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October 6, 2003, 9:00 AM ET, Alert No. 753.
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ICANN Demands That VeriSign Cease Wildcard Feature

10/3. On Friday, October 3, Paul Twomey, P/CEO of the Internet Corporation for Assigned Names and Numbers (ICANN) sent a demand letter to VeriSign in which it state, "please consider this a formal demand to return the operation of the .com and .net domains to their state before the 15 September changes, pending further technical, operational and legal evaluation. A failure to comply with this demand will require ICANN to take the steps necessary under those agreements to compel compliance with them."

Russell Lewis, an EVP at VeriSign, responded in a release that "Without so much as a hearing, ICANN today formally asked us to shut down the Site Finder service. We will accede to the request while we explore all of our options ... During the more than two weeks that Site Finder has been operational, there is no data to indicate that the core operation of the Domain Name System or stability of the Internet has been adversely affected. ICANN is using anecdotal and isolated issues to attempt to regulate non-registry services, but in the interests of further working with the technical community we will temporarily suspend Site Finder."

Previously, the ICANN had merely requested that VeriSign undo its wildcard feature changes that caused misspelled and/or unassigned domain names with the .com or .org top level domain to be redirected to a VeriSign page. VeriSign calls this its "Site Finder" service.

Twomey added that "VeriSign must suspend the changes to the .com and .net top-level domains introduced on 15 September 2003 by 6:00 PM PDT on 4 October 2003. Failure to comply with this demand by that time will leave ICANN with no choice but to seek promptly to enforce VeriSign's contractual obligations."

He further wrote that "it appears that these changes have had a substantial adverse effect on the core operation of the DNS, on the stability of the Internet, and on the relevant domains, and may have additional adverse effects in the future. These effects appear to be significant, including effects on web browsing, certain email services and applications, sequenced lookup services and a pervasive problem of incompatibility with other established protocols. In addition, the responses of various persons and entities to the changes made by VeriSign may themselves adversely affect the continued effective functioning of the Internet, the DNS and the .com and .net domains. Under these circumstances, the only prudent course of action consistent with ICANN's coordination mission is to insist that VeriSign suspend these changes pending further evaluation and study, including (but certainly not limited to) the public meeting already scheduled by ICANN's Security and Stability Advisory Committee on 7 October in Washington, D.C."

This meeting will be held from 10:00 AM to 4:00 PM at the Center for Strategic and International Studies (CSIS) located at 1800 K Street, NW. See, notice of meeting.

Senators Craig and Durbin Introduce Bill to Modify PATRIOT Act

10/2. Sen. Larry Craig (R-ID), Sen. Richard Durbin (D-IL), Sen. Mike Crapo (R-ID), Sen. Russ Feingold (D-WI), Sen. John Sununu (R-NH), Sen. Ron Wyden (D-OR), and Sen. Jeff Bingaman (D-NM) introduced S 1709, the "Security and Freedom Ensured Act of 2003", or SAFE Act. This is another bill to roll back a few of the more controversial provisions of the USA PATRIOT Act.

The bill would modify several sections of the criminal code, which is codified at Title 18, and the Foreign Intelligence Surveillance Act (FISA), which is codified at 50 U.S.C. § 1861, et seq., to revise changes made by the USA PATRIOT Act. The "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001" was passed by the 107th Congress as HR 3162. It became Public Law 107-56 on October 26, 2001.

Sen. Larry CraigSen. Craig (at right) stated in the Senate that "the USA PATRIOT Act is not a perfect law". He said that his bill would "make some commonsense changes that help to safeguard our freedoms, without sacrificing our security. It focuses on areas of activity that have been particularly controversial: delayed notice warrants, which are also referred to as ``sneak and peek´´ warrants; wiretaps that do not require specificity as to either person or place; the impact of the new law on libraries; and nationwide search warrants. Our bill would amend, not eliminate these tools or repeal the USA PATRIOT Act in these areas."

Section 501 Business Records. S 1709 would amend Section 501 of the FISA. This is the section of the FISA that provides for "Access to Certain Business Records for Foreign Intelligence and International Terrorism Investigations". The PATRIOT Act, at Section 215, rewrote Section 501. This Section 215 of the PATRIOT is the source of the American Library Association's (ALA) complaints about the PATRIOT Act.

The ALA has complained that this section is harmful to libraries and library users. Attorney General John Ashcroft has responded that the government has never used this section to obtain the records of any library.

See, stories titled "Ashcroft Says American Library Association Attacks on PATRIOT Act Are Hysteria and Hyperbole" in TLJ Daily E-Mail Alert No. 740, September 16, 2003; "Ashcroft and Critics Continue Debate Over Section 215 Access to Business Records" in TLJ Daily E-Mail Alert No. 745, September 24, 2003; and "Ashcroft Addresses Roving Wiretaps and Access to Business Records" in TLJ Daily E-Mail Alert No. 746, September 25, 2003.

To recap, Section 215 of the PATRIOT Act (HR 3162 in the 107th Congress) replaced Sections 501-503 of the FISA with new language designated as Section 501 and 502. Section 501 of the FISA, in turn, is codified in Title 50 as Section 1861. Sen. Craig's bill (HR 1709 in the 108th Congress) provides, at Section 4, further revisions to Section 501 of the FISA.

FISA only applies to foreign powers, and agents of foreign powers, including international terrorists. Section 501 enables the FBI to obtain from a judge or magistrate an order requiring the production business records. While the statute does not expressly include library records, it is not disputed that library records could be obtained.

Currently, Section 501 requires that the application to the judge or magistrate "shall specify that the records concerned are sought for an authorized investigation conducted in accordance with subsection (a)(2) to obtain foreign intelligence information not concerning a United States person or to protect against international terrorism or clandestine intelligence activities."

S 1709 would change this to requires that the application, "shall specify that--
  (A) the records concerned are sought for an authorized investigation conducted in accordance with subsection (a)(2) to obtain foreign intelligence information not concerning a United States person or to protect against international terrorism or clandestine intelligence activities; and
  (B) there are specific and articulable facts giving reason to believe that the person to whom the records pertain is a foreign power or an agent of a foreign power."

Also, currently, Section 501 provides that "Upon an application made pursuant to this section, the judge shall enter an ex parte order as requested, or as modified, approving the release of records if the judge finds that the application meets the requirements of this section."

S 1709 would add a phrase requiring that the judge finds that "there are specific and articulable facts giving reason to believe that the person to whom the records pertain is a foreign power or an agent of a foreign power".

That is, S 1709 adds the requirement that the FBI state to the judge, and the judge must find, that there are facts giving reason to believe that the person to whom the records pertain is a foreign power or an agent of a foreign power. This change, if enacted, might make it a little harder for the FBI to obtain orders under Section 501.

Sen. Durbin, a cosponsor of S 1709, stated in the Senate on October 2 that "The FBI can now seize records on the books you check out of the library or the videos you rent, simply by certifying that the records are sought for a terrorism or intelligence investigation, a very low standard. A court no longer has authority to question the FBI's certification. The FBI no longer must show that the documents relate to a suspected terrorist or spy."

He stated that S 1709 would "Reinstate the pre-PATRIOT Act standard for seizing business records. In order to obtain a subpoena, the FBI would have to demonstrate that it has reason to believe that the person to whom the records relate is a suspected terrorist or spy. The SAFE Act retains the expansion of the business record provision to include all business records, including library records, rather than just the four types of records--hotel, car rental, storage facility and common carrier--covered before the PATRIOT Act."

On the other hand, Attorney General Ashcroft recently stated that "Not a single American's library records has been reviewed under the Patriot Act". He added, "No offense to the American Library Association, but we just don't care." See, September 18 speech.

Libraries As Electronic Communication Service Providers. S 1709 would amend 18 U.S.C. § 2709, which currently requires that "A wire or electronic communication service provider shall comply with a request for subscriber information and toll billing records information, or electronic communication transactional records in its custody or possession made by the Director of the Federal Bureau of Investigation ..." (Section 505 of the PATRIOT Act amended Section 2709 of Title 18.)

S 1709, at Section 5, would insert an exception: "A library shall not be treated as a wire or electronic communication service provider for purposes of this section."

Delayed Notice of Search Warrants. S 1709, at Section 3, would amend 18 U.S.C. § 3103a to limit the authority to delay notice of search warrants.

Sen. Durbin stated that "The FBI can conduct a ``sneak and peek'' search of your home, not notifying you of the search until after a ``reasonable period,'' a term which is not defined in the PATRIOT Act. A court is now authorized to issue a ``sneak and peek'' warrant where a court finds ``reasonable cause´´ that providing immediate notice of the warrant would have an ``adverse result,'' a very broad standard. The use of ``sneak and peek´´ warrants is not limited to terrorism cases.

He said that S 1709 would "Authorize a court to issue a delayed notification warrant where notice of the warrant would endanger the life or physical safety of an individual, result in flight from prosecution, or result in the destruction of or tampering with the evidence sought under the warrant. It would require notification of a covert search within seven days, rather than an undefined ``reasonable period.´´ It would authorize unlimited additional 7-day delays if the court found that notice of the warrant would continue to endanger the life or physical safety of an individual, result in flight from prosecution, or result in the destruction of or tampering with the evidence sought under the warrant."

Roving Wiretaps. S 1709, at Section 2, would amend Section 105(c) of the FISA, which is codified at 50 U.S.C. § 1805.

Sen. Durbin stated that "The FBI can obtain a ``John Doe´´ roving wiretap, which does not specify the target of the wiretap or the place to be wiretapped. This increases the likelihood that the conversations of innocent people wholly unrelated to an investigation will be intercepted."

He added that S 1709 would "Limit ``John Doe´´ roving wiretaps by requiring the warrant to identify either the target of the wiretap or the place to be wiretapped. To protect innocent people from Government surveillance, it would also require that surveillance be conducted only when the suspect is present at the place to be wiretapped."

The bill also adds several new requirements that the FBI submit reports to the Congress regarding exercise of powers granted or expanded by the PATRIOT Act. It would also provide for the sunsetting of several provisions.

Sen. Lisa Murkowski (R-AK) has also introduced a bill to modify some of the provisions of the PATRIOT Act. On July 31, 2003 she introduced S 1552 [21 pages in PDF], the "Protecting the Rights of Individuals Act", or PRI Act. See, TLJ story titled "Sen. Lisa Murkowski Introduces Bill to Roll Back Surveillance Provisions of PATRIOT Act", July 31, 2003.

Sen. Feingold Introduces Bill to Limit Delayed Notice Warrants

10/2. Sen. Russ Feingold (D-WI) introduced S 1701, the "Reasonable Notice and Search Act" a bill to limit the use of delayed notice warrants, also know as "sneak and peak" warrants.

Sen. Feingold summarized his bill in the Senate. "This bill addresses the provision of the USA PATRIOT Act that has caused perhaps the most concern among Members of Congress. Section 213 of the PATRIOT Act, sometimes referred to as the ``delayed notice search provision´´ or the ``sneak and peek provision,´´ authorizes the Government in limited circumstances to conduct a search without immediately serving a search warrant on the owner or occupant of the premises that have been searched." See, Congressional Record, October 2, 2003, at S12377-8.

Sen. Feingold's bill would require the government to give notice of the warrant within 7 days, but allow a judge to extend this time period. Section 213 requires notice within an undefined "reasonable period". The bill would also narrow the circumstances in which a delayed notice warrant could be issued. Finally, this bill would provide for the sunsetting of Section 213 at the end of 2005.

The bill was referred to the Senate Judiciary Committee. Sen. Feingold is a member.

Senate Finance Committee Approves FSC/ETI Replacement Bill

10/1. The Senate Finance Committee amended and approved S 1637, the "Jumpstart Our Business Strength Act", or JOBS Act. This bill would replace the current Extraterritorial Income Act (ETI), and its predecessor, the Foreign Sales Corporation (FSC) tax regime.

Most nations have a territory tax regime, by which they tax the income of corporations within their territory. The U.S. has a global tax regime. American corporations are taxed by the U.S. government for their domestic and foreign income.

This puts U.S. corporations at a competitive disadvantage with respect to their foreign competitors when competing in a global economy. Hence, Congress has enacted various exceptions to the general rule, through such methods as the foreign tax credit, the Domestic International Sales Corporation (DISC), the FSC tax regime, and most recently, the ETI.

Sen. Max BaucusSen. Max Baucus (D-MT) (at right), the ranking Democrat on the Committee, explained one reason for passing this bill. He stated that a "reason why we act today is to respond to an international tax case that the United States lost in the World Trade Organization (WTO). In a dispute brought by the European Union, the WTO found that the Foreign Sales Corporation (FSC) and Extraterritorial Income Act (ETI) were impermissible export subsidy programs." See, statement [PDF].

See also, statement [PDF] of Sen. Charles Grassley (R-IA), the Chairman of the Committee.

The tax treatment of income from foreign sales is significant to technology companies that sell a large proportion of their goods and services abroad. Also, if this issue is not resolved, the European Union could imposes trade sanctions that would harm technology companies.

There is a competing bill pending in the House, HR 2896, the "American Jobs Creation Act of 2003", sponsored by Rep. Bill Thomas (R-CA), the Chairman of the House Ways and Means Committee. However, the Ways and Means Committee has yet to act on this bill.

The House bill has broader support from software, computer, information technology, and communications companies. Its supporters include AOL Time Warner, Apple, Cisco, Dell, eBay, EDS, HP, IBM, Iomega, Oracle, Sun Microsystems, Telcordia, TI, BellSouth, AT&T, SBC, and Verizon. See, list [PDF].

House Speaker Denny Hastert (R-IL) issued a statement [PDF] on October 2. "Chairman Bill Thomas has developed tax reform legislation that replaces the current FSC-ETI tax benefit with tax proposals that provide additional support for manufacturing and jobs in the United States. The Chairman's bill uses the opportunity provided by the WTO-mandated decision to terminate current FSC-ETI benefits to create a better tax structure for U.S. manufacturers competing against foreign companies. I support Chairman Thomas expeditiously moving forward with this legislation."

Secretary of the Treasury John Snow had this to say: "I applaud Senate Finance Committee Chairman Grassley, Ranking Member Baucus and the Committee for their hard work in moving the FSC/ETI legislation forward. The Administration's top priority is getting a bill enacted that complies with the WTO ruling and avoids triggering $4 billion in EU trade sanctions. The EU has stated the Congress needs to pass bills out of both houses by the end of the year to avoid such sanctions. We encourage Congress to replace ETI in a way that improves the competitiveness of America's manufacturers and other job creators. It is critically important that we continue to work together to get legislation enacted." See, statement.

More Trade News

10/3. The Office of the U.S. Trade Representative (USTR) published a notice in the Federal Register stating that comments regarding countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection are due by 12:00 NOON on October 27, 2003. Section 182 of the Trade Act of 1974 requires the USTR to prepare a report. Section 182, which is codified at 19 U.S.C. § 2242, is also referred to as "Special 301". This is an out of cycle review. The USTR announced that this review will focus on Korea. However, it added that "Additional countries may also be reviewed as a result of the comments received pursuant to this notice, or as warranted by events." See, notice in the Federal Register, October 3, 2003, Vol. 68, No. 192, at Page 57503.

10/2. Rep. Bernie Sanders (S-VT), and others, introduced HR 3228, a short bill that provides that "normal trade relations treatment shall not apply to the products of the People's Republic of China, and normal trade relations treatment may not thereafter be extended to the products of that country." The bill was referred to the House Ways and Means Committee.

People and Appointments
James Comey10/3. President Bush announced his intent to nominate James Comey (at right) to be the Deputy Attorney General, the second highest position at the Department of Justice (DOJ). If confirmed by the Senate, he would replace Larry Thompson, who left in August. Comey is currently the U.S. Attorney for the Southern District of New York. He replaced Mary Jo White in early 2002. Previously, he was Managing Assistant U.S. Attorney in charge of the Richmond Division of the Eastern District of Virginia. Prior to that, he worked in the USAO for the Southern District of New York, including as Deputy Chief of the Criminal Division. He is a graduate of the University of Chicago School of Law. See, White House release. Over the summer, Sen. Charles Grassley (R-IA), a senior member of the Senate Judiciary Committee, had placed holds on President Bush's nominees for top positions at the DOJ because of the DOJ's failure to produce certain records related to Senate oversight of the DOJ and FBI. He has released those holds.

10/3. The Senate confirmed Jack Goldsmith to be Assistant Attorney General in charge of the Office of Legal Counsel (OLC). He replaces Jay Bybee, who was recently confirmed as a Judge of the U.S. Court of Appeals (10thCir). Goldsmith was previously a professor at the University of Chicago School of Law, on leave. See, story titled "Bush Nominates Goldsmith to Head OLC" in TLJ Daily E-Mail Alert No. 677, June 10, 2003. See also, article authored by Goldsmith titled "Against Cyberanarchy". See also, "Against Cyberanarchy, 65 Chi. L. Rev. 1199 (1998); "Regulation of the Internet: Three Persistent Fallacies", 73 Chic.-Kent L. Rev. 1119 (1998); and, "The Internet and the Abiding Relevance of Territorial Sovereignty", 5 Ind. J. Glob. Leg. Stud. 475 (1998). Sen. Grassley had previously placed a hold on this nomination. See, Congressional Record, July 30, 2003, at S10258.

10/3. The Senate confirmed Daniel Bryant be Assistant Attorney General in charge of the Office of Legal Policy (OLP). He replaces Viet Dinh, who has returned to his teaching position at Georgetown University Law Center. The OLP is tasked with making recommendations to the Congress regarding anti-terrorism legislation, such as amendments to the PATRIOT Act. Sen. Grassley had previously placed a hold on this nomination. See, Congressional Record, August 1, 2003, at S10898.

10/3. The Senate confirmed Karin Immergut to be the U.S. Attorney for the District of Oregon.

10/2. The Senate confirmed John Houston to be a Judge of the U.S. District Court for the Southern District of California.

10/2. The Senate confirmed Robert Clive Jones to be a Judge of the U.S. District Court for the District of Nevada.

10/2. The Senate confirmed Philip Figa to be a Judge of the U.S. District Court for the District of Colorado.

10/3. The Federal Communications Commission (FCC) named the members of its Localism Task Force. The Co-Chairs are Michele Ellison (Deputy General Counsel, Office of General Counsel), Robert Ratcliffe (Deputy Chief, Media Bureau). The Chief of Staff is Royce Sherlock (Chief, Industry Analysis Division, Media Bureau). The Special Counsel are Eric Bash (Attorney Advisor, Policy Division, Media Bureau), Kimberly Reindl (Attorney Advisor, Office of General Counsel), Elizabeth Valinoti (Attorney Advisor, Industry Analysis Division, Media Bureau), and Harry Wingo (Special Counsel, Office of General Counsel). The other task force members are Simon Wilkie (Chief Economist, Office of Strategic Planning & Policy Analysis), Linda Blair (Deputy Chief, Enforcement Bureau), Richard Diamond (Deputy Director, Office of Media Relations), Jonathan Levy (Deputy Chief Economist, Office of Strategic Planning & Policy Analysis), Renée Licht (Deputy Director, Office of the Managing Director), Kris Monteith (Deputy Chief, Consumer and Governmental Affairs Bureau), Jerry Duvall (Chief, Economic Research, Media Bureau), Mary Beth Murphy (Chief, Policy Division, Media Bureau), Judith Herman (Assistant Chief, Industry Analysis Division, Media Bureau), Roger Holberg (Assistant Chief, Industry Analysis Division, Media Bureau), Marilyn Sonn (Assistant General Counsel, Administrative Law Division, Office of General Counsel), Lori Holy (Attorney Advisor, Office of Legislative Affairs), Janice Wise (Program & Information Specialist, Consumer and Governmental Affairs Bureau). See, FCC release [PDF].

Reps. Goodlatte and Boucher Introduce Bill to Limit Business Activity Taxes

10/1. Rep. Bob Goodlatte (R-VA), Rep. Rick Boucher (D-VA), and others, introduced HR 3220, the "Business Activity Tax Simplification Act of 2003", a bill that would limit states' ability to impose business activity taxes (BATs). It would require that a business have a physical presence in the taxing jurisdiction to be subject to a BAT. It was referred to the House Judiciary Committee.

Rep. Bob GoodlatteRep. Goodlatte (at right) stated in a release that "This legislation sets specific guidelines for when an out-of-state business may be charged a tax for doing business in a state ... Just because a website can be accessed by consumers in a certain state, doesn’t mean that state should be able to collect taxes from the website owner. This legislation focuses on allowing the Internet and the commerce that it facilitates to expand, by eliminating excessive taxes that harm on-line growth."

The bill provides that "no taxing authority of a State shall have power to impose, assess, or collect a net income tax or other business activity tax on any person relating to such person's activities in interstate commerce, unless such person has a physical presence in the State during the taxable period with respect to which the tax is imposed."

The bill then proceeds to outline the requirements for "physical presence". It does not, however, reference websites or the internet.

Rep. Boucher stated in a release that "Currently, no clear standard exists to define a ``substantial nexus´´ for the taxation of business activity by the states. This uncertainty has allowed several states to impose unfair taxes onto businesses which have no physical presence in those states and do not benefit from the services provided by the tax revenue. The Business Activity Tax Modernization Act would rectify the unfairness which currently exists by setting a physical presence nexus standard. This standard would ensure that states have the ability to tax businesses which benefit from services provided by the state and businesses which have no physical presence in a state would be exempt from taxation on business activity in that state."

These Congressmen have introduced similar legislation in the past. See, HR 2526 (107th Congress), the "Internet Tax Fairness Act of 2001". See also, story titled "Goodlatte and Boucher Introduce Net Tax Moratorium Bill" in TLJ Daily E-Mail Alert No. 229, July 18, 2001; and "House Subcommittee Approves Bill to Limit Business Activity Taxes" in TLJ Daily E-Mail Alert No. 471, July 17, 2002.

The present bill, HR 3220, unlike HR 2526, lacks specific language pertaining the internet, web sites, communications and intellectual property.

For example, HR 2526 (107th Congress), as introduced in 2001, would have prohibited several internet related BATs, including taxes on "The use of the Internet to create or maintain a World Wide Web site accessible by persons" in the taxing jurisdiction. It would also have prohibited BATs on the use of an ISP, on-line service provider, internetwork communication service provider, or other internet access service provider, or web hosting service. It would also have prohibited BATs on the "use of any service provider for transmission of communications, whether by cable, satellite, radio, telecommunications, or other similar system." Also, it would have prohibited BATs based on the "presence or use of intangible personal property ... including patents, copyrights, trademarks, logos, ... electronic or digital signals, and web pages ..."

Monday, October 6

Yom Kippur.

The House will not meet. See, Republican Whip Notice.

The Senate is in adjournment until Tuesday, October 14, at 9:30 AM.

The Supreme Court begins its October 2003 term.

12:30 PM. VeriSign will host a media briefing. For more information, contact Stephanie Cathcart at 202 326-1821. Location: Murrow Room, National Press Club, 529 14th St. NW, 13th Floor.

Extended deadline to submit comments to the Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) National Science and Technology Council's (NSTC) Subcommittee on Research Business Models regarding the relationship between federal agencies and researchers. The NSTC published its original notice in the Federal Register on August 6 stating that it "is undertaking a review of policies, procedures, and plans relating to the business relationship between federal agencies and research performers with the goal of improving the performance and management of federally sponsored basic and applied scientific and engineering research." See, Federal Register, August 6, 2003, Vol. 68, No. 151, at Pages 46631 - 46632. See also, notice of extension in the Federal Register, September 16, 2003, Vol. 68, No. 179, at Pages 54226 - 54227.

Tuesday, October 7

The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. The House will consider several items under suspension of the rules, including HR 1303, a bill to amend the E-Government Act of 2002 with respect to rulemaking authority of the Judicial Conference. See, Republican Whip Notice.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Jacqueline Orloff v. FCC, No. 02-1189. Judges Sentelle, Randolph and Rogers will preside. See, brief [51 pages in PDF] of the FCC. Location: 333 Constitution Ave. NW.

10:00 AM - 4:00 PM. The Internet Corporation for Assigned Names and Numbers' (ICANN) Security and Stability Advisory Committee (SECSAC) will hold a meeting to gather input regarding VeriSign's recent change to the operation of the registry for the .com and .net Top Level Domains (TLDs). See, notice. Location: Center for Strategic and International Studies (CSIS), 1800 K Street, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Intouch Group v. Amazon.com, No. 02-1631. This is an appeal from the U.S. District Court (NDCal) in a patent infringement case (D.C. No. C-00-1156-DLJ) involving internet audio technology. Intouch alleged that Amazon's, and others', method of interactive delivery of portions of recorded music infringe its business method patent. See, U.S. Patent No. 5,237,157, titled "Kiosk apparatus and method for point of preview and for compilation of market data", and U.S. Patent No. 5,963,916 titled "Network apparatus and method for preview of music products and compilation of market data". Location: Courtroom 203, 717 Madison Place, NW.

Wednesday, October 8

The House will meet at 10:00 AM for legislative business. The House will consider several items under suspension of the rules, including HR 3159, the "Government Network Security Act of 2003". This bill, which is sponsored by Rep. Henry Waxman (D-CA), Rep. Tom Davis (R-VA), and others, would require federal government agencies to develop and implement plans to protect the security and privacy of government computer systems from the risks posed by peer-to-peer file sharing. See, story titled "House Committee Passes Bill to Restrict P2P File Sharing on Computers and Networks of Federal Agencies" in TLJ Daily E-Mail Alert No. 749, September 30, 2003,  See, Republican Whip Notice.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Soitec v. Silicon Genesis, No. 03-1080. This is an appeal from the U.S. District Court (DMass) in a patent infringement case. Soitec SA alleged that Silicon Genesis's silicon-on-insulator (SOI) wafer fabrication technology infringes various patents. This is D.C. No. 99 CV 10826. Location: Courtroom 203, 717 Madison Place, NW.

1:00 - 5:15 PM. The Global Justice Information-Sharing Initiative Federal Advisory Committee will meet to discuss the Global Justice Information-Sharing Initiative. The meeting will continue on October 9. See, notice in the Federal Register, August 21, 2003, Vol. 68, No. 162, at Pages 50556 - 50557. Location: Sheraton Crystal City Hotel, 1800 Jefferson Davis Highway, Arlington, VA.

Thursday, October 9

The House will meet, but no votes are expected. Conference reports may be brought up. See, Republican Whip Notice.

8:00 AM - 5:00 PM. The Business Software Alliance will host an event titled "Global Tech Summit". The agenda includes panels titled "The Next Wave of Innovation", "Transforming Today's Challenges into Tomorrow’s Realities", and "The Great Digital Transformation". Secretary of Homeland Security Tom Ridge will give the luncheon address. Location: Atlantic Studios, 650 Massachusetts Ave, NW.

8:30 - 10:00 AM. The Progress and Freedom Foundation (PFF) will host an event titled "Future of the Internet". The speakers will include Meg Whitman (CEO of eBay) and Phil Bond (Undersecretary of Commerce for Technology). See, notice. To attend, contact Rebecca Fuller at 202 289-8928 or rfuller@pff.org Location: East Room, Washington Mayflower Hotel, 1127 Connecticut Ave., NW.

8:30 AM - 12:00 NOON. The Global Justice Information-Sharing Initiative Federal Advisory Committee will meet to discuss the Global Justice Information-Sharing Initiative. See, notice in the Federal Register, August 21, 2003, Vol. 68, No. 162, at Pages 50556 - 50557. Location: Sheraton Crystal City Hotel, 1800 Jefferson Davis Highway, Arlington, VA.

12:00 NOON - 2:00 PM. The Intellectual Property Section of the D.C. Bar Association will host a luncheon program titled "Intellectual Property Licensing in the High Technology Area". The speakers will be Jon Grossman (Dickstein Shapiro) and Bradley Wright (Banner & Witcoff). The prices to attend vary. Location: D.C. Bar Conference Center, 1250 H Street, NW, B-1 level.

6:00 - 9:00 PM. The Federal Communications Bar Association (FCBA) will host its 2nd Annual Oktoberfest Reception honoring the Federal Communications Commission's (FCC) bureau chiefs. Location: J.W. Marriott Hotel, 1331 Pennsylvania Avenue, NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding telecommunication relay services (TRS) and speech-to-speech services for individuals with hearing and speech disabilities. This is CG Docket No. 03-123. See, notice in the Federal Register, August 25, 2003, Vol. 68, No. 164, at Pages 50993 - 50998.

Friday, October 10

The House will meet, but no votes are expected. Conference reports may be brought up. See, Republican Whip Notice.

9:15 AM - 5:30 PM. Howard University School of Law (HUSL) will host a one day conference on intellectual property law. At 12:30 PM Judge Paul Michel of the U.S. Court of Appeals (FedCir) will deliver the luncheon address. At 4:30 PM there will be a panel titled "Practicing in the Public Interest: Reshaping IP Policy in a Digital World"; the speakers will be Robert Kasunic (Copyright Office) and Michael Shapiro (U.S. Patent and Trademark Office). See, agenda [PDF]. The price to attend ranges from $150 to $250. Location. HUSL, 2929 Van Ness Street, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Gemstar-TV Guide v. ITC, No. 03-1052. Location: Courtroom 203, 717 Madison Place, NW.

DOJ Files Amicus Brief Re Section 8 of Clayton Act

10/1. The Department of Justice's (DOJ) Antitrust Division filed an amicus curiae brief with the U.S. District Court (SDNY) in Reading International v. Oaktree Capital Management, in which it argued that a business may violate Section 8 of the Clayton Act, codified at 15 U.S.C. § 19, when its deputizes representatives to serve simultaneously as directors or officers of competing corporations.

Section 8 of the Clayton Act provides in part that "No person shall, at the same time, serve as a director or officer in any two corporations (other than banks, banking associations, and trust companies) that are -- (A) engaged in whole or in part in commerce; and (B) by virtue of their business and location of operation, competitors, so that the elimination of competition by agreement between them would constitute a violation of any of the antitrust laws; if each of the corporations has capital, surplus, and undivided profits aggregating more than $10,000,000 ..."

The DOJ argues that "Oaktree's contrary position -­ that a corporation, acting through its agents, may achieve precisely the coordinated management of competing firms that the statute is designed to outlaw -­ is inconsistent with the statutory language, the statutory purpose, legal precedent, and the longstanding interpretation of the United States." This is D.C. No. 03-CV-1895 (GEL) (THK).

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10/2. The Department of Justice (DOJ) and the Environmental Protection Agency (EPA) brought and settled a civil action in U.S. District Court (EDArk) against ALLTEL Corporation. The DOJ and EPA alleged that ALLTEL violated the Clean Air Act (CAA), the Clean Water Act (CWA), and the Emergency Planning and Community Right-to-Know Act (EPCRA). The DOJ and EPA also announced that ALLTEL "has signed an agreement to carry out cross-cutting environmental compliance audits at its facilities nationwide". In addition, ALLTEL will pay a fine of $1,058,000. See, DOJ release.

10/3. The Federal Communications Commission's (FCC) Localism Task Force announced that it will hold six public hearing at six locations around the U.S. "to solicit input from consumers, industry, civic organizations and others regarding broadcast localism." See, FCC release [PDF].

10/3. Dane Snowden, Chief of the Federal Communications Commission's (FCC) Consumer & Governmental Affairs Bureau, announced that from Wednesday, October 1, 2003 through 4:00 PM on Friday, October 3, 2003, the FCC received 4,100 inquiries and 1,315 complaints regarding the national telemarketing do not call registry. He stated that "Most of the complaints were submitted by consumers who previously signed up for the do-not-call registry but have received one or more calls since Oct. 1 from telemarketers." See, FCC release [PDF].

10/2. The Department of Commerce's (DOC) National Telecommunications and Information Administration (NTIA) announced the award of Technology Opportunities Program (TOP) grants for FY 2003 totalling $13.95 Million

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