| FTC Files Administrative
Complaint Against Rambus |
6/19. The Federal Trade
Commission (FTC) filed an administrative complaint
against Rambus alleging anti competitive behavior in violation
of Section 5 of the Federal Trade Commission Act (FTCA) in
connection with its participation in a standard setting body
for dynamic random access memory products. See also, FTC release.
Rambus is a Delaware
corporation based in Los Altos, California, that develops and
licenses designs for computer memory products. Its ticker
symbol is RMBS.
The complaint pertains to Rambus's participation in he JEDEC
Solid State Technology Association, which was formerly known
as the Joint Electron Device Engineering Council. JEDEC
develops and issues technical standards for a form of computer
memory known as synchronous dynamic random access memory (SDRAM).
The complaint alleges that Rambus "has illegally
monopolized, attempted to monopolize, or otherwise engaged in
unfair methods of competition in certain markets relating to
technological features necessary for the design and
manufacture of a common form of digital computer memory, known
as dynamic random access memory, or ``DRAM.´´"
The FTC alleges that Rambus engaged in anticompetitive
behavior in violation of Section 5 of the FTCA by
"participating in the work of an industry standard
setting organization, known as JEDEC, without making it known
to JEDEC or to its members that Rambus was actively working to
develop, and did in fact possess, a patent and several pending
patent applications that involved specific technologies
proposed for and ultimately adopted in the relevant standards.
By concealing this information -- in violation of JEDEC's own
operating rules and procedures -- and through other bad faith,
deceptive conduct, Rambus purposefully sought to and did
convey to JEDEC the materially false and misleading impression
that it possessed no relevant intellectual property
rights."
Section 5 of the FTCA, codified at 15 U.S.C.
§ 45, provides, in part, that "Unfair methods of
competition in or affecting commerce, and unfair or deceptive
acts or practices in or affecting commerce, are hereby
declared unlawful."
The complaint alleges three violations. First, it alleges that
"Rambus has willfully engaged in a pattern of
anticompetitive and exclusionary acts and practices,
undertaken over the course of the past decade, and continuing
even today, whereby it has obtained monopoly power in the
synchronous DRAM technology market and narrower markets
encompassed therein -- namely, the latency, burst length,
clock synchronization, and data acceleration markets discussed
above -- which acts and practices constitute unfair methods of
competition in violation of Section 5 of the FTC Act."
Second, the complaint alleges that "Rambus has willfully
engaged in a pattern of anticompetitive and exclusionary acts
and practices, undertaken over the course of the past decade,
and continuing even today, with a specific intent to
monopolize the synchronous DRAM technology market and narrower
markets encompassed therein, resulting, at a minimum, in a
dangerous probability of monopolization in each of the
aforementioned markets, which acts and practices constitute
unfair methods of competition in violation of Section 5 of the
FTC Act."
Third, the complaint alleges that "Rambus has willfully
engaged in a pattern of anticompetitive and exclusionary acts
and practices, undertaken over the course of the past decade,
and continuing even today, whereby it has unreasonably
restrained trade in the synchronous DRAM technology market and
narrower markets encompassed therein, which acts and practices
constitute unfair methods of competition in violation of
Section 5 of the FTC Act."
The FTC also set a hearing date of September 18, 2002.
Rambus SVP and General Counsel John Danforth stated in a release
that "We believe we have established that Rambus fully
complied with JEDEC's disclosure policy and that Rambus had no
undisclosed patents, or even applications, during the relevant
time period that read on any proposed JEDEC standard ... At
the end of the day, we believe that the FTC process, either at
the administrative level or on appeal, will conclude that our
actions were entirely appropriate and lawful."
The Rambus release also states that "The FTC's complaint
stems from the same facts and the same core allegations as are
currently being litigated in multiple private lawsuits,
including the Infineon case, tried last year in Virginia, for
which an appeal was heard before the United States Court of
Appeals for the Federal Circuit on June 3, 2002. Two United
States District Courts -- those hearing the Micron and Hynix
cases -- have delayed their cases pending resolution of the
Infineon appeals." |
|
|
| 700 MHz Auctions Delayed |
6/19. On June 18, the Senate passed HR 4560,
the Auction Reform Act of 2002, which delays most of the 700
MHz auctions. The House passed the bill on May 7. On June 19,
President Bush signed the bill. See, White
House release.
The Federal Communications
Commission (FCC) had scheduled Auction 44 for
June 19. Earlier this week, it postponed it for one day. On
May 24, 2002, the FCC announced that Auction 31 was
postponed until January 14, 2003, but that Auction 44 would
proceed on June 19, 2002. See, FCC's May 24 notice
of postponement.
The FCC issued a release on June 19 stating that "Bidders
are advised that Auction No. 44 has been postponed and will
not begin on June 20, 2002. Legislation has been passed by
Congress and signed by the President directing the Commission
to postpone the auction of certain spectrum licenses
previously included in the Auction No. 44 inventory, and to
commence the auction of the licenses in the C and D blocks of
the Lower 700 MHZ band beginning no earlier than August 19,
2002, and no later than September 19, 2002."
The bill just enacted provides that "Except as provided
in subparagraph (C), the Commission shall not commence or
conduct auctions 31 and 44 on June 19, 2002, as specified in
the public notices of March 19, 2002, and March 20, 2002 (DA
02-659 and DA 02-563)." Subparagraph (C) then provides
that "Subparagraph (B) shall not apply to the auction of
-- (I) the C-block of licenses on the bands of frequencies
located at 710-716 megahertz, and 740-746 megahertz; or (II)
the D-block of licenses on the bands of frequencies located at
716-722 megahertz." Subparagraph (C) further provides
that auctions for these exempted bands "shall be
commenced no earlier than August 19, 2002, and no later than
September 19, 2002".
National Telecommunications
and Information Administration (NTIA) Director Nancy
Victory stated in a release
that "I welcome Congress's action last night to delay the
pending auctions of spectrum in the 700 MHz bands. It showed
that sound spectrum policy triumphed over counterproductive
deadlines. With the additional time, the FCC, the broadcasters
and the potential bidders for the spectrum should work
diligently to remove the uncertainties regarding when the
spectrum can best be put to use for American consumers. The
Administration stands ready to assist in that effort."
The Congressional findings recited in the bill state that
"Circumstances in the telecommunications market have
changed dramatically since the auctioning of spectrum in the
700 megahertz band was originally mandated by Congress in
1997, raising serious questions as to whether the original
deadlines, or the subsequent revision of the deadlines, are
consistent with sound telecommunications policy and spectrum
management principles." The Congressional findings also
recite that "No comprehensive plan yet exists for
allocating additional spectrum for third generation wireless
and other advanced communications services. The Federal
Communications Commission should have the flexibility to
auction frequencies in the 700 megahertz band for such
purposes."
The Cellular
Telecommunications and Internet Association (CTIA) praised
passage of the bill. See, release. |
|
|
| Broadband Coalition
Supports FCC Conclusion on Cable Modem Service |
6/19. The High Tech Broadband Coalition (HTBC) submitted a comment
[PDF] to the Federal
Communications Commission (FCC) in its proceeding
regarding the appropriate regulatory classification of cable
modem service.
The HTBC wrote that it "supports the Commission's
conclusion that cable modem service is an interstate
information service that does not involve a separate offering
of telecommunications. To the extent that any cable operator
is offering unaffiliated Internet service providers (``ISPs´´)
stand alone transmission service, that offering is private,
not common, carriage. Thus, cable modem service is outside the
bounds of Title II regulation, and the Commission cannot, and
should not, require multiple ISP access. Maintaining the
current deregulatory environment for cable modem service will
spur continued investment and innovation in broadband
technologies."
The HTBC is a recently formed group composed of the Business Software Alliance (BSA),
Consumer Electronics Association
(CEA), Information Technology Industry Council (ITIC), National Association of
Manufacturers (NAM), Semiconductor
Industry Association (SIA), and Telecommunications Industry
Association (TIA). The FCC's proceeding is CS Docket No.
02-52. |
|
|
|
| Sen. Grassley Writes Ridge
Re Cyber Security Provisions of DHS Bill |
6/19. Sen. Charles
Grassley (R-IA) wrote a letter to Tom Ridge, Director of
the Office of Homeland Security, regarding the President
Bush's proposed
legislation to create a new Department of Homeland
Security. He asked several questions pertaining to cyber
security, information sharing, and intelligence gathering.
Sen. Grassley wrote that "The Information Analysis and
Infrastructure Protection Division within the new Department
will combine such entities as part of the National Infrastructure Protection
Center (NIPC) from the FBI, the Critical Infrastructure Assurance
Office (CIAO) from Commerce, and the Federal Computer
Incident Response Center from the General Services Administration
(GSA), among others. How does the Administration perceive this
division working with the other federal infrastructure
protection concerns not brought under the jurisdiction of the
new department?"
He also asked "Will the current full time employees
dedicated to these organizations be moved to the new
department, i.e, the 795 FBI employees, the 27 Commerce
employees, and the 23 GSA employees, in addition to the
numerous detailees?"
Sen. Grassley is a senior member of the Senate Judiciary
Committee, which has oversight jurisdiction regarding the Department of Justice (DOJ)
and Federal Bureau of
Investigation (FBI). Under the President's proposed
legislation, this Committee's jurisdiction would be reduced,
for example, by the removal of the NIPC from the FBI, and by
removal of the Immigration and
Naturalization Service (INS) from the DOJ.
Sen. Grassley also asked "What role will the President's
Critical Infrastructure Protection Board (CIPB), the office
headed by Richard Clarke, play in this new division?"
He also asked "What provisions have been made to
guarantee the critical transfer of institutional knowledge, in
addition to employees, hardware, and open cases?
Sen. Grassley also posed numerous questions regarding
intelligence gathering, sharing and analysis. He asked about
"turf issues" involving the new department and the
FBI and Central Intelligence Agency (CIA). He also asked
"Have we gone far enough in this reorganization plan?
Should these organizations also be integrated into the
Department of Homeland Security?"
Finally, he inquired about several technology issues. He
wrote: "Sharing this information is important, but what
exactly happens to it once it is received is critical. I'm
referring to technology: data mining and link analysis, in
addition to human intelligence. The application of
commercially available software, let alone some proprietary
confidential technology, will surely improve our ability to
identify trends, patterns of behavior, and the precursors of
an imminent attack. The proper handling and appropriate
accountability thereof will prevent the mistakes previously
made by our intelligence community. What new techniques does
the department propose to employ that will ensure that
intelligence information is handled and analyzed
correctly?"
Sen. Grassley's letter also addresses whistle blowers, agency
oversight, fiscal responsibility and other matters. |
|
|
|
|
|
| Bush Speaks on Department
of Homeland Security |
6/19. President Bush gave a speech
in Washington DC to the United Brotherhood of Carpenters and
Joiners. He spoke about terrorism and his proposal to create a
new Department of Homeland Security.
He stated that "I proposed a new Cabinet department. I
want to explain quickly why I did so. There are over 100
agencies involved with homeland defense, and they're scattered
all throughout Washington. It makes it difficult to do a job
if you're trying to chase down 100 different agencies, because
they're in different departments."
"What we need to do is to bring these agencies under one
Cabinet Secretary, organize it so that information flows
freely, organize it so there's responsibility and authority so
we can have accountability, and help change cultures in
agencies to the primary responsibility of the day, which is to
protect the American homeland," said Bush.
"It's going to be a little difficult, because there is a
tendency on Capitol Hill for people to what they call protect
their turf. In other words, if you've got responsibility over
funding one agency and that agency is going to be moved away
from you, you might be somewhat resistant. And what I'd like
to do is to call upon Congress -- and I hope you do, as well
-- to think first and foremost about how best to protect the
homeland, not how best to protect their political turf."
The President concluded that "we've got to match those
threats with a new way of thinking, which means we've got to
do a better job of collecting and sharing intelligence."
President Bush also gave a dinner speech in Washington DC in
which he addressed the new department. He stated that
"There are over 100 different agencies that have
something to do with the homeland. And they're scattered
everywhere, which makes it awfully hard to align authority and
responsibility." He urged "the members of Congress
to think what's best for the country, not what's best for
their particular committee, and allow us to reorganize a
singular function, all aimed at protecting the American people
from attack." |
|
|
| DC Circuit Rules in Verizon
v. FCC |
| 6/18. The U.S.
Court of Appeals (DCCir) issued its opinion
in Verizon
v. FCC, consolidated petitions for review of a Federal Communications Commission
(FCC) order implementing the Section
251 requirement that incumbent local exchange carriers (ILECs)
make available to competitive local exchange carriers (CLECs)
on their premises "physical collocation of equipment
necessary for interconnection or access to unbundled network
elements". The Appeals Court denied the petitions for
review. |
|
|
| More News |
6/19. The Federal
Communications Commission (FCC) approved Verizon's Section
271 application to provide in region interLATA service in
the state of Maine. See, FCC
release [MS Word].
6/19. The Federal Communications
Commission (FCC) submitted its annual
report [PDF] to the Congress on progress made in achieving
the objectives of the Open-market Reorganization for the
Betterment of International Telecommunications Act (ORBIT)
Act.
6/19. The Senate
Commerce Committee's Subcommittee on Science, and
Transportation Communications held a hearing to examine future
sufficiency and stability of the Universal Service Fund. See,
prepared testimony [PDF] of witnesses: Dorothy
Attwood (Chief of the FCC's Wireline Competition Bureau), Nan
Thompson (Chair of the Alaska Public Utilities
Commission), William
Gregg (Director of the West Virginia Consumer Advocate
Division), Lila
Jaber (Florida Public Service Commission), Don
Bond (Public Service Telephone Company), Margaret
Greene (BellSouth), Victoria
Harker (CFO of MCI Group), and Michael
Altschul (Cellular Telecommunications & Internet
Association). |
|
| |
| About Tech Law Journal |
Tech Law Journal publishes a free access web site and
subscription e-mail alert. The basic rate for a subscription
to the TLJ Daily E-Mail Alert is $250 per year. However, there
are discounts for entities with multiple subscribers. Free one
month trial subscriptions are available. Also, free
subscriptions are available for law students, journalists,
elected officials, and employees of the Congress, courts, and
executive branch, and state officials. The TLJ web site is
free access. However, copies of the TLJ Daily E-Mail Alert and
news items are not published in the web site until one month
after writing. See, subscription
information page.
Contact: 202-364-8882; E-mail.
P.O. Box 4851, Washington DC, 20008.
Privacy
Policy
Notices
& Disclaimers
Copyright 1998 - 2002 David Carney, dba Tech Law Journal. All
rights reserved. |
|
|
|
| Thursday, June 20 |
The House will meet at 10:00 AM for legislative business.
The Supreme Court will return from recess.
8:00 AM - 4:00 PM. The NIST
will host an event titled NIST
Nanotechnology Open House. Location: NIST, Gaithersburg,
MD.
9:30 AM. The Senate
Governmental Affairs Committee will hold a hearing to
examine the President's proposal to create a Department of
Homeland Security.
10:00 AM. The Senate
Judiciary Committee will hold an executive business
meeting. The agenda includes mark up of S 1754,
a bill to authorize appropriations for the USPTO for FY
2002 through FY 2007, 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. The agenda also includes
consideration of several judicial nominees, including Lavenski
Smith, U.S. Court of Appeals (8thCir), and John Rogers, U.S.
Court of Appeals (6thCir). See, agenda.
Press contact: Mimi Devlin at 202 224-9437. Location: Room
226, Dirksen Building.
1:00 PM. The FTC and others will hold
a press conference to announce more than 50 law enforcement
actions targeting business opportunity and work at home scams.
The scheduled participants include Howard Beales (Director of
the FTC's Bureau of Consumer Protection), Dale Cantone (Deputy
Securities Commissioner of the State of Maryland), and Laura
Flippin (Department of Justice). See, FTC release.
Location: FTC, Room 432, 600 Pennsylvania Ave., NW.
2:00 PM. The House
Judiciary Committee's Subcommittee on Courts, the Internet
and Intellectual Property will hold an oversight hearing
titled Patent Reexamination and Small Business Innovation.
Webcast. Press contact: Jeff Lungren or Terry Shawn at 202
225-2492. Location: Room 2141, Rayburn Building.
CANCELLED. The FCC will
conduct Auction
44, pertaining to spectrum in the 700 megahertz band. On
May 24, 2002, the FCC announced that Auction 31 is
postponed until January 14, 2003, but that Auction 44 will
proceed on June 19, 2002. See, FCC notice
of postponement. On June 18, the FCC postponed the auction
until June 20. The bidding periods are 9:00 - 11:00 AM and
2:00 - 4:00 PM.
Day three of a four day conference titled "INET 2002:
Internet Crossroads: Where Technology and Policy
Intersect". See, conference
information page. Location: Crystal Gateway Marriott,
Arlington, VA.
The FCC's Technological Advisory
Council will hold a meeting. Location: FCC, 445 12th St.,
SW., Room TW-C305. |
|
| |
| Friday, June 21 |
The House will meet at 9:00 AM for legislative business.
8:30 - 9:30 AM. The U.S.
Chamber of Commerce will host a breakfast. The speaker
will be Nick Calio, Assistant to the President for
Legislative Affairs. Webcast. Location: 1615 H Street, NW.
9:00 AM. FTC Commissioner Mozelle
Thompson will be the keynote speaker at the National
Energy Marketers Association's Annual Membership Meeting.
Location: Marriott Metro Center, 775 12th Street, NW.
1:00 PM. The FCC will hold a
meeting to receive input from industry and other affected
parties on proposals to reform the FCC's universal service
contribution methodology. See, notice
[PDF]. Location: FCC, Room TW-C305, 445 12th Street, SW.
1:30 - 3:30 PM. The U.S. International Telecommunication
Advisory Committee Telecommunication Advisory Committee
Radiocommunication Sector (ITAC-R) will hold a meeting. The
purpose of the Committee is to advise the Department of State
on policy and technical issues with respect to the
International Telecommunication Union (ITU). This meeting will
address activities of the Study Groups of the ITAC-R,
preparations for the upcoming WRC-03 and guidelines for ITAC-R
participation. See, notice
in Federal Register. Location: Department of State, Room 1408.
Day four of a four day conference titled "INET 2002:
Internet Crossroads: Where Technology and Policy
Intersect". See, conference
information page. Location: Crystal Gateway Marriott,
Arlington, VA. |
|
| |
| Saturday, June 22 |
| 10:00 AM - 5:00 PM. The Electronic
Privacy Information Center (EPIC) and others will host an
event titled "The Public Voice in Internet Policy
Making". At 10:10, Paul Margie, Legal Advisor to FCC
Commissioner Michael
Copps will speak on "Privacy Challenges for Internet
Users in Europe". Following Margie, Erika Mann, a Member of
the European Parliament, will speak. See, agenda.
RSVP to publicvoice02
@epic.org. For more information contact Sarah Andrews at andrews @epic.org.
Location: Crystal
Gateway Marriott, 1700 Jefferson Davis Highway, Arlington,
VA. |
|
| |
| Monday, June 24 |
10:00 AM - 1:00 PM. The FCC will hold
an en banc hearing on broadcast and cable equal employment
opportunity rules. Location: Room TW-C305, FCC, 445 12th
Street, SW.
Day one of a two day conference hosted by the Computer & Communications
Industry Association (CCIA)
titled "2002 Washington Caucus". The scheduled
speakers include Glenn Hubbard (Council of Economic Advisors),
Rep. Nancy Pelosi
(D-CA), Sen. Chuck Hagel
(R-NE), Mozelle Thompson (FTC), Bruce Mehlman (Technology Administration), Rep. Howard Berman
(D-CA), and Rep. Zoe
Lofgren (D-CA). See, CCIA notice.
Location: Willard Hotel. |
|
| |
| Tuesday, June 25 |
9:30 - 11:30 AM. The FCC's WRC-03
Advisory Committee, Informal Working Group 7: Regulatory
Issues and Future Agendas will meet. Location: Boeing Company,
1200 Wilson Blvd. Arlington, VA.
10:00 AM. The Senate
Judiciary Committee's Subcommittee on Technology,
Terrorism, and Government Information will hold a hearings on
the President's proposal for reorganizing homeland defense
infrastructure. Location: Room 226, Dirksen Building.
1:00 PM. The Senate
Commerce Committee's Subcommittee on Science, Technology,
and Space, and the House
Science Committee will hold a joint hearing to examine
science and technology to combat terrorism. Location: Room
2318, Rayburn Building.
Day two of a two day conference hosted by the Computer & Communications
Industry Association (CCIA)
titled "2002 Washington Caucus". The scheduled
speakers include Glenn Hubbard (Council of Economic Advisors),
Rep. Nancy Pelosi
(D-CA), Sen. Chuck Hagel
(R-NE), Mozelle Thompson (FTC), Bruce Mehlman (Technology Administration), Rep. Howard Berman
(D-CA), and Rep. Zoe
Lofgren (D-CA). See, CCIA notice.
Location: Willard Hotel. |
|
| |
| Wednesday, June 26 |
8:30 AM - 2:00 PM. The Progressive
Policy Institute (PPI) will host a conference on President
Bush's proposal to establish a Department of Homeland
Security, including how technology and private sector
entrepreneurial talents can be tapped to help break down the
bureaucratic barriers to sharing information and assessing
threats. The scheduled speakers include Sen. Joe Lieberman
(D-CT), Rep. Ellen
Tauscher (D-CA), Rep.
James Moran (D-VA), Rob Atkinson (PPI's Technology &
New Economy Project), John Cohen (PPI), and Thomas Siebel
(Ch/CEO of Siebel Systems). See, PPI
notice. Location: The Hotel Washington, 515 15th Street,
NW.
9:30 AM. The Senate
Governmental Affairs Committee will hold a hearing to
examine the relationship between a Department of Homeland
Security and the intelligence community. Location: Room 342,
Dirksen Building.
10:00 AM. The Senate
Judiciary Committee will hold a hearing to examine the
President's proposal for reorganizing our homeland defense
infrastructure. Location: Room 226, Dirksen Senate Office
Building.
10:00 AM. The House
Commerce Committee's Subcommittee on Telecommunications
and the Internet will hold a hearing titled Area Code
Exhaustion: What are the Solutions? Webcast. Location:
Room 2322, Rayburn Building.
6:30 - 8:30 PM. The FCBA's
Young Lawyers Committee and Georgetown University Law Center (GULC)
will hold a CLE seminar titled Accounting Issues for
Telecommunications Lawyers. For more information, contact
the GULC at 202 662-9890 or cle@law. georgetown.edu.
Location: Piper Marbury Rudnick & Wolfe, 1200 19th Street,
NW. |
|
|