Tech Law Journal Daily E-Mail Alert
February 3, 2009, Alert No. 1,890.
Home Page | Calendar | Subscribe | Back Issues | Reference
DOJ Obtains TFT-LCD Price Fixing Indictment

2/3. A grand jury of the U.S. District Court (NDCal) returned an indictment that charges Cheng Yuan Lin, aka C.Y. Lin, Wen Jun Cheng, aka Tony Cheng, and Duk Mo Koo with violation of federal antitrust law in connection their alleged conspiracy to fix prices of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) panels.

Lin and Cheng are former executives of Chunghwa Picture Tubes Ltd. Koo is a former executive of LG Display Co. Ltd.

Scott Hammond, the acting Assistant Attorney General in charge of the Department of Justice's (DOJ) Antitrust Division, stated in a release that the DOJ "will vigorously pursue individuals who engage in antitrust crimes targeting U.S. businesses and consumers no matter where those individuals live or commit the crime ... Today’s charges should make clear that there are no safe havens for international cartels that violate the U.S. antitrust laws."

The DOJ release states that the alleged conspiracy included "Attending meetings and engaging in conversations and communications in Taiwan, Korea and the United States to discuss the prices of TFT-LCD panels" and "Agreeing during those meetings, conversations and communications to charge prices of TFT-LCD panels at certain levels".

This is another in a series of DOJ criminal charges alleging TFT-LCD price fixing. The DOJ has also brought numerous charges alleging DRAM price fixing.

McDowell Discusses DTV Transition and FCC Reform

2/2. Federal Communications Commission (FCC) Commissioner Robert McDowell gave a speech [11 pages in PDF] at a Federal Communications Bar Association (FCBA) lunch. He discussed government efforts to plan broadcasters' and consumers' transition to digital television. However, most of his speech was devoted to his proposals for reforming the FCC.

Robert McDowellMcDowell (at left) stated that "it is important for all of us to stay focused on February 17 regardless of what Congress does or does not do. Most broadcasters are prepared to shut off their analog signals on that date, and an estimated 392 stations have either already converted to all-digital or will do so by February 17. Broadcasters have invested hundreds of millions of dollars in new DTV equipment in the past few years in reliance upon the February 17 deadline. On top of that, broadcasters have been incurring additional costs to broadcast in both analog and digital."

He said that "If government is going to change the rules of the game with precious few minutes left on the clock, I hope that the Commission will be afforded some flexibility in allowing broadcasters to go all-digital on February 17, or before June 12, provided they have been acting in good faith and both their viewers and the Commission have been properly notified."

He also discussed reforming the FCC. He recommended the the FCC "commence a thorough operational, financial and ethics audit of the Commission and its related entities, such as the Universal Service Administrative Company and the Federal Advisory Committees". These audits would include public comments. He added that "I'm not seeking to abolish USAC or FACs".

He also recommended that the FCC "update and re-publish the Commission's strategic plan".

He recommended greater use of "engineers and economists".

He recommended that the FCC "improve external communications".

He offered numerous recommendations for the Chairman in keeping the other Commissioners informed.

He recommended that "notices of proposed rulemakings could sometimes actually contain proposed rules".

He suggested that statutorily mandated annual reports might actually be released annually.

He recommended that the FCC update, and make more user friendly, its "licensing databases, IT and web systems".

He recommended that the FCC update and rewrite its guide FCC internal procedures.

He stated that one of his goals is "greater transparency" at the FCC. He added that in his proposed audits, FCC employees should be allowed to "submit comments anonymously". He also said that FCC "deputy bureau chiefs and division chiefs" should have authority to "conduct meaningful ex parte discussions".

McDowell also uttered the following phrase in connection with the luncheon: "the beginning of the first FCC ``wiki´´ that we all shape and share". An online wiki might enable anonymous comment.

He did not explain why anonymous comments and ex parte discussions are not inconsistent with transparency.

People and Appointments

2/2. The Senate confirmed Eric Holder to be the Attorney General by a vote of 75-21. See, Roll Call No. 32. All of the no votes were cast by Republicans.

2/2. President Obama announced his intent to nominate Sen. Judd Gregg (R-NH) to be Secretary of Commerce. See, White House news office release, with attached statements by Obama and Gregg. The organizational structure of the Department of Commerce (DOC) includes the U.S. Patent and Trademark Office (USPTO), National Telecommunications and Information Administration (NTIA), and National Institute of Standards and Technology (NIST).

2/3. Former Sen. Tom Daschle (D-SD) withdrew from consideration to be Secretary of Health and Human Services.

2/3. Anna Gomez was named Deputy Assistant Secretary for Communications and Information, and Deputy National Telecommunications and Information Administration (NTIA) Administrator, at the Department of Commerce (DOC). She was previously Sprint Nextel's VP for State and Federal Regulatory, Government Affairs. She also previously worked for former Federal Communications Commission (FCC) Chairman William Kennard, and for the Senate Commerce Committee (SCC). See, NTIA release.

1/29. President Obama announced intent to nominate Ivan Fong to be General Counsel of the Department of Homeland Security (DHS). See, DHS release. Fong is currently Chief Legal Officer and Secretary of Cardinal Health, Inc., a manufacturer and distributor of medical and surgical supplies and technologies. He worked in the Department of Justice (DOJ) during the administration of former President Clinton. He authored the 2000 report titled "The Electronic Frontier: The Challenge of Unlawful Conduct Involving the Use of the Internet".

1/29. Secretary of Homeland Security Janet Napolitano named David Martin to be Principal Deputy General Counsel of the DHS, Brian De Vallance to be Senior Counselor to the Secretary, and Sean Smith to be Deputy Assistant Secretary for Public Affairs. See, DHS release. Martin was previously a professor at the University of Virginia law school, where he taught immigration law. De Vallance previously worked for Napolitano in the Arizona Office of the Governor. Smith previously worked for the Obama Presidential campaign.

More News

2/3. Federal Communications Commission (FCC) acting Chairman Michael Copps sent a letter [28 pages in PDF] to Rep. Joe Barton (R-TX) and Rep. Cliff Stearns (R-FL) regarding government efforts to plan broadcasters' and consumers' transition to digital television.

2/3. The U.S. Court of Appeals (3rdCir) issued its opinion [47 pages in pages in PDF] in In Re Winstar Communications, a bankruptcy case involving Lucent (now Alcatel Lucent) as creditor, in which the Court addressed, among other issues, when a creditor can be considered a non-statutory insider for purposes of extending the time for recovery of preferential payments. The Court of Appeals affirmed in part, and modified in part, the judgment of the Bankruptcy Court and District Court. This case is In Re Winstar Communications, U.S. Court of Appeals for the 3rd Circuit, App. Ct. No. 07-2569, an appeal from the U.S. District Court for the District of Delaware, D.C. No. 06-cv-00147, Judge Joseph Farnan presiding. Judge Sloviter wrote the opinion of the Court of Appeals, in which Judges Greenberg and Joseph Irenas (USDC/DNJ) joined.

2/3. The U.S. Court of Appeals (DCCir) issued its opinion [19 pages in PDF] in Southwest Airlines v. TSA, petitions for review of a final order of the Transportation Security Administration (TSA) regarding some of the taxes collected from airlines by the TSA. This case does not address the legality of any of the TSA's screening procedures, use of watch lists, or procedure for challenging erroneous information in databases. The Court of Appeals upheld the TSA order in part. This case is Southwest Airlines, Inc., et al. v. TSA, U.S. Court of Appeals for the District of Columbia, App. Ct. Nos. 07-1279, et seq., petitions for review of a final order of the TSA. Judge Williams wrote the opinion of the Court of Appeals, in which Judges Garland and Brown joined.

2/2. The U.S. Court of Appeals (9thCir) issued its opinion [15 pages in PDF] in United National v. Spectrum Worldwide, a case regarding whether an insurance policy applies to certain intellectual property claims. In particular, this case concerns whether the policy first publication exclusion applies to trade dress infringement claims. The District Court granted summary judgment to the insurer, and the Court of Appeals affirmed. This case is United National Insurance Company v. Spectrum Worldwide, Inc., et al. U.S. Court of Appeals for the 9th Circuit, App. Ct. No. 07-55833, an appeal from the U.S. District Court for the Central District of California, D.C. No. CV-05-04610-SGL, Judge Stephen Larson presiding. Judge Randy Smith wrote the opinion of the Court of Appeals, in which Judges Harry Pregerson and Raner Collins (USDC/DAriz) joined.

About Tech Law Journal

Tech Law Journal publishes a free access web site and a subscription e-mail alert. The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year for a single recipient. There are discounts for subscribers with multiple recipients.

Free one month trial subscriptions are available. Also, free subscriptions are available for journalists, federal elected officials, and employees of the Congress, courts, and executive branch. The TLJ web site is free access. However, copies of the TLJ Daily E-Mail Alert are not published in the web site until two months after writing.

For information about subscriptions, see subscription information page.

Tech Law Journal now accepts credit card payments. See, TLJ credit card payments page.

Solution Graphics

TLJ is published by David Carney
Contact: 202-364-8882.
carney at techlawjournal dot com
P.O. Box 4851, Washington DC, 20008.

Privacy Policy
Notices & Disclaimers
Copyright 1998-2009 David Carney. All rights reserved.

In This Issue

This issue contains the following items:
 • DOJ Obtains TFT-LCD Price Fixing Indictment
 • McDowell Discusses DTV Transition and FCC Reform
 • House to Consider DTV Delay Act
 • People and Appointments (Holder confirmed, Daschle withdraws, Gregg picked for Commerce, Gomez picked for Deputy NTIA Administrator, and more DHS picks)

House to Consider DTV Delay Act
2/3. The House Rules Committee adopted a closed rule for consideration of S 328 [LOC | WW], the "DTV Delay Act".

The rule allows for one hour of debate. No amendments are in order. The full House is scheduled to consider the bill on Wednesday, February 4, 2009. A simple majority is required for passage.

Last week the House rejected the bill when considered under suspension of the rules, which required a two-thirds majority. There was a simple majority in favor in that vote.

See, story titled House Rejects DTV Delay Act" in TLJ Daily E-Mail Alert No. 1,888, January 28, 2009.

See also, Roll Call No. 41. The vote was 258-168. Democrats voted 236-13. Republicans voted 22-155.

Washington Tech Calendar
New items are highlighted in red.
Wednesday, February 4

The House will meet at 10:00 AM for legislative business. The House will consider S 328 [LOC | WW], the "DTV Delay Act", subject to a rule. See, Rep. Hoyer's schedule for week of February 2, and schedule for February 4.

The Senate will meet at 10:30 AM. It will resume consideration of HR 1 [LOC | WW], a huge spending bill, which is titled the "American Recovery and Reinvestment Act of 2009". It contains numerous technology related provisions. See, story titled "House to Consider Spending Bill" in TLJ Daily E-Mail Alert No. 1,887, January 27, 2009.

11:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Commercial and Administrative Law will hold a hearing titled "Midnight Rulemaking: Shedding Some Light". The HJC will webcast this hearing. See, notice. Location: Room 2141, Rayburn Building.

12:00 NOON. The Cato Institute will host a panel discussion on the book [Amazon] titled "In Search of Jefferson's Moose: Notes on the State of Cyberspace". The speakers will be David Post (author), Jim Harper (Cato), Jeffrey Rosen (George Washington University law school), and Clive Crook (Financial Times). The Cato Institute will webcast this event. Lunch will be served after the program. See notice. Location: Cato, 1000 Massachusetts Ave., NW.

2:00 PM. The Senate Banking Committee (SBC) will hold a hearing titled "Modernizing the U.S. Financial Regulatory System". See, notice. Location: Room 538, Dirksen Building.

2:00 - 3:00 PM. The Department of Homeland Security's (DHS) Office for Interoperability and Compatibility's (OIC) Project 25's (P25) Compliance Assessment Program's (CAP) Governing Board (GB) will meet by conference call. That is, the DHS seeks public comments over the phone regarding standards that allow public safety radios and other components to interoperate. See, notice in the Federal Register, January 28, 2009, Vol. 74, No. 17, at Page 4965.

Thursday, February 5

The House will not meet. See, Rep. Hoyer's schedule for week of February 2.

Day one of a three day meeting of House Democrats titled "Democratic Issues Conference".

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing on the nomination of David Ogden to be Deputy Attorney General at the Department of Justice (DOJ). The SJC will webcast this hearing. See, notice. Location: Room 226, Dirksen Building.

12:00 NOON - 1:45 PM. The Federal Communications Bar Association (FCBA) will host a brown bag lunch on the issue of establishment of new generic top level domains by the Internet Corporation for Assigned Names and Numbers (ICANN). Register by February 3 with Kevin Rupy at 202-326-7276 or krupy at ustelecom dot org. The FCBA has a history of excluding reporters from its meetings. Location: USTelecom, Suite 400, 607 14th St., NW.

2:00 PM. The Federal Communications Commission (FCC) will hold an event titled "Open Meeting". See, notice.

5:00 PM. Deadline to submit requests to participate in the U.S. Patent and Trademark Office's (USPTO) roundtable on February 12, 2009, regarding whether or not to adopt some form of deferred examination for patent applications. See, notice in the Federal Register, January 28, 2009, Vol. 74, No. 17, at Pages 4946-4947.

Friday, February 6

The House will not meet. See, Rep. Hoyer's schedule for week of February 2.

Day two of a three day meeting of House Democrats titled "Democratic Issues Conference".

12:15 - 1:30 PM. The Federal Communications Bar Association (FCBA) will host a brown bag lunch titled "Broadband Investment in 2009". The speakers will be Craig Moffett (Sanford C. Bernstein & Co.) and Jessica Zufolo (Medley Global Advisors). See, registration page. Location: Harris Wiltshire & Grannis, 1200 18th St., NW.

Saturday, February 7

Day three of a three day meeting of House Democrats titled "Democratic Issues Conference".

Monday, February 9

9:00 AM - 4:30 PM. Day one of a five day meeting of the Federal Aviation Administration's (FAA) RTCA Special Committee 159: Global Positioning System. See, notice in the Federal Register, January 28, 2009, Vol. 74, No. 17, at Page 5024. Location: RTCA, Inc., Suite 805, 1828 L St., NW.

12:00 NOON - 1:30 PM. The Federal Communications Bar Association's (FCBA) Annual Seminar Committee will host a brown bag lunch for planning purposes. Location: Wilkinson Barker Knauer, 2300 N St., NW.

12:15 PM. The Federal Communications Bar Association's (FCBA) Homeland Security / Emergency Communications Committee will host a brown bag lunch titled "Public Safety Issues to Watch in 2009". The speakers will be Brian Fontes (National Emergency Number Association) and Bob Gurss (Association of Public-Safety Communications Officials International). RSVP to Marianne Trana at 202-419-2476 or marianne dot trana at hklaw dot com. Location: Holland & Knight, 2099 Pennsylvania Ave., NW.

Deadline to submit reply 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.

Tuesday, February 10

8:00 - 10:00 AM. The BroadbandCensus dot com [http colon slash slash broadbandcensus dot com] will host a breakfast event titled "The Role of Wireless Frequencies in Widespread Broadband Deployment" The speakers will be John Kneuer, John Muleta (M2Z Networks), Steve Sharkey (Motorola), and Don Brittingham (Verizon). 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 AM - 4:30 PM. Day two of a five day meeting of the Federal Aviation Administration's (FAA) RTCA Special Committee 159: Global Positioning System. See, notice in the Federal Register, January 28, 2009, Vol. 74, No. 17, at Page 5024. Location: RTCA, Inc., Suite 805, 1828 L St., NW.

12:00 NOON. The Cato Institute will host a panel discussion titled "A Service to the Economy: The Importance of Free Trade in Services". The speakers will be Bob Vastine (U.S. Coalition of Services Industries), Christine Bliss (Assistant U.S. Trade Representative for Services and Investment), Aaditya Mattoo (World Bank), and Sallie James (Cato). The Cato Institute will webcast this event. Lunch will be served after the program. See notice. Location: Cato, 1000 Massachusetts Ave., NW.

12:15 PM - 1:30 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch titled "DTV Transition, Now or Later: Final Mechanics from Here to the End". See, notice and registration page. Location: National Association of Broadcasters, 1771 N St., NW.

2:30 - 4:30 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "Broadband's Role in the Economy and the Stimulus Package". The speakers will be Robert Hahn (AEI), Robert Crandall (Brookings Institution), Michael Katz (New York University), Robert Shapiro (Sonecon), and Gigi Sohn (Public Knowledge). See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

Wednesday, February 11

Day one of a two day conference hosted by the Federal Trade Commission (FTC) titled "The Evolving IP Marketplace: Patent Remedies". See, release and agenda [PDF]. Location: FTC Conference Center, 601 New Jersey Ave., NW.

9:00 AM - 4:30 PM. Day three of a five day meeting of the Federal Aviation Administration's (FAA) RTCA Special Committee 159: Global Positioning System. See, notice in the Federal Register, January 28, 2009, Vol. 74, No. 17, at Page 5024. Location: RTCA, Inc., Suite 805, 1828 L St., NW.

10:00 AM - 12:00 NOON. The House Science Committee (HSC) will hold a hearing titled "Electronic Waste: Investing in Research and Innovation to Reuse, Reduce, and Recycle". The witnesses will be Valerie Thomas (Georgia Institute of Technology), Jeff Omelchuck (Green Electronics Council), and Paul Anastas (Yale University). See, notice. For more information, contact 202-225-6375. The HSC will webcast this event. Location: Room 2318, Rayburn Building.

4:00 - 5:00 PM. The Information Technology and Innovation Foundation (ITIF) will host an event titled "The Korean Strategy for Green Technology Development and Role of IT". The speakers will be Suk Joon Kim, President of the Korean Science and Technology Policy Institute (STEPI), and Jung Hyup, Senior Research at the STEPI. Location: ITIF, Suite 200, 1250 Eye St., NW.