| Sun Sues Microsoft |
3/8. Sun Microsystems
filed a complaint
[7MB in PDF] in U.S.
District Court (NDCal) against Microsoft alleging
violation of federal and California antitrust laws, and
copyright infringement. Sun also filed a Motion for
Preliminary Injunction [3MB in PDF]. Sun recently settled
a 1997 lawsuit against Microsoft. The 76 page complaint seeks
a crippling set of regulations of Microsoft's software design
and licensing practices, as well as treble damages.
The suit, which is built upon the opinion
[125 pages in PDF] of the U.S. Court of Appeals (DCCir)
in U.S. v. Microsoft, 253 F.3d 34, alleges that
Microsoft illegally maintained monopoly power over the market
for Intel compatible PC operating systems by engaging in
anticompetitive acts that impeded the distribution and/or use
of Sun's Java.
Alleged Violations. The complaint alleges illegal
maintenance of an Intel compatible PC operating system
monopoly in violation of § 2 of the Sherman Act, illegal
monopolization of a web browser market in violation of
§ 2 of the Sherman Act, unlawful tying of MSIE to
Windows operating systems in violation of § 1 of the
Sherman Act, attempted monopolization of a workgroup server
operating system market in violation of § 2 of the
Sherman Act, unlawful tying of Windows server operating system
to Windows PC operating systems in violation of § 1 of
the Sherman Act, unlawful tying of IIS web server software to
Windows workgroup server operating systems in violation of
§ 1 of the Sherman Act, unlawful tying of the .NET
framework to Windows PC and workgroup server operating systems
in violation of § 1 of the Sherman Act, exclusive
dealing in violation of § 1 of the Sherman Act, and
illegal monopolization of the Office suite in violation of
§ 2 of the Sherman Act.
The complaint also alleges two violations of California state
law: the California Cartwright Act, and unfair competition.
Finally, the complaint alleges copyright infringement. Sun
alleges that Microsoft has distributed an unlicensed
implementation of the Java Runtime Environment.
Relief Requested. Sun seeks declaratory, injunctive,
and monetary relief. It seeks an injunction against
distribution of any Microsoft Windows PC operating system, or
the .NET Framework, "unless Microsoft distributes the
most current, unmodified binary implementation of the Java
Runtime Environment for Windows provided by Sun to Microsoft,
and ensures it is installed and enabled as the default Java
Runtime Environment for any and all configurations of such
products ..."
Sun also seeks to compel Microsoft to disclose to the public
the source code for any Microsoft browser product, including a
"complete specification of all interfaces and protocols
between such browser product and any Microsoft operating
system or middleware product"; Sun also seeks to compel
Microsoft to give free licenses to "use and distribute
products implementing or derived from Microsoft's source code
..."
Sun also seeks an injunction against bundling IIS with any
Windows server OS.
Sun seeks an injunction against "distributing any
Microsoft product that subsets or supersets any published
standard or protocol approved by and available for
non-discriminatory license through an independent,
internationally recognized industry standards
organization".
Sun also seeks to compel Microsoft to publicly disclose and
license for free "all interfaces, protocols, and
technical information that Microsoft employs to enable
Microsoft's PC operating system to interoperate effectively
with applications and/or platform software (e.g. workgroup
server operating systems, middleware, etc.) installed on that
or any other device, including (without limitation) any PC,
server, telephone, personal digital assistant or set-top
box".
Finally, Sun seeks an injunction against "distributing
Microsoft's Virtual Machine for Java unless it is shipped as
an integrated component" and in Sun's version.
AOL Time Warner also filed, in January, a complaint against
Microsoft alleging violation of antitrust law.
The lawsuit was filed in San Jose, California. Sun demanded a
jury. Sun's attorneys of record are Day Casebeer, Brobeck Phleger, and Clifford Chance.
Lead counsel is Lloyd Day.
See also, Sun
release. |
|
|
| FTC Sues Information
Brokers for Pretexting |
3/8. The Federal Trade
Commission (FTC) announced that it filed three civil
complaints in U.S. District Courts against information brokers
alleging violation of the Federal Trade Commission Act and the
Gramm Leach Bliley Act in connection with the practice of
pretexting, or obtaining confidential financial information
under false pretexts. The FTC also announced that it settled
the three lawsuits.
See, for example, complaint
[PDF] and stipulated
final judgment [PDF] in FTC v. Information Search, Inc.
This complaint alleges that "To obtain customer
information, defendants use, or cause others to use, false
pretenses, fraudulent statements, fraudulent or stolen
documents or other misrepresentations, including posing as a
customer of a financial institution, to induce officers,
employees, or agents of financial institutions (and persons
defendants believe to be such officers, employees, or agents)
to disclose customer information."
The complaint further alleges that defendants advertised and
sold their services on the web. Under the terms of the
settlement, defendants will cease their practice of pretexting,
and not disclose information acquired by pretexting.
Howard Beales, Director of the FTC's Bureau of Consumer
Protection, stated in a release
that "The clients of pretexters are often law firms and
other businesses. These buyers should beware because knowingly
obtaining pretexted information is illegal as well." |
|
|
| House Committee Holds
Hearing on Math Science & Engineering Grants |
3/7. The House
Science Committee's Subcommittee on Research held a
hearing titled "Meeting the Demands of the Knowledge
Based Economy: Strengthening Undergraduate Science,
Mathematics and Engineering Education". The hearing
also focused on HR 3130
and S 1549,
the "Technology Talent Act".
These companion bills would authorize the appropriation of $25
Million for Fiscal Year 2002, and such sums as necessary for
the succeeding years, to create a competitive grant program at
the National Science Foundation
(NSF) to fund institutions to bring more students into
science, mathematics, and engineering programs. Congress
provided $5 Million in FY02 and $2 Million for FY03 for a
pilot program.
See, prepared testimony of Carl
Weiman (University of Colorado), Steven
Johnson (Sinclair College), Kathleen
Howard (Swarthmore), Narl
Davidson (Georgia Tech), and Daniel
Wubah (James Madison University). |
|
|
| People and Appointments |
3/5. Amazon.com
announced that Chief Financial Officer Warren Jenson
intends resign later this year. See, Amazon
release.
3/9. Sen. Fred Thompson
(R-TN) announced that he will not seek re-election to the
Senate. |
|
|
|
| Stimulus Bill Signed Into
Law |
3/8. The Senate passed HR 3090,
by a vote of 85-9. See, Roll
Call No. 44. The House passed the bill on March 7; the
Senate agreed to the House version; and President Bush signed
the bill on March 9. See also, President Bush's remarks
at the signing ceremony.
This bill is now titled the "Job Creation and Worker
Assistance Act of 2002". It previously went by the name
of the "Economic Security and Recovery Act of 2001".
The bill will, among other things, extend jobless benefits by
another 13 weeks. However, much of the bill relates to
reductions of taxes on businesses, such as an acceleration of
depreciation, and increased expensing.
Walter McCormick, P/CEO of the U.S.
Telecom Association, stated in a release
that the bill "will have a positive influence on the
struggling telecommunications industry by encouraging new
investments and creating more jobs for telecom workers. The
legislation includes a key provision to allow for 30 percent
accelerated depreciation on equipment purchases." |
|
|
| FCC to Address
Classification of Cable Internet Access |
3/8. The Federal
Communications Commission (FCC) announced the agenda for
its Thursday, March 14, meeting. It includes consideration of
a Declaratory Ruling and Notice of Proposed Rulemaking (NPRM)
addressing the legal classification and the appropriate
regulatory framework for broadband access to the Internet over
cable system facilities. This is GN Docket No. 00-185.
The agenda also includes consideration of a Report and Order
concerning streamlined procedures for transfer of control
applications by domestic telecommunications carriers pursuant
to § 214 of the Communications Act of 1934 (CC Docket No.
01-150), and consideration of an Order and NPRM concerning
charges for changing end users' presubscribed interexchange
carriers (CCB/CPD File No. 01-12 and RM No. 10131).
Finally, the agenda includes consideration of a NPRM
concerning mitigation of orbital debris by satellite systems,
and consideration of a NPRM inviting comments on how best to
remedy interference to 800 MHz band public safety systems.
See, FCC
notice. |
|
|
| FCC to Require Truth and
Accuracy |
3/8. The Federal
Communications Commission (FCC) published a notice
in the Federal Register in which it stated that it has
initiated a rule making proceeding to revise Section 1.17 of
its rules, pertaining to making truthful statements to the
FCC. The notice states that the FCC proposes to revise the
rule to "(1) To provide that the rule prohibits incorrect
statements or omissions that are the result of an intent to
deceive or negligence; (2) to make clearer that the rule
covers statements made to the Commission in all contexts; (3)
to include oral statements and not just written statements;
and (4) to include all persons making statements to the
Commission (e.g., including non-regulatees)."
The ruled would be amended to read as follows: "Sec. 1.17
Truthful and accurate statements to the Commission. (a) The
Commission or its representatives may, in writing, require
written statements of fact relevant to the determination of
any matter within the jurisdiction of the Commission. (b) No
person shall, in any written or oral statement of fact
submitted to the Commission, intentionally or negligently
provide incorrect material information or intentionally or
negligently omit any material information bearing on any
matter within the jurisdiction of the Commission." See,
Federal Register, March 8, 2002, Vol. 67, No. 46, at Pages
10658 - 10659. |
|
|
| DC Circuit Rules in
Copyright Case |
3/8. The U.S.
Court of Appeals (DCCir) issued its opinion
in Sturdza
v. United Arab Emirates, a case involving
alleged copyright infringement, and other claims.
This is a dispute between architects over a design for a new
embassy for the United Arab Emirates (UAE). Elena Sturdza
filed a complaint in U.S.
District Court (DC) against the UAE and Angelos Demetriou,
another architect, alleging copyright infringement in
connection with the alleged theft of her design for the UAE's
new embassy. The District Court granted summary judgment to
the defendant's, based on its conclusion that no jury could
find Demetriou's design "substantially similar" to
Sturdza's.
The Appeals Court reversed. It concluded that "Demetriou's
design, though different in some ways from Sturdza's (as the
district court thought), is sufficiently similar with respect
to both individual elements and overall look and feel for a
reasonable jury to conclude that the two are substantially
similar." (Parentheses in original.)
The Appeals Court also addressed the use of expert
witnesses in copyright cases. Sturdza had sought to
introduce such testimony on the issue of substantial
similarity.
The Appeals Court noted that "Until recently, expert
evidence was permitted only to help juries determine ``whether
... the alleged infringer used the copyrighted work in making
his own´´ (actual copying), not to determine ``whether ...
the copying was ... an unlawful appropriation´´ (substantial
similarity)", citing Whelan Assocs. v. Jaslow Dental
Lab., 797 F.2d 1222 at 1232 (3d Cir. 1986).
The Appeals Court noted, however, that "A growing number
of courts now permit expert testimony regarding substantial
similarity in cases involving computer programs, reasoning
that such testimony is needed due to the ``complexity and
unfamiliarity [of computer programs] to most members of the
public", citing Whelan and Computer
Associates v. Altai, 982 F.2d 693, at 713-14 (2d Cir.
1992).
Also, the Court wrote that "Neither we nor any other
circuit, however, has considered whether expert evidence is
admissible to show substantial similarity of architectural
works, nor has any circuit other than the Fourth approved the
use of such evidence outside the computer program
context." In the end, the Appeals Court left the matter
to be resolved by the District Court on remand. |
|
|
| More News |
3/7. The General Accounting
Office (GAO) released a report [75
pages in PDF] titled "Identity Theft: Prevalence and Cost
Appear to be Growing".
3/8. The Securities and Exchange
Commission (SEC) announced that it filed a civil complaint
in the U.S.
District Court (MDLa) against Harral Dunbar, individually
and dba Ghost International, an Internet web site operation.
The complaint alleges violation of federal securities laws in
connection with the fraudulent sale of securities over the
Internet. The District Court entered a temporary restraining
order on March 4 freezing defendants' assets. This is D.C. No.
02-233-B-M1. See, SEC
release.
3/8. The Federal Communications
Commission (FCC) issued a notice
regarding the status of unprocessed mail. It stated that
"The Commission possesses a large volume of unprocessed
mail received from USPS during late January 2002, as well as
an additional quantity received in late October and early
November 2001 following the discovery of anthrax contamination
on Capitol Hill and at certain USPS mail processing
facilities. All of this mail has been commercially cleansed
and is now being processed for delivery within the Commission.
We expect the processing and delivery of all backlogged mail
to be completed by March 29, 2002." |
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| Monday, March 11 |
The House will meet at 2:00 PM in pro forma session only.
The Senate will meet at 3:00 PM and resume consideration of
the energy reform bill.
8:30 - 10:00 AM. The American
Enterprise Institute (AEI) will host a press breakfast on
the topic "Taxing Broadband". Harold Furchtgott-
Roth and other AEI scholars will speak. RSVP to Veronique
Rodman at (202) 862-4871 or vrodman
@aei.org. Location: AEI, 1150 17th Street, NW, 11th Floor
Conference Room.
8:30 AM - 12:00 NOON. The Information
Technology Association of America (ITAA) and the Center for Strategic and
International Studies (CSIS) will co-host a conference
titled "Managing Identity and Authentication on the
Internet". John Hamre (CSIS) will speak at 8:30 AM.
Harris Miller (ITAA) will speak at 8:40 AM. Craig Mundie
(Microsoft) will speak at 8:55 AM. There will be a Q&A
Session at 9:30 AM. There will be a panel discussion by
Catherine Allen (BITS), Ari Balogh (VeriSign), Paul Barrett
(Real User), Brian O'Higgins (Entrust), and Lee Holcomb (NASA)
at 9:50 AM. Arthur Coviello (RSA) will speak at 11:10 AM.
Howard Schmidt (President's CIP Board) will speak at 11:30 AM.
See, ITAA
notice. Location: CSIS, B1 Conference Center, 1800 K
Street, NW.
11:00 AM. The FTC's Consumer Protection Bureau will hold a
press conference to announce a law enforcement initiative
targeting deceptive spam that appealed to post 9-11 patriotism
to sell worthless products. See, FTC notice.
Location: FTC, Room 481, 600 Pennsylvania Avenue, NW.
EXTENDED TO APRIL 5. Deadline
to submit comments to the Copyright Office in
response to its Notice of Proposed Rulemaking on "the
requirements for giving copyright owners reasonable notice of
the use of their works for sound recordings under statutory
license and for how records of such use shall be kept and made
available to copyright owners." See, notice
in Federal Register. See, extension notice
in Federal Register. |
|
|
| Tuesday, March 12 |
The House will meet at 12:30 PM for morning hour and 2:00 PM
for legislative business. No votes are expected before 6:30
PM. The House will consider a number of measures under
suspension of the rules.
9:30 AM. The U.S.
Court of Appeals (DCCir) will hear oral argument in USTA
v. FCC, No. 01-1085. Judges Ginsburg, Rogers and Garland
will preside. Location: 333 Constitution Ave. NW.
10:00 AM. The Senate
Appropriations Subcommittee's Subcommittee on Commerce,
Justice, State, and the Judiciary will hold a hearing on the
FY 2003 budget for the Department
of State. Location: Room 138, Dirksen Building.
1:30 PM. The U.S. International Telecommunication Advisory
Committee will hold a meeting. See, notice
in Federal Register. Location: State Department.
5:00 PM. The House Rules
Committee will meet to adopt a rule for consideration of HR
2341, the Class Action Fairness Act of 2001. |
|
|
| Wednesday, March 13 |
The House will meet at 10:00 AM for legislative business.
The House may take up HR
2341, the Class Action Fairness Act of 2001.
7:30 AM. FTC Commissioner Orson
Swindle will speak at the Baltimore Academies Business
Professionals Breakfast on "consumer protection and
competition issues". Location: Pikesville Hilton, 1726
Reistertown Road, Pikesville, MD.
10:00 AM. The House Financial
Services Committee will hold a hearing on HR
3763, the "Corporate and Auditing Accountability,
Responsibility, and Transparency Act of 2002". Location:
Room 2128, Rayburn Building.
10:30 AM. The Senate
Appropriations Subcommittee's Subcommittee on the
Legislative Branch will hold hearings on the FY 2003 budget
for the Library of Congress
and the Congressional Research Service. The Copyright Office is a
part of the LOC. Location: Room 124, Dirksen Building.
10:30 AM. The Senate
Appropriations Subcommittee's Subcommittee on Commerce,
Justice, State, and the Judiciary will hold a hearing on the
FY 2003 budget for the Department
of Commerce. Location: Room 116, Dirksen Building. |
|
|
| Thursday, March 14 |
The House will meet at 10:00 AM for legislative business.
9:30 AM. The FCC will hold a
meeting. See, agenda.
Location: FCC, 445 12th Street, SW, Room TW-C05.
10:00 AM. The Senate
Judiciary Committee will hold a hearing to examine
competition, innovation, and public policy concerning digital
creative works. Location: Room 226, Dirksen Building.
10:00 AM - 12:00 NOON. The House Science Committee's
Subcommittee on Environment, Technology, and Standards will
hold a hearing titled "Technology Administration: Review
and Reauthorization". Location: Room 2318, Rayburn
Building.
11:00 AM. FTC Chairman Timothy
Muris will speak at the 6th Annual Georgetown University
Law Center Corporate Counsel Institute. Location: GULC, 600
New Jersey Ave., NW.
12:00 PM. The FCBA's
will host a luncheon. The speaker will be Craig McCaw,
Ch/CEO of Teledesic. A
reception will begin at 12:00 NOON, followed by lunch at 12:30
PM. RSVP to Wendy Parish at wendy
@fcba.org by 12:00 NOON on Tuesday, March 12. Location:
Capital Hilton Hotel, 16th and K Streets, NW. |
|
|
| Friday, March 15 |
The House will not be in session.
9:00 AM. The AFL-CIO's
Department for Professional Employees will host a panel of
speakers who will advocate retention of the FCC's newspaper
and broadcast cross ownership rules. FCC Commissioner Michael
Copps will speak. See, AFL-CIO
notice. For more information, contact Leandra Kennedy at lkennedy @aflcio.org or
202 638-0320. Location: National
Press Club, Holeman Lounge, 529
14th St. NW, 13th Floor.
11:00 AM. FTC Chairman Timothy
Muris will give the keynote address at the Consumer Federation of
America's Assembly. Location: Washington Plaza Hotel, 10
Thomas Circle.
Deadline to submit comments to the FCC on the World
Radiocommunication Conference Advisory Committee's
recommendations of February 6, 2002, regarding the 2003 World
Radiocommunication Conference (WRC-03). See, FCC
notice [PDF]. |
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