| 107th Congress |
| 1/8. The House Republican Conference released a list
of committee assignments [PDF] for Republican members for
the 107th Congress. Several new members have been
appointed to the Commerce
Committee and the Judiciary Committee,
which have jurisdiction over most of the technology related
legislation in the House. The new members of the Commerce
Committee are Tom
Davis (VA), Steve Buyer (IN), George Radanovich (CA),
Joseph Pitts (PA), Mary Bono (CA), Greg Walden (OR), and Lee
Terry (NE). The new members of the Judiciary Committee are
John Hostettler (IN), Mark Green (WI), Ric Keller (FL),
Darrell Issa (CA), Melissa Hart (PA), and Jeff Flake (AZ).
Subcommittee assignments have not yet been made; nor have
subcommittee chairman been selected. However, Howard Coble (NC) will
continue as Chairman of the Courts and Intellectual Property
Subcommittee. This CIP Subcommittee will receive many new
members, since Mary Bono departed to take a seat on the
Commerce Committee, James Rogan (CA) lost his re-election bid,
and Ted Pease (IN) retired. |
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| First Amendment |
| 1/8. The Supreme
Court of the U.S. denied certiorari in Urofsky v.
Gilmore, No. 00-466. See, Jan. 8 Order
List at page 7. Six professors employed by public colleges
and universities in Virginia filed suit in U.S. District Court
(EDVA)
challenging the constitutionality of Virginia
Code § 2.1-804 to -806, which restricted state employees
from accessing sexually explicit material on computers that
are owned or leased by the state. District Court Judge Leonnie
Brinkema found the statute unconstitutional, and ordered a
large award of attorneys fees. The U.S. Court of Appeals
(4thCir) issued its opinion
reversing the trial court, and upholding the statute, on Feb.
10, 1999. This case is the only significant loss of the ACLU and other groups which
have otherwise successfully challenged the constitutionality
of several restrictions on Internet use on First Amendment
grounds. See also, TLJ
story of Feb. 12, 1999. |
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| Quote of the Day |
"Today, more than ever, investors figure out when they
are being treated unfairly, and whether the system is rigged
in another's interest. And they soon punish those who abuse
their trust. All of us charged with the health and care of
America's markets – market participants, regulators,
legislators – must fear the possibility of investors ever
feeling disillusioned, disgusted, or betrayed. And that should
serve as our greatest threat and most compelling
motivator."
Arthur Levitt, Chairman of the SEC, from Jan. 8 speech
at Stanford. |
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| News Briefs |
1/8. The U.S.
Court of Appeals (9thCir) released its opinion
[PDF] in Konop v. Hawaiian Airlines, a addressing whether
viewing a secure web site under false pretenses constitutes a
violation of the Wiretap Act
and the Stored Communications Act.
Konop, a pilot for Hawaiian Airlines (HA), maintained a web
site that contained statements that were critical of both his
employer and the pilots' union. The web site was password
protected, and required registration and consent not to
disclose the contents of the web site. An HA VP named Davis
accessed the web site on numerous occasions under false
pretenses: logging in as pilots who had registered. Konop
argued that HA intercepted an electronic communication in
violation of the Wiretap Act, as amended by the Electronic
Communications Privacy Act, and accessed an electronic
communications facility in violation of the Stored
Communications Act. The trial court dismissed Konop's claims
on summary judgment. The Appeals Court reversed on the grounds
that there were triable issues of fact. The Appeals Court
held that "The contents of secure websites are
'electronic communications' in intermediate storage that are
protected from unauthorized interception under the Wiretap
Act. Konop has raised material issues of fact whether
Davis had appropriate consent to view Konop's website."
It further held that "the Wiretap Act protects electronic
communications from interception when stored to the same
extent as when in transit." [Appeal No. 99-55106. Appeal
from U.S.D.C. No. CV-96-04898-SJL(JGx). Opinion by Boochever.
Reinhardt and Paez participated.]
1/5. The U.S. District Court (CDCal)
issued a Temporary
Restraining Order (TRO) against Juno in NetZero v. Juno, a
patent infringement case. NetZero filed its Complaint
on Dec. 26, 2000 alleging that Juno's
floating advertising window called the Juno Guide infringed U.S.
Patent No. 6,157,946. The Court court concluded that
NetZero had demonstrated a likelihood of success on the
merits. The TRO takes effect on Friday, Jan. 12, and remains
in effect for 65 days. A preliminary injunction hearing
is set for March 15. Trial is set for July. NetZero, an ISP
and web marketer, is represented by William Robinson, of the
law firm of Mayer Brown
& Platt. [Case No. 00-13378 SVW (RNBx).] Mark Goldston,
NetZero Chairman and CEO stated in a release that "We
believe our patent is a powerful proprietary right which will
provide us with a competitive advantage in our market. We
believe the court’s order is further validation of our
position. Other ISPs should take note of the court’s ruling
and carefully consider their use of similar ad banner windows.
1/8. The FCC released a
summary of its 7th annual report to the Congress on
competition in markets for the delivery of video programming,
and the convergence of video programming and Internet
access. The FCC found that cable TV "still is the
dominant technology for the delivery of video programming to
consumers, although its market share continues to decline. As
of June 2000, 80 percent of all subscribers to multichannel
video program distributor (MVPD) services received their
programming from a franchised cable operator, compared to 82
percent a year earlier." The report also finds that
Direct Broadcast Satellite (DBS) subscribers now represent
15.4 percent of all MVPD subscribers. The report also
addressed the convergence of MVPD and Internet access.
"Cable operators continue to expand the broadband
infrastructure that permits them to offer high-speed Internet
access. ... Like cable, the DBS industry is developing ways to
bring advanced services to their customers. For example,
DirecTV currently offers a satellite-delivered high-speed
Internet access service with a telephone return path called
DirecPC. ... In addition, digital technology makes it possible
for MMDS operators, who provide video service in only limited
areas, to offer two-way services, such as high-speed Internet
service and telephony." Sprint and MCI WorldCom are
developing these services. See, FCC
release and summary.
1/8. The USITC
announced that it is looking for an attorney advisor to work
on § 337 matters. The notice states that "The primary
duties of this position are to provide legal support to the
Commission in investigations concerning patents (especially
patents involving electrical technology), copyrights,
trademarks, and other intellectual property rights under
section 337 of the Tariff Act of 1930 (19 U.S.C. sec. 1337)
and to defend the Commission’s decisions in such
investigations before the U.S. Court of Appeals for the
Federal Circuit." See, notice [PDF].
1/5. The U.S. Department of
Justice released a manual titled Prosecuting
Intellectual Property Crime. IP industry representatives
have criticized the Clinton Justice Dept. for lax prosecution
of IP crimes. The manual is lengthy, and thoroughly references
relevant statutory sections and cases. The manual also states
that "Enforcement of intellectual property laws in
America can sometimes be at tension with the constraints of
the First Amendment. This strain has long been recognized both
in copyright and trademark law. ... New technologies such as
the Internet provide fertile ground for revisiting these
conflicts." However, it cites only law review commentary,
and no case law, in support of these statements. See, DOJ
release. |
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| Editor's Note: This column includes all News Briefs
added to Tech Law Journal since the last Daily E-Mail Alert.
The date indicates when the event occurred, not the date of
posting to Tech Law Journal. |
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| People |
1/8. Roy Neel, President and CEO of the U.S. States Telecom Association
(USTA) announced that he will leave this position effective
March 31, 2001. No replacement has been named. Gary Lytle is
the interim President and CEO. Neel was previously Bill
Clinton's Deputy Chief of Staff and VP Al Gore's Gore's Chief
of Staff. He also previously was a Senate aide to Al Gore.
1/8. Rep.
Billy Tauzin (R-LA), the new Chairman of the House Commerce Committee,
named David Marventano as Staff Director for the
Committee. Marventano previously ran Rep. Tauzin's personnel
office. Before that he was VP and Senior Director of
Government Affairs for the Securities
Industry Association (SIA). He was also Chief of Staff and
Legislative Director to former Rep. Bill Paxon (R-NY). |
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| SEC Actions |
1/4. The SEC instituted
and settled an administrative proceeding against Transcrypt International,
a Delaware corporation based in Nebraska that makes
information security products which prevent unauthorized
access to sensitive voice communications, i.e., scramblers and
encryptors. The SEC found improper recognition of revenue in
1996 and 1997 in violation of § 17(a) of the Securities
Act and §§ 10(b), 13(a) and 13(b)(2) of the Exchange
Act and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13,and 13b2-1
thereunder. No fine was imposed. See, SEC
Order Instituting Public Proceedings, Making Findings, and
Imposing Cease and Desist Order and Transcrypt
release.
1/4. The SEC instituted
and concluded two separate but similar administrative
proceedings against two individuals named Stephen Marek and
Dominic Roelandt. Marek controlled two free Internet
newsletters, BigProfitNews and Bulls-Eye Stocks. Roelandt
controlled a free Internet newsletter called Coldstocks. Both
falsely touted microcap stocks, and misrepresented their
trading intentions, their track record, and their touting
compensation. The Orders bar Marek and Roelandt from
participating in any offering of a penny stock. See, SEC
Marek Order and SEC
Roelandt Order. |
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| Today |
| 10:00 AM. Oral argument before the U.S. Court of
Appeals (FedCir) in Sunrise Telecom v. Electrodata,
Appeal No. 00-1017. This is an appeal from a final judgment of
the U.S. District Court (NDCal)
in a patent infringement case. The trial court found
infringement of a patent concerning hand held telecom line
testers. Location: Federal Circuit, 717 Madison Place (on
LaFayette Square), Courtroom 203. |
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| About Tech Law Journal |
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