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Monday, February 13, 2012, Alert No. 2,335.
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DOJ Closes Investigations of Transactions Involving Communications Patents

2/13. The US Department of Justice's (DOJ) Antitrust Division announced in a release that it has closed its investigations of Google's acquisition of Motorola Mobility, the acquisitions by Apple, Microsoft. and Research in Motion of certain Nortel Networks patents, and the acquisition by Apple of certain Novell patents.

The DOJ stated in this release that it "has determined that each acquisition is unlikely to substantially lessen competition and has closed these three investigations. In all of the transactions, the division conducted an in-depth analysis into the potential ability and incentives of the acquiring firms to use the patents they proposed acquiring to foreclose competitors. In particular, the division focused on standard essential patents (SEPs) that Motorola Mobility and Nortel had committed to license to industry participants through their participation in standard-setting organizations (SSOs). The division's investigations focused on whether the acquiring firms could use these patents to raise rivals' costs or foreclose competition", and it "concluded that the specific transactions at issue are not likely to significantly change existing market dynamics".

The DOJ added that its "concerns about the potential anticompetitive use of SEPs was lessened by the clear commitments by Apple and Microsoft to license SEPs on fair, reasonable and non-discriminatory terms, as well as their commitments not to seek injunctions in disputes involving SEPs."

In contrast, "Google's commitments were more ambiguous and do not provide the same direct confirmation of its SEP licensing policies."

The DOJ cautioned that it will continue "to monitor the use of SEPs in the wireless device industry, particularly in the smartphone and computer tablet markets. The division will not hesitate to take appropriate enforcement action to stop any anticompetitive use of SEP rights."

See, related stories:

EC Approves Google Acquisition of Motorola Mobility

2/13. The European Commission (EC) announced in a release that it "has cleared under the EU Merger Regulation the proposed acquisition of Motorola Mobility, a developer of smartphones and tablets, by Google, the world's largest internet search and search advertising company and developer of Android, one of the most popular mobile operating systems".

The US Department of Justice's (DOJ) Antitrust Division also approved this transaction on February 13. See, related story in this issue titled "DOJ Closes Investigations of Transactions Involving Communications Patents".

The EC explained that it "considered whether Google would be likely to prevent Motorola's competitors from using Google's Android operating system. The Commission's investigation showed Android helps to drive the spread of Google's other services. Consequently, given that Google's core business model is to push its online and mobile services and software to the widest possible audience, it is unlikely that Google would restrict the use of Android solely to Motorola, a minor player in the European Economic Area (EEA), as compared to operators such as Samsung and HTC." (Footnote omitted.)

The EC continued that "All smartphones also need to adhere to certain telecommunications standards such as 3G or 4G/LTE. Motorola, as some other market participants, holds patents that are essential for these standards to operate. Access to such "standard essential" patents is therefore crucial for players on the smartphone market. However, the Commission concluded that the proposed transaction would not significantly change the existing market situation in this respect."

The EC wrote that it "examined whether Google would be in a position to use Motorola's standard essential patents to obtain preferential treatment for its services, including search and advertising. The Commission found that Google already had many ways in which to incentivise customers to take up its services and that the acquisition of Motorola would not materially change this."

The EC also cautioned Google that this "decision is without prejudice to potential antitrust problems related to the use of standard essential patents in the market in general".

This release also states that "Access to standard essential patents is crucial for all market players. It is for this reason that standard setting organisations require the holders of standard essential patents to license these patents to any interested third parties on fair reasonable and non-discriminatory ("FRAND") terms. The absence of such licences would hinder competitors or indeed the entire industry to the detriment of consumers and innovation."

See also, related story in this issue titled "EC's Alumnia Addresses Patents and Communications Standards".

EC's Almunia Addresses Patents and Communications Standards

2/10. Joaquín Almunia, the European Commission's (EC) VP for Competition Policy" gave a speech in Paris on February 10, 2012, titled "Industrial Policy and Competition Policy: Quo vadis Europa?"

He addressed, among other topics, communications standards and patents. He said that the EC will use antitrust enforcement to prevent misuse of patent rights.

Joaquin AlumniaAlmunia (at right) said that "Keeping markets open to new entrants is a key factor for the promotion of innovation. When monopolies and tight oligopolies are allowed to occupy a market, they tend to resist change and often end up caring only about the preservation of their business models."

"Contestable markets, instead, allow new players to experiment, and new ideas to succeed. It is a major task of competition control to ensure that new generations of businesses are given a fair chance."

He added that "I am notably thinking of the surge in the strategic use of patents that confer market power to their holders. The potential abuses around standard-essential patents are a specific illustration of this concern."

"Standards are the best tool to promote interoperability of devices or to define safety or quality benchmarks. In the communications technologies, standards are key for a universal interconnection and seamless communication. Once a standard is adopted, it becomes the norm and the underlying patents are indispensable. Owners of such standard essential patents are conferred a power on the market that they cannot be allowed to misuse."

He stated that "Standardisation processes must be fair and transparent, so that they are not in the hands of established firms willing to impose their technologies. But it is not enough. We must also ensure that, once they hold standard essential patents, companies give effective access on fair, reasonable and non discriminatory terms."

He concluded that "I am determined to use antitrust enforcement to prevent the misuse of patent rights to the detriment of a vigorous and accessible market. I have initiated investigations on this issue in several sectors and we will see the results in due time."

Trade News

2/8. The White House news office stated in a release that US Vice President Joe Biden and People's Republic of China Vice President Xi Jinping spoke by telephone on February 7, 2012. The release states that "Following up on their discussions during Vice President Biden's August trip to China, the two leaders previewed the agenda for Vice President Xi's visit to the U.S. next week -- including a broad range of economic and trade issues and regional and global developments. Vice President Biden emphasized the importance of building a U.S.-China relationship that addresses practical issues important to both countries, and expressed support for efforts during Vice President Xi’s visit to further develop bilateral cooperation."

2/7. The Office of the U.S. Trade Representative (OUSTR) announced in a release that the US and Japan "held a senior-level bilateral consultation on Japan's interest in the Trans-Pacific Partnership (TPP) negotiations.

More News

2/8. The White House news office released a short item titled "Harnessing Innovation for Global Development".

2/3. The Department of Commerce's (DOC) National Telecommunications and Infomation Administration (NTIA) published a notice in the Federal Register that announces that its Commerce Spectrum Management Advisory Committee will meet at Stanford University on March 1, 2012. It will "deliberate on the findings and recommendations from its four subcommittees (Search for 500 MHz, Spectrum Sharing, Spectrum Management Improvements, and Unlicensed), and identify future requirements for assessments". (Parentheses in original.) The meeting will take place from 9:00 AM to12:00 NOON, Pacific Standard Time, at the Stanford Institute for Economic Policy Research (SIEPR). See, Federal Register, Vol. 77, No. 23, Friday, February 3, 2012, at Pages 5494-5495.

2/1. The Government Accountability Office (GAO) released a report [17 pages in PDF] titled "OPM Retirement Modernization: Progress Has Been Hindered by Longstanding Information Technology Management Weaknesses".

1/27. The Federal Trade Commission (FTC) published a notice in the Federal Register that announces its annual adjustments to the Hart Scott Rodino Act thresholds, The effective date is February 27, 2012. See, Federal Register, Vol. 77, No. 18, Friday, January 27, 2012, at Pages 4323-4324. The FTC also published another notice in the Federal Register that announces revised thresholds for interlocking directorates required by the 1990 amendment of Section 8 of the Clayton Act. The effective date is January 27, 2012. See, Federal Register, Vol. 77, No. 18, Friday, January 27, 2012, at Page 4324.

1/20. The Government Accountability Office (GAO) released a report [65 pages in PDF] on federal STEM education programs. It is titled "Science, Technology, Engineering, and Mathematics Education: Strategic Planning Needed to Better Manage Overlapping Programs across Multiple Agencies".

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In This Issue
This issue contains the following items:
 • DOJ Closes Investigations of Transactions Involving Communications Patents
 • EC Approves Google Acquisition of Motorola Mobility
 • EC's Almunia Addresses Patents and Communications Standards
 • Trade News
 • More News
Washington Tech Calendar
New items are highlighted in red.
Monday, February 13

The House will meet at 1:00 PM in pro forma session only. See, Rep. Cantor's schedule for the week.

The Senate will meet at 2:00 PM. The agenda includes consideration of the nomination of Adalberto Jordan to be a Judge of the U.S. Court of Appeals (11thCir).

Tuesday, February 14

The House will meet at 12:00 NOON for morning hour, and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. The House will consider non-technology related items under suspension of the rules. See, Rep. Cantor's schedule for the week.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "The President’s Budget for Fiscal Year 2013". The witness will be Secretary of the Treasury Tim Geithner. See, notice. Location: Room 215, Dirksen Building.

12:00 NOON - 1:15 PM. The American Bar Association (ABA) will host a teleconferenced presentation titled "Should You Negotiate By E-Mail? Insights Learned From Behavioral Science". The speaker will be Janice Nadler (Northwestern University law school). CLE credits. Prices vary. See, notice.

12:15 - 1:30 PM. The Federal Communications Bar Association (FCBA) will host a brown bag lunch titled "Retransmission Consent from the Perspective of the Broadcasters and the Distributors". The speakers will be Erin Dozier (National Association of Broadcasters), Kevin Latek (Dow Lohnes), Ross Lieberman (American Cable Association) and Cristina Pauze (Time Warner Cable). Location: Wiley Rein, 1776 K St., NW.

12:30 - 2:00 PM. The American Bar Association (ABA) will host a teleconferenced and webcast panel discussion titled "Reasonable Royalty Damages". The speakers will be Emily Lawrence (CNH America), John Scherling (Sughrue Mion), and Ryan Sullivan (Quant Economics). CLE credits. Prices vary. See, notice.

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

Wednesday, February 15

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.

9:00 AM - 3:15 PM. The U.S. China Economic and Security Review Commission will hold a hearing titled "China's State-Owned and State-Controlled Enterprises". See, notice. Free. Open to the public. Location: Room 562, Dirksen Building.

10:00 AM. The House Homeland Security Committee (HHSC) will meet to mark up several bills, including HR 3563 [LOC | WW], the "Integrated Public Alert Warning System Modernization Act of 2012". See, amendment in the nature of a substitute [14 pages in PDF] to be considered at mark up. See, notice. Location: Room 311, Cannon Building.

10:00 AM. The House Appropriations Committee's (HAC) Subcommittee on Homeland Security will hold a hearing on the budget for the Department of Homeland Security (DHS). The witness will be Janet Napolitano. The HAC will webcast this hearing. See, notice. Location: Room 2359, Rayburn Building.

10:30 AM. The Federal Communications Commission (FCC) will host an event titled "Open Meeting". See, notice. Location: FCC, Commission Meeting Room, 445 12th St., SW.

12:00 NOON - 1:00 PM. The American Bar Association (ABA) will host an on site and teleconferenced presentation by Rep. Jim Langevin (D-RI) on cyber security, and "why lawyers in both the public and private sector need to be closely involved in cybersecurity developments". No CLE credits. The price to attend or listen is $15. See, notice. Location: Crowell & Moring, 1001 Pennsylvania Ave., NW.

12:15 - 2:00 PM. The Federal Communications Bar Association (FCBA) will host a brown bag lunch titled "USAC's Role in USF Contribution Audits and Appeals". The speaker will be David Capozzi (acting General Counsel of FCC's Universal Service Administration Company). Location: Suite 400, Kelley Drye & Warren, 3050 K St., NW.

1:00 PM. The House Small Business Committee (HSBC) will hold a hearing titled "Broadband: A Catalyst for Small Business Growth". The witnesses will be Mitzie Branon (Yadkin Valley Telecom, on behalf of the NTCA, OPASTCO, and WTA), Roger Bundridge (NorthwestCell, on behalf of the Rural Cellular Association), Rebecca Sanders (National Rural Health Association), and Darrell West (Brookings Institute). See, notice. Location: Room 2360, Rayburn Building.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a webcast panel discussion titled "Social Media and Other Employment Policies in the International Workplace". The speakers will be Katherine Blostein (Outten & Golden), Paul Callaghan (Taylor Wessing), Lafe Solomon (General Counsel of the National Labor Relations Board), Tahl Tyson (Littler Mendelson), and Anne Radolinski (Fredrikson & Byron). CLE credits. Prices vary. See, notice.

2:30 PM. The Senate Judiciary Committee (DJC) will hold a hearing titled "Nominations". See, notice. The SJC will webcast this meeting. Location: Room 226, Dirksen Building.

Thursday, February 16

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.

9:00 AM. The House Commerce Committee's (HCC) Subcommittee on Communications and Technology will hold a hearing titled "Budget and Spending of the Federal Communications Commission". See, notice. Location: Room 2123, Rayburn Building.

9:30 - 11:00 AM. The New America Foundation (NAF) will host an event titled "Public Diplomacy in the Age of Social Media". The speakers will be Suzanne Hall (Department of State), Nick Namba (DOS), Ed Dunn (DOS), and Alexander Howard. See, notice. Location: NAF, Suite 400, 1899 L St., NW.

10:00 AM. The House Financial Services Committee (HFSC) will meet to mark up several bills, including HR 3606 [LOC | WW], the "Reopening American Capital Markets to Emerging Growth Companies Act of 2011". See, notice. Location: Room 2128, Rayburn Building.

10:00 AM. The House Intelligence Committee (HIC) will hold a closed hearing titled "Ongoing Intelligence Activities". See, notice. Location: HVC-304, Capitol Visitor Center.

10:00 AM. The House Homeland Security Committee's (HHSC) Subcommittee on Counterterrorism and Intelligence will hold a hearing titled "DHS Monitoring of Social Networking and Media: Enhancing Intelligence Gathering and Ensuring Privacy". See, notice. Location: Room 311, Cannon Building.

10:00 AM. The Senate Judiciary Committee (DJC) will hold an executive business meeting. The agenda includes consideration of four pending nominations for the U.S. District Court (USDC): John Lee (USDC/NDIll), John Tharp (USDC/NDIll), George Russell (USDC/DMd), and Kristine Baker (USDC/(EDArk). See, notice. The SJC will webcast this meeting. Location: Room 226, Dirksen Building.

12:15 - 2:00 PM. The Federal Communications Bar Association (FCBA) will host a lunch. The speakers will address distracted driving. Location: Wiley Rein, 1776 K St., NW.

2:00 PM. The New America Foundation (NAF), Wireless Innovation Alliance (WIA), and Wireless Internet Service Provider Association (WISPA) will host an event titled "Jumpstarting the Unlicensed Internet Economy". The speakers will include Rep. Darrell Issa (R-CA) and Rep. Anna Eshoo (D-CA). Location: Room HVC-215, Capitol Visitor Center.

2:30 PM. The Senate Homeland Security and Government Affairs Committee (SHSGAC) will hold a hearing titled "Securing America's Future: The Cybersecurity Act of 2012". The witnesses will be Sen. John Rockefeller (D-WV), Janet Napolitano (Secretary of Homeland Security), Thomas Ridge (U.S. Chamber of Commerce), Stewart Baker (Steptoe & Johnson), James Lewis (Center for Strategic and International Studies), Scott Charney (Microsoft). See, notice. The SHSGAC will webcast this hearing. Location: Room 342, Dirksen Building.

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

6:00 - 8:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media and the Video Programming & Distribution Committees will host an event titled "Update on Political Advertising Issues". CLE credits. Prices vary. See, notice. Location: Wiley Rein, 1776 K St., NW.

Friday, February 17

The House will meet at 9:00 AM for legislative business. See, Rep. Cantor's schedule for the week.

Supreme Court conference day. See, calendar. Closed.

9:00 AM. The American Bar Association (ABA) will host a teleconferenced event titled "Global Antitrust Developments Series: India & China". The speakers will be Catriona Hatton (Hogan Lovells), Kirtikumar Mehta, and Adrian Emch (Hogan Lovells, Beijing office, and Peking University's IP School). No CLE credits. See, notice.

9:30 AM. The House Judiciary Committee's (HJC) Subcommittee on Intellectual Property, Competition and the Internet will hold a hearing titled "Litigation as a Predatory Practice". See, notice. Location: Room 2147, Rayburn Building.

9:30 - 11:30 AM. The House Oversight and Government Reform Committee (HOGRC) Subcommittee on Technology, Information Policy, Intergovernmental Relations and Procurement Reform will hold a hearing titled "Examining Duplicative IT Investments at DOD and DOE". The HOGRC will webcast this hearing live. Location: Room 2154, Rayburn Building.

9:30 AM. The House Science Committee (HSC) will hold a hearing titled "An Overview of the Administration’s Federal Research and Development Budget for Fiscal Year 2013". The witness will be John Holdren (head of the EOP's Office of Science and Technology Policy. See, notice. Location: Room 2318, Rayburn Building.

10:00 AM - 4:30 PM. The U.S. Patent and Trademark Office (USPTO) will host a public event to discuss and receive public comments on proposed rules changes that implement HR 1249 [LOC | WW], the "Leahy Smith America Invents Act", or "AIA", which was signed into law in September of 2011. See, USPTO release and AIA web page. See also, stories titled "USPTO Announces America Invents Act Implementation Rulemaking Proceedings" in TLJ Daily E-Mail Alert No. 2,322, January 9, 2012, and "USPTO to Hold Public Meetings on AIA Rules Changes" in TLJ Daily E-Mail Alert No. 2,323, January 10, 2011. Location: USPTO Campus, Alexandria, VA.

12:00 NOON - 1:00 PM. Mark Ryan, the new Director of Litigation of the Department of Justice's (DOJ) Antitrust Division, will speak at an on site and teleconferenced event hosted by the American Bar Association (ABA). No CLE credits. Free. See, notice. Location: Kirkland & Ellis, 655 15th St.,  NW.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-117 Rev. 1 [26 pages in PDF] titled "Guide to Adopting and Using the Security Content Automation Protocol (SCAP) Version 1.2".

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR-7817 [22 pages in PDF] titled "A Credential Reliability and Revocation Model for Federated Identities".

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR-7799 [75 pages in PDF] titled "Continuous Monitoring Reference Model Workflow, Subsystem, and Interface Specifications".

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft NIST IR-7756 [35 pages in PDF] titled "CAESARS Framework Extension: An Enterprise Continuous Monitoring Technical Reference Architecture".

Monday, February 20

Washington's Birthday. This is a federal holiday. See, OPM list of 2012 federal holidays.

The House will not meet on the week of Monday, February 20, through Friday, February 24.

The Senate will not meet on the week of Monday, February 20, through Friday, February 24.