Tech Law Journal Daily E-Mail Alert
October 10, 2002, 9:00 AM ET, Alert No. 527.
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SBC Fined $6 Million for Failing to Provide Shared Transport
10/9. The Federal Communications Commission (FCC) released a Forfeiture Order in which it fined SBC Communications (SBC) $6 Million for "violating a competition related condition that the FCC imposed when it approved the 1999 merger of SBC and Ameritech Corporation".
The order provides that "we find that [SBC] willfully and repeatedly violated one of the conditions that the Commission imposed in its order approving the merger application of [Ameritech] and SBC. Specifically, SBC failed to offer shared transport in the former Ameritech states under terms and conditions substantially similar to those that it offered in Texas as of August 27, 1999, in violation of the SBC/ Ameritech Merger Order." (Footnotes omitted.)
FCC Chairman Michael Powell stated that the order is "the highest in the history" of the FCC, and "a further demonstration of our commitment and resolve to ensure effective enforcement in this area."
Powell elaborated that "After reviewing the merger of SBC and Ameritech, the Commission adopted a set of conditions and incorporated them in its order approving the license transfers. The conditions became the law. SBC then went out and broke the law in five different states by failing to provide shared transport to its competitors. Such unlawful, anti- competitive behavior is unacceptable. Instead of sharing, as the law requires, SBC withheld and litigated, forcing competitors to expend valuable time and resources to exercise their rights under the FCC's order." See, Powell statement.
This is EB-01-IH-0030. See also, FCC release.
FCC and AT&T Enter Into E911 Consent Decree
10/9. The Federal Communications Commission (FCC) released an Order which adopts a consent decree which resolves possible violations of the E911 Phase II rules by AT&T Wireless Services on its GSM network.
The FCC stated that AT&T "has committed to a timeline for deployment of its network based location technology within its Global System for Mobile Communications/ General Packet Radio Service network (GSM network)." The decree sets forth a timetable for deployment of cell sites on AT&T's GSM network. The decree also provides a schedule under which AT&T will provide Phase II service for Public Safety Answering Points (PSAPs) that have filed valid requests for Phase II service. In addition, the decree provides that AT&T "agrees to make a voluntary contribution to the United States Treasury in the amount of Two Million Dollars ($2,000,000)".
FCC Chairman Michael Powell stated that "In addition to a very specific deployment plan for its network, AT&T has agreed to make a voluntary $2 million contribution to the Treasury -- the highest E911 related payment ever. Phase II E-911 deployment has vexed equipment vendors and carriers alike. Nonetheless, national GSM carriers committed to very specific compliance plans -- plans they have been unable to achieve.  Consistent with our rules, the Commission is committed to achieving E-911 Phase II as rapidly as possible. This enforcement action takes a critical step by imposing a substantial cost for the delay and putting in place the first comprehensive deployment plan for a national GSM carrier." See, Powell statement.
This is EB-02-TS-018. See also, FCC release.
Supreme Court Hears Oral Argument Re Copyright Term Extension Act
10/9. The Supreme Court heard oral argument in Eldred v. Ashcroft (Case No. 01-618). This is a constitutional challenge to the Copyright Term Extension Act (CTEA).
The CTEA extended, retroactively, the maximum duration of copyrights from 75 to 95 years. The late Rep. Sonny Bono (R-CA) introduced HR 1621 for this purpose in 1997. However, it was the Senate version, S 505, which ultimately was passed by both the House and Senate. President Clinton signed this bill on October 21, 1998. (See, P.L. 105-298, 112 Stat. 2827. It amends 17 U.S.C. § 304(b).)
A group of law professors, representing Eric Eldred, filed a complaint in U.S. District Court (DC) alleging several grounds for overturning the CTEA. On October 27, 1999, the District Court upheld the CTEA. See, Memorandum of the Court and TLJ story. The professors and Eldred appealed. On February 16, 2001, the U.S. Court of Appeals (DCCir) issued its opinion affirming the District Court. Chief Judge Douglas Ginsburg wrote the opinion; Karen Henderson joined; and David Sentelle dissented. The Court of Appeals also denied plaintiffs' petition for rehearing en banc on July 13, 2001. Sentelle and David Tatel dissented. See, opinion.
While the plaintiffs raised many issues in the District Court, the issues before the Supreme Court are whether the Appeals Court erred in holding that Congress has the power under the Copyright Clause to extend retroactively the term of existing copyrights, and whether the CTEA is immune from challenge under the First Amendment.
See also, Berkman Center case summary and TLJ case summary.
People and Appointments
10/9. Paul Nagle joined the Federal Communications Commission's (FCC) Office of Legislative Affairs (OLA) as an Attorney Advisor. The FCC stated in a release [PDF] that "he will focus primarily on broadband network infrastructure and related peripherals issues". He previously worked for the law firm of Wilkinson Barker & Knauer.
Commerce Department Official Addresses Regional Technology Development
10/8. Chris Israel, Deputy Assistant Secretary for Technology Policy at the Commerce Department, gave a speech to the Rural Telecommunications Congress in Des Moines, Iowa in which he addressed the benefits of technology, the role of technology in regional competitiveness, policies that can promote regional technology development, and broadband demand.
Technology, which Israel said includes everything from "information technology to biotechnology to nanotechnology", is "critical to our nation for many reasons".
He said that it provides "sustainable economic expansion -- creating high wage jobs, world class exports and productivity growth so critical to our long term global competitiveness." It provides innovations that "improve our quality of life". It is also "protect[s] our homeland, hardening our infrastructure, detecting dangers and empowering our defenders."
Israel next stated that technology "is also essential to improving the quality of life and standard of living at the state and local level." Moreover, "State and regional public policies directly impact the pace of economic growth, high wage job creation, and global investment. Decisions made at the local level play a critical role in establishing the environment needed to let innovators innovate and entrepreneurs create jobs, companies, and community wealth."
He listed many things that state and local governments can do, including "Supporting research excellence, at universities, federal labs and industry; protecting intellectual property rights and encouraging technology transfer; providing a certain and navigable regulatory framework that prioritizes innovation; and encouraging linkages and consortia between knowledge creators and commercializers". He also listed "pursuing tax policies that encourage investment and risk capital; supporting trade inside and outside the cluster, encouraging entrepreneurship education at all levels". In addition, he listed improving infrastructure, "such as community transportation systems, energy generation and transmission infrastructure, and zoning and real estate laws".
Finally, Israel stated that "the telecommunications infrastructure is particularly critical in the information age, with broadband networks holding a key to enterprise efficiency and cross  cluster productivity". He then offered a range of state and local policy decisions that can impact broadband deployment.
These recommendations were treated in more detail in a report [25 pages in PDF] written by the Office of Technology Policy, titled "Understanding Broadband Demand: A Review of Critical Issues". It was released last month.
Israel emphasized that state and local governments should "Prioritize bandwidth when considering issues such as rights of way, taxes and application fees, tower siting, zoning, building and construction codes, building access, franchise agreements, historic preservation and environmental protections". They also "should consider ways to aggregate demand to create incentives for carrier deployment".
Finally, Israel touted some of the actions that the Bush administration has taken to promote technology.
More News
10/9. The Federal Communications Commission's (FCC) Media Bureau released two research papers which pertain to its cable ownership rulemaking proceeding, and to its AT&T Comcast merger review. The papers are titled "Asymmetric Bargaining Power and Pivotal Buyers" [PDF] and "Most Favored Customers in the Cable Industry" [PDF]. Both were written by Nodir Adilov of Cornell University and Peter Alexander of the FCC's Media Bureau. The FCC stated in a release [PDF] that these two papers "are not part of the Media Ownership Working Group studies that were recently released and incorporated into the third Biennial Regulatory Review of Broadcast Ownership Rules proceeding." It also stated that the papers "represent the individual views of their authors and do not necessarily reflect the views of the FCC, any FCC Commissioners, or other staff." The FCC released 12 studies of the current media marketplace on October 1.
10/9. The Federal Trade Commission (FTC) is holding a three day public workshop to "explore how certain state regulations and private business practices may be having significantly anticompetitive effects on e-commerce". The series began on Tuesday, October 8, and finishes on Thursday, October 10. See, list of speakers, with links to prepared statements.
10/9. The House Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled "Telecommunications and Trade Promotion Authority: Meaningful Market Access Goals for Telecommunications Services in International Trade Agreements". See, opening statement of Rep. Cliff Stearns (R-FL), Chairman of the Subcommittee. See also, prepared testimony of Leonard Waverman (London Business School), prepared testimony of Larry Darby (Darby Associates), prepared testimony of Scott Harris (Harris Wiltshire & Grannis), prepared testimony of Gregory Sidak (American Enterprise Institute), and prepared testimony of Florizell Liser (Assistant USTR for Industry and Telecommunications). 
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Thursday, October 10
The House will meet at 10:00 AM for legislative business.
9:00 AM. The House Judiciary Committee's Subcommittee on the Constitution will hold an oversight hearing titled "A Judiciary Diminished is Justice Denied: the Constitution, the Senate, and the Vacancy Crisis in the Federal Judiciary". Webcast. Location: Room 2141, Rayburn Building.
9:30 AM. The FCC will hold a meeting. The agenda includes four items. First, the FCC will consider a NPRM concerning the reform of the International Settlements Policy, its international simple resale and benchmarks policy, and the issue of foreign mobile termination rates. (IB Docket No. 96-261). Second, the FCC will consider a First Report and Order regarding digital operation by terrestrial radio broadcasters. (MM Docket No. 99-325). Third, the FCC will a Forefeiture Order concerning compliance with the shared transport condition of the SBC Ameritech merger order. Finally, the FCC's Enforcement Bureau will report on recent enforcement activities. Location: FCC, 445 12th Street, SW, Room TW-C05.
10:00 AM. The House Science Committee will hold a hearing titled "Conducting Research During the War on Terrorism: Balancing Openness and Security." The scheduled witnesses include John Marburger (Director of the White House Office of Science and Technology Policy), Ronald Atlas (Am. Society of Microbiologists), M.R.C. Greenwood (UC Santa Cruz), and Sheila Widnall (MIT). See, notice. Press contacts: Heidi Tringe or Jeff Donald at 202 225-4275. Location: Room 2318, Rayburn Building.
12:00 PM. The Cato Institute will host a book forum. Jagdish Bhagwati (Columbia Univ.) will discuss his book, Free Trade Today, and a collection which he edited, Going Alone: The Case for Relaxed Reciprocity in Freeing Trade. Robert Litan (Brookings) will comment. Webcast. Lunch will follow the program. See, notice. Location: Cato, 1000 Massachusetts Ave., NW.
3:00 PM. The House Judiciary Committee's Subcommittee on Commercial and Administrative Law will meet to mark up HR 5429, the Satellite Services Act of 2002. Webcast. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.
Day two of a two day symposium titled "The Rule of Law in the Information Age: Reconciling Private Rights and Public Interest" hosted by the Catholic University of America School of Law. See, schedule. Location: CUA, Walter Slowinski Court Room.
Day three of a three day public workshop hosted by the FTC to "explore how certain state regulations and private business practices may be having significantly anticompetitive effects on e-commerce". See, FTC release. Location: FTC, 600 Pennsylvania Ave., NW.
Day one of a two day Annual Update Conference on Export Controls and Policy hosted by the Department of Commerce's Bureau of Industry and Security (BIS). See, agenda. Location: to be announced.
Deadline to submit comments to the FCC regarding BellSouth's Section 271 application with the FCC to provide in region interLATA service in the states of Florida and Tennessee. This is WC Docket No. 02-307. See, FCC notice [PDF].
Friday, October 11
The House will meet at 9:00 AM for legislative business.
Day two of a two day Annual Update Conference on Export Controls and Policy hosted by the Department of Commerce's Bureau of Industry and Security (BIS). See, agenda. Location: to be announced.
Deadline to submit comments to the FCC in response to it Public Notice [7 pages in PDF] regarding relief for the Auction No. 35 winners. The FCC asks for public comments regarding two possible scenarios for providing relief to the winning bidders in the January 2001 re-auction of spectrum previously auctioned to NextWave: full refund and option to dismiss all pending applications, and selective opt out for pending applications. See also, notice in Federal Register.
Monday, October 14
Columbus Day. The FCC will be closed. The National Press Club will be closed. 
Tuesday, October 15
9:00 AM - 12:00 NOON. The U.S. Patent and Trademark Office's (USPTO) Technology Center 2800 will hold a Semiconductor Customer Partnership Meeting to discuss the quality and timeliness of the examination process. (2800 pertains to semiconductors, electrical and optical systems and components.) RSVP to Tom Thomas at tom.thomas @uspto.gov or 703 308-2772. See, USPTO notice. Location: Crystal Park 1, Suite 819, 2011 Crystal Drive, Arlington, Virginia.
12:00 NOON. James Rogan (Under Secretary of Commerce for Intellectual Property and Director of the USPTO) will give an address titled "Reaffirming Intellectual Property Rights in an Information Age". See, notice. Press contact: Brigid Quinn at brigid.quinn @uspto.gov or 703 305-8341. Location: Heritage Foundation, 214 Massachusetts Ave., NE.
Day one of a two day conference of the Association Internationale pour la Protection de la Propriété Intellectuelle (AIPPI) titled "How to be Successful with Patent and Trademark Litigation: Europe and the Far East". The agenda includes a business meeting (1:00 - 1:30 PM), a CLE seminar (1:30 - 5:00 PM), and a reception (5:00 - 6:30 PM). Location: Faculty Conference Room, Burns Building, 5th Floor, GWU Law School, 716 20th Street, NW.
Deadline to submit comments to the FCC in response to Qwest Communications' Section 271 application to provide in region interLATA service in the states of Colorado, Idaho, Iowa, Montana, Nebraska, North Dakota, Utah, Washington and Wyoming. This is WC Docket No. 02-314. See, FCC release [PDF].
Wednesday, October 16
9:00 AM - 4:00 PM. The FCC will host a day long conference on rights of way management issues. See, FCC notice [PDF]. For more information contact Kris Monteith or Gene Fullano at 202 418-1400, kmonteit @fcc.gov or gfullano @fcc.gov. Audio web cast. Location: FCC, Commission Meeting Room, 445 12th Street, SW.
10:00 AM. The Senate Appropriations Committee's Treasury and General Government Subcommittee will hold a hearings on U.S. companies' moving their headquarters offshore. Location: Room 192, Dirksen Building.
11:00 AM - 12:00 NOON. James Rogan (Director of the USPTO) and Richard Russell (Associate Director for Technology of the White House Office of Science and Technology Policy) will lead a roundtable discussion on the future of innovation with 37 leading inventors, including Steve Wozniak (computers), Donald Keck and Peter Schulz (fiber optics), and Doug Englebart (mouse). See, list of participants. Press contact: Brigid Quinn at brigid.quinn @uspto.gov or 703 305-8341. Location: Room 4830, Department of Commerce, 14th and Constitution, NW.
1:30 - 3:00 PM. Sam Bodman (Deputy Secretary of Commerce), James Rogan (Director of the USPTO), and 37 leading inventors will hold an awards ceremony commemorating the bicentennial of the USPTO. Press contact: Brigid Quinn at brigid.quinn @uspto.gov or 703 305-8341. Location: Auditorium, Department of Commerce, 14th and Constitution, NW.
6:00 - 8:00 PM. The FCBA's Transactional Practice Committee will host a CLE seminar titled "Bankruptcy Issues in FCC Practice". For more information contact Brian Weimer at 202 371-7604 or Laura Phillips at 202 842-8891. Registrations and cancellations due by 5:00 PM on October 14. Location: Skadden Arps, Conf. Rm. 11 A, 1440 New York Ave., NW.
Day two of a two day conference of the Association Internationale pour la Protection de la Propriété Intellectuelle (AIPPI) titled "How to be Successful with Patent and Trademark Litigation: Europe and the Far East". The agenda includes a CLE seminar (9:30 AM - 1:00 PM). Location: Faculty Conference Room, Burns Building, 5th Floor, GWU Law School, 716 20th Street, NW.