Tech Law Journal Daily E-Mail Alert
November 11, 2002, 9:00 AM ET, Alert No. 546.
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DOJ and Microsoft File Revised Settlement
11/8. The Department of Justice (DOJ) filed a Third Revised Proposed Final Judgment (TRPFJ) with the U.S. District Court (DC) in the Microsoft antitrust action. This TRPFJ revises the previous settlement agreement to include the language required by the Court's orders of November 1, 2002. The DOJ, Microsoft and nine settling states agreed to this TRPFJ in a stipulation.

In addition, Microsoft announced that its board of directors passed a resolution establishing an Antitrust Compliance Committee, for the purpose of executing the duties of the final judgment related to compliance. The three member committee will be comprised of James Cash, Raymond Gilmartin and Ann Korologos. See, release, with copy of resolution.

FCC Adopts 3G Order and NRPM
11/7. The Federal Communications Commission (FCC) adopted, but did not release, a Second Report and Order allocating 90 MHz of spectrum for use by advanced wireless services (AWS), including Third Generation (3G) wireless services. The FCC simultaneously adopted, but did not release a Notice of Proposed Rulemaking (NPRM) that proposes licensing and service rules for this spectrum.

The reallocated spectrum is the 1710-1755 MHz band currently being used by the federal government, and the 2110-2155 MHz band currently being used for multipoint distribution services (MDS) and other services.

3G technologies have the potential to bring broadband Internet access to portable devices.

FCC Commission Michael Copps commented on various European nations' experience with allocating spectrum for 3G services. He said that "I also hope that we will study the European experience with 3G very carefully. Various European countries moved ahead with 3G allocations before we did. Many of these countries allocated large amounts of spectrum to 3G. Despite that, 3G has been less than a success in Europe. What role did government allocations and service rules play? What other factors were at work? We need to know. Those who don't study history are condemned to repeat it."

Tom Wheeler, P/CEO of the Cellular Telecommunications & Internet Association (CTIA), stated in release that "We are very pleased to see the Commission moving ahead with the allocation of additional spectrum for advanced mobile services. Today's action to set aside 90 MHz of harmonized spectrum for these services is the culmination of years of cooperative efforts at the FCC and NTIA. This would not have been possible without the leadership of Commerce Secretary Evans and NTIA administrator Nancy Victory, working with the Administration and the wireless industry. It is gratifying to see these efforts result in an allocation that will help the wireless industry bring innovative services to consumers."

The Telecommunications Industry Association (TIA) President Matthew Flanigan stated in a release that "We commend the commission for acting quickly to allocate the recently identified spectrum for advanced wireless services and for beginning the process of establishing service rules ... These two proceedings will greatly facilitate the introduction of new and innovative wireless product offerings. In addition to the commission, we again thank the Bush administration for its important role in identifying suitable spectrum that will be transferred from exclusive federal use."

The order was issued in ET Docket No. 00-258. For more information about it, contact Jamison Prime at 202 418-7474 or jprime@fcc.gov. The NPRM was issued in ET Docket No. 00-258 and WT Docket No. 02-353. For more information about it, contact John Spencer at 202 418-1310 or jspencer@fcc.gov, or Eli Johnson at 202 418-1310 or ejohnson@fcc.gov.

FCC Adopts Intelligent Transportation Systems NPRM
11/7. The Federal Communications Commission (FCC) announced, but did not release, a Notice of Proposed Rulemaking (NPRM) proposing rules for Intelligent Transportation Systems (ITS).

Specifically, this NPRM seeks comment on licensing and service rules for the 5.850 - 5.925 GHz band for Dedicated Short Range Communications (DSRC) in the ITS Radio Service. ITS provides wireless communications links between moving surface vehicles, and between vehicles and road side units. It has public safety applications, such as avoiding vehicle collisions, emergency vehicle traffic signal preemption, traffic management, and electronic toll collection.

ITS could also have commercial applications. Nancy Zaczek, an attorney advisor in the FCC's Wireless Telecommunications Bureau (WTB), presented the item to the Commissioners. She stated that "we also seek comments on ITS America's recommendation to allow the 5.9 GHz band to be used, not only for public safety uses, but also for non-public safety uses, such as electronic payment for food, fuel or parking".

Tom Sugrue, Chief of the WTB, stated in a press conference afterwards that "the primary purpose is public safety". However, he also quipped about the possibility of using ITS to order coffee from MacDonalds.

Commission Michael Copps, who worked on ITS during his previous employment at the Department of Commerce (DOC), praised the NPRM, stating that this technology will put "some intelligence into our transportation infrastructure". It was adopted by a 4-0 vote.

This is WT Docket No. 01-90. For more information, contact Nancy Zaczek at 202 418-0680 or  nzaczek@fcc.gov.

State Department Official Addresses IPR in India
11/8. Alan Larson, Under Secretary of State for Economic, Business and Agricultural Affairs, gave a speech in Mumbai, India, regarding intellectual property rights.

He acknowledged that "The India Parliament took a positive step toward greater IP protection this past spring when it amended, for the second time, the 1970 patent law." But, he added that "this was only one step, and more are needed." In the context of the pharmaceutical industry, and encouraged India to provide earlier implementation of strong patent legislation, provide for property rights in data, and improve IPR infrastructure and enforcement.

He stated that "many countries of the developing world that do not have strong IPR regimes remain mired in economic stagnation and worse yet, have suffered the negative effects of the ``brain drain.´´ Talented scientists, engineers, artist and inventors leave their home countries where their work is unprotected and migrate to those countries where it is. While this is certainly a boon for those countries -- like the United States -- that receive these immigrants, this process does little to help the developing world."

He continued that "India itself provides an excellent example to share with the world of how the negative effects of lax IPR regimes can be reversed. Just a few years ago, India was losing a battle to retain the best and brightest of its engineers and computer scientists. The lack of an effective copyright law forced those scientists and technicians to emigrate to countries where their hard work could be protected and kept safe from unfair exploitation by competitors seeking easy advantages. The Indian parliament finally passed a copyright law to protect the hard work and creativity of its computer scientists. The result: a burgeoning high tech industry producing some of the world's most advanced software and employing thousands of workers who might otherwise have left India for greener pastures in other parts of the world."

He also addressed music and movie piracy.

House to Take Up Cyber Security Research and Development Act
11/8. The House will likely take up HR 3394, the Cyber Security Research and Development Act, on Tuesday, November 12. The matter will be taken up under suspension of the rules, meaning that it cannot be amended, and requires a two thirds vote for passage. See, Whip Notice.

The House passed its earlier version of the bill on February 7, 2002 by a roll call vote of 400-12. See, Roll Call No. 13. October 16, 2002, the Senate passed its version of the bill, by substituting the language of S 2182, sponsored by Sen. Ron Wyden (D-OR).

The bill authorizes funding for various new research and education programs pertaining to cyber security at the National Science Foundation (NSF) and the National Institute of Standards and Technology (NIST).

The Senate contains some changes to the House version. It requires that the NIST "shall develop, and revise as necessary, a checklist setting forth settings and option selections that minimize the security risks associated with each computer hardware or software system that is, or is likely to become, widely used within the Federal government." It also modifies the bill to conform to HR 5005, the Department of Homeland Security Act.

The House is likely to approve the bill as amended by the Senate

People and Appointments
11/8. Robert Herdman, Chief Accountant of the Securities and Exchange Commission (SEC), resigned.

11/8. The Intellectual Property Owners Association (IPO) elected four new members to its Board of Directors: Mark Costello (Xerox), Andy Gibbs (Patent Café), Sanjay Prasad (Oracle), and Louis Verilli (Unilever).

11/7. Microsoft hired Maggie Wilderotter as Senior Vice President of Business Strategy, effective November 26. She was previously P/CEO of Wink Communications, an interactive TV company. Before that, she was EVP of national operations at AT&T Wireless Services and CEO of AT&T's Aviation Communications Division. Before that, she worked at U.S. Computer Services Inc./Cable Data. Wink was recently acquired by Liberty Broadband Interactive Television, Inc., which in turn, sold it to OpenTV.

11/6. Novell named Thomas Plaskett to its Board of Directors. He was previously the Ch/P/CEO of Pan Am Corp, and P/CEO of Continental Airlines. See, Novell release.

More News
11/8. WorldCom issued a release in which it stated that "In settlement discussions with the Securities and Exchange Commission (SEC), WorldCom advised the agency that, based on very preliminary reviews of past accounting, it expects an additional restatement of earnings which, when added to WorldCom's past restatements, could total in excess of $9 billion."

11/6. Ericsson issued a release in which it stated that "On November 6, the Swedish police have taken three individuals into custody, suspected of espionage or corporate espionage. The three individuals are employed by or have been employed by Ericsson. The three individuals are suspected to have handed over top secret information to a foreign power."

11/7. Yervant Lepejian plead guilty in U.S. District Court (NDCal) to one count of wire fraud in violation of 18 U.S.C. § 1343. Lepejian is a former employee of HPL Technologies. He admitted that he caused false and illusory sales to be recorded as revenue by HPL, and made false statements to HPL's auditors and the Securities and Exchange Commission (SEC). See, USAO release.

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Monday, November 11
Veterans Day. The House will not be in session. The Senate will not be in session. The FCC is closed. Federal Courts are closed.

Deadline to submit comments to the National Institute of Standards and Technology (NIST) regarding its draft publication [62 pages in PDF] titled "Guide to Selecting Information Technology Security Products". This is NIST Special Publication 800-36 (draft). It was written by Timothy Grance, Marissa Myers and Marc Stevens in the NIST's Information Technology Laboratory's Computer Security Division. Send comments to sp800-36@nist.gov.

Deadline to submit comments to the National Institute of Standards and Technology (NIST) regarding its draft publication [78 pages in PDF] titled "Guide to IT Security Services". This is NIST Special Publication 800-35 (draft). It was written by Tim Grance, Joan Hash, Marc Stevens, Kristofor O’Neal, Nadya Bartol and Robert Young  in the NIST's Information Technology Laboratory's Computer Security Division. Send comments to sp800-35@nist.gov.

Deadline to submit comments to the National Institute of Standards and Technology (NIST) regarding its draft publication [66 pages in PDF] titled "Security Considerations in Federal Information Technology Procurements A Guide for Procurement Initiators, Contracting Officers, and IT Security Officials". This is NIST Special Publication 800-4A (draft). It was written by Tim Grance, Joan Hash and Marc Stevens in the NIST's Information Technology Laboratory's Computer Security Division. Send comments to sp800-4@nist.gov.

Tuesday, November 12
The House will meet at 12:30 PM for morning hour, and at 2:00 PM for legislative business. The House will consider a number of measures under suspension of the rules. No recorded votes are expected. The House is scheduled to consider HR 3394, the Cyber Security Research and Development Act. See, Whip Notice.

The Senate will meet at 1:00 PM.

9:00 AM - 6:30 PM. Day one of a two day conference titled "W3C Workshop on the Future of P3P". The topic is the the World Wide Web Consortium's (W3C) Platform for Privacy Preferences Project (P3P). See, agenda. See also, links to copies of submitted papers. Location: Dulles, Virginia campus of America Online, Seriff Auditorium, Creative Center 2, America Online Dulles campus; enter the campus at Creative Center 3 (CC3), 22110 Pacific Blvd, Dulles, VA.

CANCELLED? 9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Z Tel Communications v. FCC, No. 01-1461. This is a challenge to the FCC's order approving Verizon's Section 271 application to provide in region interLATA service in the state of Pennsylvania. Judges Ginsburg, Edwards and Garland will preside. Location: 333 Constitution Ave., NW.

10:00 AM. The Supreme Court will hear oral argument in Moseley v. V. Secret Catalogue, No. 01-1015. This is a trademark case in which the issue is whether the plaintiff in a lawsuit for violation of the Federal Trademark Dilution Act (FTDA) must show actual economic loss. See, story titled "Supreme Court Grants Certiorari in Trademark Case" in TLJ Daily E-Mail Alert No. 416, April 16, 2002, and story titled "INTA Files Amicus Brief in Trademark Dilution Case" in TLJ Daily E-Mail Alert No. 501, September 4, 2002. See, also International Trademark Association's (INTA) amicus curiae brief [39 pages in PDF], and Intellectual Property Owners Association (IPO) amicus curiae brief [18 pages in PDF]. Oral argument begins at 10:00 AM, and this is the second case on the list. Location: One First Street, NE,

10:40 AM. Treasury Secretary Paul O’Neill will give a speech to the Fortune Global Forum. Location: The Ritz-Carlton, Salon 3, 1150 22nd Street, NW.

3:30 - 4:30 PM. The Heritage Foundation will host an address by Rep. Jim Ryun (R-KS) titled "Reforming Congress for a Safer Homeland: The Need for Congressional Committee Reorganization". Location: 214 Massachusetts Ave., NE.

6:00 - 8:00 PM. The FCBA will host a CLE seminar titled "FCC Winter Preview". The panelists will include Donald Abelson (Chief of the FCC's International Bureau), Thomas Sugrue (Chief of the FCC's Wireless Telecommunications Bureau), Kenneth Feree (Chief of the FCC's Media Bureau), and William Maher (Chief of the FCC's Wireline Competition Bureau), and Bryan Tramont (Senior Legal Advisor to FCC Chairman Michael Powell). Location: Sidley Austin, Conference room 6-E.

Wednesday, November 13
The House will meet at 10:00 AM.

9:00 AM - 5:30 PM. Day two of a two day conference titled "W3C Workshop on the Future of P3P". The topic is the the World Wide Web Consortium's (W3C) Platform for Privacy Preferences Project (P3P). See, agenda. See also, links to copies of submitted papers. Location: Dulles, Virginia campus of America Online, Seriff Auditorium, Creative Center 2, America Online Dulles campus; enter the campus at Creative Center 3 (CC3), 22110 Pacific Blvd, Dulles, VA.

9:00 AM. Day one of a two day meeting of Information Systems Technical Advisory Committee (ISTAC) of the Commerce Department's Bureau of Industry and Security (formerly known as the Bureau of Export Administration). The ISTAC advises the BIS on technical questions that affect the level of export controls applicable to information systems equipment and technology. The meeting will be partly open, and partly closed. The agenda for the open portion of the meeting includes a presentation on China's high performance computing market and a presentation on semiconductor manufacturing trends. The agenda for the closed portion of the meeting is secret. See, notice in the Federal Register, October 22, 2002, Vol. 67, No. 204, at Page 64868. Location:  Room 3884, Hoover Building, 14th Street between Pennsylvania and Constitution Avenues, NW.

12:15 PM. The FCBA's Mass Media Practice Committee will host a brown bag lunch. The topic will be radio issues. The speakers will be Peter Doyle (Chief of the FCC's Audio Division) and other FCC staff. RSVP to Barry Umansky at 202 263-4128 or barry.umansky@thompsonhine.com. Location: National Association of Broadcasters, 1771 N St., NW, 1st floor conference room.

6:00 PM. The Center for Democracy and Technology (CDT), Truste, and Privastaff will host a book signing and wine and cheese reception for Ann Cavoukian, Information and Privacy Commissioner of Ontario and co-author of The Privacy Payoff: How Successful Business Build Customer Trust. For more information, contact LuJuan Brooks 202 637-9800 or lbrooks@cdt.org. Location: National Press Club, 529 14th St. NW, 13th Floor.

Thursday, November 14
The House will meet at 10:00 AM.

The Cato Institute will host a day long conference titled "Telecom and Broadband Policy After the Market Meltdown". See, notice. Webcast. Location: Cato, 1000 Massachusetts Ave., NW.

Day one of a three day conference of the Federalist Society. At 1:45 - 3:15 PM there will be a panel titled "Privacy in the Post-September 11 World". The speakers will be Viet Dinh (DOJ), Lino Graglia (University of Texas School of Law), Robert Levy (Cato), Barry Steinhardt (ACLU), George Terwilliger (White & Case), and Judge Edith Clement (Court of Appeals, 5th Circuit). At 3:50 - 5:20 PM there will be a panel titled "Telecommunications Group: Privacy, Telecommunications, and Technology: Does Emerging Technology Force New Privacy Considerations?" The speakers will be Kathleen Abernathy (FCC Commissioner), Stewart Baker (Steptoe & Johnson), Jerry Berman (CDT), Reid Cox (Center for Individual Freedom), James Harper (privacilla.org), and Judge Stephen Williams (Court of Appeals, D.C. Circuit). See, schedule and online registration page. Location: Mayflower Hotel, 1127 Connecticut Ave., NW.

TIME? Day one of a two day conference hosted by Cellular Telecommunications and Internet Association (CTIA) titled "Homeland Security Critical Issues Forum". Its subject matter will include network security and reliability, physical and cyber security, network vulnerabilities, and how other critical infrastructures may impact CMRS networks. The event is closed to the public. At 12:30 PM Dick Clarke, Special Advisor to the President for Cyberspace Security and Chairman of the President’s Critical Infrastructure Protection Board, will speak. A CTIA release states that "Only lunch sessions are open to the media. Credentials required for admittance." For more information, contact Kimberly Kuo at 202 736-3202 or Kkuo@ctia.org. Location: Omni Shoreham Hotel, Empire Ball Room, 2500 Calvert Street, NW.

8:30 - 9:30 AM. The High Tech Broadband Coalition (HTBC) will host a press briefing breakfast regarding its participation in the FCC's proceedings pertaining to regulatory treatment of high speed Internet access. The HTBC wants the FCC to relax regulatory restraints imposed on incumbent local exchange carriers (ILECs) in the roll out of high speed Internet access. The participants will include E. Van Cullens (Westell), Jim Hjartarson (Catena Networks), Michael Norris (NextLevel Communications), Gregory Jones (Texas Instruments), Jerry Fiddler (Wind River Systems), George Nolan (Siemens), George Brunt (Alcatel), Doug Clark (ADC), Matt Flanigan (TIA), and Gary Shapiro (Consumer Electronics Association). Press contact: Jeri Clausing (BSA) at (202 530-5127 or jeric@bsa.org. Location: National Association of Manufacturers, 1331 Pennsylvania Ave., Suite 600, NW. Enter off F St. between 13th & 14th Streets.

9:00 AM. Day two of a two day meeting of Information Systems Technical Advisory Committee (ISTAC) of the Commerce Department's Bureau of Industry and Security (formerly known as the Bureau of Export Administration). The ISTAC advises the BIS on technical questions that affect the level of export controls applicable to information systems equipment and technology. The meeting will be partly open, and partly closed. The agenda for the open portion of the meeting includes a presentation on China's high performance computing market and a presentation on semiconductor manufacturing trends. The agenda for the closed portion of the meeting is secret. See, notice in the Federal Register, October 22, 2002, Vol. 67, No. 204, at Page 64868. Location: Room 3884, Hoover Building, 14th Street between Pennsylvania and Constitution Ave., NW.

12:00 NOON. Deputy Treasury Secretary Kenneth Dam will give a speech to the Tax Foundation 65th National Conference. Location: Four Seasons Hotel, 2800 Pennsylvania, Ave., NW.

Friday, November 15
Day two of a three day conference of the Federalist Society. At 1:30 - 3:00 PM there will be a panel titled "Corporations, Securities and Antitrust Group: Competition and Regulatory Federalism". The speakers will be Timothy Muris (FTC Chairman), Hewitt Pate (Antitrust Division), and Judge Diarmuid O'Scannlain (Court of Appeals, 9th Circuit). At 3:15 - 4:45 PM there will be a panel titled "Financial Services and Electronic Commerce Group: The USA PATRIOT Act, Homeland Security, and the Financial Services Industry". The speakers will be David Aufhauser, General Counsel, U.S. Department of Treasury), Andrew Cochran (House Financial Services Committee), John Pickering (Balch & Bingham), James Rockett (McCutchen, Doyle, Brown & Enerson), Mary Beth Buchanan (U.S. Attorney, Western District of Pennsylvania). See, schedule and online registration page. Location: Mayflower Hotel, 1127 Connecticut Ave., NW.

TIME? Day two of a two day conference hosted by Cellular Telecommunications and Internet Association (CTIA) titled "Homeland Security Critical Issues Forum". Its subject matter will include network security and reliability, physical and cyber security, network vulnerabilities, and how other critical infrastructures may impact CMRS networks. The event is closed to the public. At 12:30 PM, Nancy Wong, Deputy Director, National Outreach and Awareness, Critical Infrastructure Assurance Office (CIAO), will speak. A CTIA release states that "Only lunch sessions are open to the media. Credentials required for admittance." For more information, contact Kimberly Kuo at 202 736-3202 or Kkuo@ctia.org. Location: Omni Shoreham Hotel, Empire Ball Room, 2500 Calvert Street, NW.

CANCELLED: TO BE DECIDED WITHOUT ORAL ARGUMENT. 9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Aerco Broadcast Corp v. FCC, No. 01-1466. Judges Sentelle, Henderson and Silberman will preside. Location: Courtroom 20, 333 Constitution Ave., NW.