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Wednesday, March 27, 2013, Alert No. 2,542.
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SoftBank Sprint Will Not Use Huawei Products

3/27. Rep. Mike Rogers (R-MI), the Chairman of the House Intelligence Committee (HIC), released a statement regarding Softbank's planned acquisition of Sprint, and the use of Huawei products.

Rep. Mike RogersRep. Rogers (at right) stated that "I have met with SoftBank and Sprint regarding this merger and was assured they would not integrate Huawei in to the Sprint network and would take mitigation efforts to replace Huawei equipment in the Clearwire network. I expect them to make the same assurances before any approval of the deal in the CFIUS process. I am pleased with their mitigation plans, but will continue to look for opportunities to improve the government's existing authorities to thoroughly review all the national security aspects of proposed transactions."

Huawei is based in the People's Republic of China (PRC). The HIC has found that the use of Huawei equipment and software in critical infrastructure creates national security risks. See, story titled "House Intelligence Committee Report Finds Huawei and ZTE Could Undermine US National Security" in TLJ Daily E-Mail Alert No. 2,461, October 15, 2012.)

CFIUS is the Committee on Foreign Investment in the United States.

Sprint Nextel Corporation and SoftBank announced on October 15, 2012, that they have entered into agreements that will give SoftBank a 70% stake in Sprint Nextel. See, story titled "SoftBank to Acquire 70% Stake in Sprint Nextel" in TLJ Daily E-Mail Alert No. 2,462, October 16, 2012.

Softbank (Sofutobanku Kabushiki-gaisha) is based in Tokyo, Japan. It provides wireline and wireless telecommunications services, broadband internet access service, and numerous e-commerce and online financial, media, and technology services.

See also, stories titled:

House Commerce Committee Republicans Write FCC Regarding Growth, Waste and Abuse in Lifeline Subsidy Program

3/26. Rep. Fred Upton (R-MI), Rep. Greg Walden (R-OR) and four other senior Republican members of the House Commerce Committee (HCC) sent a letter to Federal Communications Commission (FCC) Chairman Julius Genachowski regarding the "growth, waste, and abuse that has occurred in the Universal Service Fund's Lifeline program".

The HCC's Subcommittee on Communications and Technology, which Rep. Walden chairs, will hold a hearing on this topic on April 25, 2013.

The FCC's Lifeline program, subsidizes monthly telephone service for certain low income users, is one of the FCC's universal service programs funded by taxes on consumers collected via their communications bills.

This letter states that this "program nearly tripled in size from $800 million in 2009 to $2.2 billion per year in 2012.

The letter ask if the program should be "frozen", "put on a budget", or "placed under a cap". It also asks if "the waiver allowing carriers offering pre-paid service to receive funding even if they deploy no facilities of their own" should be reconsidered.

The six Republicans also sent a letter to Rep. Henry Waxman (D-CA) and other senior Democrats on the HCC.

They also sent a letter to the National Association of Regulatory Utility Commissioners (NARUC). They ask the NARUC, for example, "What innovative steps and best practices are States taking to combat waste, fraud and abuse in the Lifeline program that might be a model for other States or the FCC?".

They also ask, "Which States designate and recertify wireless and prepaid eligible telecommunications carriers and which one leave that to the FCC?".

They also ask, "Are the recent FCC reforms adequate to address waste, fraud and abuse in the fund?".

The letter to the FCC notes that "While reforms the FCC adopted starting in 2011 may be slowing growth, they do not appear to be containing the absolute size of the fund."

The FCC initiated a rulemaking proceeding in March of 2011. See, Notice of Proposed Rulemaking (NPRM) [139 pages in PDF]. The FCC adopted this NPRM on March 3, 2011, and released the text on March 4, 2011. It is FCC 11-32 in WC Docket Nos. 11-42 and 03-109, and CC Docket No. 96-45.

The FCC released a Report and Order and Further Notice of Proposed Rulemaking [339 pages in PDF] in February of 2012 that contains the "reforms" referred to in the just released letter to the FCC. The FCC adopted this item on January 31, 2012 and released the text on February 6, 2012. It is FCC 12-11 in WC Docket Nos. 11-42, 03-109, and 12-23, and CC Docket No. 96-45.

FCC Releases Tentative Agenda for April 18 Meeting

3/28. The Federal Communications Commission (FCC) released a tentative agenda for its event on April 18 titled "Open Meeting".

First, the FCC is scheduled to adopt a Second Report and Order pertaining to foreign ownership of common carrier radio licensees and certain aeronautical radio licensees.

Second, the FCC is scheduled to adopt a Notice of Proposed Rulemaking and Notice of Inquiry (NPRM and NOI) on expanding direct access to telephone numbers  by IP based providers. The FCC is also scheduled to adopt an Order to allow a limited trial of direct access to numbers for VOIP providers.

Third, staff of the FCC's Consumer and Governmental Affairs Bureau will make a presentation on the status of billing alerts to customers of wireless service providers.

The FCC adopted an NPRM back in 2010, but wrote no rules. See, story titled "FCC Adopts Bill Shock NPRM" in TLJ Daily E-Mail Alert No. 2,142, October 19, 2010. That NPRM is FCC 10-180 in CG Docket No. 10-207 and CG Docket No. 09-158.

However, in October of 2011, the CTIA and participating wireless service providers announced a voluntary program for sending free alerts on subscribers' voice, data, messaging and international service usage as part of the CTIA Consumer Code for Wireless Service.

The FCC may meet at 10:30 AM on Thursday, April 18, 2013 in the Commission Meeting Room, TW-C305, 445 12th St., SW.

NIST Issues Cyber Security NOI

3/28. The Department of Commerce's (DOC) National Institute of Standards and Technology (NIST) published a notice in the Federal Register (FR) that initiates a notice of inquiry (NOI) regarding the cyber security regulatory regime initiated by executive order last month.

President Obama issued an Executive Order (EO) titled "Improving Critical Cybersecurity Infrastructure" on February 13, 2013. See, story titled "Obama Signs Cyber Security Order and Policy Directive" in TLJ Daily E-Mail Alert No. 2,525, February 19, 2013. That EO tasked the NIST will writing cyber security standards for the private sector.

The Congress has not enacted legislation giving the President general authority to regulate cyber security related business practices. Hence, the EO is cloaked in the terminology of voluntary conduct and partnerships. Nevertheless, government compulsion underlies the regime created by the EO. Hence, while this NOI propounds numerous questions, many pertain to how the government might incentivize, or compel, compliance.

Comments are due by April 29, 2013. See, FR, Vol. 78, No. 60, March 28, 2013, at Pages 18954-18955.

Amazon to Acquire Goodreads

3/28. Amazon announced in a release that it has reached an agreement to acquire Goodreads, a web site for book reviews and information about books. Amazon did not disclose the terms of the agreement.

Both Amazon and Goodreads enable users to publish their reviews of books. However, unlike Amazon, Goodreads neither sells new books, nor provides a secondary market for books.

Goodreads stated in a release that "With the reach and resources of Amazon, Goodreads can introduce more readers to our vibrant community of book lovers and create an even better experience for our members." Also, "Now we're looking forward to bringing Goodreads to the most popular e-reader in the world, Kindle".

Goodreads added that "Amazon supports us continuing to grow our vision as an independent entity, under the Goodreads brand and with our unique culture."

Scott Turow, head of the Authors Guild, stated in a release that "Amazon's acquisition of Goodreads is a textbook example of how modern Internet monopolies can be built".

Turow continued that "The key is to eliminate or absorb competitors before they pose a serious threat. With its 16 million subscribers, Goodreads could easily have become a competing on-line bookseller, or played a role in directing buyers to a site other than Amazon. Instead, Amazon has scuttled that potential and also squelched what was fast becoming the go-to venue for on-line reviews, attracting far more attention than Amazon for those seeking independent assessment and discussion of books. As those in advertising have long known, the key to driving sales is controlling information."

More News

3/28. Microsoft announced in a release that it now provides an online service titled "Microsoft Patent Tracker". Microsoft states that this "tool that provides a list of all of the patents Microsoft owns. Through the Patent Tracker, users can obtain the list in two forms: (1) an online list that is searchable by patent number, patent title, country and whether the patent is held by Microsoft or a subsidiary, and (2) a CSV file containing the entire list that is downloadable and searchable in Microsoft Excel". Microsoft added that "transparency regarding patent ownership is an important part of a well-functioning patent system".

3/28. Google released a statement titled "Open Patent Non-Assertion Pledge" or "OPN Pledge". Google stated in a release that it wants this pledge to "serve as a model for the industry". It stated in a second release that it has floated this pledge because it wants to "decrease patent threats around open-source software (OSS)". Google elaborated that this "is a response to recent developments in the patent marketplace, whereby companies that increasingly seek the benefits of OSS in their own businesses nonetheless launch attacks against open source products and platforms as it suits their fancy. The OPN is also an encouragement to those patent holders who support OSS, but refrain from entering OSS licenses with patent provisions out of concern they might be giving away too many rights and leaving themselves vulnerable."

3/15. The Department of Homeland Security's (DHS) U.S. Citizenship and Immigration Services (USCIS) announced in a release that it will begin accepting H-1B visa petitions subject to the Fiscal Year 2014 cap on Monday, April 1, 2013. It added that "The cap (the numerical limitation on H-1B petitions) for FY 2014 is 65,000. In addition, the first 20,000 H-1B petitions filed on behalf of individuals with U.S. master’s degree or higher are exempt from the fiscal year cap of 65,000." (Parentheses in original.) Meanwhile, proposals to create a new STEM visa program for aliens with doctorates and masters degrees from U.S. universities in science, technology, engineering or mathematics have stalled in the face of opposition from President Obama and Sen. Harry Reid (D-NV). See, HR 6429 [LOC | WW], the "STEM Jobs Act of 2012", in the 112th Congress, and stories titled "House Passes STEM Visas Bill" in TLJ Daily E-Mail Alert No. 2,480, December 1, 2012, and "Obama Opposes STEM Visas Bill" in TLJ Daily E-Mail Alert No. 2,478, November 29, 2012.

In This Issue
This issue contains the following items:
 • SoftBank Sprint Will Not Use Huawei Products
 • House Commerce Committee Republicans Write FCC Regarding Growth, Waste and Abuse in Lifeline Subsidy Program
 • FCC Releases Tentative Agenda for April 18 Meeting
 • NIST Issues Cyber Security NOI
 • Amazon to Acquire Goodreads
 • More News
Washington Tech Calendar
New items are highlighted in red.
Friday, March 29

The House will not meet.

The Senate will meet at 10:30 AM in pro forma session only.

Supreme Court conference day. See, Supreme Court calendar.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding state applications for renewal of the certification of their state TRS programs pursuant to Title IV of the Americans with Disabilities Act (ADA). See, DA 13-275 in CG Docket No. 03-123, and notice in the Federal Register, Vol. 78, No. 48, March 12, 2013, at Pages 15722-15724.

Saturday, March 30

Deadline to submit to the Federal Communications Commission's (FCC) comments and oppositions to petitions for exemption from the FCC's requirements to closed caption television programming. See, Public Notice [3 pages in PDF], DA 13-312 in CG Docket No. 06-181, released on February 28, 2013.

Sunday, March 31

? 5:00 PM. Deadline to submit nominations to the U.S. Patent and Trademark Office (USPTO) for the National Medals of Technology and Innovation. See, USPTO notice The USPTO subsequently published a notice in the Federal Register that sets the deadline at April 1. See, FR, Vol. 78, No. 1, January 2, 2013, at Page 90.

Monday, April 1

The House will not meet the week of April 1 through April 5, except for pro forma sessions. The House will return on Tuesday, April 9. See, House calendar for 113th Congress, 1st Session.

The Senate will not meet the week of April 1 through April 5, except for pro forma sessions. The Senate will return on Monday, April 8.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Chrimar Systems v. Foundry Networks, App. Ct. No. 2012-1641, an appeal from the U.S. District Court (EDMich) in a patent case. Panel A. Location: Courtroom 201, 717 Madison Place, NW.

Deadline to submit nominations to the U.S. Patent and Trademark Office (USPTO) for the National Medal of Technology and Innovation. See, notice in the Federal Register, Vol. 78, No. 1, January 2, 2013, at Page 90. See also, "National Medal of Technology and Innovation Recipients Announced" in TLJ Daily E-Mail Alert No. 2,498, December 26, 2012. (The USPTO announced in an earlier notice that the deadline is 5:00 PM on March 31.)

Tentative date for the Federal Trade Commission (FTC) to announce the winners of its competition regarding developing a solution for blocking illegal robocalls on landlines and mobile phones. See, notice in the Federal Register, Vol. 77, No. 205, October 23, 2012, at Pages 64802-64808.

Deadline to submit comments to the Federal Communications Commission's (FCC) Wireline Competition Bureau (WCB) in response to its Public Notice (PN) regarding "Rate of Return for Connect America Cost Model". The FCC released this PN on February 28, 2013. It is DA 13-311 in WC Docket No. 10-90. See also, notice in the Federal Register, Vol. 78, No. 56, March 22, 2013, at Pages 17624-17625.

Deadline to submit to the Federal Communications Commission (FCC) replies to oppositions to the petitions for reconsideration filed in the FCC's low power radio service proceeding, MB Docket No. 99-25. See, FCC notice, and notice in the Federal Register, Vol. 78, No. 44, March 6, 2013, at Page 14490. See for example, petition filed by the Prometheus Radio Project.

Tuesday, April 2

The Senate will meet at 10:45 AM in pro forma session only.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Cisco Systems v. Alberta Telecommunications Research Center, App. Ct. No. 2012-1687, an appeal from the U.S. District Court (NDCal) in a patent case involving technology for telecommunications networks. Panel D. Location: Courtroom 402, 717 Madison Place, NW.

1:00 - 2:00 PM. The law firm of Fulbright & Jaworski will host a webcast seminar titled "International Brand Management -- How to Protect Your Company's Most Important Asset Worldwide". The speakers will be Travis Bachman (Carlson Companies), Frances Drummond (Norton Rose Australia), Patrick Gallagher (Fulbright & Jaworski), Paul Mussell (NCS Pearson, Inc.), and Ann Wessberg (Target Corporation).

6:00 - 9:00 PM. The DC Bar Association will host a reception and panel discussion titled "Defending Against Cyber-Intrusions from Both State-Sponsored and Civilian Hackers". The speakers will be Michael Hayden (Chertoff Group), Ronald Lee (Arnold & Porter), Suzanne Spaulding (DHS National Protection and Programs Directorate), and Steven Cash (Deck Prism). The price to attend ranges from free to $20. No CLE credits. The reception will be from 6:00 - 7:00 PM. See, notice. For more information, call 202-626-3463. The DC Bar has a history of barring reporters from its events. Location: Arnold & Porter, 555 12th St., NW.

Wednesday, April 3

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a discussion of the e-book and book titled "The Need for Speed: A New Framework for Telecommunications Policy for the 21st Century". The speakers will be the co-authors, Robert Litan and Hal Singer, and Robert Atkinson (ITIF). See, notice. Location: ITIF/ITIC, Suite 610A, 1101 K St., NW.

10:00 AM. The Center for Democracy & Technology (CDT) will host an on site and teleconferenced news briefing regarding HR 624 [LOC | WW | PDF], the "Cyber Intelligence Sharing and Protection Act" or "CISPA", and potential amendments to the Computer Fraud and Abuse Act (CFAA), which is codified at 18 U.S.C. § 1030. See, story titled "Rep. Rogers and Rep. Ruppersberger Re-Introduce CISPA" in TLJ Daily E-Mail Alert No. 2,525, February 19, 2013. The speakers will be Leslie Harris, Greg Nojeim, and Kevin Bankston. For more information, contact Mark Stanley mark at cdt dot org. Location: CDT, 11th floor, 1634 I St., NW.

6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) will host an event titled "Production and Distribution of Video Programming: Basics and Advanced Issues". Prices vary. CLE credits. See, notice. The first panel is titled "Basic Rights and Clearance Issues for Video Programming and Distribution". The speakers will be Ben Golant (USPTO), Mike Beller (PBS), Jennifer Elgin (Wiley Rein), Michael Turner (Discovery Communications), and Ben Ivins (National Association of Broadcasters). The second panel is titled "Advanced Issues in Video Programming and Distribution". The speakers will be Michael Nilsson (Wiltshire Grannis), Bob Garrett (Arnold & Porter), John Hane (Pillsbury Winthrop), Seth Davidson (Edwards Wildman), and Jeff Blum (DISH Network). Location: Drinker Biddle & Reath, 1500 K St., NW.

Thursday, April 4

9:00 AM - 3:00 PM. The U.S. China Economic and Security Review Commission will host a hearing titled "China’s Maritime Disputes in the East and South China Seas". See, notice. Free. Open to the public. Location: Room G-50, Dirksen Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Interdigital Communications v. ITC, App. Ct. No. 2012-1628. LG Electronics is the intervenor. This is an appeal from the U.S. International Trade Commission (USITC) in No. 337-TA-800. Panel H. Location: Courtroom 402, 717 Madison Place, NW.

1:00 PM. The US Telecom will host a webcast seminar titled "Monitoring & Optimizing Real Time IP Networks". Free. See, notice.

1:00 - 5:00 PM. The National Telecommunications and Information Administration (NTIA) will hold another in its series of meetings regarding mobile application transparency. See, notice. This event will also be teleconferenced. Location: American Institute of Architects, 1735 New York Ave., NW.

Deadline to submit to the Federal Communications Commission (FCC) petitions to deny AT&T's acquisition of Atlantic Tele-Network's U.S. retail wireless operations. See, AT&T release of January 22, 2013, and FCC Public Notice [5 pages in PDF], DA 13-352 in WT Docket No. 13-54.

Friday, April 5

The Senate will meet at 3:00 PM in pro forma session only.

8:30 AM. The Department of Labor's (DOL) Bureau of Labor Statistics (BLS) is scheduled to release its March 2013 unemployment data.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Creative Integrated Systems v. Nintendo, App. Ct. No. 2012-1579, an appeal from the U.S. District Court (CDCal) in a patent case. Panel K. Location: Courtroom 402, 717 Madison Place, NW.

12:15 - 1:30 PM. The Federal Communications Bar Association's (FCBA) newly formed Telemedicine Ad Hoc Committee will host a brown bag lunch on the Federal Communications Commission (FCC) and wireless and wireline health technologies. Location: Wilkinson Barker Knauer, Suite 700, 2300 N St., NW.

Extended deadline to submit comments to the Department of Justice's (DOJ) Antitrust Division and the Federal Trade Commission (FTC) in connection with their joint workshop on December 10, 2012, titled "Patent Assertion Entity Activities". See, notice and agenda.

Extended deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding small cell operations in the 3550-3650 MHz  band. The FCC adopted and released this NPRM on December 12, 2012. It is FCC 12-148 in GN Docket No. 12-354. See, Public Notice, DA 12-298, released on February 28, 2013, extending the reply comment deadline. See also, notice of extension in the Federal Register, Vol. 78, No. 53, March 19, 2013, at Pages 16827-16828.

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