| What Digital Divide? |
| 2/22. The GAO
released a report
[PDF], dated Feb. 16, prepared for Rep. Ed Markey (D-MA),
the ranking Democrat on the House Telecom Subcommittee,
regarding "digital divide" policy. The report found
"greater home usage of the Internet by more highly
educated and wealthier individuals. ... Furthermore, although
we did not find Internet use to be statistically related to
differences in community size, we did find less broadband
availability in the more rural areas of America."
However, the report continued that "it is often the case
that individuals with greater education and income are the
first to adopt new technologies, and individuals in rural
areas are the last to be reached by the deployment of new
telecommunications infrastructure. Since the Internet is still
in a relatively early stage of commercial deployment, these
socioeconomic and geographic differences in Internet usage are
not surprising and may not be long lasting." |
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| Napster |
| 2/22. The Consumer Electronics
Association (CEA) announced that it conducted a survey of
Internet users regarding the legal issues involved in the case
A&M Records v. Napster. The CEA stated that the survey
shows that "61 percent oppose laws that prevent the usage
of file sharing software such as Napster." CEA CEO Gary
Shapiro stated that "Public policy debates must shift to
reflect the paradigm of the new economy as technology creates
new ways for more consumers to access information and
entertainment. We must protect the ability of technologies to
evolve, especially those that allow personal, non-commercial
recording." The CEA stated the survey was "conducted
via the Internet to a sample of 1,812." The CEA did not
assert that the sample was random. See, CEA
release. CEA member companies make products that
facilitate infringement of copyrights in music recordings. |
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| Securities Litigation |
| 2/22. The U.S.
Court of Appeals (4thCir) issued its opinion
in Dellastatious
v. Williams, a case involving controlling person
liability in securities fraud cases. Plaintiff filed a
complaint for securities fraud that included claims against
Donald Williams and Raymond Kelly, officers of LaserVision
Technologies, alleging liability as "control
persons" under § 20 of the Securities
Exchange Act of 1934. The U.S. District Court (EDVa)
granted Williams' and Kelly's motion for summary judgment,
holding that they were not control persons and that they
satisfied the statutes' good-faith defense. The Court of
Appeals affirmed. The suit involved LaserVision, a photography
company. However, Section 20 liability is frequently alleged
in securities fraud cases against high tech companies. |
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| New Documents |
GAO:
report
re digital divide, 2/16 (PDF, GAO).
USCA:
opinion
Dellastatious v. Williams re controlling person liability in
securities fraud cases, 2/22 (HTML, USCA). |
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| FCC Lacks Engineering
Expertise |
2/22. The Federal
Communications Commission held a meeting at which the four
members of the Commission (Powell, Ness, Tristani, and
Furchtgott-Roth) heard testimony from its own bureau and
office chiefs. The new Chairman, Michael Powell, stated that
"it is important, before you decide where you are going,
to take stock of where you are." He stated that these
meetings will be annual.
2/22. Two themes ran throughout the statements of both the
bureau chiefs and Commissioners: first, the FCC staff is
excellent; second, the FCC staff lacks the engineering
expertise to understand the new Internet technologies that it
has recently undertaken to regulate. FCC Chairman Powell and
most of his bureau chiefs stated that the FCC lacks
"engineering resources". Powell noted that about
"30 to 45 percent of engineers are approaching retirement
age. When we hire entry level engineers at GS 5 and 7 level,
and you are competing with the very industries you regulate
for the same talent, you have a problem." He also stated
that "this Commission has to have an independent
technical capability" and "cannot rely on the
industry we regulate." He suggested the FCC needs more
money from Congress for salaries, training, and "new
technical tools and assets that the engineers like to play
with." However, Powell, who is a lawyer, added that
"we need lawyers to understand engineering" and
"I would not undersell the ability of lawyers to be much
more thoughtful ..."
2/22. FCC Cable Services
Bureau Chief Deborah
Lathen stated that her Bureau has 30 attorneys, but only 5
engineers. She also stated that her Bureau's responsibilities
have "exploded." She said that "we have moved
into broadband policy, direct broadcast satellite, ...
Internet access, and new missions, such as interactive
television." She added that "we have to recognize
that our capabilities really are strained" and "we
have difficulties attracting people to come because of salary
limitations."
2/22. The FCC's aging engineering staff possesses expertise in
areas related to legacy technologies, including the public
switched telephone network, and broadcast radio and television
-- particularly, testing for interference. However, since Prof. David Farber
returned to the University of Pennsylvania several weeks ago,
no one at the FCC understands many Internet based
technologies, such as instant messaging and Internet access
over cable facilities. This now leaves the agency dependent
for information upon the companies that it regulates, speakers
at public forums, and its communications lawyers. See also, TLJ
story of Jan. 7, 2000 regarding Farber's appointment as
FCC Chief Technologist. |
|
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| Furchtgott-Roth |
| 2/22. FCC Commissioner Harold
Furchgott-Roth, who has said that he will step down as
soon as President Bush names his replacement, offered advice
to the new Chairman. First: "Follow the law, not to go
beyond it, not to keep this agency, kind of breathing a sigh
of relief every time we win in court, and hanging our
shoulders when we loose ..." Second: "Efficiency. We
really need to take Section 11 and Section 10 very seriously
about deregulation, getting rid of some of the underbrush
..." Third: "Transparency. The public needs to know
where items are in the process. The public needs to know that
decisions are made based entirely on the record before this
Commission, that there aren't secret deals, that there aren't
little side agreements ..." Fourth: "Equality. The
public needs to know that everyone before the Commission,
whether a large company, or a small company, is going to get
treated exactly the same." |
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| Quote of the Day |
"I think the future is very very exciting. And, many of
you who know me, know that I am an avid sci-fi fan. Anything
Star Trek, anything dealing with space, I will stay up all
night long to watch, because it deals with the future. And
that is what we deal with here."
Deborah Lathen, Chief of the FCC Cable Services Bureau,
describing her interest and background in engineering at the
FCC meeting of Feb. 22. |
|
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|
| Fast Track |
2/22. President Bush held his first press conference as
President. He was asked many questions, including one about
fast track trade negotiating authority, a free trade agreement
for the Americas, and the upcoming meeting in Quebec. He
stated "I'd love to have fast track approval. I think
it's going to be important to work with our neighbors to the
south, and Canada to the north, to promote free trade
throughout the Hemisphere. I spoke to the Prime Minister of
Canada this morning, and that subject came up, about the
summit, upcoming summit. And so we're going to begin the
process in Congress. Ambassador Zoellick will be working with
members of Congress to lay the groundwork for the ability for
the President to have what they call fast track negotiating
authority. ..." See, transcript
and audio
[RAM].
2/22. WTO Director General Mike
Moore met over several days with USTR Robert
Zoellick, Commerce Secretary Donald Evans, Agriculture Sec.
Ann Veneman, NSC Advisor Condoleezza
Rice, and NEC Advisor Lawrence
Lindsey. Moore released a statement,
in which he said that "I am also impressed by the
determination of President Bush and Ambassador Zoellick to
work closely with the Congress to gain trade promotion
authority as soon as possible. This is very important not just
for the United States but for all US trading partners. I very
much appreciate the support the Administration has shown for
the launch of a round this year." |
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| Intel Patents |
| 2/21. Intel announced
that it has settled its patent litigation against First International Computer
(FIC). Intel sued FIC and others in U.S. District Court (NDCal)
and elsewhere in late 1999 alleging patent infringement
regarding its P6 bus microarchitecture. Intel stated that two
companies entered into "a settlement and license
agreement covering certain patents" but did not disclose
the terms of the settlement. FIC is a mainboard producer based
in Taipei, Taiwan. See, Intel
release. Intel is represented in this matter by the law
firm of Brobeck Phleger. |
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