen. Max BaucusSen. Baucus (at right) stated in the Senate that "I am introducing a tax package that would extend relief from the alternative minimum tax and extend other much-needed individual and business provisions.

This bill provides only a one year patch for the AMT.

He continued that "The bill offers an extension of the research and development credit. This credit gives an incentive to businesses to invest in research. It helps to keep America competitive in the global economy."

The initial cosponsors of this bill are Sen. Charles Grassley (R-IA), Sen. Ken Salazar (D-CO), Sen. Charles Schumer (D-NY), Sen. Debbie Stabenow (D-MI), Sen. Gordon Smith (R-OR), Sen. Mike Crapo (R-ID), Sen. Jay Rockefeller (D-WV), Sen. Jon Kyl (R-AZ), and Sen. Olympia Snowe (R-ME).

Sen. Orrin Hatch (R-UT) spoke in the Senate on April 14, 2008. He said that "we see a growing proclivity on the part of Congress to enact tax provisions on a temporary basis rather than permanently. This has mostly been done to satisfy the often perverse demands of our budget rules. But whatever the reasons, the effect of not extending these provisions before they expire has been greatly damaging to the tax system and to taxpayers' ability to understand and rely on the law. The effect has been to weaken this country economically and competitively." See, Congressional Record, April 14, 2008, at Page S2957.

"Here we are, once again, in mid-April and our research credit has been expired since the end of last year. The worst part is, while we all believe it will be extended eventually, everyone knows the credit will not be made permanent, and the likelihood it will be allowed to expire again is very high."

"In the meantime", said Sen. Hatch, "many of our global trading partners have developed stronger and more permanent research incentives in an attempt to lure away research from our shores. They perceive a weakness in our incentive system, and they are moving to capitalize on this very weakness."

Sen. Collins Introduces Bill to Extend R&D Tax Credit for 5 Years

4/17. Sen. Susan Collins (R-ME) and Sen. Orrin Hatch (R-UT) introduced S 2884 [LOC | WW], the "Research and Development Tax Credit Improvement Act of 2008".

This is a stand alone R&D tax credit bill that would extend the credit for five more years, through December 31, 2012, and raise the rate of the Alternative Simplified Credit from 12% to 20% by 2010.

On October 19, 2007, Sen. Hatch and others introduced S 2209 [LOC | WW], the "Research Credit Improvement Act of 2007", a bill that would permanently extend the R&D tax credit.

Sen. Susan CollinsSen. Collins (at right) stated in the Senate that her just introduced bill "shares the framework" of Sen. Hatch's bill.

She continued that "The chief distinction between our two bills is the duration of the credit. The Hatch-Baucus bill proposes a permanent credit, while my bill would extend the R&D tax credit for five years. I certainly share the goal of providing a permanent R&D tax credit, but I fear that the cost of doing so puts it beyond our reach. Yet we simply cannot continue to play ``stop-and-go´´ with this critical research incentive. Since the R&D tax credit was first enacted in 1981, Congress has had to extend it a dozen times, and it expired again at the end of last year. The constant uncertainty about the status of the credit has made it impossible for companies to plan their research investments, and has seriously diminished the credit's role as an incentive for research and development here in the U.S. A 5-year extension would give companies enough time to plan their research investments with the credit in mind, restoring the incentive-effect the R&D credit has always been intended to provide."

She also stated that "The Basic Credit has served its purpose, but it has become hopelessly outmoded. Under the Basic Credit methodology, companies wishing to calculate their R&D credit must measure their current investments against a base that is stuck in the past -- literally the tax years between 1984 and 1988. This period is simply not relevant to today's investment decisions, and because of that, fewer and fewer companies get any benefit at all from the Basic Credit."

"By contrast, the Alternative Simplified Credit methodology allows companies to calculate their credit using a rolling average of their domestic investments over their three most-recent tax years."

People and Appointments

4/25. President Bush named Richard O'Donoghue Associate Counsel to the President. See, White House release.

4/25. Bradley Buswell was named first Deputy Under Secretary for the Department of Homeland Security's (DHS) Science and Technology (S&T) Directorate. See, DHS release.

Washington Tech Calendar
New items are highlighted in red.
Monday, April 28

The House will not meet. See, Rep. Hoyer's schedule for week of April 28.

The Senate will meet at 2:00 PM. It will resume consideration of the motion to proceed to HR 2881 [LOC | WW], the "FAA Reauthorization Act of 2007".

12:00 NOON - 2:00 PM. The Free State Foundation (FSF) will host a program titled "Reforming Universal Service: What Should Be Done And How To Do It". The speakers will be James Assey (National Cable & Telecommunications Association), Shirley Bloomfield (Qwest), Joel Lubin (AT&T), Randolph May (FSF), John Rose (OPASTCO), Mark Rubin (Alltel), Colin Crowell (House Commerce Committee, Democratic staff), and Neil Fried (House Commerce Committee, Republican staff). RSVP to Susan Reichbart at sreichbart at freestatefoundation dot org The event is free. Lunch will be provided. Location: Room 2322, Rayburn Building.

12:00 NOON - 1:30 PM. The DC Bar Association will host panel discussion titled "Merger Control in the Americas". The speakers will be John Taladay (Howrey), Eduardo Perez Motta (Chairman, Federal Commission on Competition, Mexico), Elizabeth Farina (President, Brazilian Competition Council), and Maria Tineo (Counsel for International Antitrust, Federal Trade Commission). The price to attend ranges from $15 to $30. For more information, contact 202-626-3488. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

12:30 PM. Dan Glickman (head of the Motion Picture Association of America) will give a speech. Location: Ballroom, National Press Club, 13th Floor, 529 14th St. NW.

1:00 - 2:00 PM. The National Press Club (NPC) will host a class titled "Reporting from Facebook". The event is free. Register by Register by contacting Beth Shankle at bshankle at press dot org or 202-662-7509.  Location: Computer Classroom, NPC, 13th Floor, 529 14th St. NW.

EXTENDED FROM MARCH 14. Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Report on Broadcast Localism and Notice of Proposed Rulemaking. The FCC adopted this item on December 18, 2007, and released the text on January 24, 2008. It is FCC 07-218 in MB Docket No. 04-233. See, notice in the Federal Register, February 13, 2008, Vol. 73, No. 30, at Pages 8255-8259. See also, FCC's Public Notice [PDF] (DA 08-393). See also, Public Notice [PDF] (DA 08-515) extending deadlines.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding SP 800-64 Rev. 2 [60 pages in PDF], titled "DRAFT Security Considerations in the System Development Life Cycle".

Tuesday, April 29

The House will meet at 12:30 PM for morning hour debate, and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. The House will consider numerous non-technology related items under suspension of the rules. See, Rep. Hoyer's schedule for week of April 28.

9:30 AM. The Senate Homeland Security and Government Affairs Committee will hold a hearing titled "The Impact of Implementation: A Review of the REAL ID Act and the Western Hemisphere Travel Initiative". See, notice. Location: Room 342, Dirksen Building.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "Oversight of Trade Functions: Customs and Other Trade Agencies". The witnesses will be Warren Maruyama (General Counsel, Office of the U.S. Trade Representative), Ralph Basham (Commissioner of Customs, Department of Homeland Security), Julie Myers (Assistant Secretary, U.S. Immigration and Customs Enforcement, DHS), and Daniel Pearson (Chairman of the U.S. International Trade Commission). See, notice. Location: Room 215, Dirksen Building.

12:00 NOON - 2:00 PM. The Progress & Freedom Foundation (PFF) will host a lunch titled "700 MHz ``D Block´´: What's Next?" The speakers will be Declan Ganley (Ch/CEO of Rivada Networks), Kenneth Ferree (PFF), Art Contreras (Mobile Future), Michael Calabrese (New America Foundation), Paul Glenchur (Stanford Washington Research Group). This event is free and open to the public. See, PFF notice and registration page. Location: Rotunda Room, Ronald Reagan Building and International Trade Center, 1300 Pennsylvania Ave., NW.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) regarding its proposal to amend the Trademark Rules of Practice to provide that the procedures for filing trademark correspondence by Express Mail or under a certificate of mailing or transmission do not apply to certain specified documents for which an electronic form is available in the Trademark Electronic Application System (TEAS). See, notice in the Federal Register, February 29, 2008, Vol. 73, No. 41, at Pages 11079-11081.

Wednesday, April 30

The House and Senate will meet jointly to hear Bertie Ahern, Prime Minister of Ireland. See, Rep. Hoyer's schedule for week of April 28.

9:00 AM. The Senate Judiciary Committee's (SJC) Subcommittee on the Constitution will hold a hearing titled "Secret Law and the Threat to Democratic and Accountable Government". It will address legal analysis withheld from the public, including memoranda of the Department of Justice's (DOJ) Office of Legal Counsel (OLC). Sen. Russ Feingold (D-WI) will preside. Location: Room 226, Dirksen Building.

9:00 AM - 4:00 PM. Day one of a two day meeting of the National Archives and Records Administration's (NARA) Advisory Committee on the Electronic Records Archives (ACERA). See, notice in the Federal Register, April 11, 2008, Vol. 73, No. 71, at Pages 19903-19904. Location: 700 Pennsylvania Ave., NW.

10:00 AM. The House Science Committee (HSC) will hold a hearing titled "E-Waste: Can the Nation Handle Modern Refuse in the Digital Age?". The witnesses will be Gerardo Castro (Goodwill Industries), Renee St. Denis (HP), Eric Harris (Institute of Scrap Recycling Industries), Ted Smith (Electronics Take Back Coalition), Eric Williams (Arizona State University), and Michael Williams (Sony Electronics). See, notice. Location: Room 2318, Rayburn Building.

10:15 AM. The House Judiciary Committee will meet to mark up several bills. The first item on the agenda is HR 4279 [LOC | WW], the "Prioritizing Resources and Organization for Intellectual Property Act of 2007" or "PRO IP Act". Location: Room 2141, Rayburn Building.

12:00 NOON - 1:00 PM. The Heritage Foundation will host a program titled "Civil Rights and the War on Terror: Promoting Accountability and National Security". The speakers will be Michael Chertoff (Secretary of Homeland Security), Dorit Beinisch (President of the Supreme Court of Israel), and Edwin Feulner (Heritage). See, notice. Location: Heritage, 214 Massachusetts Ave., NE.

12:30 - 2:00 PM. The DC Bar Association will host a presentation titled "U.S. Copyright Office's New Electronic Filing Procedure for the Registration of Copyrights". The speaker will be Jeffrey Cole of the Copyright Office. The price to attend ranges from $20 to $25. For more information, contact 202-626-3488. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

1:30 - 3:30 PM. The Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) Spectrum Management Advisory Committee will meet. The agenda includes receiving recommendations and reports from working groups of its Technical Sharing Efficiencies Subcommittee and Operational Sharing Efficiencies Subcommittee. See, NTIA notice and notice in the Federal Register, April 11, 2008, Vol. 73, No. 71, at Pages 19828-19829. Location: Room 1412, DOC, 1401 Constitution Ave., NW.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rule Making regarding public safety communications in the 800 MHz band. The FCC adopted and released this item on March 5, 2008. This item is FCC 08-73 in WT Docket No. 02-55 and ET Docket Nos. 00-258 and 95-18. See, notice in the Federal Register, March 31, 2008, Vol. 73, No. 62, at Pages 16822-16826.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding SP 800-39 [67 pages in PDF], titled "DRAFT Managing Risk from Information Systems: An Organizational Perspective".

Thursday, May 1

The House will meet at 10:00 AM for legislative business. The agenda includes no technology related items. See, Rep. Hoyer's schedule for week of April 28.

9:00 AM - 4:00 PM. Day two of a two day meeting of the National Archives and Records Administration's (NARA) Advisory Committee on the Electronic Records Archives (ACERA). See, notice in the Federal Register, April 11, 2008, Vol. 73, No. 71, at Pages 19903-19904. Location: 700 Pennsylvania Ave., NW.

9:00 - 10:30 AM. Robert Atkinson, head of the Information Technology and Innovation Foundation (ITIF), will present a report titled "Explaining International Broadband Leadership". The other speakers will be Tom Bleha and Magnus Härviden (Embassy of Sweden). See, notice. Location: National Press Club, 529 14th St., NW.

9:30 AM. The House Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will hold a hearing on a yet to be introduced bill that the HCC titles "Draft Legislation Enhancing Access to Broadband Technology and Services for Persons with Disabilities". The hearing will be webcast by the HCC. Location: Room 2123, Rayburn Building.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Crime, Terrorism, and Homeland Security will hold a hearing on HR 4081 [LOC | WW], the "Prevent All Cigarette Trafficking Act of 2007", and HR 5689 [LOC | WW], the "Smuggled Tobacco Prevention Act of 2008". One of the purposes of these bills is to further regulate cigarette sales to increase federal, state and local tax revenues, particularly with respect to internet sales. See, notice. This hearing will be webcast by the HJC. Location: Room 2141, Rayburn Building.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing on the nominations of Steven Agee (to be a Judge of the U.S. Court of Appeals for the 4th Circuit), William Lawrence (U.S. District Court, SDInd), and Murray Snow (USDC, DAriz). Location: Room 226, Dirksen Building.

12:00 NOON - 1:30 PM. The National Economists Club (NEC) will host a lunch. The speaker will be Gary Hufbauer. The topic will be "NAFTA at 14: Why the Uproar?". Location: Chinatown Garden Restaurant, 618 H St., NW.

6:00 PM. Deadline for the winning bidders in Auction 73 to avoid default for failure to submit final payment, including late fees, for their winning bids. See, notice.

Friday, May 2

Rep. Hoyer's schedule for week of April 28 states that "no votes are expected in the House".

9:00 AM - 3:30 PM. The Department of Commerce's (DOC) Economics and Statistics Administration's (ESA) Bureau of Economic Analysis's (BEA) BEA Advisory Committee will meet. The agenda includes a discussion of how offshoring might bias the Gross Domestic Product (GDP) statistics. See, notice in the Federal Register, March 24, 2008, Vol. 73, No. 57, at Page 15477. Location: BEA, 1441 L St., NW.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in James Kay v. FCC, App. Ct. No. 03-1072. Judges Tatel, Garland and Kavanaugh will preside. Location: 333 Constitution Ave., NW.

11:00 AM - 6:00 PM. The National Science Foundation (NSF) Advisory Committee for Computer and Information Science and Engineering will meet. The agenda includes discussion of "strategic priorities in computing". See, notice in the Federal Register, April 16, 2008, Vol. 73, No. 74, at Page 20721. Location: NSF, 4201 Wilson Blvd., Room 1235, Arlington, VA.

12:30 PM. The Heritage Foundation will host a book talk by Dianne Furchtgott-Roth, author of the book [Amazon] titled "Overcoming Barriers to Entrepreneurship in the United States". See, notice. Location: Heritage, 214 Massachusetts Ave., NE.

Deadline to submit to the Copyright Royalty Judges petitions to participate in the proceeding to determine the Phase I distribution of 2000, 2001, 2002, and 2003 royalties collected under the cable statutory license. See, notice in the Federal Register, April 2, 2008, Vol. 73, No. 64, at Pages 18004-18005.

Monday, May 5

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in _Maxwell Technologies v. Nesscap, App. Ct. No. 2007-1324, an appeal from the U.S. District Court (SDCal) in a patent infringement case involving ultracapacitor technology. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Stanford v. Motorola, App. Ct. No. 2007-1564. Location: Courtroom 402, 717 Madison Place, NW.

12:30 - 2:00 PM. The Federal Communications Bar Association's (FCBA) International Telecommunications Practice Committee will host a brown bag lunch. The topic will be "Understanding the Internet: An International Perspective". The speakers will include Irene Wu (FCC and Georgetown University). For more information, contact John Giusti at John dot Giusti at fcc dot gov. Location: Verizon, 5th floor, 1300 I St., NW.

EXTENDED TO MAY 19. Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to it Notice of Proposed Rulemaking (NPRM) regarding the Recommended Decision of the Federal-State Joint Board on Universal Service, released on November 20, 2007, regarding comprehensive reform of high cost universal service taxes and subsidies. The FCC adopted this NPRM on January 15, 2008, and released the text on January 29, 2008. It is FCC 08-02 in WC Docket No. 05-337 and CC Docket No. 96-45. See, original notice in the Federal Register, March 4, 2008, Vol. 73, No. 43, at Pages 11587-11591. See also, notice [PDF] of extension (DA 08-674).

EXTENDED TO MAY 19. Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to it Notice of Proposed Rulemaking (NPRM) regarding the use of reverse auctions to determine the amount of high cost universal service subsidies provided to eligible telecommunications carriers serving rural, insular, and high cost areas. The FCC adopted this NPRM on January 9, 2008, and released the text on January 29, 2008. It is FCC 08-05 in WC Docket No. 05-337 and CC Docket No. 96-45. See, original notice in the Federal Register, March 4, 2008, Vol. 73, No. 43, at Pages 11591-11602. See also, notice [PDF] of extension (DA 08-674).

EXTENDED TO MAY 19. Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to it Notice of Proposed Rulemaking (NPRM) regarding the FCC's rules governing the amount of high cost universal service subsidies provided to competitive eligible telecommunications carriers (ETCs). This NPRM also tentatively concludes that the FCC should eliminate the existing identical support rule, which is also known as the equal support rule. The FCC adopted this NPRM on January 9, 2008, and released the text on January 29, 2008. It is FCC 08-04 in WC Docket No. 05-337 and CC Docket No. 96-45. See, original notice in the Federal Register, March 4, 2008, Vol. 73, No. 43, at Pages 11580-11587. See also, notice [PDF] of extension (DA 08-674).

More New Bills

4/24. Rep. Mike Burgess (R-TX) introduced HR 5885 [LOC | WW], the "Health Information Technology Promotion Act of 2008". This bill was referred to the House Commerce Committee (HCC) and the House Ways and Means Committee.

4/16. Sen. David Vitter (R-LA) introduced S 2869 [LOC | WW], a bill to amend the Criminal Code. This bill would amend 18 U.S.C. § 2252 and 18 U.S.C. § 2252A. These are long statutory sections that criminalize many activities related to "material involving the sexual exploitation of minors". Various actions are referenced, including "sells", "distributes", "transports", and "ships". Some subsections criminalize the act of  "possesses". This bill would redefine "possesses" to include "accessing by computer with the intent to view". That is, under this bill, merely viewing something on the internet would be treated as criminal possession of illegal material. Sen. Vitter has cause to posture on issues of internet sexual morality, following disclosure last summer of his association with a prostitute. See, July 10, 2007, story in the Washington Post titled "Senator's Number on Madam Phone List". The bill was referred to the Senate Judiciary Committee (SJC). Neither Sen. Vitter is not a member of the SJC.

4/15. Sen. Charles Schumer (D-NY) and Sen. Daniel Akaka (D-AK) introduced S 2861 [LOC | WW], an untitled bill that would prohibit tax return preparers from charging a separate fee for electronic filing of tax returns and statements for individuals. This bill would provide that "No person authorized to originate the electronic submission of a return or statement relating to any tax imposed by subchapter A of chapter 1 on individuals may charge a separate fee for such electronic submission." (Subchapter A pertains to the determination of tax liability of individuals and corporations.) The bill would provide a fine of $50 per incident. It was referred to the Senate Finance Committee. Sen. Schumer is a member.

4/15. Rep. Nick Lampson (D-TX) introduced HR 5801 [LOC | WW], the "Free Internet Filing Act". This bill would require the Internal Revenue Service (IRS) to "provide individual taxpayers with the ability to electronically file their Federal income tax returns through the Internal Revenue Service website without the use of an intermediary or with the use of an intermediary which is contracted by the Internal Revenue Service to provide free universal access for such filing". The bill refers to this as a "direct e-file program". The bill was referred to theHouse Ways and Means Committee. The original cosponsors of the bill are Rep. Leonard Boswell (D-IA), Rep. Zach Space (D-OH), Rep. Baron Hill (D-IN), Rep. John Barrow (D-GA), and Rep. Charlie Melancon (D-LA). On April 14, 2008, the Computer and Communications Industry Association (CCIA) released a report [PDF] titled "The Benefits and Costs of I-File". It finds that the benefits this sort of proposal "would be at most de minimis, and more likely non-existent. Taxpayers already have the ability to file their returns electronically; as a result of the Free File program, most taxpayers have the ability to do so for free. Firms in the highly competitive tax preparation software business have strong incentives to increase the rate at which taxpayers file electronically, as well as to continue to innovate and improve the usability of their products. There is little reason to believe that an IRS-operated system would represent an improvement over the products already available in the market -- and many reasons to believe it would not."

4/15. Rep. Henry Waxman (D-CA), Rep. Lacy Clay (D-MO), and Rep. Paul Hodes (D-NH) introduced HR 5811 [LOC | WW], the "Electronic Communications Preservation Act". This bill would require the preservation of certain electronic communications of federal agencies and the office of the President. It was referred to the House Oversight and Government Reform Committee (HOGRC), which held a hearing on the bill on April 23, 2008. See, HOGRC web page with hyperlinks to prepared testimony.

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