Tech Law Journal Daily E-Mail Alert
January 7, 2009, Alert No. 1,879.
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ITIF Argues for Economic Stimulus Spending on IT Infrastructure

1/7. The Information Technology and Innovation Foundation (ITIF) released a paper [22 pages in PDF] titled "The Digital Road to Recovery: A Stimulus Plan to Create Jobs, Boost Productivity and Revitalize America". The authors are the ITIF's Robert Atkinson, Daniel Castro, and Stephen Ezell.

This paper argues that government spending is an effective strategy during an economic downturn. It also argues that spending on bridges is necessary and important. But, the ITIF argues that government spending on "national information technology (IT) infrastructure ... will have a greater positive impact on jobs, productivity, and innovation." It further argues for spending on "infrastructure investments" rather than on "consumption".

It states that "Investments in America's digital infrastructure will spur significant job creation in the short run." It advocates government spending on broadband networks, health IT, and a smart power grid.

This paper also argues that government spending on digital infrastructure will create a network effect, or network externality, that will offer superior job creation benefits because of the network multiplier.

This paper also argues that spending on digital infrastructure "will lead to higher productivity, increased competitiveness, and improved quality of life in the moderate to long term".

This paper mentions the possibility of a "$10 billion of investment in 1 year in broadband networks". It suggests that this could be accomplished with "tax incentives, grants, or other means".

This paper further argues that the government should focus on three broadband goals: "(1) getting broadband to unserved areas; (2) expanding network speeds in areas currently served by first-generation broadband (3 Mbps or less); and (3) spurring increased adoption of broadband by households." (Parentheses in original.)

For unserved areas, the ITIF suggests "tax credits of between 30 to 60 percent" and "$5 billion in grants".

For expanding network speeds, the ITIF proposes "incremental tax credits of 20 percent for investments in networks supporting speeds of at least 20 Mbps and 40 percent for investments supporting speeds of at least 50 Mbps. In order to ensure that these incentives actually spur additional investment, the credits should apply only to capital expenditures that exceed 85 percent of 2008 capital expenditures for companies."

The ITIF adds that there should also be grant funding "to upgrade networks for schools, libraries, hospitals, and government buildings".

This paper concludes that "With the U.S. economy now mired in a deep, and potentially prolonged, recession, increased investment is one of the best tools to stimulate aggregate demand and quickly get American workers back on payrolls. Spurring investments in IT infrastructure not only can provide an important short-term boost to the U.S. economy; it also can lay the groundwork for long-term economic growth, international competitiveness, and significant improvement in Americans' quality of life." (Footnote omitted.)

CCIA Releases IT Recommendations for Obama Transition

1/7. The Computer and Communications Industry Association (CCIA) released a paper [20 pages in PDF] that offers recommendations to President elect Obama's transition team regarding technology policy. This is a twenty page wish list of changes to statutes, regulations, and agency goals and policies across many areas of law and policy.

The CCIA advocates the pursuit of network neutrality policies through FCC rulemaking, FCC adjudication, Congressional legislation, and actions by antitrust agencies. The CCIA also advocates changes to both patent and copyright law and policy. It also advocates freedom from government censorship and internet spying in the U.S. and P.R.C.

Network Neutrality. The CCIA paper advocates "rules to maintain network neutrality".

With respect to the Federal Communications Commission (FCC), the CCIA advocates appointing Commissioners who "support strong enforcement and promotion of open Internet principles and would prohibit network discrimination based on source, ownership, or content".

The CCIA urges the FCC to then "Issue regulations that codify its ``Four Freedoms´´ of an open Internet along with prohibition of unreasonably discriminatory network management practices", and adopt "strict consumer disclosure rules involving network management practices".

This paper also urges the Obama administration to support Congressional legislation.

It also urges the FCC to implement its plan for unlicensed use of white spaces. See, story titled "FCC Adopts White Space Order" in TLJ Daily E-Mail Alert No. 1,852, November 4, 2008.

The CCIA also looks forward to changes in personnel and policy at the Federal Trade Commission (FTC) and the Department of Justice's (DOJ) Antitrust Division. The paper states that the CCIA want these agencies to promote "an open Internet through vigorous use of pro-competition and consumer protection laws".

Patents. The CCIA paper advocates numerous changes to patent law.

It advocates reintroduction of the Patent Reform Act. In the 110th Congress, the Senate Judiciary Committee (SJC) approved S 1145 [LOC | WW], the "Patent Reform Act of 2007", on July 19, 2007. However, the full Senate did not approve the bill. The related bill in the House was HR 1908 [LOC | WW], also titled the "Patent Reform Act of 2007". The House passed that bill on September 7, 2007, by a vote of 220-175. See, Roll Call No. 863.

The CCIA paper also proposes the creation of "a politically insulated unit within the Office to research innovation economics and patent policy, in order to support informed policy development." The paper does not elaborate on the concept of political insulation.

The paper also proposes an initial agenda for this USPTO policy office. It should "Explore making patent practice transparent by requiring patent owners to register with PTO any assignments, licenses, and notice letters as a prerequisite to enforcing patents and accruing damages." It should also "Evaluate the benefits of an independent invention/innocent infringement defense to patent infringement". Finally, it should evaluate "raising the threshold standard of patentability" in IT.

The CCIA paper also advocates creation of an interagency task force that would consider ways to "protect open standards against predatory patenting and patent assertions".

This task force would include the FTC, which has suffered setbacks in its efforts in this area. See, April 22, 2008, opinion [24 pages in PDF] of the U.S. Court of Appeals (DCCir) in Rambus v. FTC, and story titled "Court of Appeals Rules in Rambus v. FTC" in TLJ Daily E-Mail Alert No. 1,752, April 23, 2008.

Copyright. The CCIA paper makes numerous recommendations regarding copyright.

It states that "It is time to modernize the current international copyright scheme, which predates the current era of Web 2.0 and the participatory Internet."

It also states that the "FTC should conduct hearings and publish a similar study on competition and copyright law and policy in the information economy".

In 2003 the FTC released a landmark study on patent law, titled "To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy". See, Executive Summary [18 pages in PDF] and Report [2.28 MB in PDF]. See also, story titled "FTC Releases Report on Competition and Patent Law" in TLJ Daily E-Mail Alert No. 768, October 29, 2003.

The CCIA paper urges Office of the U.S. Trade Representative (OUSTR) to "Suspend negotiations" on the Anti-counterfeiting Trade Agreement (ACTA).

See, story titled "OUSTR Holds Meeting Regarding ACTA" in TLJ Daily E-Mail Alert No. 1,830, September 23, 2008.

Surveillance and Censorship. The CCIA paper also contains numerous recommendations related to surveillance, internet censorship, privacy and related issues.

The paper recommends that "When legislation connected to the PATRIOT Act expires in 2009, checks and balances on government surveillance should be restored."

It also proposes that there be an investigation into the "extent and scope of warrantless surveillance".

It further urges the Obama administration to impose limits on the exercise of surveillance authority under the Foreign Intelligence Surveillance Act (FISA).

The CCIA paper also argues that the FCC should ban network operators from using deep packet inspection (DPI) technology unless an end user agrees to opt in.

The CCIA also wants the U.S. to work to "guarantee freedom of expression" around the world, and treat government censorship of internet speech as a trade barrier".

The paper cites the People's Republic of China's (PRC) censoring of "domestic Internet access to legitimate sites and services", and urges the OUSTR to complain to the World Trade Organization (WTO) about this.

Other Items. The CCIA urges the Congress to make the research and development tax credit permanent, increase the annual cap on H1B visas, extend trade promotion authority to the President, and approve the U.S. Korea free trade agreement.

The CCIA also seeks a "more targeted and efficient export control regime".

The CCIA wants the Department of Commerce (DOC) to create an Office of Innovation Policy.

The CCIA also advocates various e-government initiatives that "bring greater openness and transparency to the government".

AAI Submits Antitrust Recommendations to Obama Transition

12/10. The American Antitrust Institute (AAI) released a paper [2 pages in PDF] to the Obama transition team regarding antitrust regulation.

This paper primarily concerns the Federal Trade Commission (FTC), but also touches on the Department of Justice's (DOJ) Antitrust Division.

The AAI often advocates the interests of the plaintiffs antitrust bar, and activist roles for government regulators.

This paper complains that the antitrust activities of the FTC have been limited by "ideological (read: Chicago School) blinders". (Parentheses in original.)

However, it recommends that "Unlike the Antitrust Division, there is no need for dramatic or immediate change" at the FTC. Rather, it states that the FTC should become "more progressive ... incrementally".

It urges the FTC "to continue their exploration of bundled rebates, standards setting problems ... and development of the law at the intersection between intellectual property rights and antitrust policy ..."

The paper also urges regulators to "take a more aggressive approach to mergers".

It also argues that the "administrative adjudication process should be revitalized. There should not be a movement toward a single approach based on the DOJ model."

The DOJ, pursuant to its statutory authority, files actions in the District Court to block or condition mergers. The FTC recently, in the Whole Foods case, reasserted its authority to block mergers by administrative orders, without having to obtain an order of the District Court. Whole Foods has filed a complaint in the U.S. District Court (DC) to stop the FTC. See, story titled "Whole Foods Files Complaint Against FTC" in TLJ Daily E-Mail Alert No. 1,871, December 11, 2008.

The AAI paper also criticizes the Supreme Court's opinion in Leegin. This case, which pertains to resale price maintenance, impacts the marketing of consumer electronics devices. See, June 28, 2007, opinion [55 pages in PDF] of the Supreme Court of the U.S. (SCUS) in Leegin Creative Leather Products v. PSKS.

The AAI paper states that "The FTC should take a lead in developing a structured rule of reason approach wherever per se illegality does not apply, with a special need for reforming the handling of RPM in light of the Leegin case. Indeed, the consumer harm caused by Leegin is sufficiently great to warrant proposing legislative reform as part of an overall stimulus/bailout package."

See also, 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 AAI also released a table [17 pages in PDF] that summarizes the proposals for antitrust reform offered by the AAI, the Antitrust Modernization Commission (AMC), and by the American Bar Association (ABA).

The AMC and the AAI are seeking to move antitrust law and policy in opposite directions. See also, story titled "Antitrust Modernization Commission Releases Report" in TLJ Daily E-Mail Alert No. 1,560, April 4, 2007.

On October 6, 2008, the AAI released a report titled "The Next Antitrust Agenda: The American Antitrust Institute's Transition Report on Competition Policy to the 44th President".

On January 26, 2009, the AAI and the Silicon Flatirons Center (SFC) will host a conference in Boulder, Colorado, titled "Antitrust Law for the New Administration". See, AAI notice and SFC notice.

In This Issue

This issue contains five stories regarding IT policy recommendations for the Obama administration:
 • ITIF Argues for Economic Stimulus Spending on IT Infrastructure
 • CCIA Releases IT Recommendations for Obama Transition
 • AAI Submits Antitrust Recommendations to Obama Transition
 • CDT Releases IT Policy Proposals for Obama Administration
 • CSIS Urges Obama Administration to Mandate Authentication on Internet

Washington Tech Calendar
New items are highlighted in red.
Thursday, January 8

The House and Senate will meet in joint session at 1:00 PM to conduct the formality of counting electoral votes for President. See, Rep. Hoyer's schedule for week of January 5, 2009.

RESCHEDULED FOR JANUARY 15. 9:30 AM. The Senate Judiciary Committee (SJC) may hold a hearing on the likely nomination of Eric Holder to be Attorney General in the Obama administration. The SJC will webcast this hearing. Location? See, notice of extension.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Narton v. Schukra USA, App. Ct. No. 2008-1363. This is an appeal to the U.S. District Court (EDMich) in a patent infringement case involving the issue of lack of standing to sue based upon failure of all inventors to be named on a patent and to join in the suit. Location: Courtroom 402, 717 Madison Place, NW.

10:30 - 11:45 AM. Federal Communications Commission (FCC) Chairman Kevin Martin will give a speech titled "Balancing Deregulation and Consumer Protection". See, notice. Location: American Enterprise Institute, 12th floor, 1150 17th St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking regarding implementation of S 3663 [LOC | WW], "Short-term Analog Flash and Emergency Readiness Act". The FCC adopted and released this NPRM [21 pages in PDF] on December 24, 2008. It is FCC 08-281in MB Docket No. 08-255. See, notice in the Federal Register, December 31, 2008, Vol. 73, No. 251, at Pages 80332-80349.

Friday, January 9

The House may meet at 10:00 AM. See, Rep. Hoyer's schedule for week of January 5, 2009.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in RFID Tracker v. Wal-Mart Stores, App. Ct. No. 2008-1412. Location: Courtroom 402, 717 Madison Place, NW.

12:00 - 1:30 PM. Google and the New America Foundation (NAF) will host a panel discussion titled "Wiki White House: Can Obama Use Technology to Transform Government?". The speakers will be Craig Newmark (Craigslist), Mindy Finn (former Director of E-Strategy for Mitt Romney for President), Ellen Miller (Sunlight Foundation), Sascha Meinrath (NAF), and Nicholas Thompson (NAF). The NAF states in its notice for this event that it is full. Location: Google, 1101 New York Ave., NW.

Monday, January 12

12:30 - 2:30 PM. The Department of Homeland Security's (DHS) Homeland Security Advisory Council (HSAC) will hold a closed meeting. See, notice in the December 30, 2008, Vol. 73, No. 250, at Pages 79894-79895. Location: DHS, Nebraska Avenue Complex.

Effective date of the U.S. Patent and Trademark Office's (USPTO) rules of practice amendments that adjust the transmittal and search fees for international applications filed under the Patent Cooperation Treaty (PCT). See, notice in the Federal Register, November 12, 2008, Vol. 73, No. 219, at Pages 66754-66759.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Second Further Notice of Proposed Rule Making (2ndFNPRM) regarding rules to protect AM stations from the potential effects of nearby tower construction. The FCC adopted this 2ndFNPRM on September 24, 2008, and released the text [28 pages in PDF] on September 26, 2008. It is FCC 08-228 in MM Docket No. 93-177. See, notice in the Federal Register, December 11, 2008, Vol. 73, No. 239, at Pages 75376-75381.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding creating a new replacement digital television translator service that will permit full service television stations to continue to provide service to viewers within their coverage area who have lost service as a result of those stations' digital transition. The FCC adopted this item on December 22, 2008, and released the text [14 pages in PDF] on December 23, 2009. It is FCC 08-278 in MB Docket No. 08-253. See, notice in the Federal Register, January 2, 2009, Vol. 74, No. 1, at Pages 61-67.

Tuesday, January 13

8:00 - 10:00 AM. The BroadbandCensus dot com [http colon slash slash broadbandcensus dot com] will host a breakfast event titled "What Will Broadband Do to the Universal Service Fund?" The speakers will include Greg Rhode (E-Copernicus/E9-1-1 Institute). For more information, contact Drew Clark at drew at broadbandcensus dot com or 202-580-8196. Breakfast begins at 8:00 AM. The program begins at 8:40 AM. The price to attend these monthly events is $45. These events are open to the public. Location: Old Ebbitt Grill, 675 15th St., NW.

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host panel discussion titled "Globalization and Technology Standards: The Case for Expanded U.S. Leadership". The speakers will be Rob Atkinson (ITIF), Donald Purcell (Center for Global Standard Analysis), Jeff Weiss (Office of the U.S. Trade Representative), and Mary Saunders (Department of Commerce). A light breakfast will be served. Location: ITIF, Suite 200, 1250 Eye St., NW.

11:00 AM - 12:00 PM. The Federal Communications Commission's (FCC) Advisory Committee for the 2011 World Radiocommunication Conference will meet. See, notice in the Federal Register: December 22, 2008, Vol. 73, No. 246, at Page 78358. Location: FCC, Commission Meeting Room, 445 12th St.,  SW.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch titled "Understanding BIA/Arbitron Reports and the Local Radio Ownership Rule". The speakers will be Mark Fratrik (BIA Financial Network), John Pelkey (Garvey Schubert Barer), and Bill Getz (Carl T. Jones Corp.). See, notice and registration page. Location: National Association of Broadcasters, 1771 N St., NW.

5:00 - 7:00 PM. The Center for Democracy and Technology's (CDT) Internet Caucus will host a reception and technology demonstration associated with its January 14 event titled "State of the Net Conference". Location?

Wednesday, January 14

8:30 AM. The Center for Democracy and Technology's (CDT) Internet Caucus will host an event titled "State of the Net Conference". See, notice. Location: Hyatt Regency Capitol Hill.

10:00 - 11:00 AM. Chris Essid, Director of the Department of Homeland Security's (DHS) Office of Emergency Communications will give a speech on "latest news and developments on public safety communications and related initiatives". See, notice. Location: FCC, Commission Meeting Room, TW-C305.

Thursday, January 15

RESCHEDULED FROM JANUARY 8. 9:30 AM. The Senate Judiciary Committee (SJC) may hold a hearing on the likely nomination of Eric Holder to be Attorney General in the Obama administration. See, notice. The SJC will webcast this hearing. Location: Room 325, Russell Building.

5:00 PM. Deadline to submit applications to the National Telecommunications and Information Administration (NTIA) for a grant for the Pan-Pacific Education and Communications Experiments by Satellite (PEACESAT) Program. See, notice in the Federal Register, December 5, 2008, Vol. 73, No. 235, at Pages 74146-74148.

CDT Releases IT Policy Proposals for Obama Administration

12/9. The Center for Democracy and Technology (CDT) released a paper [47 pages in PDF] titled "Transition Packet for President Obama".

The CDT also released this in the following fourteen issue papers:

CSIS Urges Obama Administration to Mandate Authentication on Internet

12/8. The Center for Strategic and International Studies' (CSIS) Commission on Cybersecurity for the 44th Presidency released a report [96 pages in PDF] titled "Securing Cyberspace for the 44th Presidency".

It states that "cybersecurity is now a major national security problem". It recommends a "comprehensive national security strategy for cyberspace" that includes "creating a new office for cyberspace in the Executive Office of the President".

It suggests the name, "National Office for Cyberspace".

The CSIS recommends that "The President should appoint an assistant for cyberspace and establish a Cybersecurity Directorate" in the National Security Council (NSC) that absorbs existing Homeland Security Counsel (HSC) functions.

It also recommends the merging of the National Cyber Security Center and the Joint Inter-Agency Cyber Task Force.

It adds that the government should "set minimum standards for securing cyberspace". Moreover, the government should "mandate strong authentication for access to critical infrastructure".

It also recommends that the Congress should "update" cyber security statutes.

This paper's proposal to mandate authentication may raise concerns about government use of personal information and the creation of a centralized identity system or card.

Authentication enables the collection of information on individuals. While it addresses some security threats, it can create new risks.

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