Tech Law Journal Daily E-Mail Alert
May 14, 2010, Alert No. 2,084.
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Clyburn Defends Broadband Reclassification

5/11. Federal Communications Commission (FCC) Commissioner Mignon Clyburn gave a speech in which she criticized the "outsized influence of lobbyists in Washington", and particularly those who oppose her policy goals.

She defended the FCC Democrats' proposal to reclassify broadband internet access service as a Title II telecommunications service, and condemned the "lobbying machine for some extremely powerful interests" that is offering legal and policy arguments against reclassification.

She said nothing about the lobbyists for the large companies that support reclassification in the prepared text of this speech.

She said that "I cannot overstate the incredible advantage well-funded companies and organizations have when it
comes to making their voices heard. Lobbying in Washington has become a sophisticated business."

Mignon ClyburnMignon (at right) continued that "None of this is to say that lobbying, per se, is problematic. Indeed, already during my tenure I have benefitted from the insights of lobbyists who help illuminate some of the granular details of their clients’ positions. This can be an invaluable service. However, the most effective lobbyists can give their clients a huge advantage over the less experienced interested parties. They know how we make decisions, when we make decisions, and they often have access to information that many Commission officials do not yet have. These elements make a difference."

She elaborated that it is important to "understand the ebbs and flows of administrative agencies in order to figure out who the right folks are to speak with and when to pursue those individuals. When it comes to the FCC, it is important to understand how the Commission works -- our filings, how and when we vote -- and how best to assert yourselves."

On May 6, 2010, FCC Chairman Julius Genachowski released a paper [6 pages in PDF] in which he proposed reclassifying broadband access from information service to telecommunications service. See, story titled "Three FCC Democratic Commissioners Back Plan to Regulate Broadband Internet Access Services under Title II", and related stories, in TLJ Daily E-Mail Alert No. 2,083, May 6, 2010. See also, Clyburn's May 6 statement regarding that proposal.

She said in her May 11 speech that with reclassification, the FCC would have "more regulatory authority".

She continued that "some individuals are now asserting that the D.C. Circuit actually held that the Commission has no authority whatsoever to regulate broadband. This is patently untrue. The Court said only that -- and of course, I am paraphrasing -- the Commission has limited, if any, authority under Title I of the Communications Act to enact certain
regulations concerning broadband. It said nothing about the Commission's authority under Title II of the Act. Thus, the decision plainly left open the possibility that the Commission could have the authority under Title II."

She also said that the FCC proponents of reclassification are not "seeking to enact burdensome rules similar to what we had in place during the early-Ma Bell-monopoly era". Rather, they are "looking to preserve the authority that almost everyone assumed we had under Title I prior to the Court’s decision" and that the FCC will forbear from "applying a vast majority of the 48 regulatory provisions of Title II."

She also asserted that it is "industry gatekeepers" and "industry", and not the FCC, that present the only threats of a "takeover" of the internet.

She also urged the FCC to "hold public hearings on the proposed Comcast-NBCU merger outside of Washington, D.C." But, she predicted, with respect to reclassification, that "having an open forum with reasonable and honest debate in this sphere appears unlikely".

She also discussed the FCC's ongoing examination of how it might expand its subsidies and regulation of news media. She said that "the old business models to support journalism are no longer satisfactory".

She noted that some "do not want us to probe this arena" and "argue that this is beyond our jurisdiction". She said that this is an "environment unfriendly to real discourse and public debate", and referred back to her criticism of the power of lobbyists.

More FCC News

5/13. The Federal Communications Commission (FCC) released an updated agenda for its event on Thursday, May 20, 2010, titled "open meeting". The FCC is scheduled to adopt five items -- the same five items listed in the tentative agenda released on April 29, 2010. See, story titled "FCC Releases Tentative Agenda for May 20 Meeting" in TLJ Daily E-Mail Alert No. 2,081, April 30, 2010.

5/12. The Federal Communications Commission (FCC) released an Order [33 pages in PDF] that conditionally grants 21 waiver petitions filed by state and local governments regarding construction of regional or statewide interoperable wireless broadband networks in the 700 MHz band. FCC Chairman Julius Genachowski stated in a release that "Today's action brings America significantly closer to creating a nationwide public safety broadband network that will enable first responders to quickly communicate and share critical, time-sensitive information with each other during emergencies". The FCC adopted this item on May 11, 2010. It is FCC 10-79 in PS Docket No. 06-229

Tech Crime Report

5/11. Gary Grindler, the Department of Justice's (DOJ) acting Deputy Attorney General, gave a speech regarding crimes against children that involve the internet. He made no proposals to impose new laws, regulations or mandates for internet services providers. He said that "Like child pornography, the enticement of our children over the Internet is a serious threat.  Offenders are using networks of like-minded deviants to share strategies, lurk in chat rooms, social networking or gaming sites where children commonly gather." He said that "we must continue to work together, and help lead others to join us in the fight". He called for "more public awareness and education campaigns". He said that "law enforcement must have the technological tools you need to investigate these crimes". He also said that "we can not simply prosecute our way out of this problem".

5/11. Hazim Gaber pled guilty in U.S. District Court (DAriz) to wire fraud (18 U.S.C. § 1343) in connection with his sale of counterfeit cancer drugs via a web site. The Department of Justice (DOJ) stated in a release [PDF] that he proported to sell an experimental cancer drug sodium dichloroacetate (DCA), but instead "sent victims a white powdery substance that was later determined through laboratory tests to contain starch, dextrin, dextrose or lactose, and contained no DCA." In addition, he sent "a fraudulent certificate of analysis from a fictitious laboratory and instructions on how to dilute and ingest the bogus DCA." Gaber operated in Germany, which extradited him to the U.S. The DOJ also stated that he sold pirated copies of business software. As a part of his plea agreement, he agreed to forfeit or cancel any website, domain name or internet services account related to this fraud scheme

5/6. Rodolfo Rodriguez Cabrera and Henry Mantilla pled guilty in U.S. District Court (DNev) to one count of conspiracy to produce and sell counterfeit International Game Technology (IGT) video gaming machines, which are also known as slot machines, and counterfeit IGT computer programs. The nation of Latvia extradited Cabrera to the U.S. See, Department of Justice release. See also, "Tech Crime Report" in TLJ Daily E-Mail Alert No. 1,957, June 17, 2009, and "More News" in TLJ Daily E-Mail Alert No. 2,009, October 27, 2009.

5/6. The Department of Justice's (DOJ) Antitrust Division and Chu-Hsiang Yang, also known as James Yang, filed a plea agreement with the U.S. District Court (NDCal) in which Yang agrees to plead guilty and serve 14 months in prison in connection with his conspiring to fix prices of Thin-Film Transistor-Liquid Crystal Display (TFT-LCD) panels in violation of 15 U.S.C. § 1. In addition, Jau-Yang Ho pled guilty to one count of conspiracy to fix prices of TFT-LCD panels. Yang and Ho are a former director of sales, and former president, of Chi Mei Optoelectronics Corporation. These cases are part of a long running series of prosecutions related to LCD panels. See also, stories titled "DOJ Brings and Settles Criminal Price Fixing Actions Against LCD Makers" in TLJ Daily E-Mail Alert No. 1,855, November 11, 2008, "DOJ Obtains TFT-LCD Price Fixing Indictment" in TLJ Daily E-Mail Alert No. 1,890, February 3, 2009, and "DOJ Brings Another LCD Price Fixing Action" in TLJ Daily E-Mail Alert No. 1,913, March 16, 2009. And see, "More News" in TLJ Daily E-Mail Alert No. 1,921, April 1, 2009, and TLJ Daily E-Mail Alert No. 1,931, April 27, 2009, and "Tech Crime Report" in TLJ Daily E-Mail Alert No. 1,982, September 10, 2009.

4/30. A trial jury of the U.S. District Court (EDTN) returned a verdict of guilty against David Kernell on charges of unauthorized access to a protected computer (18 U.S.C. § 1030) in connection with his his unauthorized access of a personal online e-mail account of Sarah Palin. The Department of Justice (DOJ) stated in a release that Kernell also copied and distributed Palin's e-mail and account password. The jury also returned a verdict of guilty to the charge of obstruction of justice (18 U.S.C. § 1519) in connection with his deleting of records in anticipation of an FBI investigation. The jury returned a verdict of not guilty to the charge of wire fraud (18 U.S.C. § 1343). The jury reached no verdict on the charge of identity theft, and the Court declared a mistrial on that charge.

4/26. Jaisankar Marimuthu was sentenced by the U.S. District Court (DNeb) to serve 81 months in prison for conspiracy (18 U.S.C. § 371) and aggravated identity theft (18 U.S.C. §1028A), in connection with his hacking into online brokerage accounts, making large unauthorized purchases of thinly traded stocks, which drove up the prices of those stocks, and then selling his own holdings in those stocks. See, Department of Justice (DOJ) release. The Department of Justice (DOJ) did not prosecute Marimuthu under either the federal Computer Fraud and Abuse Act (CFAA) (18 U.S.C. § 1030), or federal securities laws. Co-defendant Thirugnanam Ramanathan pled guilty in 2008, and has already served his prison sentence. Co-defendant Chockalingham Ramanathan remains at large. The DOJ also filed a civil complaint against the same three defendants in 2007. See, story titled "SEC and DOJ Take Action Against Hijackers of Online Brokerage Accounts" and "SEC Pursues Second Set of Hijackers of Online Brokerage Accounts" in TLJ Daily E-Mail Alert No. 1,552, March 14, 2007. This practice is also sometimes referred to as "trading account takeover" fraud. See, October 5, 2006, speech by John Walsh, Chief Counsel of the Securities and Exchange Commission's (SEC) Office of Compliance Inspections and Examinations, and story titled "SEC Official Addresses Online Identity Theft and Securities Fraud" in TLJ Daily E-Mail Alert No. 1,466, October 11, 2006.

People and Appointments

5/13. The Senate Judiciary Committee (SJC) approved the nomination of Goodwin Liu to be a Judge of the U.S. Court of Appeals (9thCir). See, Congressional Record, May 13, 2010, at Page S3715. See also, statement by Sen. Patrick Leahy (D-VT).

5/13. The Senate Judiciary Committee (SJC) approved the nomination of Raymond Lohier to be a Judge of the U.S. Court of Appeals (2ndCir). See, Congressional Record, May 13, 2010, at Page S3715.

5/13. The Senate Judiciary Committee (SJC) approved the nomination of Leonard Stark to be a Judge of the U.S. District Court (DDel). See, Congressional Record, May 13, 2010, at Page S3715.

5/13. The Senate Judiciary Committee (SJC) held over the nomination of John Gibney to be a Judge of the U.S. District Court EDVa). His nomination is again on the agenda for the SJC meeting of May 20, 2010.

5/13. Gerald Hodgkins was named Associate Director of the Securities and Exchange Commission's (SEC) Division of Enforcement. See, SEC release.

5/10. The office of Federal Communications Commission (FCC) Commissioner Robert McDowell stated in a release that "Over the weekend, Commissioner McDowell underwent successful emergency gall bladder surgery. His spirits are good while he is recovering at home with his family. He expects to be working at full speed back in the office in a few days."

5/10. President Obama nominated Elena Kagan to be a Justice of the Supreme Court. See, White House news office release. She is the Department of Justice's (DOJ) Solicitor General. Before that, she was a professor at Harvard law school. Before that, she worked in various positions in the Clinton administration.

5/5. The Senate confirmed Gloria Navarro to be a Judge of the U.S. District Court (DNev) by a vote of 98-0. See, Roll Call No. 128.

5/5. The Senate confirmed Nancy Freudenthal to be a Judge of the U.S. District Court (DWyo) by a vote of 96-1. See, Roll Call No. 129.

More News

5/10. The Department of Justice's (DOJ) Antitrust Division, Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office (USPTO) announced that they will hold a day long joint public workshop on May 26 on "the intersection of patent policy and competition policy and its implications for promoting innovation". See, notice.

5/8. Federal Reserve Board (FRB) Chairman Ben Bernanke gave a speech titled "The Economics of Happiness" in which he suggested that mobile phone and the internet have not contributed to happiness. He said that "although today most Americans surveyed will tell you they are happy with their lives, the fraction of those who say that they are happy is not any higher than it was 40 years ago, when average incomes in the United States were considerably lower and few could even imagine developments like mobile phones or the Internet".

5/1. Federal Reserve Board (FRB) member Elizabeth Duke gave a speech in which she sought to dispel several myths about women and money, including that "Women are impulsive shoppers and equally impulsive with financial decisions". She said that "Internet shopping data indicate that 51 percent of online shoppers are mothers, and 92 percent of women shopping online share information about bargains with friends and family. This picture of women searching out information online, thoughtfully comparing bargains, and then sharing the information with their circle of friends does not support the image of impulsive shoppers." (Footnote omitted.)

In This Issue
This issue contains the following items:
 • Clyburn Defends Broadband Reclassification
 • More FCC News
 • Tech Crime Report
 • People and Appointments
 • More News
Washington Tech Calendar
New items are highlighted in red.
Friday, May 14

The House will not meet. It will next meet on May 18.

The Senate will meet at 9:30 AM. It will resume consideration of S 3217 [LOC | WW], a huge bill pertaining to regulation of financial institutions and other matters.

10:00 - 12:00 NOON. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Standards Committee's Privacy & Security Workgroup will hold a teleconferenced meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21629. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site.

Deadline to submit comments to the Department of Justice's (DOJ) Antitrust Division regarding the proposed Final Judgment in U.S. v. Election Systems and Software, Inc. See, notice in the Federal Register, March 15, 2010, Vol. 75, No. 49, at Pages 12256-12270. See also, story titled "Antitrust Division Requires Divestiture by Election Systems and Software, Inc." in TLJ Daily E-Mail Alert No. 2,057, March 9, 2010.

Deadline to submit reply comments to the Copyright Office (CO) in response to its Notice of Inquiry (NOI) regarding "the application of Title 17 to the termination of certain grants of transfers or licenses of copyright, specifically those for which execution of the grant occurred prior to January 1, 1978 and creation of the work occurred on or after January 1, 1978." These recaptures rights are codified at 17 U.S.C. §§ 304(c)&(d) and 203. The CO adds that "the deadlines for serving notices of termination for 1978 grants will begin to expire in 2011 and some stakeholders have raised questions with the Office and some Congressional Offices". See, notice in the Federal Register, March 29, 2010, Vol. 75, No. 59, at Pages 15390-15391.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Second Further Notice of Proposed Rulemaking regarding changes to Part 90 of the FCC's rules regarding wireless technologies, devices, and services. The FCC adopted this item on March 3, 2010, and released the text [44 pages in PDF] on March 10, 2010. It is FCC 10-36 in WP Docket No. 07-100. See, notice in the Federal Register, April 14, 2010, Vol. 75, No. 71, at Pages 19340-19345.

Monday, May 17

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Public Notice (PN) regarding charges to its rules pertaining to Common Alerting Protocol (CAP), Emergency Alert System (EAS), and the Integrated Public Alert and Warning System (IPAWS). This PN is DA 10-500 in EB Docket No. 04-296. The FCC released it on March 25, 2010. See, notice in the Federal Register, April 15, 2010, Vol. 75, No. 72, at Pages 19559-19561.

Tuesday, May 18

8:00 - 10:00 AM. Broadband Census News LLC will host a panel discussion titled "International Perspectives on the U.S. National Broadband Plan". The speakers will include Pamela Miller (Director General of the Telecommunications Policy Branch of Industry Canada), Young Noh (Korean Embassy), and Robin Twyman (British Foreign and Commonwealth Office). Breakfast will be served. The price to attend is $45. This event is open to the public. Location: Clyde's of Gallery Place, 707 7th St., NW.

8:30 AM - 12:00 NOON. The U.S. Patent and Trademark Office (USPTO) will host a public meeting regarding "Enhancement in the Quality of Patents and on United States Patent and Trademark Office Patent Quality Metrics". See, notice in the Federal Register, April 27, 2010, Vol. 75, No. 80, at Pages 22120-22121. Location: USPTO, Madison Auditorium, 600 Dulany Street, Alexandria, VA.

2:00 - 3:30 PM. The Department of Justice's (DOJ) Antitrust Division will host a seminar presented by Ralph Winter (University of British Columbia) titled "Exclusionary Contracts". For more information, contact Patrick Greenlee at 202-307-3745 or atr dot eag at usdoj dot gov. Location: DOJ, Liberty Square Building, 450 5th St., NW.

Wednesday, May 19

9:00 AM - 1:00 PM. The Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) Commerce Spectrum Management Advisory Committee will meet. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Pages 21602-21603. Location: DOC, Room 4725, 1401 Constitution Ave., NW.

? 10:00 AM - 4:00 PM. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Policy Committee will hold a meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Pages 21629-21630. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site. Location?

1:30 - 5:00 PM. The Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) Online Safety and Technology Working Group will meet. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21602. Location: DOC, Room 4830, 1401 Constitution Ave., NW.

Thursday, May 20

9:00 AM - 3:30 PM. The U.S.-China Economic and Security Review Commission will hold a meeting titled "China's Emergent Military Aerospace and Commercial Aviation Industry". See, notice in the Federal Register, April 29, 2010, Vol. 75, No. 82, at Page 22690. Location: Room 106, Dirksen Building.

11:00 AM - 6:00 PM. The New America Foundation (NAF) will host an event titled "Future of Music Coaltion: DC Policy Day 2010". See, notice. Location: NAF, Suite 400, 1899 L St., NW.

TIME? The Progress & Freedom Foundation (PFF) will host a conference titled "Can Government Help Save the Press?" The PFF sates states that "This conference will discuss the FCC's new ``Future of Media´´ proceeding and debate what role government should play in subsidizing the press or bailing out failing media enterprises." Location?

2:30 PM. The Federal Trade Commission's (FTC) Bureau of Economics will host a presentation by Baba Shiv (Stanford University business school). For more information, contact Loren Smith at lsmith2 at ftc dot gov or Tammy John at tjohn at ftc dot gov. Location: FTC, ground floor Conference Center, 601 New Jersey Ave., NW.

Friday, May 21

8:30 AM - 5:00 PM. The Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) President's Council of Advisors on Science and Technology (PCAST) will hold a partially closed meeting. See, notice in the Federal Register, April 29, 2010, Vol. 75, No. 82, at Pages 22635-22636. Location: Keck Center of the National Academies, Room Keck 100, 500 5th St., NW.

9:30 AM - 5:00 PM. The Federal Communications Commission's (FCC) North American Numbering Council (NANC) will meet. See, notice in the Federal Register, May 5, 2010, Vol. 75, No. 86, at Pages 24700-24701. Location: FCC, Commission Meeting Room.

10:00 - 12:00 NOON. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Standards Committee's Clinical Quality Workgroup will hold a webcast meeting. See, notice in the Federal Register, April 26, 2010, Vol. 75, No. 79, at Page 21629. The ONCHIT publishes inconsistent information about its meetings in the Federal Register and its web site.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding robocalls, and revisions to FCC rules under the Telephone Consumer Protection Act (TCPA) that would harmonize those rules with the Federal Trade Commission's (FTC) recently amended Telemarketing Sales Rule (TSR). This FCC adopted this NPRM on January 20, 2010, and released the text [37 pages in PDF] on January 22, 2010. It is FCC 10-18 in CG Docket No. 02-278. See, notice in the Federal Register, March 22, 2010, Vol. 75, No. 54, at Pages 13471-13482. See also, story titled "FCC Adopts NPRM Regarding Limiting Some Robocalls" in TLJ Daily E-Mail Alert No. 2,037, January 20, 2010.

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