Tech Law Journal Daily E-Mail Alert
Wednesday, September 28, 2011, Alert No. 2,305.
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Representatives Markey and Barton State That Facebook Tracking of Users Violates FTC Act

9/27. Rep. Ed Markey (D-MA) and Rep. Joe Barton (R-TX) sent a letter to Jonathan Leibowitz, Chairman of the Federal Trade Commission (FTC) regarding Facebook's use of cookies to surveil its users' web activity after visiting the Facebook website. See also, Rep. Markey's release and Rep. Barton's release.

They wrote that "Facebook has admitted that to collecting information about its users even after its users had logged out of Facebook."

The two wrote that "we believe that tracking user behavior without their consent or knowledge raises serious privacy concerns. When users log out of Facebook, they are under the expectation that Facebook is no longer monitoring their activities. We believe that this impression should be the reality. Facebook users should not be tracked without their permission."

They also stated that this practice constitutes a violation of Section 5 of the FTC Act, which is codified at 15 U.S.C. § 45. It provides in part that "Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful."

And, they ask about any actions that the FTC "has taken or plans to take to investigate this practice by Facebook".

Rep. Markey and Rep. Barton are senior members of the House Commerce Committee, but not currently the Chairman or ranking Democrat of the Committee or any of its Subcommittees. The two frequently work together on online privacy issues.

ACTA Signing Set for October 1 in Tokyo

9/28. The parties to the Anti-Counterfeiting Trade Agreement (ACTA) will sign the agreement at a ceremony in Tokyo, Japan on October 1, 2011. See, weekly calendar of the Office of the U.S. Trade Representative (OUSTR).

The OUSTR also announced that Deputy USTR Miriam Sapiro will represent the US at the signing ceremony, and will participate in bilateral meetings.

The Ministry of Foreign Affairs of Japan stated in a release that "The Agreement was inspired in significant part by Japan's proposal at the G8 Gleneagles Summit in 2005 to create a new international framework against counterfeit and pirated products, in the context of the heightened awareness of the need for a higher degree of intellectual property protection. Its negotiation has been led by a strong initiative of Japan, the United States and other key partners."

The ACTA establishes certain minimum requirements for the nations that are parties to the ACTA, and permits parties to establish certain other requirements. It focuses on copyrights and trademarks. However, it does not state that none of its provisions apply in the context of patents. It addresses, among other things, civil enforcement, border measures, criminal enforcement, and digital works.

For more on the ACTA, see stories titled "ACTA Draft Released", "Summary of ACTA", and "Reaction to ACTA" in TLJ Daily E-Mail Alert No. 2,140, October 11, 2010.

The parties to the ACTA are Australia, Canada, the European Union and its Member States, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland, and the US.

Gigi Sohn, head of the Public Knowledge (PK), stated in a release that "the Obama Administration should make it clear that the Agreement is consistent with, and does not change, U.S. law, particularly the safe harbor provisions of the Digital Millennium Copyright Act".

She also complained that "the process by which it was reached was extremely flawed. ACTA should have been considered a treaty, and subject to public Senate debate and ratification or, in the alternative, debated in an open and transparent international forum such as the World Intellectual Property Organization (WIPO). Instead, public interest groups and the tech industry had to expend enormous resources to force the process open to permit public views to be presented and considered."

Senators Introduce Bill Regarding PRC Currency Exchange Rate

9/28. Sen. Sherrod Brown (D-OH) and others introduced S 1619 [LOC | WW], the "Currency Exchange Rate Oversight Reform Act of 2011", on September 22, 2011. The Senate may take up this bill as early as October 3.

The bill has 19 original cosponsors, from both parties, who are spread across the ideological spectrum. However, support for this bill in concentrated in the eastern states. Of the 20 sponsors, only one represents a state on or west of the Mississippi River.

The bill does not reference the People's Republic of China (PRC), but it is directed at the PRC. Sen. Brown's stated in a release that "The illegal and unfair manipulation of the yuan by the Chinese government has gone on for far too long ... We must equip the Obama Administration with the tools it needs to crack down on China's currency manipulation and help level the playing field for American businesses."

Sen. Olympia Snowe (R-ME), an original cosponsor of the bill, issued a release that states that "China's ongoing undervaluation of the Yuan continues to cause severe economic disruptions and imbalances globally and is taking a huge toll on manufacturers and workers across the United States. Moreover, failure to address China's currency manipulation has emboldened China to countenance other market-distorting policies, including discriminatory indigenous innovation policies and inadequate protection of intellectual property, that benefit companies in China at the expense of U.S. companies and workers."

Sen. Charles Schumer (D-NY) stated in a release that "This is not about China bashing". He wrote that "We are sending a clear message to the Chinese government: if you refuse to play by the same rules as everyone else, we will force you to."

The Club for Growth stated in a release that "This proposal would make it easier for the government to slap punitive tariffs on ``nonmarket´´ economies -- in particular China -- if an exporting country's currency is considered misaligned against the U.S. dollar. This is a disastrous proposal that would increase taxes on American consumers, stall the economic recovery, and spark an ugly trade war that would benefit no one."

This bill provides that the Department of the Treasury (DOT) "shall analyze on a semiannual basis the prevailing real effective exchange rates of foreign currencies", and "With respect to the currencies of countries that have significant bilateral trade flows with the United States, and currencies that are otherwise significant to the operation, stability, or orderly development of regional or global capital markets, the Secretary shall determine whether any such currency is in fundamental misalignment and shall designate such currency as a fundamentally misaligned currency".

The bill would also lessen the requirements for making such a finding.

If the DOT so designates a country, the DOT then "shall seek to consult bilaterally with the country that issues such currency in order to facilitate the adoption of appropriate policies to address the fundamental misalignment".

Next, if the DOT "determines that the country that issues such currency has failed to adopt appropriate policies, or take identifiable action, to eliminate the fundamental misalignment", it shall first resort to, among other things, the existing US antidumping process.

Next, the DOT shall resort to submitting a complaint with the World Trade Organization (WTO) and requesting the Federal Reserve Board (FRB) and other central banks to intervene in currency markets.

Ben Bernanke, Chairman of the FRB, gave a speech in Frankfurt, Germany, on this topic titled "Rebalancing the Global Recovery", on November 19, 2011. See also, story titled "Bernanke Addresses PR China and Global Economy" in TLJ Daily E-Mail Alert No. 2,162, November 22, 2011.

The Senate is scheduled to consider a motion to proceed to this bill on Monday, October 3, 2011.

Sen. Orrin Hatch (R-UT) sent a letter to Timothy Geithner (Secretary of the Treasury) and Ron Kirk (U.S. Trade Representative) on September 28 stating that "Before the Senate moves forward, it's imperative that the 100 members of this body have a full understanding of the Administration's views on this legislation."

He asked Geithner to address "constitutional, legal, or other policy concerns the Administration has with the currency provisions included in the bill".

He asked Kirk to address the bill's WTO and trade policy implications, such as whether enactment of the bill would violate the US's WTO obligations.

More PRC and Taiwan Trade News

9/28. The House Foreign Affairs Committee (HFAC) announced that it will hold a hearing titled "Why Taiwan Matters, Part II", on October 4, 2011, at 10:00 AM. See, notice.

9/14. Sen. James Inhofe (R-OK) introduced S 1545 [LOC | WW], a bill to designate Taiwan as a visa waiver program country under section 217(c) of the Immigration and Nationality Act. Sen. Inhofe stated in a release that "Both the United States and Taiwan are dedicated to strengthening commercial, education, and cultural ties, and this legislation is another step in fulfilling our commitment. This legislation will permit Taiwan to participate in our nation’s visa waiver program and allow the Taiwanese to travel to the United States for a short period of time without obtaining a visa. Removing this red tape will improve our nation's relations with Taiwan while providing a positive economic impact." It was referred to the Senate Judiciary Committee (SJC).

9/14. Rep. Ileana Ros-Lehtinen (R-FL) and others introduced HR 2918 [LOC | WW], the "Taiwan Policy Act of 2011". It states that its purpose is "To strengthen and clarify the commercial, cultural, and other relations between the people of the United States and the people of Taiwan, as codified in the Taiwan Relations Act". It states, among other things, that "It shall be the policy of the United States to encourage visits by cabinet-level officials between the United States and Taiwan to foster commercial, technological, and people-to-people exchanges." It also states that "It is the sense of Congress that the ultimate goal of trade negotiations with Taiwan should be the negotiation of a free trade agreement with Taiwan". It was referred to the House Foreign Affairs Committee (HFAC), House Judiciary Committee (HJC), and House Ways and Means Committee (HWMC).

9/13. Rep. Scott Garrett (R-NJ) and others introduced HConRes 77, a resolution expressing the sense of the Congress that Taiwan should be a member of the United Nations. It was referred to the House Foreign Affairs Committee (HFAC).

9/13. Rep. Brad Sherman (D-CA), Rep. Dana Rohrabacher (R-CA) and others introduced HR 2909 [LOC | WW], the "Emergency China Trade Act", a bill to end PNTR status for the PRC. It would provide, among other things, that "normal trade relations treatment shall not apply to the products of the People's Republic of China, and normal trade relations treatment may not thereafter be extended to the products of that country". Rep. Sherman stated in a release that "China has abused the trading relationship in many ways, from currency manipulation to the piracy of intellectual property. That is why I have introduced legislation to revoke Most Favored Nation status from China until the President establishes a more level playing field between our two nations". It was referred to the House Ways and Means Committee (HWMC).

9/12. Rep. Dana Rohrabacher (R-CA), Rep. Ted Poe (R-TX), and Rep. Randy Forbes (R-VA) introduced HR 2899 [LOC | WW], the "Chinese Media Reciprocity Act of 2011". The bill only applies to government controlled news media. There is very little US government media, in the People's Republic of China (PRC), or anywhere. This bill pertains to the issuance of visas to any "state-controlled media worker from the People's Republic of China". Its coverage includes, but is not limited to, a list of twelve covered entities, including the Xinhua News Agency. It provides in part that the Department of State (DOS) "shall revoke a sufficient number of visas issued to state-controlled media workers from the People's Republic of China so that the remaining number of such visas does not exceed the number of visas issued by the People's Republic of China to nationals of the United States who are employees of the Broadcasting Board of Governors and who seek to enter the People's Republic of China solely to engage in such vocation." The bill does not address PRC treatment of reporters employed by US media companies. It was referred to the House Judiciary Committee.

People and Appointments

9/27. President Obama announced his intent to nominate Glen Post to be a member of the President's National Security Telecommunications Advisory Committee (PNSTAC). See, White House news office release. Post is P/CEO of CenturyLink, a provider of voice, video and internet access services based in the state of Louisiana.

9/26. The Senate confirmed Robert Zimmer and Arnold Stancell to be members of the National Science Foundation's (NSF) National Science Board (NSB). See, Congressional Record, September 26, 2011, at Page S6009.

9/26. President Obama named 94 persons as recipients of the Presidential Early Career Awards for Scientists and Engineers. See, White House news office release.

9/22. President Obama nominated Judge Jacqueline Nguyen to be a Judge of the U.S. Court of Appeals for the 9th Circuit. See, White House news office release and release. The President appointed her Judge of the U.S. District Court for the Central District of California in 2009. Before that, she was a state trial court judge in California, appointed by former Governor Gray Davis. Before that, she was a federal prosecutor.

9/22. President Obama nominated Brian Wimes to be a Judge of the U.S. District Court for the Eastern and Western Districts of Missouri. See, White House news office release and release. He is currently a state judge in Missouri. He is a former prosecutor.

In This Issue
This issue contains the following items:
 • Representatives Markey and Barton State That Facebook Tracking of Users Violates FTC Act
 • ACTA Signing Set for October 1 in Tokyo
 • Senators Introduce Bill Regarding PRC Currency Exchange Rate
 • More PRC and Taiwan Trade News
 • People and Appointments
Washington Tech Calendar
New items are highlighted in red.
Wednesday, September 28

The House will not meet.

The Senate will not meet.

9:00 AM - 3:00 PM. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) HIT Standards Committee will meet. See, notice in the Federal Register, Vol. 76, No. 158, Tuesday, August 16, 2011, at Page 50735-64. Location: Washington Marriott Hotel, 1221 22nd St., NW.

Thursday, September 29

The House will meet at 11:00 AM in pro forma session.

The Senate will meet at 1:45 PM in pro forma session.

Friday, September 30

The House will not meet.

The Senate will not meet.

9:30 AM - 12:30 PM. Assembly of the Administrative Conference of the United States' Committee on Regulation will hold a meeting regarding international regulatory cooperation. It will consider how the Conference might update its Recommendation 91-1, titled "Federal Agency Cooperation with Foreign Government Regulators", in light of developments in United States government structure, trade agreements, and technology. See, notice in the Federal Register, Vol. 76, No. 171, Friday, September 2, 2011, at Page 54730. Location: Suite 706 South, 1120 20th St., NW.

10:00 AM - 12:00 PM. The Department of State's (DOS) Office of Legal Adviser's (OLA) Office of Private International Law will hold a public meeting regarding the future work of Working Group IV of the United Nations Commission on International Trade Law. Working Group IV addresses international electronic commerce. It will next meet on October 10-14, 2011, in Vienna, Austria. See, notice in the Federal Register, Vol. 76, No. 178, Wednesday, September 14, 2011, at Page 56865. Location: DOS.

5:00 PM. Extended deadline to submit comments to the Department of Energy (DOE) regarding its proposed determination for set-top boxes and network equipment as a covered consumer product under the Energy Policy and Conservation Act, which is codified at 42 U.S.C. § 6291, et seq. See, original notice in the Federal Register, Vol. 76, No. 115, Wednesday, June 15, 2011, at Pages 34914-34918, and extension notice in the Federal Register, Vol. 76, No. 131, Friday, July 8, 2011, at Pages 40285-40286.

The contract between the Department of Commerce's (DOC) National Telecommunications and Information Administration (NTIA) and the Internet Assigned Numbers Authority (IANA) expires. The IANA manages the global coordination of the Domain Name System (DNS) root, internet protocol (IP) addressing, and other IP resources pursuant to this contract.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-133 [24 pages in PDF] titled "Recommendation for Cryptographic Key Generation".

Saturday, October 1

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-38 F [31 pages in PDF] titled "Recommendation for Block Cipher Modes of Operation: Methods for Key Wrapping".

Monday, October 3

The Senate will meet at 2:00 PM. The Senate will resume consideration of the motion to proceed to S 1619 [LOC | WW], the "Currency Exchange Rate Oversight Reform Act", and vote on confirmation of USDC Judge Henry Floyd to be a Judge of the U.S. Court of Appeals (4thCir).

Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Second Further Notice of Proposed Rule Making (2ndFNPRM) and NPRM regarding extending the FCC's location surveillance mandate to outbound only interconnected VOIP services, and revising the definition of interconnected VOIP. The FCC adopted this item on July 12, 2011, and released the text on July 13. This NPRM is FCC 11-107 in PS Docket No. 07-114, GN Docket No. 11-117, and WC Docket No. 05-196. See, notice in the Federal Register, Vol. 76, No. 150, Thursday, August 4, 2011, at Pages 47114-47123. See also, Public Notice (DA 11-1376).

Deadline to submit comments to the Department of Commerce's (DOC) Bureau of Industry and Security regarding the effect of its foreign policy based export controls. See, notice in the Federal Register, Vol. 76, No. 170, Thursday, September 1, 2011, at Pages 54426-54428.

Tuesday, October 4

10:00 AM - 12:00 NOON. The House Intelligence Committee (HIC) will hold an open hearing titled "Cyber Threats and Ongoing Efforts to Protect the Nation". The witnesses will be Michael Hayden (Chertoff Group) and Arthur Coviello (RSA). See, notice. Location: Room HVC 210, Capitol Visitor Center.

10:00 AM. The House Foreign Affairs Committee (HFAC) will hold a hearing titled "Why Taiwan Matters, Part II". The witnesses will be Kurt Campbell (Assistant Secretary of State for East Asian and Pacific Affairs) and Peter Lavoy (Principal Deputy Assistant Secretary of Defense for Asian and Pacific Security Affairs). See, notice. Location: Room 2172, Rayburn Building.

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

3:00 PM. The Senate Judiciary Committee (SJC) will hold a hearing on the nominations of Stephanie Thacker (to be a Judge of the U.S. Court of Appeals for the 4th Circuit), Michael Fitzgerald (USDC/CDCal), Ronnie Abrams (USDC/SDNY), Rudolph Contreras (USDC/DC), and Miranda Du (USDC/DNev). See, notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.

Deadline to submit reply comments in response to the Federal Communications Commission (FCC) in response to its notice of inquiry [19 pages in PDF] titled "Eighth Broadband Progress Notice and Inquiry". This is a Section 706 NOI concerning the availability of advanced telecommunications capability. The FCC adopted and released this NOI on August 5, 2011. It is FCC 11-124 in GN Docket No. 11-121. See also, story titled "FCC Releases NOI for 8th Section 706 Report" in TLJ Daily E-Mail Alert No. 2,283, August 8, 2011.

Deadline to submit comments to the Office of the U.S. Trade Representative (OUSTR) to assist it in preparing its annual report titled "National Trade Estimate Report on Foreign Trade Barriers". The OUSTR seeks comments on, among other things, lack of intellectual property protection. See, notice in the Federal Register, Vol. 76, No. 156, Friday, August 12, 2011, at Pages 50287-50289. See also, story titled "OUSTR Seeks Comments for Report on Foreign Trade Barriers" in TLJ Daily E-Mail Alert No. 2,290, August 15, 2011.

Wednesday, October 5

9:00 AM. The House Commerce Committee's (HCC) Subcommittee on Commerce, Manufacturing, and Trade will hold a hearing titled "Protecting Children's Privacy in an Electronic World". See, notice. Location: Room 2123, Rayburn Building.

10:00 AM. The House Homeland Security Committee (HHSC) Subcommittee on Counterterrorism and Intelligence will hold a hearing titled "Intelligence Sharing and Terrorist Travel: How DHS Addresses the Mission of Providing Security, Facilitating Commerce and Protecting Privacy for Passengers Engaged in International Travel". See, notice. Location: Room 311, Cannon Building.

2:30 PM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Considering the Role of Judges Under the Constitution of the United States". The witnesses will be Justice Antonin Scalia and Justice Stephen Breyer. See, notice. The SJC will webcast this hearing. Location: Room 216, Hart Building.

TIME? The Office of the U.S. Trade Representative (OUSTR) will hold a hearing to assist it in preparing its annual report to the Congress on the People's Republic of China's compliance with the commitments made in connection with its accession to the World Trade Organization (WTO). See, notice in the Federal Register, Vol. 76, No. 156, Friday, August 12, 2011, at Pages 50286-50287. See also, story titled "OUSTR to Hold Hearing on PRC Compliance with WTO Commitments" in TLJ Daily E-Mail Alert No. 2,290, August 15, 2011. Location: Room 1, 1724 F St., NW.

1:00 - 5:00 PM. The Department of Homeland Security's (DHS) Data Privacy and Integrity Advisory Committee will meet. See, notice in the Federal Register, Vol. 76, No. 183, Wednesday, September 21, 2011, at Pages 58524-58525. Location: Navy League Building, 2300 Wilson Boulevard, Arlington, VA.

1:30 PM. The House Judiciary Committee's (HJC) Subcommittee on Immigration Policy and Enforcement will hold a hearing titled "STEM the Tide: Should America Try to Prevent an Exodus of Foreign Graduates of U.S. Universities with Advanced Science Degrees?". See, notice. Location: Room 2141, Rayburn Building.

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