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Monday, August 5, 2013, Alert No. 2,586.
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Bezos to Buy Washington Post

8/5. The Washington Post (WP) published an announcement that states that "The Washington Post Co. agreed Monday to sell its flagship newspaper to Amazon.com founder and chief executive Jeffrey P. Bezos, ending the Graham family’s stewardship ..."

The WP added that "Seattle-based Amazon will have no role in the purchase; Bezos himself will buy the news organization and become its sole owner" and "will take the company private".

The WP elaborated that "The rise of the Internet and the epochal change from print to digital technology have created a massive wave of competition for traditional news companies, scattering readers and advertisers across a radically altered news and information landscape and triggering mergers, bankruptcies and consolidation among the owners of print and broadcasting properties."

The Washington Post Company (WPC) filed a short Form 8-K with the Securities and Exchange Commission (SEC), and a longer letter agreement, that disclose more details of the transaction.

The purchaser will be Nash Holdings LLC, a Delaware limited liability company. The WPC stated in a release that "The purchaser is an entity that belongs to Mr. Bezos in his individual capacity and is not Amazon.com, Inc."

Nash will acquire the Washington Post mark, numerous print publications, including the flagship newspaper, associated web sites, including "the newspaper's internet site washingtonpost.com", and "commercial printing and distribution business and paper handling and storage business".

The purchaser will also acquire a "non-exclusive, royalty-free, perpetual, irrevocable license to" certain background intellectual property.

However, Slate will not be sold. Certain real estate will not be sold. However, Nash will lease for two years the WPC's downtown Washington DC office building.

Neither the WPC's broadcast stations nor Cable One will be sold. Without the transfer of licenses issued by the Federal Communications Commission (FCC), neither the FCC, nor indirectly the Congress, will have a pretext for delaying this transaction, extracting meddlesome conditions, or facilitating the rent seeking goals of non-parties.

However, this transaction is subject to the Hart Scott Rodino Antitrust Improvements Act of 1976.

Nash Holding is represented by the law firm of Cleary Gottlieb. The WPC is represented by the law firm of Cravath Swain.

The WPC stated in its release that "Jeff Bezos' proven technology and business genius, his long-term approach and his personal decency make him a uniquely good new owner for the Post."

Bezos stated in this release that "I understand the critical role the Post plays in Washington, DC and our nation, and the Post's values will not change".

O'Rielly Nominated for Republican Position on FCC

8/1. President Obama nominated Michael O'Rielly to be a member of the Federal Communications Commission (FCC). This nomination is for the Republican position previously held by Robert McDowell. It is for the remainder of a term expiring on June 30, 2014. See, White House news office release and release.

He is currently a Policy Advisor in the Office of the Senate Republican Whip, Sen. John Cornyn (R-TX). He has worked for various Senate Republican entities since 2003 headed by Sen. Cornyn and former Senators Jon Kyl (R-AZ) and John Sununu (R-NH).

Before that, he worked on telecommunications matters for the House Commerce Committee (HCC), and for former Rep. Tom Bliley (R-VA), beginning in 1994.

The three FCC Commissioners offered their congratulations. FCC Chairman Mignon Clyburn stated in a release that "I congratulate Mike O'Rielly on his nomination as an FCC Commissioner, and look forward to his Senate confirmation." Commissioner Jessica Rosenworcel wrote in her release that "He is knowledgeable on communications policy matters and will have a lot to contribute to the work of this agency."

Commissioner Ajit Pai stated in a release that "His expertise, experience, and fresh perspective will be a tremendous asset to the Commission as we confront the many challenging issues on our agenda. I look forward to working with him and wish him all the best during the confirmation process."

Numerous trade groups praised the nomination. However, several Washington DC based interest groups that are active on issues before the FCC, such as the Public Knowledge (PK), New America Foundation (NAF), and Free Press (FP), did not promptly issue public statements.

Michael Powell, head of the National Cable and Telecommunications Association (NCTA), stated in a release that O'Reilly "brings not only a wealth of political experience, but also a deep appreciation for policies that will promote continued innovation and private investment in communications markets". Matthew Polka, head of the American Cable Association (ACA), stated in a release that O'Rielly "is an excellent choice".

Gordon Smith, head of the National Association of Broadcasters (NAB), praised O'Reilly in a release, and added that "we look forward to working with him on matters of critical importance to free and local broadcasting".

Steve Largent, head of the CTIA, stated in a release that O'Rielly has "impressive depth of experience in telecommunications".

Walter McCormick, head of the US Telecom, praised O'Reilly's "distinguished background of experience in communications law and policy" in a release.

Shirley Bloomfield, head of the NTCA -- The Rural Broadband Association, stated in a release that "We are hopeful that, having worked for a number of elected officials who represent states with sizeable rural areas, he will appreciate the innovative efforts that small carriers have made to deliver universal broadband access. We look forward to working with Mr. O'Rielly to establish a stable, well-defined regulatory climate that facilitates investment in sustainable IP-enabled networks and promotes affordable access to advanced services for all Americans."

Grant Siefert, head of the Telecommunications Industry Association (TIA), praised O'Reilly's "broad, extensive background with communications issues" in a release.

Berin Szoka, head of the Tech Freedom, stated in a release that "Mike O'Rielly and Tom Wheeler are both eminently qualified to direct the FCC. The Senate should promptly confirm both nominees so the FCC can focus on providing the spectrum necessary to meet consumers' exploding demand for mobile broadband."

Senate Confirms Kieff for USITC

8/1. The Senate confirmed Scott Kieff by voice vote to be a member of the U.S. International Trade Commission (USITC) for a term expiring on June 16, 2020.

He will hold one of the Republican seats on the six member USITC. He has long been a law school professor. See, his George Washington University law school web page.

The USITC is not an Article III court. However, it exercises judicial authority in Section 337 (19 U.S.C. § 1337) proceedings regarding orders that exclude the importation into the US of articles that infringe intellectual property rights. Hence, it is a de facto federal trial court for many key mobile phone patent disputes.

President Obama first nominated Kieff in the 112th Congress on September 11, 2012. See, White House news office release and release. President Obama nominated him in the 113th Congress on February 4, 2013. See, White House news office release.

The Senate Finance Committee (SFC) held a hearing on July 18, 2013. The SFC approved his nomination on July 25, 2013.

Senate Confirms Sepulveda for Telecom Post at State Department

8/1. The Senate confirmed Danny Sepulveda to be Deputy Assistant Secretary of State for International Communications and Information Policy and U.S. Coordinator for International Communications and Information Policy. See, Congressional Record, August 1, 2013, at Page 6261.

President Obama nominated Sepulveda on May 23, 2013. See, White House news office release and release. See also, story titled "Obama Picks Sepulveda for Telecom Post at State Department" in TLJ Daily E-Mail Alert No. 2,568, May 31, 2013.

He previously worked for former Sen. Barack Obama (D-IL), Sen. Barbara Boxer (D-CA), and former Sen. John Kerry (D-MA), for whom he handled telecommunications matters before the Senate Commerce Committee (SCC). Soon after President Obama appointed Kerry Secretary of State, Sepulveda went to work for the Department of State.

Senate Confirms Comey to be FBI Director

7/29. The Senate confirmed James Comey to be Director of the Federal Bureau of Investigation (FBI) by a vote of 93-1. See, Roll Call No. 188.

The fixed term of office is ten years. Robert Mueller is the outgoing FBI Director. He has served since 2001. The 112th Congress enacted legislation in 2011 that enabled the President to extend his term by just over two years, until September 4, 2013. See, S 1103 [LOC | WW], and story titled "Senate Confirms Mueller for Two More Years" in TLJ Daily E-Mail Alert No. 2,272, July 28, 2011.

President Obama did not nominate Comey until June 21, 2013. However, the Executive Office of the President (EOP) disclosed the selection of Comey in late May. See, story titled "Obama May Nominate Comey for FBI Director" in TLJ Daily E-Mail Alert No. 2,568, May 31, 2013.

The Senate Judiciary Committee (SJC) held a hearing on July 9, 2013. See, SJC web page with hyperlink to the SJC's archived webcast. The SJC approved the nomination on July 18, 2013. See also, Comey's responses to the SJC's questionnaire, and his responses to written questions from SJC members.

Sen. Patrick Leahy (D-VT), the Chairman of the SJC, stated in the Senate on July 29 that Comey "has had a long and outstanding career in law enforcement. He worked for years as a front-line prosecutor on a range of cases fighting violent crime, terrorism, and white-collar fraud, all of which are at the core of the FBI's mission. He also served as the U.S. attorney for the Southern District of New York. He served as the Deputy Attorney General under President George W. Bush."

Sen. Leahy also stated that "I will continue to press him on the scope and legality of surveillance conducted by the government pursuant to the PATRIOT Act and other authorities under the Foreign Surveillance Intelligence Act. As I noted during his confirmation hearing, just because the FBI has the ability to collect huge amounts of data does not mean it should be collecting huge amounts of data."

Sen. Charles Grassley (R-IA), the ranking Republican on the SJC, stated in the Senate that "I recognize there is a level of concern associated with this nomination regarding the use of drones by the FBI. ... This needs to be addressed by the new director, and I have Mr. Comey's assurance he will review the policy. I will be monitoring this closely, but we need a director in place, and we need to confirm this nomination this week."

Sen. Grassley said too that the FBI has transformed from a law enforcement agency to a national security agency since the terrorist attacks of September 11, 2001. He added that now the FBI "must grow to combat the growing threat of cybercrimes that threaten our national security, our economy, and our infrastructure."

He also said that "The FBI has struggled to develop a working case management computer system", and that "Significant concerns about internal FBI policies dealing with whistleblower retaliation exist."

Sen. Rand Paul (R-KY) voted no. Sen. Paul had previously placed a hold on the nomination. His primary concern was FBI domestic use of aerial drones.

Sen. Ron Wyden (D-OR) and Sen. Jeff Merkley (D-OR) voted present. Sen. Jeff Chiesa (R-NJ), Sen. Heidi Heitkamp (D-ND), Sen. Lisa Murkowski (R-AK), and Sen. Marco Rubio (R-FL) did not vote.

Sen. Wyden wrote in a statement after the vote that "The head of the FBI is responsible for approving and overseeing a large number of surveillance activities, and it is an unfortunate fact that the FBI's surveillance authorities have been famously abused in previous decades. For this reason I have an obligation to assess Mr. Comey’s views on surveillance before voting to approve his nomination, as I would for any nominee for this position."

He continued that "After reviewing the record of Mr. Comey’s confirmation hearing and meeting with him in person, his views on surveillance policy and law remain unclear to me. I sent Mr. Comey a letter asking for written responses to several important questions on surveillance, including whether he believes warrantless wire tapping is legal, and whether he would commit to explain how much evidence the FBI needs to track Americans using their cell phone location data."

See, Sen. Wyden's letter to Comey of July 22, 2013. Sen. Wyden asked questions about the National Security Agency's (NSA) "bulk email records collection program", the NSA's "large-scale warrantless wiretapping effort", and the NSA's "ongoing dragnet collection of American's phone records".

He also asked questions about "the government's authority to track American's movements and whereabouts using cell-phone data or other geolocation information".

Comey did not respond. However, the acting head of the Department of Justice's (DOJ) Office of Legislative Affairs (OLA) sent Sen. Wyden a short non-responsive letter, citing "classification" of records.

Sen. Wyden wrote that "Mr. Comey could have answered most or all of these questions without disclosing any properly classified information, but the Justice Department informed me today that he will not be responding to any of them. I hope that Mr. Comey will turn out to be a wise and appropriate choice to head the FBI but without more information about his views on these important questions, I cannot vote to approve his nomination at this time."

In This Issue
This issue contains the following items:
 • Bezos to Buy Washington Post
 • O'Rielly Nominated for Republican Position on FCC
 • Senate Confirms Kieff for USITC
 • Senate Confirms Sepulveda for Telecom Post at State Department
 • Senate Confirms Comey to be FBI Director
 • Winters Joins MPAA
 • More People and Appointments
Washington Tech Calendar
New items are highlighted in red.
Monday, August 5

The House will not meet from August 5 through September 6. It will return from its August recess on Monday, September 9. See, House calendar for the 113th Congress, 1st Session.

The Senate will not meet from August 5 through September 6. It will return from its August recess on Monday, September 9. See, Senate calendar for the 113th Congress, 1st Session.

Tuesday, August 6

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Microsoft v. USITC, App. Ct. No. 12-1445, an appeal from the U.S. International Trade Commission (USITC) in a Section 337 proceeding involving mobile device patents. Panel C. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Motorola Mobility v. USITC, App. Ct. No. 12-1535, an appeal from the U.S. International Trade Commission (USITC) in a Section 337 proceeding involving mobile device patents. Panel C. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in nCUBE v. SeaChange International, App. Ct. No. 13-1066, an appeal from the U.S. District Court. Panel C. Location: Courtroom 402, 717 Madison Place, NW.

10:00 - 11:30 PM. The American Bar Association's (ABA) Section of International Law will host a teleconferenced panel discussion titled "Raising Venture Capital in the United States". The focus will be on India based start ups. The speakers will be Andrew Hazen (Ruskin Moscou & Faltischek), Anirudh Suri (The India Internet Group), Siddharth Raja (Samvad Partners), and Tom Thomas (Pillsbury Winthrop Shaw Pittman). Free. No CLE credits. See, notice.

Deadline to submit reply comments to the Federal Communications Commission's (FCC) Media Bureau (MB) in response to its Public Notice (DA 13-1353) that seeks public comment on a report [18 pages in PDF] written for the Minority Media and Telecommunications Council (MMTC) titled "The Impact of Cross Media Ownership on Minority/Women Owned Broadcast Stations". See, story titled "FCC Again Seeks Comments on Media Ownership" in TLJ Daily E-Mail Alert No. 2,576, June 12, 2013.

Wednesday, August 7

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Panduit Corp. v. ADC Telecommunications, Inc., App. Ct. No. 12-1435, an appeal from the USPTO. Panel D. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Panduit Corp. v. Rea, App. Ct. No. 12-1437. Panel D. Location: Courtroom 201, 717 Madison Place, NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Public Notice (PN) regarding its proposals to conduct three limited "real-world trials to obtain data" regarding transitioning public switched telephone network technology to all internet protocol networks. This PN is DA 13-1016 in GN Docket No. 13-5. The FCC released it on May 10, 2013. See, notice in the Federal Register, Vol. 78, No. 101, May 24, 2013, at Pages 31542-31548, and FCC's May 24 Public Notice. See also, story titled "FCC Requests Comments on Possible IP Transition Trials" in TLJ Daily E-Mail Alert No. 2,561, May 14, 2013.

Thursday, August 8

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Leviton Manufacturing v. USITC, App. Ct. No. 12-1483, an appeal from the U.S. International Trade Commission (USITC). Panel E. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Fujian Hongan Electric v. USITC, App. Ct. No. 12-1493, an appeal from the U.S. International Trade Commission (USITC). Panel E. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Intellect Wireless v. HTC, App. Ct. No. 12-1658, an appeal from the U.S. District Court. Panel E. Location: Courtroom 201, 717 Madison Place, NW.

1:00 - 3:15 PM. The DC Bar Association will host an event titled "Cloud Computing Basics". The speakers will be Henry Classen (Computer Sciences Corporation) and Philip Porter (Hogan Lovells). The price to attend ranges from $89 to $129. CLE credits. For more information, call 202-626-3488. The DC Bar has a history of barring reporters from its events. See, notice. Location: DC Bar Conference Center, 1101 K St., NW.

Extended deadline to submit comments to the Federal Trade Commission (FTC) in response to its notice of proposed rulemaking regarding its Telemarketing Sales Rule (TSR). See, original notice in the Federal Register, Vol. 78, No. 131, July 9, 2013, at Pages 41199-41225, and FTC release extending deadline to August 8.

Friday, August 9.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Apple v. Samsung Electronics, App. Ct. No. 2013-1129, an appeal from the U.S. District Court (NDCal) in a patent and trade dress case involving mobile device technology. This pertains to the District Court's order denying Apple's motion for a permanent injunction. See also, stories titled "Apple Files Patent Infringement Complaint Against Samsung" in TLJ Daily E-Mail Alert No. 2,222, April 18, 2011, and "Trial Jury Returns Verdict In Apple v. Samsung" in TLJ Daily E-Mail Alert No. 2,437, August 25, 2012. The District Court case number is 11-CV-01846-LHK. Panel H.  Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Integrated Technology v. Rudolph Technologies, App. Ct. No. 12-1593, an appeal from the U.S. District Court. Panel F. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Maury Microwave, Inc. v. Focus Microwaves, App. Ct. No. 13-1006, an appeal from the U.S. District Court. Panel F. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Comaper Corporation v. Antec, App. Ct. No. 13-1147, an appeal from the U.S. District Court. Panel F. Location: Courtroom 201, 717 Madison Place, NW.

10:30 AM. The Federal Communications Commission (FCC) will host an event titled "open meeting". The FCC is scheduled to adopt changes to its operating rules for satellite services, rules for unlicensed devices operating in the 57-64 GHz band, and rules regarding interstate inmate phone rates. See, agenda. Location: FCC, Commission Meeting Room, TW-C305, 445 12th St., SW.

12:00 NOON - 1:00 PM. The Heritage Foundation (HF) will host a discussion of the book [Amazon] titled "A Government of Wolves: The Emerging American Police State". This book addresses, among other topics, electronic surveillance. The speakers will include the author, John Whitehead (Rutherford Institute). Free. Open to the public. See, notice. Location: HF, 214 Massachusetts Ave., NE.

Monday, August 12

The House will not meet the week of August 12 through August 16. It will return from its August recess on Monday, September 9. See, House calendar for the 113th Congress, 1st Session.

The Senate will not meet the week of August 12 through August 16. It will return from its August recess on Monday, September 9. See, Senate calendar for the 113th Congress, 1st Session.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Second Notice of Proposed Rulemaking (2ndNPRM) regarding its "2000 Biennial Regulatory Review Separate Affiliate Requirements of Section 64.1903 of the Commission's Rules". The FCC adopted this NPRM on May 10, 2013 as part of its larger item [127 pages in PDF] that granted forbearance from numerous unnecessary regulatory requirements on phone companies. The FCC released this item on May 17. It is FCC 13-69 in CC Docket No. 00-175. See, notice in the Federal Register, Vol. 78, No. 113, June 12, 2013, at Pages 35191-35195.

Winters Joins MPAA

7/16. The Motion Picture Association of America (MPAA) hired Shanna Winters as a SVP, Global Policy. She is a former long time staff assistant to former Rep. Howard Berman (D-CA).

She worked for former Rep. Berman on early versions of the patent reform bill, and on other intellectual property bills and issues, in staff positions at the House Judiciary Committee's (HJC) Subcommittee for Courts, the Internet and Intellectual Property. Former Rep. Berman was for many years either the Chairman or ranking Democrat on the HJC's IP subcommittee.

She was then Democratic Chief Counsel for the House Foreign Affairs Committee (HFAC). Before working in the House, she worked for the U.S. Patent and Trademark Office (USPTO).

Rep. Berman lost his seat at the end of the 112th Congress. The California legislature redrew district boundaries in a manner that caused former Rep. Berman to run against Rep. Brad Sherman (D-CA) in the same district in both the primary and general elections in 2012. Rep. Sherman won. Former Rep. Berman now works in the Washington DC office of the law firm of Covington & Burling.

The MPAA stated in a release that "Winters will oversee the day-to-day operation of the MPAA's Global Policy team in addition to being responsible for a significant policy portfolio".

More People and Appointments

7/30. The Senate Commerce Committee (SCC) approved the nomination of Tom Wheeler to be Chairman of the Federal Communications Commission (FCC) for a term of five years from July 1, 2013. See, Congressional Record, July 30, 2013, at Page 6069.

8/1. The Senate confirmed Mary Jo White to be a member of the Securities and Exchange Commission (SEC) for a term expiring on June 5, 2019.

8/1. The Senate confirmed Kara Stein to be a member of the Securities and Exchange Commission (SEC) for a term expiring on June 5, 2017.

8/1. The Senate confirmed Michael Sean Piwowar to be a member of the Securities and Exchange Commission (SEC) for a term expiring on June 5, 2018.

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