|House Commerce Committee Democrats Seek
Delay of Spectrum Bill Mark Up
11/30. Rep. Henry Waxman (D-CA) and
Rep. Anna Eshoo (D-CA) sent a
letter to Rep. Fred Upton (R-MI) and
Rep. Greg Walden (R-OR) requesting that the mark up of
spectrum legislation, scheduled for Thursday, December 1, 2011, be postponed.
Rep. Waxman and Rep. Eshoo are the ranking Democrats on the
Committee (HCC) and its Subcommittee on Communications and Technology. Rep.
Upton and Rep. Walden are the Chairmen of the HCC and its SCT.
The bill to be marked up has not yet been introduced. However, on Tuesday,
November 29, HCC Republicans released a
discussion draft [113 pages in PDF] of the "Jumpstarting Opportunity with Broadband
Spectrum (JOBS) Act of 2011".
HCC Democrats introduced their own bill, HR 3509
"Wireless Innovation and Public Safety Act of 2011", on November 29. See, story titled
"House Subcommittee on Communications and Technology to Mark Up Spectrum Bill"
in TLJ Daily E-Mail Alert No. 2,315, November 29, 2011.
The two Democrats wrote that the Republican bill was not released until "Tuesday, so a
delay will give members and stakeholders more time to understand the new language."
"Second, we were engaged in constructive
negotiations toward a bipartisan bill that were abruptly ended in early
October. A delay would provide an opportunity for us to resume these
negotiations and to share relevant information we have learned since then."
Both draft bills provide for allocation of the D Block for a public safety
network. Rep. Waxman and Rep. Eshoo argued that the Republican bill has three
flaws: "(1) its diffuse governance provisions for the public safety network; (2)
its prohibition on allocating spectrum from incentive auctions for unlicensed
use; and (3) its limitations on the FCC’s authority to craft auction rules in
the public interest."
They wrote that the Democratic bill provides for a "national nonprofit
corporation" to build the network, while the Republican draft provides for
building by the "50 states", with "significant authority over the deployment of
the public safety network be contracted out to a private company". They
expressed concerns about the "accountability of a private contractor and the
costs to the taxpayer".
Sen. Kay Hutchison (R-TX), the
ranking Republican on the Senate Commerce
Committee (SCC), stated in a release that "I'm very glad that the House
Energy & Commerce Committee is placing a priority on providing our nation's
first responders with the spectrum they need to build a robust nationwide public
safety wireless network. While there are some differences between our bills, I
believe the House's JOBS Act is complimentary to the bipartisan bill Chairman
Rockefeller and I have passed in the Senate Commerce Committee, S. 911. I look
forward to working with my House colleagues to incorporate their priorities into
S. 911 so we can send a final spectrum bill to the President's desk sometime
Gordon Smith, head of the National Association
of Broadcasters (NAB), stated in a
that "Chairman Walden's bill represents a major step forward in ensuring that
local television stations will continue to be able to serve our vast and diverse
audiences with local news, entertainment, sports and emergency weather
information. Our position remains unchanged since this debate began: NAB has no
quarrel with voluntary spectrum auctions so long as non-volunteer broadcasters
and our viewers are not punished."
Steve Largent, head of the CTIA, stated in a
release that the "CTIA and the wireless industry welcome the mark-up of the
JOBS Act of 2011. This bill takes the important step of authorizing voluntary
incentive auctions, which will make a substantial down payment toward solving
the looming spectrum crisis." He urged that "Congress should make every effort
to get this done this year."
|Representatives Introduce Cyber Threat
Information Sharing Bill
11/30. Rep. Mike Rogers (R-MI) and
Rep. Dutch Ruppersberger (D-MD) introduced
HR __, the "Cyber Intelligence Sharing and Protection Act of 2011". See,
discussion draft [11 pages in PDF]. The HIC scheduled an immediate mark up
of this bill -- Thursday, December 1, 2011, at 3:00 PM.
This is a bill to promote, but not mandate, information sharing. It would allow sharing. It
would create new immunities. On the other hand, it would create no new regulatory regime, no new
criminal prohibition regime, no data retention mandate, and no new government surveillance powers.
This bill would amend Title 50, which pertains to national defense and
intelligence, to authorize U.S. intelligence agencies to provide secret "cyber
threat intelligence" to certain private sector entities, namely, "cybersecurity
providers", "protected entities" (of cybersecurity providers), and
"self-protected entities" (which provide their own cybersecurity). The
bill further allows these entities to further share this intelligence, but
prohibits "unauthorized disclosure".
This bill would also allow "cybersecurity providers" and "self-protected
entities" to provide "cyber threat information" to others, and to the federal
government. But, shared cyber threat information "may not be used by an entity
to gain an unfair competitive advantage".
The bill would also grant sweeping immunity from state and federal, and civil
and criminal, actions and liability, for "using cybersecurity systems or sharing
information in accordance with this" bill, or "for not acting on information
obtained or shared in accordance with this" bill.
Rep. Rogers is the Chairman of the House
Intelligence Committee (HIC). Rep. Ruppersberger is the ranking Democrat on
the HIC. The two spoke at an event at the National Cable and
Telecommunications Association (NCTA) on November 30. See,
The two also issued a
release that states that "American businesses are targeted every day by
scheming hackers and nation-states such as China and Russia that are intent on
stealing America’s intellectually property and sensitive government information
through the Internet."
In addition, on November 17 the two announced an investigation "into the threat posed by
Chinese-owned telecommunications companies working in the United States, and the government's
response to that threat". See, story titled "House Intelligence Committee Launches
Investigation of Huawei" in TLJ Daily E-Mail Alert No. 2,313, November 22, 2011.
Rep. Rogers stated in the joint release that "There is an economic
cyber war going on today against U.S. companies ... There are two types of
companies in this country, those who know they’ve been hacked, and those who
don’t know they’ve been hacked. Economic predators, including nation-states, are
blatantly stealing business secrets and innovation from private companies. This cybersecurity bill goes a long way in helping American businesses better protect
their networks and their intellectual property."
Rep. Ruppersberger (at right)
stated in this release that "We simply can’t stand by if we have the ability to help
American companies protect themselves. Sharing information about cyber threats is a critical
step to preventing them. This bill is a good start toward helping the private sector safeguard
its intellectual property and critical cyber networks, including those that power our electrical,
water and banking systems. The bill maintains vital protections for privacy and civil liberties
without any new federal spending, regulations or unfunded mandates".
The bills defines "cybersecurity intelligence" as information "directly
pertaining to a vulnerability of, or threat to, a system or network of a government or private
entity, including information pertaining to the protection of a system or network from -- (A)
efforts to degrade, disrupt, or destroy such system or network; or (B) theft or misappropriation
of private or government information, intellectual property, or personally identifiable
Michael Powell, head of the NCTA, and former Chairman of the Federal
Communications Commission (FCC), stated at the Wednesday event that there
is an "inadequate information flow", and that this bill addresses this.
Powell stated in a
release that "We applaud Chairman Rogers and Ranking Member Ruppersberger for
introduction of the Cyber Intelligence Sharing and Protection Act of 2011 that will ensure
better information sharing between all stakeholders involved in protecting our nation's
critical cyber infrastructure. We appreciate that this legislation avoids a prescriptive
regulatory regime that does not fit the constantly evolving cyber threat environment and it
appropriately allows individual companies to determine how they can best participate. This
legislation will protect both our national security and our customers and has the strong support
of the nation's cable, telephone and wireless industries. We urge Congress to swiftly pass the
Cyber Intelligence Sharing and Protection Act of 2011 into law."
Steve Largent, head of the CTIA, stated at
the Wednesday event that "better sharing of information between carriers and
their vendors" and the federal government is important.
Walter McCormack, head of the USTelecom,
stated that his group and members are committed to protecting networks against
cyber threats, and that "we can do so much better, we can do so much more, if we
can share information with the government in a way that is protected ... This
legislation will make that possible." See also, USTelecom
Rep. Rogers stated at this event that "there is a cyber war that is going on
today." He added that "the threat is real, and our protections are not where
they ought to be."
Rep. Rogers said that "the best thing that we can do is remove the barriers" to information
sharing between the government and the private sector, and within the private sector. He also stated that "The bill has nothing to do with surveillance."
Rep. Ruppersberger stated that "We will have a catastrophic attack within the
next year." He suggested that banking, air traffic control and the grid system
could be targets.
Rep. Rogers mentioned several countries in his speech,
including the People's Republic of China, Russia, and Iran. Rep. Ruppersberger
mentioned North Korea.
|Telecommunications Remote Toll Fraud Used to
11/24. The Philippine National Police's
Criminal Investigation and Detection Group (CIDG) announced in a vaguely
worded release that the CIDG
and the U.S. Federal Bureau of Investigation
(FBI) "have busted a group of Filipino hackers whose operation is allegedly
being financed by a Saudi-based terrorist group".
This release states that this action included searches and arrests that
"stemmed from the complaint of AT&T" about "the activities of Filipino hackers
who hacked the system of AT&T" resulting in "almost $2-million in losses".
This release adds that the FBI "uncovered paper trail of various bank
transactions linking the local hackers to the Saudi-based cell whose activities
include financing terrorist activities".
This release does not disclose the name of the Saudi group. It does state
that the Philipino individuals have also "targeted the AT&T in the US" and that
they "hack the trunk-line (PBX) of different telecommunication companies
including the AT&T".
The release does not use the phrase "remote toll fraud". However, its
description of the arrested Filipino individuals' activities is consistent with
remote toll fraud. This is the gaining of unauthorized access to the
telecommunications equipment of clients of AT&T or other telecommunications
companies for the purpose making unauthorized calls.
Then, revenues from the sale of such stolen telecommunications services can
be used, for example, to fund terrorist activities.
Remote toll fraud is both ancient and common. What is novel about this case
is that it discloses that remote toll fraud is being used to fund terrorism.
|More Tech Crime
11/16. Jamie Lynn Snyder pled guilty in the
U.S. District Court (DDel) to one
count of criminal copyright infringement in connection with her operation
of a web site that sold unlicensed copies of programs of Microsoft,
Adobe, and other software companies. The Federal
Bureau of Investigation (FBI) stated in a
release that Sydner advertised on the websites on Facebook, MySpace, Google,
and Yahoo, and that her "websites processed $971,935.10 in unlawful software
transactions between February 26, 2008 and March 3, 2010."
11/15. The U.S. District Court
(EDPenn) unsealed an indictment that changes Michael Moore with criminal
copyright infringement in connection with his involvement with web sites
that sold DVDs containing copies of broadcast hockey games. The
Federal Bureau of Investigation (FBI) stated in a
release that "HDHOCKEY.TV was a website that offered for sale DVDs
containing recordings of copyrighted television broadcasts of hockey games and
other copyrighted works such as team and player profiles, from the National
Hockey League (NHL) and other professional hockey leagues." The release also
states that "BROADSTREETBULLY.COM was a website offering for sale monthly
subscriptions that enabled subscribers to download an unlimited number of video
clips of copyrighted television broadcasts of hockey games, and other
copyrighted works such as team and player profiles, from the NHL and other
professional hockey leagues."
11/7. Eleazar Gomez Ortiz pled guilty in the
U.S. District Court (EDCal) to
conspiracy to commit criminal copyright infringement and traffic in
counterfeit labels, illicit labels, and counterfeit documentation and packaging.
The Federal Bureau of Investigation (FBI)
stated in a
release that Ortiz sold the counterfeit music CDs and motion picture DVDs in
public flea markets in the Sacramento, California, area.
11/7. The U.S. District Court (DKan)
sentenced Timothy Weatherly to serve 27 months in prison following his plea of
guilty to one count of conspiracy to traffic in counterfeit goods and
make false statements. The Federal Bureau of
Investigation (FBI) stated in a
release that he and others imported counterfeit Cisco equipment from
the People's Republic of China (PRC), packaged this equipment with counterfeit
Cisco labels and manuals, and then sold the counterfeits as genuine Cisco
products on the eBay auction web site. The FBI added that the "conspirators
obtained access to Cisco's confidential serial number verification website in
order to obtain legitimate serial numbers" and "used multiple shippers and other
methods to attempt to keep shipments from being seized by customs officials".
11/3. John Kenneth Calderon Basto pled guilty in the
U.S. District Court (WDOkla) to
distribution of child pornography (CP). CP related crime is most
frequently prosecuted category of technology related federal crime. Most
prosecutions are based upon the defendants' use of computing devices to view
internet based CP. A much smaller proportion involve production of CP for
distribution via the internet. The Basto case has an atypical origin. The
Federal Bureau of Investigation (FBI)
explained in a
release that Basto, who lived in California, and a ten year old boy in
Oklahoma played the video game Call of Duty: Modern Warfare 2 on their
Xbox LIVE gaming stations. The Xbox LIVE enables simultaneous voice
communication. The FBI stated that "Basto and the boy talked online, and he
eventually invited the boy into a private chat room, where they exchanged cell
phone numbers. Through phone calls and text messages, Basto asked the boy for
pictures", who complied, in exchange for cheat codes.
11/3. Agents of the Federal Bureau of
Investigation (FBI) arrested Glendon Swift for making voicemail threats
of violence to Rep. Eric Cantor (R-VA)
and his family. See, FBI
10/25. Joshua David Evans pled guilty in the
U.S. District Court (EDVa) to
criminal copyright infringement and conspiracy in connection with his
involvement with the NinjaVideo.net web site. Another defendant, Jeremy
Lynn Andrew, pled guilty to conspiracy. The U.S. Attorneys Office for the
Eastern District of Virginia stated in a
release that this web site "provided millions of users with the ability to
illegally download infringing copies of copyright-protected movies and
television programs in high-quality formats", and that it "generated a total of
$505,000 in income from Internet advertising and visitor donations". This
release adds that Evans supervised the uploading of infringing content to the
web site, while Andrew was an administrator of the web site.
|This issue contains the following items:
• House Commerce Committee Democrats Seek Delay of Spectrum Bill Mark Up
• Representatives Introduce Cyber Threat Information Sharing Bill
• Telecommunications Remote Toll Fraud Used to Fund Terrorism
• More Tech Crime
New items are highlighted in
|Wednesday, November 30
The House will meet at 10:00 AM for morning hour, and at
12:00 NOON for legislative business. See, Rep. Cantor's
schedule for the week.
The Senate will meet at 10:00 AM. It will resume consideration
of S 1867 [LOC |
"Department of Defense Authorization Act".
8:00 AM. The National Cable and
Telecommunications Association (NCTA), USTelecom, and CTIA will host an event titled
"Protecting American Innovation in Cyberspace". The speaker will be
Rep. Mike Rogers (R-MI). Persons interested in
attending should e-mail Pam Ford at pford at ncta dot com. Location: NCTA, 25 Massachusetts
10:00 AM - 12:00 NOON. The House
Science Committee's (HSC) Subcommittee on Investigations and Oversight will hold a
hearing titled "Stimulus Oversight: An Update on Accountability, Transparency, and
Performance". It will address, among other topics, spending by the Department of
Commerce (DOC) and National Science Foundation (NSF). See,
notice. The HSC will webcast this event. Location: Room 2318, Rayburn Building.
2:30 PM. The Senate Commerce
Committee (SCC) will hold a hearing on the nominations of Jessica Rosenworcel
and Ajit Pai to be Commissioners of the Federal Communications Commission (FCC). The
SCC will webcast this event. See,
notice. Location: Room 253, Russell Building.
6:00 - 8:15 PM. The Federal Communications
Bar Association (FCBA) will host an event titled "Slicing the Airwaves Pie:
Incentive Auctions, Incumbent Relocation and New Principles of Spectrum Management".
Prices vary. CLE credits. Registrations and cancellations are due by 5:00 PM on
November 28. See,
Location: Bingham McCutchen, 2020 K St., NW.
|Thursday, December 1
The House will meet at 10:00 AM for morning
hour, and at 12:00 NOON for legislative business. See, Rep. Cantor's
schedule for the week.
8:00 - 10:00 AM. The U.S. Patent
and Trademark Office (USPTO) will host an event titled "Trademark Office Speaks".
The speakers will be Deborah Cohn (Commissioner for Trademarks) and Gerard Rogers
(Chief Administrative Trademark Judge of the U.S. Trademark Trial and Appeal Board). The price
to attend ranges from $20 to $35. The D.C. Bar Association, which bars reporters from many
of its events, states that this is a DC Bar event. See,
notice. Location: Cosmos Club, 2121 Massachusetts Ave., NW.
8:30 AM - 12:30 PM. The Phoenix
Center for Advanced Legal and Economic Public Policy Studies will host an event titled
"Phoenix Center 11th Annual U.S. Telecoms Symposium". The speakers will
include Rep. Greg Walden (R-OR),
Rep. Lee Terry (R-NE), Marius Schwartz (FCC Chief
Economist), Tim Brennan (UMBC), Michael
Pelcovits (MiCRA), Michael Rollins (Citi Investment Research & Analysis), Chris Gleason
(Alyeska Investment Group), Michael Powell (NCTA), Steve
Largent (CTIA), and James Cicconi (AT&T). See,
notice. Location: University Club,
1135 16th St., NW.
10:00 AM. The House Commerce
Committee's (HCC) Subcommittee on Communications and Technology will meet to mark up a
discussion draft [113 pages in PDF] of a yet to be introduced bill titled the
"Jumpstarting Opportunity with Broadband Spectrum (JOBS) Act of 2011". See,
and majority staff
memorandum. See also, HCC Democrats'
draft bill. Location: Room 2123, Rayburn Building.
10:00 AM. The Senate Judiciary
Committee (SJC) will hold an executive business meeting. The
agenda again lists consideration of three judicial nominees: Jacqueline Nguyen
(to be a Judge of the U.S. Court of Appeals for the
9th Circuit), Gregg Costa (U.S. District Court for the Southern District of Texas), and
David Guaderrama (USDC, Western District of Texas). The SJC will webcast this event. Location:
Room 226, Dirksen Building.
12:00 NOON. The Federal Trade
Commission's (FTC) Bureau of Economics will host a presentation titled "Tying and
Bundling in a Nearly Contestable Market". The speaker will be
(Boston University). See,
[PDF]. For more information, contact Loren Smith at lsmith2 at ftc dot gov or Tammy John at
tjohn at ftc dot gov. Location: FTC, Room 4100, 601 New Jersey Ave., NW.
12:00 NOON - 1:30 PM. The
American Bar Association (ABA) will host a brown bag lunch titled "Old Media
Meet New Media: What Lawyers & Clients Need to Know Before and During a Crisis".
The speakers will be Len Biegel, Rich Cooper, Andre Francis and Mark Sedak. See,
notice. Location: ABA, 740 15th St., NW.
1:00 PM. The House
Small Business Committee's (HSBC) Subcommittee on Healthcare and Technology will hold a
hearing titled "Cyber Security: Protecting Your Small Business". The witnesses
will be Rep. Mac Thornberry, (R-TX), David Beam (North Carolina Electric Membership Corporation
and National Rural Electric Cooperative Association), Glenn Strebe (Air
Academy Federal Credit Union and National Association of Federal Credit
Unions), and Michael Kaiser (National Cyber Security Alliance). See,
notice. Location: Room 2360, Rayburn Building.
1:00 PM. The
USTelecom will host a webcast seminar titled "Botnets, Malware and
Other Cyber Threats: A Technology and Policy Primer". See,
5:30 PM. The University of Maryland (UM) and Google
will host an event titled "Current R&D Initiatives in Cybersecurity". The
speaker will be Douglas Maughan (Director of the DHS's Homeland Security Advanced Research
Projects Agency's Cyber Security Division). See,
page. For more information, contact Eric Chapman at 301-405-7136 or echapman at umiacs
dot umd dot edu. Location: UM, Jeong Kim Engineering Building, Room 1110, College
6:00 - 8:30 PM. The Federal Communications Bar
Association (FCBA) will host a reception. Prices vary. Registrations and
cancellations are due by 5:00 PM on November 28. See,
form. Location: Swedish Embassy, 2900 K St., NW.
|Friday, December 2
The House will meet at 9:00 AM for legislative business.
The House will consider HR 527
the "Regulatory Flexibility Improvements Act of 2011", and HR 3010
the "Regulatory Accountability Act of 2011". See, Rep. Cantor's
schedule for the week.
Supreme Court conference day. See,
5:00 PM. Deadline to submit comments to the
National Institute of Standards and Technology (NIST)
regarding its draft
Special Publication 500-293 [32 pages in PDF] titled "US Government Cloud Computing
Technology Roadmap, Release 1.0". See,
notice in the
Federal Register, Vol. 76, No. 211, Tuesday, November 1, 2011, at Pages 67418-67419.
Deadline to submit comments to the
Department of Homeland Security (DHS) in response to its
notice in the
Federal Register (FR) that announces, describes, and recites proposed rules regarding its
system of records involving collection and use debit and credit card data for civil, criminal
and intelligence purposes. The DHS proposes to exempt portions of this system of records from
one or more provisions of the Privacy Act. See, FR, Vol. 76, No. 212, Wednesday, November 2,
2011, at Pages 67621-67622.
|Monday, December 5
10:00 - 11:30 PM. The Information
Technology and Innovation Foundation (ITIF) will host an panel discussion titled
"America's Competitiveness Crisis and the Anemic Job Recovery". The speakers
will be Lenny Mendonca (McKinsey Global Institute), George Tassey (NIST), and Robert
Atkinson (ITIF). See,
notice. Location: ITIF/ITIC, Suite 610A, 1101 K St., NW.
6:00 - 9:15 PM. The DC Bar Association
will host an event titled "IP Year In Review Series 2011: Copyright and Trademark
Update". The speakers will be Amy Benjamin (Stein McEwen) and Terence Ross (Crowell
& Moring). See,
notice. The price to attend ranges from $89 to $129. CLE credits. For more
information, call 202-626-3488. Location: DC Bar Conference Center, 1101 K St., NW.
7:00 PM. The Intellectual Property Owners
Association will host a reception and dinner titled "2011 IPO Education Foundation
Awards Dinner". The speakers will include David Kappos, head of the
U.S. Patent and Trademark Office (USPTO). Location:
8th and G St., NW.
Deadline to submit initial comments to the Federal Communications
Commission (FCC) in response to its
Notice of Proposed Rulemaking (NPRM) [60 pages in PDF] regarding its review process for
foreign ownership of wireless companies. The FCC adopted and released this NPRM on
August 9, 2011. It is FCC 11-121 in IB Docket No. 11-133. See, story titled "FCC Issues
Foreign Ownership NPRM" in
TLJ Daily E-Mail Alert No.
2,285, August 10, 2011. See, Federal Register, Vol. 76, No. 204, Friday, October 21, 2011,
at Pages 65472-65485.
Deadline for Facebook to respond to the November 10, 2011,
Rep. Joe Barton (R-TX) and
Rep. Ed Markey (D-MA) in which they inquired about
Facebook's patent application filed on February 8, 2011 for a method of "tracking
information about activities of users of social networking system while on another
|Tuesday, December 6
10:00 AM. The
House Homeland Security Committee's (HHSC) Subcommittee on Cybersecurity, Infrastructure
Protection and Security Technologies will hold a hearing titled "Draft Legislative Proposal
on Cybersecurity". See,
notice. Location: Room 311, Cannon Building.
10:00 AM. The Senate Judiciary
Committee (SJC) will hold a hearing titled "Access to the Court: Televising the
Supreme Court". See,
notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.
10:00 AM. The
House Judiciary Committee's (HJC) Subcommittee on
Crime, Terrorism and Homeland Security will hold a hearing on HR 1823,
the "__". See, notice. Location: Room 2147, Rayburn Bulding.
2:00 PM. The
House Homeland Security Committee's (HHSC) Subcommittee on Counterterrorism and Intelligence
will hold a hearing titled "Jihadist Use of Social Media - How to Prevent Terrorism and
Preserve Innovation". See,
notice. Location: Room 311, Cannon Building.
|Wednesday, December 7
10:00 AM. The Supreme Court
will hear oral argument in Mayo Collective Services v. Prometheus Laboratories,
Sup. Ct. No. 10-1150, a petition for writ of certiorari to the
U.S. Court of Appeals (FedCir). The question
presented is "Whether 35 U.S.C. § 101 is satisfied by a patent claim that covers observed
correlations between blood test results and patient health, so that the claim effectively
preempts all uses of the naturally occurring correlations, simply because well-known methods
used to administer prescription drugs and test blood may involve "transformations"
of body chemistry." See, December 17, 2010
of the Court of Appeals.
12:00 NOON - 1:30 PM. The
American Bar Association (ABA) will host a webcast panel discussion titled "Covering
Your Assets: How to Protect and Leverage Your Pro Bono Client's IP". The speakers will
be Peter Strand (Leavens Strand Glover & Adler), Marci Rolnik (Lawyers for the Creative Arts),
and Judy Tint. . See, notice.
Prices vary. CLE credits.
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