4/28. The House Commerce Committee's Subcommittee on Telecommunications and the Internet amended and approved a committee print of a bill to reauthorize the Satellite Home Viewer Improvement Act (SHIVA). The SHIVA authorizes satellite television carriers to provide more television broadcast programming to subscribers by allowing the transmission of local broadcast signals into local markets. See, 17 U.S.C. § 122. The SHIVA also extended the authority for satellite carriers to provide distant or national broadcast programming to subscribers. See, 17 U.S.C. § 119.

Parts of the SHIVA will expire on December 31, 2004, if not extended. These include the statutory copyright license to satellite operators allowing them to provide signals of distant network affiliates to unserved customers, the retransmission consent exemption that allows satellite operators to retransmit distant network signals to an unserved household, and the grandfathering of certain distant signal subscribers.

The Telecommunications Subcommittee held a hearing on this issue on April 1. See, prepared testimony of witnesses: Eloise Gore (Federal Communications Commission), David Moskowitz (Echostar Communications), Eddy Hartenstein (DirecTV), Robert Lee (National Association of Broadcasters), and Frank Wright (National Religious Broadcasters).

On April 28, the Subcommittee approved the committee print [22 pages in PDF] of a bill to be titled the "Satellite Home Viewer Extension and Reauthorization Act of 2004". The Subcommittee also approved two amendments.

The first amendment [1 page in PDF], offered by Rep. Fred Upton (R-MI), the Chairman of the Subcommittee, would, among other things, allow grandfathered Grade B subscribers who have both distant and local signals at the date of enactment to keep their distant signal or their local signal, but not both.

The second amendment [2 pages in PDF], offered by Rep. Ed Markey (D-MA), the ranking Democrat on the Subcommittee, would amend 47 U.S.C. § 338 to extend privacy protections to satellite service subscribers. It provides that "A satellite carrier shall provide to each subscriber to the transmission service of such satellite carrier the same protections for the privacy rights of such subscriber that a cable operator is required to provide to a subscriber for cable service under section 631."

The full Committee has yet to approve the committee print.

Also, the House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will meet to markup a committee print of the "Satellite Home Viewer Extension and Reauthorization Act of 2004" on Thursday, May 6, 2004.

The Senate Commerce Committee will hold a hearing on reauthorization of the Satellite Home Viewers Improvement Act of 1999 on Tuesday morning, May 4, 2004. The witnesses will be Charlie Ergen (Ch/CEO of Echostar), Jim Yager (CEO of Barrington Broadcasting Company), Eddy Hartenstein (Ch/CEO of DirecTV), Araceli De Leon (Telemundo Communications), and Gigi Sohn (Public Knowledge).

On January 21, 2004, Sen. Orrin Hatch (R-UT), Sen. Patrick Leahy (D-VT), Sen. Mike DeWine (R-OH), and Sen. Herb Kohl (D-WI) introduced S 2013, the "Satellite Home Viewer Extension Act of 2004'". This is a short and simple bill that would amend 17 U.S.C. § 119 to provide that "This section shall cease to be effective after December 31, 2009". It would also delete the reference to termination on December 31, 2004.

5/3. The National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) released a draft [91 pages in PDF] of its Special Publication 800-58, titled "Security Consideration for Voice Over IP Systems".

This publication states that "Lower cost and greater flexibility are among the promises of VOIP for the enterprise, but the technology presents security administrators with significant security challenges. Administrators may mistakenly assume that since digitized voice travels in packets, they can simply plug VOIP components into their already-secured networks and remain secure. Unfortunately, the process is not that simple."

The publication also finds that "the implementation of various security measures can cause a marked deterioration in QoS. These complications range from firewalls delaying or blocking call setups to encryption-produced latency and delay variation (jitter). Because of the time-critical nature of VOIP, and its low tolerance for disruption and packet loss, many security measures implemented in traditional data networks are simply not applicable to VOIP in their current form."

The draft publication was written by Richard Kuhn, Thomas Walsh, and Steffen Fries. Public comments on this draft are due by June 18, 2004. Submit comments to Rick Kuhn at sp800-58@nist.gov.

4/29. The Federal Trade Commission (FTC) filed a complaint [PDF] in U.S. District Court (NDIll) against several individuals (Daniel J. Lin, Mark M. Sadek, James Lin, and Christopher M. Chung) and their business (Phoenix Avatar). The complaint alleges that they engaged in the e-mail marketing of diet patches and herbal supplements.

This complaint alleges violation of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (also known as the CAN-SPAM Act), which is codified at 15 U.S.C. § 7701, et seq., and the Federal Trade Commission Act.

Counts I and II allege violation of the FTCA for making false statements about the products being marketed. Counts III & IV allege violation of civil provisions of the CAN SPAM Act for sending spam with false header information, without disclosure that the content is advertising, without opt out notices, and without a valid physical postal address.

The FTC also sought, and obtained a Temporary Restraining Order [PDF]. See also, memorandum [PDF] in support of motion for TRO. This case is FTC v. Phoenix Avatar, U.S. District Court for the Northern District of Illinois, Case No. 04C 2897.

In addition, on April 23, the U.S. Attorneys Office for the Eastern District of Michigan filed a related criminal complaint [22 pages in PDF] in the U.S. District Court (EDMich) against these four individuals charging violation of the criminal provisions of the CAN SPAM Act, which are codified at 18 U.S.C. § 1037. This case is USA v. Daniel Lin, et al., U.S. District Court for the Eastern District of Michigan, D.C. No. 04-80383.

The FTC also filed a complaint [15 pages in PDF] on April 28 in U.S. District Court (NDIll) against Global Web Promotions Pty Ltd., Michael John Anthony Van Essen, and Lance Thomas Atkinson alleging civil violation of the FTCA and the CAN SPAM Act. This case is FTC v. Global Web Promotions, U.S. District Court for the Northern District of Illinois, D.C. No. 04C 3022.

The Congress passed S 877, the CAN-SPAM Act, late last year. On December 16, 2003, President Bush signed the bill. It became Public Law No. 108-187. This is the first criminal prosecution under the CAN SPAM Act.

Jeffrey Collins, the U.S. Attorney for the Eastern District of Michigan, stated in a release on April 29 that "This case marks the Nation's first criminal prosecution under the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act, which went into effect on January 1, 2004 ... The cyber scam artists who exploit the Internet for commercial gain should take notice. Federal law now makes it a felony to use falsehood and deception to hide the origin of the spam messages hawking your fraudulent wares. Thanks to the great detective work of the Federal Trade Commission, the Postal Inspection Service, and the cooperation of Internet Service Providers such as Microsoft and AOL, as well as other companies and private citizens, we do have the capacity to track unlawful spammers down and bring them to justice."

5/4. The American Council for Capital Formation (ACCF) released a short study titled "Macroeconomic Effects of Telecommunications Deregulation".

This study states that it examines "the macroeconomic effects of changes in the regulatory environment for the telecommunications industry and telecommunications firms due to the Federal Communications Commission (FCC) Triennial Review (February 2003) and a D.C. Appeals Court decision early this year (March 2004), which vacated portions of the Triennial Review."

The FCC released its triennial review order [576 pages in PDF] on August 21, 2003. See, story titled "Summary of FCC Triennial Review Order" in TLJ Daily E-Mail Alert No. 725, August 25, 2003. See also, stories titled "FCC Announces UNE Report and Order", "FCC Order Offers Broadband Regulatory Relief", "FCC Announces Decision on Switching", "Commentary: Republicans Split On FCC UNE Order", and "Congressional Reaction To FCC UNE Order" in TLJ Daily E-Mail Alert No. 609, February 21, 2003.

The U.S. Court of Appeals (DCCir) issued its opinion [62 pages in PDF] in USTA v. FCC, overturning key parts of the FCC's TRO on March 2, 2004. See, story titled "Appeals Court Overturns Key Provisions of FCC Triennial Review Order" in TLJ Daily E-Mail Alert No. 848, March 3, 2004.

The ACCF study further states that it reviewed "the potential impacts of changes in the economic behavior of the Bell companies and Competitive Local Exchange Carriers (CLECs) and how these changes could impact on real economic growth, capital spending, jobs, disposable income, consumer spending, profits, and the federal budget."

It argues that "The primary impact on the economy from the changed regulatory environment will likely be from investment decisions made by both the Regional Bell Operating Companies (RBOCs) (which no longer have to share future investments at a highly subsidized rate) and by the CLECs (which need to decide whether to buy or lease networks at commercial rates). Another sizable contribution will come from decisions by telcom providers and consumers to offer and adopt Digital Subscriber Line (DSL) broadband sooner than would have happened without the rulings, and to invest in newer computers, routers, and other gear." (Parentheses in original.)

The study predicts that the effect of the TRO and Court opinion will be "real GDP higher by an average 0.2 percent in 2006 and 2007 or $14.8 billion, annually." The study also predicts that capital spending will be "up an average $6.8 billion annually over 2004 to 2008, particularly in earlier years when DSL spending accelerates."

 The study also projects "employment up by an average 91,000 annually", and no impact on inflation.

Hence, it concludes that "relief granted to the Bells by the FCC Triennial Review and Appeals Court order will unleash capital spending that, to a large extent, would not have been undertaken without these actions."

The study states that it was prepared by Decision Economics, Inc., for the ACCF, and that it was funded by the ACCF.

The ACCF will hold a conference call at 9:30 AM EDT on May 4. To participate, call 1-800-576-4675.

4/28. The U.S. Court of Appeals (6thCir) issued its opinion in Verizon North v. Strand, a case involving compensation for ISP bound traffic.

Verizon is an incumbent local exchange carrier (ILEC). Coast to Coast Telecommunications (Coast) (which is now Allegiance Telecom) was a competitive local exchange carrier that served ISPs. Coast had no interconnection agreement with Verizon. Coast claimed that Verizon was responsible for the costs of terminating ISP bound traffic originating from Verizon customers. Coast filed a tariff with the MPSC regarding reciprocal compensation charges.

When Coast attempted to collect from Verizon, Verizon refused to pay. Coast then filed an application with the MPSC, which held that interconnection between two local exchange carriers can be accomplished by interconnection agreement, or by tariff. And, the MPSC held that Verizon had to pay Coast for the termination charges.

Verizon filed a complaint in U.S. District Court (EDMich) against the MPSC Commissioners, the MPSC and Coast, seeking declaratory and injunctive relief. The District Court vacated the MPSC order. This appeal followed.

The Appeals Court affirmed the District Court. It held that the "MPSC order is inconsistent with the negotiation and arbitration provisions of § 252 and thus is preempted" by the Communications Act.

This case is Verizon North, Inc. v. John Strand, Robert Nelson, and David Svanda, in their official capacities as Commissioners of the Michigan Public Service Commission, and Coast to Coast Telecommunications, Inc., App. Ct. No. 02-2322, an appeal from the U.S. District Court for the Eastern District of Michigan, at Detroit, D.C. No. 00-71442, Judge George Woods presiding.

4/29. The House Commerce Committee's Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled "Spyware: What You Don't Know Can Hurt You". See, prepared testimony of Mozelle Thompson (Federal Trade Commission), prepared testimony of Howard Beales (Director, Bureau of Consumer Protection, FTC), prepared testimony of Ari Schwartz (Center for Democracy and Technology), prepared testimony of Dave Baker (EarthLink), and prepared testimony of Jeffrey Friedberg (Microsoft).

4/29 The Senate Appropriations Committee's Subcommittee on Commerce, Justice, State, and the Judiciary held a hearing on intellectual property issues. See, opening statement of Sen. Ted Stevens (R-AK), the Chairman of the full Committee, and opening statement of Sen. Judd Gregg (R-NH), the Chairman of the CJS Subcommittee. See, also prepared testimony of witnesses: Jack Valenti, CEO of the Motion Picture Association of America (MPAA), Doug Lowenstein, President of the Entertainment Software Alliance (ESA), Robert Holleyman, CEO of the Business Software Alliance (BSA), Mitch Bainwol, CEO of the Recording Industry Association of America (RIAA).

The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislative business. it will consider several non-technology related items under suspension of the rules. Votes will be postponed until 6:30 PM. See, Republican Whip Notice.

The Senate will meet at 9:45 AM for morning business. It will then resume consideration of S 1637, the FSC/ETI bill.

9:30 AM. The Senate Commerce Committee will hold a hearing on reauthorization of the Satellite Home Viewers Improvement Act of 1999. The witnesses will be Charlie Ergen (Ch/CEO of Echostar), Jim Yager (CEO of Barrington Broadcasting Company), Eddy Hartenstein (Ch/CEO of DirecTV), Araceli De Leon (Telemundo Communications), and Gigi Sohn (Public Knowledge). See, notice. Location: Room 253, Russell Building.

9:30 AM. The Heritage Foundation will host an event titled "Protecting Civil Liberties and Fighting Terrorism: The USA Patriot Act". The speakers will be James Comey (Deputy Attorney General), Asa Hutchinson (Undersecretary for Border Security and Transportation, Department of Homeland Security), William Fox (Department of the Treasury), William Bennett (Empower America), and Edwin Meese (Heritage). See, notice. Location: Heritage Foundation, 214 Massachusetts Ave., NE.

2:00 AM. The House Financial Services Committee's (HFSC) Subcommittee on Capital Markets will hold its second hearing on the Financial Accounting Standards Board's (FASB) exposure draft on share-based payments, or stock options, and its effects on publicly traded companies. It held its first hearing on April 21. This hearing is titled "The FASB Stock Options Proposal: Its Effect on the U.S. Economy and Jobs". Location: Room 2128, Rayburn Building.

The House will meet at 10:00 AM for legislative business. It may consider HR 4227, the "Middle-Class Alternative Minimum Tax Relief Act of 2004". It may also consider several non-technology related items under suspension of the rules. See, Republican Whip Notice.

9:00 AM - 12:00 PM. The Telecommunications Service Priority System Oversight Committee will meet. See, notice in the Federal Register, April 16, 2004, Vol. 69, No. 74, at Page 20636. Location: 701 South Courthouse Road, Arlington, VA.

9:30 AM - 3:00 PM. The American Enterprise Institute (AEI) will host an event titled "Sarbanes-Oxley: A Review". At 12:15 PM, the luncheon speaker will be Dell CEO Kevin Rollins. See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

10:00 AM. The House Judiciary Committee will meet to mark up various bills and resolutions. The agenda includes 16 items. The Committee is unlikely to complete this agenda in one meeting. The agenda includes HR 3754, the "Fraudulent Online Identity Sanctions Act", HR 1731, the "Identity Theft Penalty Enhancement Act", S 1301, the "Video Voyeurism Prevention Act of 2003", HR 1302, the "Federal Courts Improvement Act of 2003", HR 3632, the "Anti-counterfeiting Amendments of 2003", and HR 338  the "Defense of Privacy Act". The meeting will be webcast by the Committee. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

11:00 AM - 12:00 NOON. The Electronics Industry Association (EIA) will host an event titled "Creating a National Technology Strategy: EIA to Present Six-Part Playbook Addressing the Future of the U.S. High-Tech Innovation Economy". See, notice. For more information, contact Neil Gaffney at 703 907-7792 or Ngaffney@eia.org. Location: Room HC 5, Capitol Building.

12:15 - 1:45 PM. The Center for Democracy and Technology (CDT) will host a brown bag lunch titled "South Korea's 2nd Net Election -- The Screen Shots" and "US Election 2004 Online -- A Virtual Civil War?". RSVP by 12:00 NOON on Tuesday, May 4 to ari@cdt.org or 202 637-9800. Location: CDT, 1634 I St., NW.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry and Notice of Proposed Rulemaking (NOI & NPRM) [31 pages in PDF] regarding the interference temperature method of quantifying and managing interference among different services. See, notice in the Federal Register, January 21, 2004, Vol. 69, No. 13, at Pages 2863 - 2870. This NOI/NPRM is FCC 03-289 in ET Docket No. 03-237. See also, stories titled "FCC Announces NOI/NPRM on Interference Temperature Model" in TLJ Daily E-Mail Alert No. 779, November 14, 2003, and "FCC Releases NOI/NPRM on Interference Temperature Approach" in TLJ Daily E-Mail Alert No. 789, December 1, 2003.

The House will meet at 10:00 AM for legislative business. It may consider HR 4227, the "Middle-Class Alternative Minimum Tax Relief Act of 2004". It may also consider several non-technology related items under suspension of the rules. See, Republican Whip Notice.

9:30 AM. The Senate Judiciary Committee will hold an executive business meeting. See, notice. Location: Room 226, Dirksen Building.

9:30 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing titled "The 'Dot Kids' Internet Domain: Protecting Children Online". The hearing will be webcast. Press contact: Jon Tripp (Barton) at 202 225-5735 or Sean Bonyun (Upton) 202 225-3761. See, notice. Location: Room 2123, Rayburn Building.

10:00 AM. The House Judiciary Committee's Subcommittee on Courts, the Internet, and Intellectual Property will hold meet to markup the Committee Print of the "Satellite Home Viewer Extension and Reauthorization Act of 2004". The meeting will be webcast by the Committee. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

10:00 AM. The House Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection will hold a hearing titled "Online Pormography: Closing the Doors on Pervasive Smut". The hearing will be webcast by the Committee. Rep. Cliff Stearns (R-FL) will preside. Press contact: Samantha Jordan (Barton) at 202 225-5735 or Paul Flusche (Stearns) at 202 225-5744. Location: Room 2322, Rayburn Building.

2:30 PM. The Senate Judiciary Committee will hold a hearing on the nomination of Jonathan Dudas to be Under Secretary of Commerce for Intellectual Property and Director of the U.S. Patent and Trademark Office (USPTO). See, notice. Location: Room 226, Dirksen Building.

Day one of a two day conference hosted by the Computer Law Association titled "2004 World Computer and Internet Law Congress". Prices vary. See, event brochure [PDF]. Location: Park Hyatt, 1201 24th Street, NW.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding the provision of international telecommunications service. This NPRM is FCC 04-40 in IB Docket No. 04-47. See, notice in the Federal Register, March 22, 2004, Vol. 69, No. 55, at Pages 13276 - 13278.

9:00 AM - 1:00 PM. The Federal Communications Commission's (FCC) Internet Policy Working Group (IPWG) will hold its second "Solutions Summit". This summit will focus on disability access issues associated with internet protocol technologies. See, agenda [PDF]. Location: FCC, 445 12th St., SW.

10:00 AM - 4:00 PM. The Department of Commerce's (DOC) National Medal of Technology Nomination Evaluation Committee will hold a closed meeting to discuss the relative merits of persons and companies nominated for the medal. See, notice in the Federal Register, April 19, 2004, Vol. 69, No. 75, Page 20863. Location: Room 4813, DOC, 1401 Constitution Ave., NW.

12:15 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host a brown bag lunch. The topic will be "The Role of In House Counsel". The speakers will be Susan Fox (Disney), Phil Passanante (RCN), Doug Brandon (AT&T Wireless), and Lon Levin (XM Satellite Radio). For more information, contact Chris Fedeli at cfedeli@covad.net or Tony Lin at tony.lin@shawpittman.com. Location: Shaw Pittman, 2300 N Street, NW, Conference Room.

12:15 PM. The Federal Communications Bar Association's (FCBA) Wireless Committee will host a luncheon titled "Hot Topics for NTIA". The speaker will be Michael Gallagher (acting head of the National Telecommunications and Information Administration), and NTIA staff. The price to attend is $15.00. FCBA registration form [PDF] required. Location: Sidley Austin, 1501 K Street, NW, 6th floor.

Day two of a two day conference hosted by the Computer Law Association titled "2004 World Computer and Internet Law Congress". Prices vary. See, event brochure [PDF]. Location: Park Hyatt, 1201 24th Street, NW.

Deadline to submit requests to the Federal Trade Commission (FTC) to participate as a panelist in its June 21, 2004 workshop on the uses, efficiencies, and implications for consumers associated with radio frequency identification (RFID) technology. See, FTC web page for this workshop, and notice in the Federal Register, April 15, 2004, Vol. 69, No. 73, at Pages 20523 - 20525.

1:30 - 3:30 PM. Federal Communications Commission's (FCC) World RadioCommunication 2007 (WRC-07) Advisory Committee's Informal Working Group on Broadcasting and Amateur Issues will meet. See, FCC notice [PDF]. For more information, contact Ben Fisher at 202 663-8154. Location: Shaw Pittman, 2300 N Street, NW.

POSTPONED TO JUNE 14. 2:00 PM. The Federal Communications Commission's (FCC) Advisory Committee on Diversity for Communications in the Digital Age will meet. Location: FCC, 445 12th Street, SW.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) regarding deployment of advanced telecommunications capability to all Americans in a reasonable and timely fashion, and possible steps to accelerate such deployment. The FCC is required by Section 706 of the Telecommunications Act of 1996 to provide an annual report to the Congress on this subject. See, notice in the Federal Register, April 8, 2004, Vol. 69, No. 68, at Pages 18508 - 18515. This is GN Docket No. 04-54.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding the Emergency Alert System (EAS). See, notice in the Federal Register, April 9, 2004, Vol. 69, No. 69, at Pages 18857 - 18859.

Deadline to reply submit comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) requesting data and information on the status of competition in the Commercial Mobile Radio Services (CMRS) industry for the FCC's Ninth Annual Report and Analysis of Competitive Market Conditions with Respect to Commercial Mobile Services. This NOI is FCC 04-38 in WT Docket No. 04-111. See, notice in the Federal Register, April 23, 2004, Vol. 69, No. 79, at Pages 22032 - 22042.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Second Further Notice of Proposed Rule Making (NPRM) regarding two plans that propose establishing optional alternative regulation mechanisms for rate-of-return carriers. See, notice in the Federal Register, March 24, 2004, Vol. 69, No. 57, at Pages 13794 - 13803.

5/3. The Supreme Court denied certiorari in Jack Whitehorn v. FCC, No. 03-1318. See, Order List [7 pages in PDF] at page 2.

5/3. President Bush gave a speech in Niles, Michigan. He said, among other things, that "The more productive a society is, the most likely it is people are going to be able to have better wages and better earnings. The more productive a society we have in America, the more likely it is we're the leader in the world. And it's very important for us to be the technological leader in the world, and to be the leader in innovation, and that's why we got to have broadband technology in Niles, Michigan, for every home in Niles, Michigan."

4/29. The Department of Commerce's (DOC) Bureau of Industry and Security (BIS) published a notice in the Federal Register summarizing its final rule revising items subject to export controls. See, Federal Register, April 29, 2004, Vol. 69, No. 83, at Pages 23597 - 23615.

5/3. The Department of Justice (DOJ) filed a complaint in U.S. District Court (DC) against Bill Gates alleging violation of the Hart-Scott-Rodino (HSR) Act of 1976 in connection with his purchase of securities in the ICOS Corporation, a pharmaceutical company based in Bothell, Washington. The DOJ announced in a release that Gates "has agreed to pay an $800,000 civil penalty to settle charges that he violated premerger reporting requirements", and that the DOJ has "filed a proposed settlement" with the Court. The DOJ added that this matter "is not related to Gates' position in Microsoft Corporation or the Department's antitrust litigation with the company". See, DOJ release.