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August 2, 2010, Alert No. 2,116.
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Congress Passes USPTO Funding Bill

7/29. The House passed HR 5874 [LOC | WW], the "United States Patent and Trademark Office Supplemental Appropriations Act, 2010", without amendment, by voice vote, on July 28, 2010. Senate passed it, without amendment, by unanimous consent, on July 29, 2010. It is now ready for President Obama's signature.

This bill pertains to the use by the U.S. Patent and Trademark Office (USPTO) of the fees that its charges, and Congressional underfunding of the USPTO.

Rep. Alan Mollohan (D-WV), the Chairman of the House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice, and Science (SCJS), introduced this bill on July 27, 2010.

Rep. Mollohan stated in the House that "Based on higher-than-estimated fee collections to date in fiscal year 2010, it appears that the agency could potentially collect more in fees this year than was earlier estimated, and these additional fees would be unavailable to the agency this year under its current 2010 appropriation level."

He added that this bill allows the USPTO "to spend up to an additional $129 million in patent and trademark fees if the agency actually collects fees over and above the current appropriation level of $1.887 billion."

He also noted that "The timely and efficient processing of patent and trademark applications is critical to the competitiveness of American businesses and the contributions of individual inventors to economic growth. The USPTO currently takes an average of over 34 months to complete the examination of patent application and has maintained a backlog of unexamined applications for several years. There are approximately 1.2 million patent applications now in the system, with over 750,000 awaiting an initial review by a USPTO patent examiner."

Rep. Mollohan also argued that patent fees should be higher. He wants "patent fees that reflect the actual cost to the agency".

This bill provides that "For an additional amount for `Salaries and Expenses´ of the United States Patent and Trademark Office, $129,000,000, to remain available until expended: Provided, That the sum herein appropriated from the general fund shall be reduced as offsetting collections assessed and collected pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41 and 376 are received during fiscal year 2010, so as to result in a fiscal year 2010 appropriation from the general fund estimated at $0: Provided further, That during fiscal year 2010, should the total amount of offsetting fee collections be less than $2,016,000,000, this amount shall be reduced accordingly."

Rep. Frank Wolf (R-VA), the ranking Republican on the HAC's SCJS, complained about the lack of transparency, including the fast process, ban on offering amendments, and the fact that "I have not seen the bill until today". He added that "there was no subcommittee or full committee consideration and no discussion with the minority prior to introduction".

However, he did not oppose the bill.

Rep. Patrick Murphy (D-PA), another member of the HAC's SCJS, stated that "over 1 million patent applications sit gathering dust. Hundreds of thousands have yet to be looked at for the first time. Those applications could be the next iPhone, the next Netbook, or the next Google. But the agency tasked with reviewing those applications just can't keep up. So they sit and they sit, often for years. In fact, the average time that it takes a patent to be approved is about 30 months, but when you consider that today technologies often become obsolete within 18 months or less, it is clear that a process that takes 2 1/2 years is simply too long, and it hurts our competitiveness."

Rep. Patrick MurphyRep. Murphy (at right) added that "this bill is one step in providing the USPTO the resources necessary to keep pace with the flow of innovation and ensure American businesses and workers can compete globally."

"We need to make sure that the USPTO can hire the necessary patent examiners, install up-to-date information technology, and make other operational changes necessary to get at this backlog. This is an issue that's of critical importance for our economy and the job market." See also, Rep. Murphy's release.

The American Intellectual Property Law Association (AIPLA) stated in a release that "Over the past several fiscal years, Congress and the Administration have permitted the Office to retain essentially all of its user fees, but without further action this fiscal year, current fee collection projections indicate significant monies would not be made available to the Office. AIPLA supports a long term mechanism to ensure that all fees stay at the USPTO, allowing the Office to intelligently plan long term to meet the multitude of challenges facing the IP system."

Rep. Harman and Rep. Shimkus Introduce Next Generation Public Safety Device Act

7/28. Rep. Jane Harman (D-CA) and Rep. John Shimkus (R-IL) introduced HR 5907 [LOC | WW], the "Next Generation Public Safety Device Act of 2010", a bill to subsidize the development of devices to be used by public safety personnel for mobile broadband voice and data communications.

This bill would direct the National Telecommunications and Information Administration (NTIA) to "conduct a competition to award grants to eligible entities for the development of nonstationary radio over Internet protocol devices that support mission-critical broadband voice and data communications of public safety personnel".

The bill would also direct the Federal Communications Commission (FCC) to "establish a voluntary labeling program to identify nonstationary RoIP devices that meet such criteria as the Commission considers appropriate for the support of mission-critical broadband voice and data communications of public safety personnel".

The bill would authorize the NTIA and FCC to borrow $70,000,000 "from the general fund of the Treasury". The general fund would be paid back out of future auction revenues.

Rep. Jane HarmanRep. Harman (at right) issued a release that states that this bill "will spur innovation and competition in the development of next generation mobile communications devices that will provide the highest-speed transmission of data, voice, and video services over the Internet for police, firefighters and EMTs at an affordable price. It authorizes a $70 million grant competition to develop and build prototype mission critical voice and data-capable handsets and vehicle-portable devices for the 700 MHz spectrum."

Her release adds that "The public safety market, due to its relatively small size and niche requirements, is currently a monopoly. As a result, first responders and local governments can pay up to $5,000 per radio. Despite the cost, these devices do not enable seamless on-the-ground coordination between first responders or allow them to access databanks, fingerprint records, facial recognition software, or streaming video."

Rep. Shimkus stated in a release that "We hear regularly from first responders about the difficulty in communicating with each other and the cost of new equipment. This legislation will spur development of new equipment and help keep the costs to departments reasonable."

"This bill authorizes research and development for communications devices in order to advance the technology and keep costs affordable". Rep Shimkus added that "We hope to get first responders' equipment to advance in technology as fast as personal telecommunications equipment is always advancing".

The bill was referred to the House Commerce Committee (HCC). Both Rep. Harman and Rep. Shimkus are members.

People and Appointments

7/29. The Senate Intelligence Committee (SIC) approved the nomination of James Clapper to be Director of National Intelligence. See, Congressional Record, July 29, 2010, at Page S6519.

7/28. The Senate Banking Committee (SBC) approved the nominations of three persons to be members of the Board of Governors of the Federal Reserve System: Peter Diamond (for the unexpired term of fourteen years from February 1, 2000), Sarah Raskin (for the unexpired term of fourteen years from February 1, 2002), and Janet Yellen (for a term of fourteen years from February 1, 2010). See, Congressional Record, July 28, 2010, at Page S6397.

More News

8/2. The Department of Commerce's (DOC) Bureau of Industry and Security (BIS) published a notice in the Federal Register that announces, describes, recites, and sets the effective date and comment deadline for, it "interim final" change to is Export Administration Regulations (EAR) that provides that commodity classification determinations and advisory opinions the the BIS issues or has issued under the EAR are not and may not be relied upon as U.S. Government determinations that the items described therein are subject to the EAR, as opposed to the jurisdiction of another U.S. Government agency. This effective date of this amendment is August 2, 2010. The BIS also requests public comments. The deadline to submit comments is October 1, 2010. See, Federal Register, August 2, 2010, Vol. 75, No. 147, at Pages 45052-45055.

8/2. The Federal Trade Commission (FTC) published a notice in the Federal Register that sets deadline to submit comments (August 27, 2010) regarding the Agreement Containing Consent Order [9 pages in PDF] in its administrative action against Rite Aid Corporation. See also, story titled "FTC and DHHS Fault Rite Aid for Tossing Records with PII in Dumpsters" in TLJ Daily E-Mail Alert No. 2,113, July 28, 2010.

8/2. Department of Justice's (DOJ) Antitrust Division published a notice in the Federal Register, pursuant to the National Cooperative Research and Production Act of 1993, regarding changes in membership of the Network Centric Operations Industry Consortium, Inc. (NCOICI). See, Federal Register, August 2, 2010, Vol. 75, No. 147, at Page 45155.

7/30. The U.S. District Court (DC) entered Final Judgment in U.S. v. Ticketmaster. On January 25, 2010, the Department of Justice's (DOJ) Antitrust Division and numerous states filed a complaint [PDF] in the District Court against Ticketmaster and Live Nation alleging violation of Section 7 of the Clayton Act, which is codified at 15 U.S.C. § 18, in connection with their proposed merger. The parties simultaneously announced a settlement. See, story titled "DOJ Requires Ticketmaster Live Nation to License Ticket Software and Divest Ticketing Assets" in TLJ Daily E-Mail Alert No. 2,038, January 25, 2010. This case is U.S. v. Ticketmaster Entertainment, Inc., U.S. District Court for the District of Columbia, Judge Rosemary Collyer presiding, D.C. No. 1:10-cv-00139

7/28. Sen. Arlen Specter (D-PA) gave a speech in the Senate in which he advocated televising the Supreme Court. He stated that "The independence of the judiciary is assured by the fact they serve for life or good behavior. The suggestion that the Court be televised is in no way an infringement upon judicial independence." He also argued that the Supreme Court is taking power away from the Congress, and that "infuriating the public" might stop this. "To infuriate the public, the public has to be informed, and television would be a significant step forward." See, Congressional Record, July 28, 2010, at Pages S6348-9.

7/29. President Obama signed into law HR 4899 [LOC | WW], the "Supplemental Appropriations Act, 2010". See, White House news office release. It is now Public Law No: 111-212. This bill provides that "Of the funds made available under the heading `National Telecommunications and Information Administration´ for Digital-to-Analog Converter Box Program in prior years, $111,500,000 are rescinded."

In This Issue
This issue contains the following items:
 • Congress Passes USPTO Funding Bill
 • Rep. Harman and Rep. Shimkus Introduce Next Generation Public Safety Device Act
 • People and Appointments
 • More News
Washington Tech Calendar
New items are highlighted in red.
Monday, August 2

The House is in recess. It will next meet at 2:00 PM on September 14, 2010.

The Senate will meet at 2:00 PM. It will resume consideration of the House message to accompany HR 1586, a bill that has had many titles and subject matters. The version under consideration is the legislative vehicle for Federal Medical Assistance Percentage (FMAP) aid to states and teacher funding.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Phoenix Solutions v. Directv Group, App. Ct. No. 2010-1125. Location: Courtroom 201.

Extended deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) regarding its draft [76 pages in PDF] of its "FY 2010-2015 Strategic Plan". See, notice in the Federal Register, July 9, 2010, Vol. 75, No. 131, at Pages 39493-39494. See also, story titled "USPTO Releases Draft Five Year Plan" in TLJ Daily E-Mail Alert No. 2,102, July 12, 2010. And see, notice of extention.

Tuesday, August 3

8:30 - 10:45 AM. Day one of a two day partly closed meeting of the Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Emerging Technology and Research Advisory Committee. The BIS did not disclose the subject matter of this meeting. See, notice in the Federal Register: July 16, 2010, Vol. 75, No. 136, at Pages 41439-41440. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

10:00 AM. The Senate Judiciary Committee's (HJC) Subcommittee on Administrative Oversight and the Courts will hold a hearing titled "Protecting the Public Interest: Understanding the Threat of Agency Capture". The witnesses will be Nicholas Bagley (University of Michigan law school), Sidney Shapiro (Wake Forest University law school), and Tevi Troy (Hudson Institute). See, notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.

12:00 NOON - 1:30 PM. The American Bar Association (ABA) will host a webcast and teleconferenced event titled "The New HIPAA/HITECH Regulations: What's New and What Do Those Changes Mean?". See, notice. Prices vary. CLE credit.

1:30 - 5:00 PM. The Federal Aviation Administration's (FAA) RTCA Special Committee 222: Inmarsat Aeronautical Mobile Satellite (Route) Services will meet. See, notice in the Federal Register, July 12, 2010, Vol. 75, No. 132, at Pages 39724-39725. Location: ARINC Building 6, Conference Center Room 6-A1, 2551 Riva Road, Annapolis, MD.

2:30 PM. The Senate Homeland Security and Government Affairs Committee's (SHSGAC) Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security will hold a hearing titled "Transforming Government Through Innovative Tools and Technology". See, notice. The SHSGAC will webcast this event. Location: Room 342, Dirksen Building.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a closed hearing. Location: Room 219, Hart Building.

Wednesday, August 4

8:30 - 10:45 AM. Day two of a two day partly closed meeting of the Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Emerging Technology and Research Advisory Committee. The BIS did not disclose the subject matter of this meeting. See, notice in the Federal Register: July 16, 2010, Vol. 75, No. 136, at Pages 41439-41440. Location: DOC, Hoover Building, Room 3884, 14th Street between Pennsylvania and Constitution Avenues, NW.

9:00 AM - 5:00 PM. Day one of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). The agenda includes "Embedded software (biomedical, ICS) and associated malware", "FISMA Guidance", "National Initiative for Cybersecurity Education (NICE)", "Key Priorities next 2-3 years for NIST in cyber security", "Threat Vector Initiative", "Fedramp", "Cyber Coordinator Briefing", "National Protection and Programs Directorate Briefing", "Security Roadmap", "Initiative 3 Exercise (Einstein)", "S-Cap usage and continuous monitoring", "Authentication and Trust Framework Secure Online Transaction (SOT) Work", and "Assurance of Legitimate Government Outbound Mail". See, notice in the Federal Register, July 13, 2010, Vol. 75, No. 133, at Pages 39920-39921. Location: Marriott Hotel Washington, 1221 22nd St., NW.

10:00 AM. The Senate Judiciary Committee's (SJC) Subcommittee on Terrorism and Homeland Security will hold a hearing titled "Government Preparedness and Response to a Terrorist Attack Using Weapons of Mass Destruction". See, notice. The HJC will webcast this event. Location: Room 226, Dirksen Building.

10:00 - 11:00 AM. The American Enterprise Institute (AEI) will host an event titled "After ECFA: The Present and Future of Cross-Strait Relations". The ECFA is the Economic Cooperation Framework Agreement, a free trade agreement between the People's Republic of China and Taiwan. The speakers will be Shin-Yuan Lai (Minister of Taiwan's Mainland Affairs Council), and Gary Schmitt (AEI). See, notice. Location: AEI, 1150 17th St., NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Shum v. Intel, App. Ct. Nos. 2009-1385 and 2010-1109. Location: Courtroom 201.

2:00 - 4:00 PM. The Federal Communications Commission's (FCC) Consumer Advisory Committee will meet. See, FCC notice and notice in the Federal Register, July 19, 2010, Vol. 75, No. 137, at Page 41863. Location: FCC, Room 3B516, 445 12th St., SW.

Thursday, August 5

8:30 AM - 5:00 PM. Day two of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). See, notice in the Federal Register, July 13, 2010, Vol. 75, No. 133, at Pages 39920-39921. Location: Marriott Hotel Washington, 1221 22nd St., NW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda again includes consideration of several judicial nominees: Mary Helen Murguia (to be a Judge of the U.S. Court of Appeals for the 9th Circuit), Edmond E-Min Chang (U.S. District Court, Northern District of Illinois), Leslie Kobayashi (USDC/DHawaii), Denise Casper (USDC/DMass), and Carlton Reeves (USDC/DMiss). See, notice. The SJC will webcast this event. The SJC rarely follows its published agendas. Location: Room 226, Dirksen Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Typhoon Touch v. Dell, App. Ct. No. 2009-1589, an appeal from the U.S. District Court (EDTex) in a patent infringement case regarding touch screen computing technology. Location: Courtroom 201.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Nuance Communications v. ABBYY Software, App. Ct. No. 2010-1100. Location: Courtroom 201.

10:30 AM. The Federal Communications Commission (FCC) may hold an event titled "open meeting". Location: FCC, Commission Meeting Room, 445 12th St., SW.

Friday, August 6

8:00 AM - 12:30 PM. Day three of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). See, notice in the Federal Register, July 13, 2010, Vol. 75, No. 133, at Pages 39920-39921. Location: Marriott Hotel Washington, 1221 22nd St., NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Extreme Network v. Enterasys Network, App. Ct. No. 2009-1325, an appeal from the U.S. District Court (WDWisc) in a patent infringement case regarding computer networks technology. Location: Courtroom 201.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Western Union v. Moneygram, App. Ct. No. 2010-1080, an appeal from the U.S. District Court (WDTex) in a patent infringement case regarding money transfer technology. Location: Courtroom 201.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding license renewals, discontinuance of operations, geographic partitioning, and spectrum disaggregation for certain Wireless Radio Services. The FCC adopted this NPRM on May 20, 2010, and released the text [71 pages in PDF] on May 25, 2010. It is FCC 10-86 in WT Docket No. 10-112. See, notice in the Federal Register, July 7, 2010, Vol. 75, No. 129, at Pages 38959-38974.

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