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August 19, 2008, Alert No. 1,815.
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US, Japan and Taiwan Request WTO Panel on EU Duties on Tech Products

8/18. The Office of the U.S. Trade Representative (OUSTR) filed with the World Trade Organization (WTO) a request for the establishment of a dispute settlement panel regarding the European Union's (EU) failure to accord duty free treatment to certain products covered by the WTO Information Technology Agreement (ITA) [18 pages in PDF].

Susan SchwabSusan Schwab, the USTR, stated in a release that "We regret that formal consultations have not been successful in resolving our concerns over the duties that the EU is imposing on several high-tech products ... The EU committed to bind and eliminate duties on ITA products in its WTO tariff schedules.  We believe that these duties are inconsistent with the EU’s commitments on these products, and that they discourage technological innovation in the IT sector."

The OUSTR filed a request for consultations with the WTO on May 28, 2008. See, story titled "US and Japan File Complaints with WTO Regarding EU Duties on Tech Products" in TLJ Daily E-Mail Alert No. 1,776, June 4, 2008.

This proceeding pertains to EU duties on cable boxes that can access the internet, flat panel computer monitors, and certain computer printers that can also scan, fax and/or copy.

The OUSTR release adds that "Japan and Chinese Taipei also requested consultations with the EU on May 28 and June 12, respectively, and have joined the United States in requesting the establishment of a dispute settlement panel."

Robert Mulligan of the AeA, a U.S. based trade group, stated that the "AeA believes that the EU approach to the ITA and these products would undermine the benefits of the ITA and stifle innovation." He added that "The ITA was intended to encourage technological development and the action by the United States, Japan, and Chinese Taipei will reinforce the agreement by challenging the EU approach."

Federal Circuit Affirms in Cygnus Telecommunications Patent Case

8/19. The U.S. Court of Appeals (FedCir) issued its opinion [32 pages in PDF] in In Re Cygnus Telecommunications Technology Patent Litigation, a patent infringement case involving computerized telephone callback systems. The Court of Appeals affirmed the District Court in full.

Cygnus is the assignee of U.S. Patent No. 5,883,964 titled "Interactive telephone system for optimizing service economy" and U.S. Patent No. 6,035,027 with the same title.

Cygnus filed complaints in various U.S. District Courts against numerous companies, including AT&T, alleging patent infringement. Cygnus also pled trade secret misappropriation against AT&T. These actions were consolidated in one multidistrict proceeding in the U.S. District Court (NDCal).

The District Court granted one judgment in favor of Telesys Communications and other defendants on the basis that the patents in suit are invalid under the on sale bar, which is codified at 35 U.S.C. § 102(b). The District Court also granted judgment in favor of AT&T, based on invalidity under the on sale bar, and noninfringement. It also dismissed the trade secret misappropriation claim.

The Court of Appeals affirmed the District Court on all issues on appeal.

This case is In Re Cygnus Telecommunications Technology Patent Litigation, U.S. Court of Appeals for the Federal Circuit, App. Ct. Nos. 2007-1328, 2007-1329, 2007-1330, 2007-1331, 2007-1332, 2007-1333, 2007-1354, 2007-1361, and 2008-1023, appeals from the U.S. District Court for the Northern District of California, Judge Ronald Whyte presiding.

Judge Bryson wrote the opinion of the Court of Appeals, in which Judges Pauline Newman and Donald Pogue joined. Pogue is a Judge of the U.S. Court of International Trade, who sat by designation.

Bush to Nominate Dempsey for Privacy and Civil Liberties Oversight Board

8/19. President Bush announced his intent to nominate James Dempsey to be a Member of the Privacy and Civil Liberties Oversight Board (PCLOB) for a five year term expiring on January 19, 2013. See, White House news office release.

Dempsey is VP for Public Policy at the Center for Democracy and Technology (CDT). He has lived in San Francisco since 2005. Before that he lived in Washington DC, where the CDT is based. He was previously Executive Director of the CDT.

The CDT added in a release that the position is part time, and that Dempsey will continue to work for the CDT.

See also, CDT's biography of James Dempsey with hyperlinks to select articles and written testimony for Congressional committees.

The original PCLOB was created by Section 1061(b) of the Intelligence Reform and Terrorism Prevention Act of 2004. This statute made the PCLOB a part of the Executive Office of the President (EOP).

The members of the original PCLOB were Carol Dinkins, Alan Charles Raul, Ted Olson, Francis Taylor and Lanny Davis. Davis resigned in 2007.

Then, the Congress reconstituted the PCLOB in Section 801 of HR 1 [LOC | WW], the "Implementing Recommendations of the 9/11 Commission Act of 2007". President Bush signed this bill into law on August 3, 2007. It is now Public Law No. 110-53.

HR 1 makes the PCLOB "an agency" within the meaning of 5 U.S.C. § 551. HR 1 provides that the PCLOB "shall be composed of a full-time chairman and 4 additional members, who shall be appointed by the President, by and with the advice and consent of the Senate."

On February 27, 2008, President Bush nominated Daniel Sutherland, Ronald Rotunda, and Francis Taylor to be members of the PCLOB. See, story titled "Bush Nominates Members of New Privacy and Civil Liberties Oversight Board" in TLJ Daily E-Mail Alert No. 1,724, February 27, 2008.

Those nominations are still pending before the Senate.

The primary consequence to date of the restructuring of the PCLOB has been to suspend its operations, and the oversight and reports that flowed therefrom.

Ed Black, head of the Computer & Communications Industry Association (CCIA), stated in a release that Dempsey "brings years of experience to this crucial issue at a time when the need for proper oversight of the nation's surveillance infrastructure has never been greater. We only hope that this is a positive sign and that administration officials listen to Jim's wise counsel."

More News

8/20. The Federal Communications Commission (FCC) released the text [67 pages in PDF] of its Memorandum Opinion and Order (MOO) asserting authority to regulate the network management practices of broadband service provides. This MOO was issued in connection with a complaint submitted by the Public Knowledge and the Free Press regarding Comcast's management of certain peer to peer traffic. This item is FCC 08-183 in Docket No. 07-52. The FCC adopted, but did not release, this MOO on August 1, 2008. See, story titled "FCC Asserts Authority to Regulate Network Management Practices" in TLJ Daily E-Mail Alert No. 1,805, August 4, 2008.

8/19. The Federal Communications Commission (FCC) published a notice in the Federal Register that announces, describes, and sets comments deadlines for, its Notice of Proposed Rulemaking (NPRM) regarding expanding the scope of services and products covered by the FCC's schools and libraries tax and subsidy program. The FCC adopted this item on July 25, 2008, and released the text [26 pages in PDF] on July 31, 2008. It is FCC 08-173 in CC Docket No. 02-6. The deadline to submit initial comments is September 18, 2008. The deadline to submit reply comments is October 3, 2008. See, Federal Register, August 19, 2008, Vol. 73, No. 161, at Pages 48352-48359.

8/19. The U.S. Court of Appeals (2ndCir) issued its opinion [9 pages PDF] in In Re Nortel Networks Securities Litigation, a securities case in which the Court of Appeals affirmed the District Court's January 29, 2007, post settlement judgment awarding plaintiffs' counsel attorneys fees in the amount of 3% of the class recovery. They wanted 8.5%. The opinion lists plaintiffs' counsel as the law firm of Milberg Weiss & Bershad. See, stories titled "Milberg Weiss Indicted for Paying Illegal Kickbacks to Class Action Plaintiffs" in TLJ Daily E-Mail Alert No. 1,375, May 22, 2006, "Bershad Agrees to Cooperate with Prosecutors" in TLJ Daily E-Mail Alert No. 1,607, July 9, 2007, "Lerach Retires" in TLJ Daily E-Mail Alert No. 1,631, August 30, 2007, and "Grand Jury Indicts Weiss; Lerach and Shulman Agree to Plead Guilty" in TLJ Daily E-Mail Alert No. 1,644, September 24, 2007. This case is In Re Nortel Networks Securities Litigation, U.S. Court of Appeals for the 2nd Circuit, App. Ct. No. 07-0757-cv, an appeal from the U.S. District Court for the Southern District of New York. The Court of Appeals issued a per curiam opinion of Judges Sotomayor, Wesley and Clifford Wallace. Wallace is a Judge of the U.S. Court of Appeals (9thCir), who sat by designation.

8/19. The Copyright Office (CO) published a notice in the Federal Register that announces, describes, attaches, and sets the effective date (August 8, 2008) for, its Memorandum Opinion to the Copyright Royalty Board regarding the division of authority between the Judges and the Register of Copyrights under the 17 U.S.C. § 115 statutory license.

8/18. The National Telecommunications and Information Administration's (NTIA) announced in a release that "nearly 6.4 million ``over-the-air´´ TV households, those that rely on an antenna for broadcast TV, have requested about 12 million coupons from the TV Converter Box Coupon Program."

Washington Tech Calendar
New items are highlighted in red.
Wednesday, August 20

The House will not meet. It will return from its August recess on September 8.

The Senate will not meet. It will return from its August recess on September 8. It will hold momentary pro forma sessions until then to prevent President Bush from making recess appointments.

The Supreme Court will return on September 29, 2008. See, October Term 2008 calendar.

Thursday, August 21

The House will not meet.

The Senate not meet.

1:00 - 5:00 PM. The Department of Health and Human Services' (DHHS) American Health Information Community's (AHIC) Confidentiality, Privacy, & Security Workgroup may meet. See, notice in the Federal Register, July 29, 2008, Vol. 73, No. 146, at Page 43937. AHIC meetings are often noticed, but cancelled. Location: Room 1114, Switzer Building, 330 C St., SW.

Friday, August 22

The House will not meet.

The Senate will meet momentarily in pro forma session at 10:00 AM.

10:00 AM. The Federal Communications Commission (FCC) has scheduled an event titled "Open Meeting". See, document [PDF] titled in part "Commission Meeting Agenda", and story titled "FCC Revises Schedule for August 22 Event" in TLJ Daily E-Mail Alert No. 1,814, August 18, 2008. Location: FCC, Commission Meeting Room.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its SP 800-121 [43 pages in PDF] titled "Guide to Bluetooth Security (Draft)".

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Second Further Notice of Proposed Rulemaking regarding post-reconfiguration 800 MHz band plans for the Puerto Rico region. See, notice in the Federal Register, July 14, 2008, Vol. 73, No. 135, at Pages 40274-40276.

Monday, August 25

Deadline to submit comments to the National Science Foundation's (NSF) Subcommittee on Networking and Information Technology Research and Development (NITRD) to assist it in preparing its five year strategic plan for the NITRD program. See, notice in the Federal Register, July 25, 2008, Vol. 73, No. 144, at Pages 43477-43478.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) regarding assignment and administration of ten digit telephone numbers for internet based Telecommunications Relay Services (TRS). This item is FCC 08-151 in CG Docket No. 03-123 and WC Docket No. 05-196. See, notice in the Federal Register, July 18, 2008, Vol. 73, No. 139, at Pages 41307-41311.

Tuesday, August 26

No events listed.

Wednesday, August 27

No events listed.

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