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August 11, 2010, Alert No. 2,123.
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Rep. Barton and Rep. Stearns Write FCC Regarding State VOIP Taxation

8/10. Rep. Joe Barton (R-TX) and Rep. Cliff Stearns (R-FL) sent a letter [PDF] to the Federal Communications Commission (FCC) regarding state taxation and regulation of nomadic voice over internet protocol (VOIP) services.

On November 4, 2004, the FCC adopted its Vonage preemption order. It adopted a Memorandum Opinion and Order that addressed Vonage Holdings Corporation's Petition for Declaratory Ruling regarding its DigitalVoice service in the state of Minnesota. The FCC found that Vonage's VOIP service named DigitalVoice is an interstate service, and that Minnesota cannot regulate as it had proposed in a September 2003 order. However, the FCC's order left other issues undecided.

That 2004 order is FCC 04-267 in WC Docket No. 03-211. See also, story tilted "FCC Adopts Order on Vonage's VOIP Petition" in TLJ Daily E-Mail Alert No. 1,015, November 10, 2004, and story titled "FCC Releases Vonage VOIP Order" in TLJ Daily E-Mail Alert No. 1,015, November 18, 2004.

The states of Nebraska, Kansas and New Mexico have imposed state universal service taxes on Vonage and other nomadic VOIP providers. Vonage declines to pay. The taxing states of Kansas and Nebraska, which are represented by the law firm of Birch Horton, filed a petition on July 16, 2009, "for declaratory ruling that the FCC has not preempted states from assessing universal service charges on the intrastate revenues of providers of nomadic" VOIP service.

Specifically, they argued that "the FCC should declare that states are not preempted from imposing requirements on nomadic interconnected VolP providers to contribute to state universal service funds under Section 254 of the Federal Communications Act ("FCA") where they provide voice service within a state." See, petition, part 1 and part 2.

At issue is whether this asks for a change in law, and if so whether the FCC will attempt to change the law regarding what states can do. Also at issue is if the FCC is to grant relief to the taxing states, whether it would do so by declaratory ruling or rulemaking. Also at issue is whether any such DR or NPRM would attempt to retroactively apply its ruling..

Also at stake is the FCC's reputation for providing regulatory certainty.

Rep. Barton and Rep. Stearns (at right) are the ranking Republicans on the House Commerce Committee (HCC) and the HCC's Subcommittee on Communications, Technology and the Internet.

They wrote that subjecting VOIP services to state universal service fees "would alter settled expectations and could have a significant impact on investment, economic growth, and broader universal service reform. We are skeptical this would be a wise course, and urge you to afford this issue due consideration" in a NPRM rather than a DR.

The continued that "Internet services such as VoIP have been responsible for tremendous growth in the U.S. communications services, software, and equipment industries. Imposing regulation, fees, and taxes could weigh heavily on these markets, create a drag on innovation, and hinder our economy. Doing so through a patchwork of State regimes would exacerbate the effect."

They also wrote that "Ruling that VoIP services are subject to State USF fees would not only contradict recent court decisions that the Vonage Order preempted such fees, it could create disruptive uncertainty by calling into question whether States may impose other regulations on VoIP services."

The two also argued that "the appropriate and well established means of creating or changing policy is to initiate a notice and comment rulemaking".

The Voice on the Net (VON) Coalition opposes the taxing state's petition. In the alternative, it argues that if the FCC is to change the ruling in the 2004 Vonage preemption order, it should do so by NPRM, and that any new rules should have prospective effect only. See for example, August 11, 2010, letter disclosing ex parte communication with FCC.

Verizon wrote in a August 5 letter that "all VoIP and IP-enabled services are interstate and subject to the Commission’s exclusive jurisdiction". However, if the FCC were to decide to grant the states' petition, "it should do so narrowly, drawing a clear distinction between what the Commission has already preempted in the Vonage Order and a state’s authority to assess VoIP providers to fund a state universal service program."

AT&T wrote in an August 10 letter that the FCC should "authorize states to require interconnected VoIP providers to contribute to state universal service mechanisms on a prospective basis only, and pursuant to a uniform methodology to ensure that VoIP providers not be subjected to intrastate assessments in multiple states for the same customers."

A collection of companies and groups, including Verizon, AT&T, VON Coalition, Microsoft, Skype, Google, and other wrote in a joint August 5 letter that "We understand that the Commission is considering an order that would grant the relief that the Kansas and Nebraska Commissions seek in their Petition -- a declaratory ruling that the Commission has not preempted states from assessing state universal service charges on Voice over Internet Protocol (VoIP) services." (Footnote omitted.)

They continued that "we believe that as with all Internet services, VoIP is inherently interstate in nature. But should the Commission grant the Petition, we urge the Commission to do so narrowly and prospectively, and not to disturb or cast any doubt upon the Commission's longstanding determination that states are preempted from regulating the entry, rates, or other terms and conditions of VoIP services."  (Footnote omitted.)

Associate AG Perrelli Discusses Cyber Bullying

8/12. Tom Perrelli, the Associate Attorney General at the Department of Justice (DOJ), gave a speech in which he addressed online bullying. He did not advocate enacting any criminal or regulatory legislation.

He referenced the suicide of Megan Meier, who had been bullied via MySpace. The DOJ prosecuted the bully, Lori Drew, for violation of 18 U.S.C. § 1030 in connection with her violation of MySpace's terms of service (TOS).

See, stories titled "Lori Drew Pleads Not Guilty in Section 1030 Case" in TLJ Daily E-Mail Alert No. 1,784, June 23, 2008, "Law Professors Argue for Dismissal of MySpace Section 1030 Prosecution" in TLJ Daily E-Mail Alert No. 1,810, August 11, 2008, and "Jury Returns Guilty Verdict in Lori Drew Case" in TLJ Daily E-Mail Alert No. 1,865, December 2, 2008.

Thomas PerrelliPerrelli (at left) stated that "With the increasing use of social networking sites and text messaging, the face of bullying is changing. Previously, an incident may have involved girls bickering with each other over boys on the playground. Today, insults -- and retaliation for insults -- are not only made face-to-face, they are also posted on a classmate's Facebook profile for all to see. As the internet becomes today's playground, the previous distinction between what took place inside and outside of school is disappearing. Unsurprisingly, teachers are now spending time mediating conflicts between students that began online or through text messages."

He continued that "the apparent anonymity offered by technology can lead to more vicious insults. It is apparent that children (and frankly adults) are willing to push the envelope in cyberspace and say malicious things that they might not otherwise say in person. Never before has particularly cruel harassment from school persisted as long as it does now online, where for example, a Facebook group, populated with hundreds of members, is dedicated solely to making fun of a fellow classmate because of his hair color." (Parentheses in original.)

He also said that it has "become increasingly sexually explicit. In Los Angeles' San Fernando Valley, middle school, high school, and college students posted comments on a web site that were full of sexual innuendo attacking fellow students. The online message boards had been accessed more than 67,000 times in a two-week period. This type of far-reaching harassment haunts and torments kids who are keenly aware that not just a few classmates can view these posts, but the whole world can view the disparaging comments. And with the widespread use of text messaging, an increase in ``sexting´´ has also become a complication for combating bullying, where, with just the click of a cell phone button, an angry boyfriend can retaliate by forwarding compromising photos of a middle school girlfriend to his adolescent classmates."

However, Perrelli did not advocate enactment of any new criminal or regulatory statutes in this speech. Rather, he outlined appropriate responses in vague terms. "A first step is the recognition that we are all in this together and that means that teachers, principals, parents, and yes, law enforcement must model caring behavior for our children and promote communication. It means teaching our kids how to care for themselves, how to care for each other, and how to care for their communities, through group community service requirements or student-to-student mentorship programs. ... And that leads to a second step, which is fostering a sense of responsibility among our young people."

Before joining the DOJ, Perrelli was Managing Partner of the Washington DC office of the law firm of of Jenner & Block, and a Co-Chair of its Entertainment and New Media Practice. See, story titled "Obama Names Perrelli to be DOJ Associate Attorney General" in TLJ Daily E-Mail Alert No. 1,878, January 6, 2009.

HR 1966 [LOC | WW], the "Megan Meier Cyberbullying Prevention Act", introduced on April 2, 2009, by Rep. Linda Sanchez (D-CA) and others would create a new crime of cyberbullying by "an information service, including email, instant messaging, blogs, websites, telephones, and text messages".

HR 3630 [LOC | WW], the "Adolescent Web Awareness Requires Education Act" or "AWARE Act", introduced on September 23, 2009, by Rep. Debbie Schultz (D-FL), would provide for grants to be distributed by the DOJ to "to carry out an Internet crime awareness and cybercrime prevention program".

On September 30, 2009, the House Judiciary Committee's (HJC) Subcommittee on Crime held a hearing titled "Cyberbullying and other Online Safety Issues for Children" at which these bills were discussed. See, HJC web page with hyperlinks to prepared testimony.

The House has taken no other action on either of these two bills.

However, the House passed HR 780 [LOC | WW], the "Student Internet Safety Act of 2009", a bill to allow federal education funds to be used to "educate students about appropriate online behavior, including interacting with individuals on social networking Web sites and in chat rooms", on June 16, 2009.

Bills Signed

8/10. President Obama signed into law three technology related bills, the SPEECH Act, a USPTO funding bill, and a bill regarding cell phones in prisons. See, White House news office release.

First, President Obama signed HR 2765 [LOC | WW], the "Securing the Protection of our Enduring and Established Constitutional Heritage Act" or "SPEECH Act". It is now Public Law No. 111-223.

This act, among other things, prohibits the recognition and enforcement in the United States of foreign defamation judgments when the foreign court does not afford at least as much protection for freedom of speech and press as the U.S. court. The sale and distribution of books and other written materials over the internet exposes authors, publishers and internet service providers (ISPs) in the U.S. to libel suits around the world. See, story titled "Congress Passes Foreign Libel Judgments Bill" in TLJ Daily E-Mail Alert No. 2,117, August 3, 2010.

Second, President Obama signed HR 5874 [LOC | WW], the "United States Patent and Trademark Office Supplemental Appropriations Act, 2010". It is now Public Law No. 111-224.

This act 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.. See, story titled "Congress Passes USPTO Funding Bill" in TLJ Daily E-Mail Alert No. 2,116, August 2, 2010.

Third, President Obama signed into law S 1749 [LOC | WW], the "Cell Phone Contraband Act of 2010". It is now Public Law No. 111-225.

See, stories titled "House Passes Prison Cell Phones Bill" in TLJ Daily E-Mail Alert No. 2,109, July 21, 2010, "Senate Judiciary Committee to Consider Cell Phones in Prisons" in TLJ Daily E-Mail Alert No. 2,038, January 25, 2010.

In This Issue
This issue contains the following items:
 • Rep. Barton and Rep. Stearns Write FCC Regarding State VOIP Taxation
 • Associate AG Perrelli Discusses Cyber Bullying
 • Bills Signed
 • More News
Washington Tech Calendar
New items are highlighted in red.
Thursday, August 12

The Senate will not meet. It will next meet on September 13, 2010.

The House will not meet. It will next meet at 2:00 PM on September 14, 2010.

10:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Materials Technical Advisory Committee will hold a partially closed meeting. See, notice in the Federal Register, July 28, 2010, Vol. 75, No. 144, at Pages 44227-44228. The BIS will teleconference this event. Location: DOC, Room 3884, 14th Street between Constitution & Pennsylvania Avenues, NW.

10:00 AM - 4:00 PM. Day two of a two day meeting of the U.S.-China Economic and Security Review Commission to consider drafts of material for its 2010 Annual Report to the Congress. See, notice in the Federal Register, August 10, 2010, Vol. 75, No. 153, at Page 48412. Location: Room 233, Hall of States, 444 North Capitol St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [64 pages in PDF] that proposes to reclassify broadband internet access services as Title II services. The FCC adopted and released this NOI on June 17, 2010. It is FCC 10-114 in GN Docket No. 10-127. See, stories titled "FCC Adopts Broadband Reclassification NOI", "Reaction to FCC Reclassification NOI", and "Congress, the FCC, and Broadband Regulation " in TLJ Daily E-Mail Alert No. 2,097, June 18, 2010. See also, story titled "FCC Employs Fast Tracking and Stacking in Reclassification Proceeding" in TLJ Daily E-Mail Alert No. 2,098, June 21, 2010. See also, notice in the Federal Register, June 24, 2010, Vol. 75, No. 121, at Pages 36071-36088.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [30 pages in PDF] regarding Section 629 of the Telecommunications Act of 1996, which is codified at 47 U.S.C. § 549(a), and enabling electronics manufacturers to offer smart video devices at retail that can be used with the services of any MVPD and without the need to coordinate or negotiate with MVPDs. The FCC adopted and released this item on April 21, 2010. It is FCC 10-60 in MB Docket No. 10-91, CS Docket No. 97-80, and PP Docket No. 00-67. See, notice in the Federal Register, May 14, 2010, Vol. 75, No. 93, at Pages 27264-27271.

Deadline to submit to the Copyright Royalty Judges (CRJ) objections to the negotiated royalty rates for the satellite carrier statutory license of the Copyright Act for the license period 2010-2014. See, notice in the Federal Register, July 13, 2010, Vol. 75, No. 133, at Pages 39891-39892.

Friday, August 13

Deadline to submit comments to the Department of Homeland Security (DHS) regarding data collection forms for its Protected Repository for the Defense of Infrastructure Against Cyber Threats (PREDICT) initiative. See, notice in the Federal Register, June 14, 2010, Vol. 75, No. 113, at Pages 33629-33631.

Deadline to submit comments to the U.S. Patent and Trademark Office (USPTO) regarding proposed changes to restriction practice in patent applications. See, notice in the Federal Register, June 14, 2010, Vol. 75, No. 113, at Pages 33584-33587.

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to three public notices regarding FCC collection, use and dissemination of data. See, Media Bureau notice (DA 10-1195 in MB Docket No. 10-103), Wireline Competition Bureau (WCB) notice (DA 10-1189 in WC Docket No. 10-132), and Wireless Telecommunications Bureau (WTB) notice (DA 10-1223 in WT Docket No. 10-131). See also, FCC release.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-125 [35 pages in PDF] titled "Guide to Security for Full Virtualization Technologies".

Sunday, August 15

Deadline to submit comments to the Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) request for information regarding the National Nanotechnology Initiative (NNI). See, notice in the Federal Register, July 6, 2010, Vol. 75, No. 128, at Pages 38850-38853.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR-7622 [86 pages in PDF] titled "Piloting Supply Chain Risk Management Practices for Federal Information Systems".

Monday, August 16

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking [99 pages in PDF] regarding access by telecommunications carriers and cable operators to utility poles. The FCC adopted and released this item on May 20, 2010. This item is FCC 10-84 in WC Docket No. 07-245 and GN Docket No. 09-51. See, notice in the Federal Register, July 15, 2010, Vol. 75, No. 135, at Pages 41337-41363. See also, story titled "FCC Adopts Pole Attachments Order and FNPRM" in TLJ Daily E-Mail Alert No. 2,087, May 26, 2010. See also, July 19, 2010, Public Notice (DA10-1323.)

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Public Notice [21 pages in PDF] requesting input and data on mobile wireless competition for the FCC's Fifteenth Annual Report on the State of Competition in Mobile Wireless. This item is DA 10-1234 in WT Docket No. 10-133.

Tuesday, August 17

1:30 - 4:00 PM. The Information Technology and Innovation Foundation (ITIF) will host a panel discussion titled "Allocating Educational Spectrum". The speakers will be Richard Bennett (ITIF), Jim Johnston, and Noelle Ellerson (Association of School Administrators). The ITIF will webcast this event. This event is free and open to the public. See, notice and registration page. Location: ITIF, Suite 610a, 1101 K St., NW.

6:00 - 9:15 PM. The DC Bar Association will host a panel discussion titled "Part 1: Software Patent Primer: Acquisition, Exploitation, Enforcement and Defense". The speakers will be Stephen Parker (Westerman, Hattori), Brian Rosenbloom (Figg Ernst), Martin Zoltick (Rothwell Figg). The price to attend ranges from $89 to $129. Reporters are barred from attending most DC Bar events. This event qualifies for CLE credits. See, notice. For more information, call 202-626-3488. Location: DC Bar Conference Center, 1101 K St., NW.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-130 [88 pages in PDF] titled "A Framework for Designing Cryptographic Key Management Systems".

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding amending its satellite television significantly viewed rules to implement Section 203 of the Satellite Television Extension and Localism Act of 2010 (STELA). The FCC adopted this NPRM on July 22, 2010, and released the text [27 pages in PDF] on July 23, 2010. It is FCC 10-130 in MB Docket No. 10-148. See, notice in the Federal Register, July 28, 2010, Vol. 75, No. 144, at Pages 44198-44209.

Wednesday, August 18

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) [25 pages in PDF] regarding its video relay service (VRS) rules. The FCC adopted this NOI on June 8, 2010, and released the text on June 28, 2010. This NOI is FCC 10-111 in CG Docket No. 10-51. See, notice in the Federal Register, July 19, 2010, Vol. 75, No. 137, at Pages 41863-41866.

Thursday, August 19

6:00 - 9:15 PM. The DC Bar Association will host a panel discussion titled "Part 2: Software Patent Primer: Acquisition, Exploitation, Enforcement and Defense". The speakers will be Stephen Parker (Westerman, Hattori), Brian Rosenbloom (Figg Ernst), Martin Zoltick (Rothwell Figg). The price to attend ranges from $89 to $129. Reporters are barred from attending most DC Bar events. This event qualifies for CLE credits. See, notice. For more information, call 202-626-3488. Location: DC Bar Conference Center, 1101 K St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding revising its Part 17 rules regarding the construction, marking, and lighting of antenna structures. The FCC adopted this NPRM on April 12, 2010, and released the text [54 pages in PDF] on April 20, 2010. It is FCC 10-53 in WT Docket No. 10-88. Federal Register, May 21, 2010, Vol. 75, No. 98, at Pages 28517-28540.

More News

8/10. The Federal Trade Commission (FTC) published a notice in the Federal Register that announces, describes, recites, and sets the effective date (September 27, 2010) for, its amendments to its Telemarketing Sales Rule (TSR). See, Federal Register, August 10, 2010, Vol. 75, No. 153, at Pages 48457-48523.

8/9. Federal Communications Commission (FCC) Commissioner Michael Copps released a statement regarding the legislative proposal of Google and Verizon regarding regulation of broadband internet access service (BIAS) providers. Copps wrote that "Some will claim this announcement moves the discussion forward. That's one of its many problems. It is time to move a decision forward -- a decision to reassert FCC authority over broadband telecommunications, to guarantee an open Internet now and forever, and to put the interests of consumers in front of the interests of giant corporations." See also, story titled "Verizon and Google Announce Legislative Proposal on Internet Regulation" in TLJ Daily E-Mail Alert No. 2,121, August 9, 2010.

8/9. The Federal Communications Commission (FCC) released a Public Notice (PN) [3 pages in PDF] that announces that the FCC will write a "plan" or "roadmap" pertaining to cyber security and communications networks. This PN also requests public comments in response to several questions. This PN asks: "What are the most vital cybersecurity vulnerabilities for communications networks or users? How can these vulnerabilities be addressed? What role should the Commission play in addressing them? What steps should the Commission take, if any, to remediate them? If the FCC does not play a role in addressing these vulnerabilities and problems, what agency or entity would fulfill that role? How should the Commission coordinate its efforts with other agencies of government?" Comments are due by September 23, 2010. This PN states that the FCC anticipates completion of this plan by "November 2010". This PN is DA 10-1354 in PS Docket No. 10-146 and GN Docket No. 09-51.

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