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| Computer and Software
Depreciation Bills |
| 5/17. Rep. Mac
Collins (R-GA) introduced HR
1895, the Computer Equipment Common Sense Depreciation
Act, a bill to amend the Internal Revenue Code to establish a
2 year recovery period for depreciation of computers and
peripheral equipment used in manufacturing. It was referred to
the House Way and
Means Committee, of which Collins is a member. This is one
of several bills that would shorten or eliminate the
depreciation period for business computers. On April 4, Rep. Jerry Weller
(R-IL) and others introduced HR
1411, which provides for the expensing of qualified
equipment and computer software. And, on April 6, Sen. Conrad Burns (R-MT)
introduced S 752,
which provides for a three year period. |
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| Coble Bills on
Reexamination of Patents |
5/16. Rep. Howard
Coble (R-NC), introduced HR 1866,
an untitled bill to clarify the basis for granting requests
for reexamination of patents. The bill would amend 35 U.S.C.
§ 303(a) and § 313(a) by adding the following
language: "The existence of a substantial new question of
patentability is not precluded by the fact that a patent or
printed publication was previously cited by or to the
Office." The bill was referred to the House Judiciary
Committee, and its Courts, Internet and Intellectual
Property Subcommittee. Rep. Coble is the Chairman of this
Subcommittee. The Subcommittee has already scheduled a mark up
for Tuesday, May 22, at 10:00 AM.
5/17. Rep. Coble also introduced HR 1886,
a bill to provide for appeals by third parties in certain
patent reexamination proceedings. This bill is also scheduled
for mark up on May 22. |
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| Education Technology Bill |
| 5/17. Rep. James
Barcia (D-MI) and Rep.
David Wu (D-OR) introduced HR 1889, a bill to improve the
utilization of educational technologies in elementary and
secondary education by creating an educational technology
extension service. The bill was referred to the House Science
Committee and the House Education and Workforce Committee. |
|
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| Export Licensing Bill |
| 5/17. Rep. Jeff Flake
(R-AZ) introduced HR 1898, a bill to amend the Arms Export
Control Act to update the export licensing requirements under
that Act. The bill was referred to the House Committee on
International Relations. |
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| SEC Regulation of Web Based
Activities |
| 5/18. Paul Roye, Director of the SEC's
Division of Investment Management gave a speech
to the Investment Company
Institute in Washington DC in which he addressed web based
baskets of securities, ETFs, and other topics.
He stated that "The Internet has spurred a flurry of new
products and ways of offering and delivering investment
products and investment advisory services. It is incumbent
upon regulators to understand these products and monitor their
compliance with the federal securities laws." He said
that the SEC is reviewing whether web based baskets of
securities are investment companies, and whether the promoters
should register as securities advisors. |
|
|
| Bush Trade Proclamation |
| 5/18. President George Bush issued a proclamation
regarding free trade in which he stated that "our exports
support 12 million jobs that pay wages higher than the
national average, and high-tech jobs supported by exports pay
even more. It is no coincidence that the longest period of
sustained economic growth in U.S. history has followed efforts
to liberalize trade, such as the North American Free Trade
Agreement and the Uruguay Round Agreement that established the
World Trade Organization." |
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| Financial Privacy |
| 5/15. The Free
Congress Foundation and other groups wrote a letter
to Treasury Secretary Paul O'Neill regarding OECD
and FATF violations
of financial privacy. The letter states that the "current
proposals of OECD and FATF attempt to institute the popularly
rejected 'Know Your Customer' financial regulation, thereby
sidestepping the domestic legislative process. We are
concerned about the attempt to get Know Your Customer adopted
as an international 'best practice' under the guise of
increasing transparency." The letter concludes, "Our
modern economy requires a liberal capital policy that
engenders the consumer trust that comes with respect for
privacy. We strongly urge you to make a clear statement
instituting policies that respect financial privacy and that
the Treasury Department opposes the type of reporting
requirements being advanced by the OECD and FATF." |
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| New Documents |
Coble:
HR 1866
re patent reexamination, 5/16 (HTML, LibCong).
Coble:
HR 1886
re patent reexamination, 5/17 (HTML, LibCong).
Collins:
HR
1895, the Computer Equipment Common Sense Depreciation
Act, 5/17 (HTML, LibCong).
Berman:
opening
statement re intellectual property, music, and the
Internet, 5/17 (HTML, TLJ).
FCF:
letter
to Treasury Sec. O'Neill re financial privacy, 5/15 (HTML, TLJ)
DOC:
agreement
in principle with ICANN and VeriSign, 5/18 (HTML, DOC).
GAO:
report
on information technology at the Defense Dept., 5/18 (PDF,
GAO).
Roye:
speech
re SEC regulation of web based baskets of stocks, 5/18 (HTML,
SEC).
ProComp:
paper
stating that Microsoft seeks to monopolize the Internet, 5/17
(PDF, ProComp). |
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| Compulsory Licensing of
Music on the Internet |
5/17. The House
Judiciary Committee's Subcommittee on Courts, the Internet
and Intellectual Property held a hearing on music on the
Internet. The hearing was attended by far more Representatives
and spectators than other intellectual property related
hearings. Twenty members of the Subcommittee, and non members
sitting by permission, participated.
Rep. Howard Coble
(R-NC), the Chairman of the Subcommittee, presided. He said in
his opening
statement that "Recent technological developments
such as mp3 digital compression, streaming, and peer-to-peer
file sharing have provided consumers with easy access to music
on the Internet and fueled their interest in using the
Internet as a primary way to enjoy music. Yet, this win-win
opportunity for both the music industry and consumers has been
hampered by services providing free access to unlicenced
music, several lawsuits, disputed interpretations of copyright
law, difficulty in properly licensing all of the rights, and
developing effective means to thwart piracy." The hearing
focused on the availability of music online, the technologies
for providing music online, security for copyrighted music,
the status of licensing by the various types of rights
holders, and recommendations by some that the Congress extend
compulsory licensing to music on the Internet.
Several witnesses argued that existing laws are complex and
archane, that too many permissions are required, that music is
not being made available online, and that Congress should
therefore pass legislation providing for compulsory licensing
for online streaming and downloading of music. In contrast,
several other witnesses who represent various types of
copyright holders testified that their copyrights are being
licensing for the Internet, that technologies (and security
for those technologies) is being developed, and Congress
should therefore not enact any new legislation.
Robert Glaser, C/CEO of RealNetworks,
testified that there are too many types of music publishing
rights, and too many holders of these rights, for a negotiated
licensing system to allow for online music subscription
services to work. He wants Congress to step in and
"streamline" the process with a "licensing
system that allows for one-stop shopping" through
compulsory licensing. See, prepared
testimony.
Richard Robins, President of MP3.com, testified in favor of
revising the language and implementation of 17 U.S.C.
§ 115, regarding compulsory licensing. MP3.com provided a
music storage service that allowed subscribers to store online
their purchased CDs, and then play them back via the Internet.
It was sued for copyright infringement, and lost. Robins
testified that copyright law should be amended to permit this
sort of activity without payment of further fees. He also
stated that the Copyright Office should update § 115
licensing procedures to provide that the cable and satellite
compulsory license model applies to the "incidental"
copying that is integral to Internet transmissions. See, prepared
testimony.
Manus Cooney, a VP of Napster,
did not testify, but submitted a written statement
to the Subcommittee anyway. He wrote that Congress should pass
compulsory licensing legislation.
Lyle Lovett, a song writer and performer, testified on
behalf of the American Society
of Composers, Authors and Publishers. ASCAP licenses the
right of nondramatic public performance of its members'
copyrighted musical compositions. He stated that "there
is not a songwriter I know who opposes new technological ways
to perform music. Technology has always been the friend of the
songwriter; from piano rolls, to phonographs, to radio's
development ... we have looked upon each of these revolutions
in communications as new ways to enjoy our music; and, new
ways for us to earn a living." He also stated that ASCAP
has licensed every Internet user who has requests a license to
perform ASCAP music, and that ASCAP has licensed about 2,200
web sites. He concluded, therefore, that "There is no
justification for a compulsory license for Internet uses of
ASCAP music."
Edgar Bronfman, Executive Vice Chairman of Vivendi
Universal, stated that "Universal has invested many
tens of millions of dollars in developing a environment for
the delivery and enjoyment of digitized music. But a rational,
dependable, long-term business plan has two prerequisites.
First, we need a strong legal framework to protect our
copyrighted music. Second, we need technology solutions that
are ready for a global audience. He stated that "The
legal framework appears to be in place. The DMCA has done a
good job of updating the Copyright Act for the digital age.
Importantly, recent court decisions have clearly held that our
property rights must be respected." He also stated that
Universal is still working on the technology that provides
security for copyrighted works. See, prepared
statement.
Michael Stoller, a song writer who testified on behalf
of the National Music
Publishers Association, similarly testified that no new
legislation should be passed at this time.
Rep. Howard Berman
(D-CA), the ranking Democratic on the Subcommittee, said in
his opening
statement that music is being made available on line, and
that there is no reason to mandate compulsory licensing. He
began by observing that "it appears that the supply of
online music is beginning to catch up with the demand. While
the music industry may have been slow to jump into the online
music market, lately the pace of online music deal-making has
been dizzying." He cited the creation of Duet by Vivendi
Universal, the creation of MusicNet by EMI, BMG, AOL Time
Warner and RealNetworks, and other examples. He continued that
"only in extraordinary circumstances, such as
demonstrable market breakdowns caused by antitrust violations,
does our government require property owners to make their
property available to the public at government established
rates. Furthermore, copyrights are Constitutionally sanctioned
property, and music, despite its emotive power and cultural
significance, is basically entertainment." He also stated
that "convenience of access to entertainment seems a
particularly weak justification for the abridgement of
Constitutionally sanctioned property rights. It is especially
difficult to justify government interference with property
rights when the free market, however fitfully, appears to be
moving in the right direction."
Rep. Berman also stated "I am disturbed by the
implications of what would essentially be Internet-specific
government regulation. ... Any Internet legislation we pass,
it is argued, would be outdated before it was enacted, and
might run the risk of freezing or stifling technological
developments in the Internet sector." He concluded,
"I see no need or good reason for sweeping legislation
regarding online music." |
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| WIPO and ASPs |
| 5/18. The WIPO's
Arbitration and Mediation Center and the Application Service
Provider Industry Consortium (ASPIC) finalized a set of best
practices and guidelines for dispute avoidance and resolution
for the Application Service Provider (ASP) industry. See, WIPO
release. |
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|
| Today |
The House will meet at 12:30 PM for morning hour and at 2:00
PM for legislative business. No recorded votes are expected
before 6:00 PM. The House will consider several non technology
related bills and resolutions under suspension of the rules.
The Senate bill convene at 9:30 AM. It will likely take up
HR1836, the tax reconciliation bill, and amendments.
10:30 AM. FCC Chairman Michael Powell will be the keynote
speaker at the Forrester Telecommunications Forum. Location:
Marriott Wardman Park Hotel, 2400 Woodley Road, Washington DC. |
|
|
| Tuesday, May 22 |
9:00 AM. The USTR's
Industry Sector Advisory Committee on Services (ISAC-13) will
hold a meeting. The meeting will be open to the public from
9:00 to 9:45 AM, and closed to the public from 9:45 AM to
12:00 NOON. See, notice
in Federal Register.
9:45 AM. FTC Commissioner Thomas Leary will participate
in a panel discussion titled Securing Private Data - How to
Assure the Customer, at a conference titled Trust in
the Internet: Required Technology and Policy Solutions
Conference. Location: Hilton Washington Dulles Airport,
13869 Park Center Road, Herndon, Virginian.
Location Change. 10:00 AM.
The Senate
Judiciary Committee's Subcommittee on Technology,
Terrorism and Government Information will hold a hearing
titled Challenges in Cybercrime: The National
Infrastructure Protection Center. Sen. Jon Kyl (R-AZ) will
preside. Location: Room 226 366, Dirksen
Building.
10:00 AM. The House
Judiciary Committee's Subcommittee on Courts, the Internet
and Intellectual Property will hold a meeting to mark up HR
1866, a bill to clarify the basis for granting requests
for reexamination of patents, and HR
1886, a bill to provide for appeals by third parties in
certain patent reexamination proceedings.
Location: Room 2141, Rayburn Building.
2:00 PM. The House
Commerce Committee's Subcommittee on Commerce, Trade, and
Consumer Protection will hold a hearing on Impediments to
Digital Trade. Location: Room 2322, Rayburn Building.
2:00 PM. The House
Judiciary Committee will hold a hearing HR
1698, the "American Broadband Competition Act of
2001," and HR
1697, the "Broadband Competition and Incentives Act
of 2001." Location: Room 2141, Rayburn Building.
2:00 PM. The Senate
Judiciary Committee might hold a hearing on competition in
the pharmaceutical marketplace, focusing on the antitrust
implications of patent settlements. Location: Room 226,
Dirksen Building. This hearing has been noticed for both May
22 and 24. |
|
|
| People |
5/17. Robert Mendelson returned to New York City
office of the law firm of Morgan Lewis as a
partner in the firm's Securities Interdisciplinary Initiative.
His practice includes securities regulation, broker-dealer
regulation and enforcement, derivatives product development
and litigation, and online public offerings. He spent two
years as SVP and Co General Counsel of Wit SoundView Group,
an investment bank and online broker. See, release.
5/17. Laura Klaus joined the Washington DC office of
the law firm of Greenberg
Traurig as shareholder in the litigation group. Her
practice includes appellate litigation, federal
administrative, and regulatory law. Before entering private
practice, she was a trial attorney in the Antitrust Division
of the Department of Justice. In addition, Tab Turano
joined the Washington DC office as an associate. He practices
in the areas of administrative, regulatory and appellate
litigation and trademark and patent cases. See, release.
5/15. Bart Greenberg joined the Orange County office of
the law firm of Preston
Gates & Ellis as a partner. He was previously with Riordan & McKinzie. His
practice focuses on mergers and acquisitions and debt and
equity financings, including in the information technology
industry. He also handles licensing of software and other
products and technologies, as well as the leasing of
facilities for cellular and other communications purposes.
See, release. |
|
|
| ProComp Criticizes
Microsoft's .NET |
| 5/17. The Project
to Promote Competition & Innovation in the Digital Age
(ProComp) released a paper
[1.14 MB PDF file] titled "Microsoft's Expanding
Monopolies: Casting a Wider .NET." The paper is subtitled
"The Impact of .NET, HailStorm, Windows XP, Internet
Explorer 6.0, MSN Messenger, Windows Media Player 8.0, MSN
Explorer and MS Passport on the Future of the Internet."
The paper argues that Microsoft has introduced "a series
of business initiatives that put Microsoft in a position to
extend its monopoly to the Internet itself." ProComp is a
Washington DC based group that is devoted to the criticism of
Microsoft, that is funded by competitors of Microsoft. See
also, ProComp's summary
of its paper, and Microsoft's .NET web section. |
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| About Tech Law Journal |
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