Tech Law Journal Daily E-Mail Alert
June 14, 2004, 9:00 AM ET, Alert No. 917.
Home Page | Calendar | Subscribe | Back Issues | Reference
House to Take Up Tax Bill with ETI Repeal and Tech Provisions

6/14. The House Ways and Means Committee has scheduled a meeting to mark up HR 4520, the "American Jobs Creation Act of 2004", on Monday, June 14 at 5:00 PM. The House is scheduled to consider the bill later in the week. The bill contains technology related provisions, including repeal of the ETI regime, and a limitation on deductions for charitable contributions of patents and other IP.

This bill would revise federal tax law to bring it into compliance with World Trade Organization (WTO) rulings that the US Foreign Sales Corporation (FSC) tax regime, and its replacement, the Extraterritorial Income (ETI) tax regime, constitute illegal export subsidies.

Rep. Bill Thomas (R-CA), the Chairman of the Ways and Means Committee, stated in a release on June 4, 2004 that this bill "will put an end to escalating sanctions against American products. It will also provide tax relief to U.S. manufacturers to help create more American jobs and help U.S.-based businesses succeed in the worldwide market while building jobs at home".

See also, Ways and Means Committee's summary [2 pages in PDF] of the FSC/ETI related provisions of the bill.

Charitable Contributions of IP. The bill would also limit deductions for charitable contributions of intellectual property.

In 1958, Internal Revenue Service (IRS) Revenue Ruling 58-260 confirmed the deductibility of donated patents. However, in recent years, some legislators, and especially Sen. Charles Grassley (R-IA), the Chairman of the Senate Finance Committee, have argued that the regime has been abused.

In addition, the Internal Revenue Service announced in December of 2003 that it will crack down on excessive claims of deductions. The IRS issued an undated notice [3 pages in PDF] that states that the IRS "is aware that some taxpayers that transfer patents or other intellectual property to charitable organizations are claiming charitable contribution deductions in excess of the amounts to which they are entitled under § 170 of the Internal Revenue Code." See, story titled "IRS Plans Crack Down on Charitable Contributions Deductions Involving Transfers of Intellectual Property" in TLJ Daily E-Mail Alert No. 805, December 23, 2003.

Section 682 of HR 4520 contains language limiting deductions for charitable contributions of intellectual property, including patents and copyrights, to non-profit entities, such as universities.

For a discussion of the issues involved, see the February 2, 2004 paper [48 pages in PDF] titled "IP Donations: A Policy Review". This was written by Ron Layton and Peter Bloch for the International Intellectual Property Institute (IIPI). See also, story titled "IIPI Paper Examines Tax Deductions for IP Donations" in TLJ Daily E-Mail Alert No. 837, February 16, 2004.

Senate Bill. Sen. Grassley has been trying to pass a limitation for several years. First, he succeeded in adding language to the Senate's version of HR 2, the "Jobs and Growth Tax Relief Reconciliation Act of 2003", a major tax cut bill. See, "Senate Passes Tax Bill with Limitation of Deduction for Charitable Contributions of Intellectual Property" in TLJ Daily E-Mail Alert No. 664, May 19, 2003. This bill ultimately became law (Public Law No. 108-27) on May 28, 2003, but without Sen. Grassley's IP language.

Sen. Grassley has also inserted language addressing this issue into S 1637, the "Jumpstart Our Business Strength (JOBS) Act". This is a huge tax bill, the primary purpose of which is to revise tax law to bring it into compliance with World Trade Organization (WTO) rulings that the FSC and ETI tax regimes constitute illegal export subsidies.

Sen. Grassley introduced the bill on September 18, 2003. The Senate Finance Committee amended and approved the bill on October 2, 2003. See also, Committee Report, No. 108-192. The full Senate passed this bill on May 11, 2004. Section 494 of S 1637 has language that is similar, but not identical, to Section 682 of the HR 4520.

Other Tech Related Provisions of HR 4520. This is a huge bill with numerous provisions, including many that may be of interest to the technology sector, including the following.

Section 261 excludes incentive stock options and employee stock purchase plan stock options from wages.

Section 402 extends the research and development tax credit, which is scheduled to expire on June 30, 2004, through December 31, 2005. The R&D tax credit is found at 26 U.S.C. § 41. The sunset provision is found at Section 41(h)(1). The R&D tax credit is a perennial issue in Congress. The credit was first enacted in 1981 as a temporary measure, and has been extended every few years since then.

Section 409 extends the provision of the Internal Revenue Code pertaining to charitable contributions of computer technology and equipment for educational purposes. 26 U.S.C. § 170 pertains to charitable contributions. 26 U.S.C. § 170(e)(6) is a special rule for contributions of computer technology and equipment for educational purposes. Section 170(e)(6)(G) provides that it expired on December 31, 2003. HR 4520, at Section 409, would extend this expiration date to December 31, 2005.

Section 647 pertains to the limitation on the depreciation period for software leased to tax exempt entities.

10th Circuit Rules on Enforcement of FTC Act Injunctions

6/10. The U.S. Court of Appeals (10thCir) issued its en banc opinion in FTC v. Kuykendall, a case regarding the procedure used by the Federal Trade Commission (FTC) to enforce consumer protection laws. Specifically, this case involves the procedures used to enforce a stipulated judgment and injunction signed by violators of the FTC Act and the Telemarketing Sales Rule (TSR).

The FTC attempted to enforce an injunction by filing a motion to show cause why the defendants should not be found in contempt of the injunction. The District Court held an evidentiary hearing, and then held that all of the signatories to the stipulated judgment and injunction had violated the injunction, and held them jointly and severally liable for consumer redress. The Court of Appeals en banc reversed in part.

Defendants are telemarketing who violated the FTC Act and the Telemarketing Sales Rule. The defendants are corporate entities, Diversified Marketing Service Corp., National Marketing Service, Inc., NPC Corporation of the Midwest, Inc., and Magazine Club Billing Service, Inc., as well as individuals officers, H.G. Kuykendall, Sr., C.H. Kuykendall, and H.G. Kuykendall, Jr.

The FTC summarized its complaint in a 1996 release: "the defendants sold their magazine subscriptions packages by placing ``cold´´ sales calls to consumers and making a variety of misrepresentations. Diversified charged consumers from $500 to $800 for a magazine subscription package. The alleged misrepresentations include false claims about the cost of the subscriptions -- for instance, claiming that some subscriptions were free or for longer terms than actually was the case. In addition, the FTC charged that in some cases the defendants misled consumers about the reason for needing their checking account numbers -- in fact, the defendants used the account numbers to process so-called ``demand drafts,´´ or ``phone checks,´´ which, unlike conventional checks, do not require a consumer's signature on a printed document. Finally, the FTC charged that Diversified refused to cancel consumers' subscriptions despite promises that consumers could change their minds, falsely claiming that consumers were bound by contract for multi-year subscriptions."

The Federal Trade Commission (FTC) filed a complaint in U.S. District Court (WDOkla) in 1996 alleging violation of the Section 5 of the Federal Trade Commission Act, which is codified at 15 U.S.C.§ 45, and the Telemarketing Sales Rule, 16 CFR Part 310.

Section 5 provides that "Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful."

Later in 1996, the parties entered into a "Stipulated Final Judgment and Order for Permanent Injunction" which included 24 paragraphs limiting the defendants' future business conduct. It also required defendants to pay $1.5 Million in consumer redress. H.G. Kuykendall, Sr. and C.H. Kuykendall both signed, both individually and as officers of corporate defendants.

The defendants violated this injunction. Hence, in 2002 the FTC filed a motion to show cause why the defendants should not be found in contempt of the permanent injunction. The FTC requested that the District Court award $51 Million in contempt sanctions.

Following an evidentiary hearing, the District Court entered an "Order for Contempt and Modifying the Permanent Injunction". The Court held that defendants had violated the 1996 injunction, found that they had caused at least $39 Million in consumer injury, and held them jointly and severally liable for consumer redress in the amount of $39 Million.

The present appeal followed. On December 11, 2002, a three judge panel of the Court of Appeals issued its opinion affirming the District Court, except for its determination of the amount of monetary sanctions. The three panel remanded to the District Court for a jury trial to determine the appropriate measure of sanctions. This opinion is also reported at 312 F.3d 1329.

Then, the Court of Appeals reheard the case en banc. The en banc panel held that "we agree with the panel and the district court that the underlying proceedings were correctly classified as civil contempt proceedings, but we hold that the panel erred in requiring that damages be proven on remand by clear and convincing evidence before a jury. We also conclude that the district court erred in finding certain individual defendants liable and in failing to adequately explain its determination of damages. We therefore vacate the Panel Opinion, reverse the judgment of the district court in part, and remand the case to the district court for additional proceedings in accord with this opinion."

The en banc panel held that this is a compensatory civil contempt proceedings, that a jury is not required to satisfy due process, and that the District Court "should require proof of contempt by clear and convincing evidence and proof of the amount of compensatory damages by a preponderance of the evidence."

The en banc panel rejected the defendants' claim that they were denied due process when the FTC waited from 1996 until 2002 to initiate a contempt proceeding, and then the District Court held its hearing 28 days later. The en banc panel wrote that "It must also be noted that the defendants, in exchange for the dismissal of the Commission's original claim against them, agreed to the Permanent Injunction. By agreeing to an ongoing court-supervised Permanent Injunction prospective in nature, the defendants were aware they were subjecting themselves to the lowered procedural protections available in the event of contempt proceedings."

The en banc panel also noted that while 28 days left the defendants with little time for discovery, "Most of the evidence in this case involved the defendants' own behavior and their own records."

The en banc panel affirmed the District Court's contempt holding as to defendants DMS and H.G. Kuykendall, Jr. It wrote that the FTC presented ample evidence of violation of the injunction by DMS, and that H.G. Kuykendall, Jr. was the President of DMS at the relevant times.

However, the en banc panel reversed the District Court as to the other corporate defendants. It wrote that "Because the FTC provided no clear evidence that any corporation other than DMS failed to comply with any specific provision of the Permanent Injunction or could have controlled the activities at DMS, they cannot be held vicariously in contempt, and the district court abused its discretion in so holding them."

The en banc panel also reversed the District Court as to the other individual defendants, H.G. Kuykendall, Sr. and C.H. Kuykendall. They had signed the 1996 stipulated judgment and injunction, and continued to hold a majority of the stock of DMS. But, the panel ruled, this is insufficient.

Finally, the en banc panel reversed the District Court's sanction of consumer redress in the amount of $39 Million. The en banc panel concluded that on remand, "The district court may use gross receipts as a baseline for calculating consumer injury on remand if it is satisfied that the FTC has shown by clear and convincing evidence that the defendants engaged in a pattern or practice of contemptuous behavior. The defendants may then put forth evidence offsetting the sanctions alleged. The court should then order the liable defendants to pay the appropriate amount into the registry of the court, and set forth procedures by which the FTC may obtain funds to reimburse injured consumers."

H.G. Kuykendall, Sr. and C.H. Kuykendall were represented in this proceeding by the law firm of Gibson Dunn & Crutcher (GDC). GDC was the long time law firm of Ted Olson, before President Bush appointed him Solicitor General of the United States.

This case is Federal Trade Commission v. H.G. Kuykendall, Sr., et al., U.S. Court of Appeals for the 10th Circuit, App. Ct. Nos. 02-6101 and 02-6102, appeals from the U.S. District Court for the Western District of Oklahoma, D.C. No. CIV-96-388-M.

District Court Construes Computer Fraud and Abuse Act

6/10. The U.S. District Court (DMass) issued its opinion [6 pages in PDF] in Computer Networks, Inc. v. Sears, Roebuck and Co, a case involving an allegation of violation of the Computer Fraud and Abuse Act (CFAA), which is codified at 18 U.S.C. § 1030.

The plaintiff, Computer Networks, Inc. (CNI), is a tiny internet hosting company in Waltham, Massachusetts. Its e-mail domain is cnetwork.com. The defendant, Sears, Roebuck and Co., is a large retailer. Its e-mail domain is sears.com. E-mail originating from Sears employees and customers migrated to CNI’s server and caused CNI's server to crash.

The Court wrote that "Sears' internal e-mail system used a suffix for its customer care division that incorporated CNI's server address, that is, ``@cnetwork.sears.com.´´ If a sender omitted the ``sears.com´´ suffix, the mail defaulted to CNI's server. CNI has offered no evidence that the misrouted e-mail was caused by anything other than the similarity in addresses, or any evidence that Sears concocted a deliberate plan to access CNI's server."

CNI filed a complaint in District Court against Sears alleging (1) violation of the CFAA, (2) common law trespass and conversion, (3) common law nuisance, (4) intentional interference with advantageous business relations, and (5) violation of a Massachusetts commercial relations statute. The Court granted summary judgment to Sears.

The CFAA provides, in part, at Section 1030(a)(5)(C), that "Whoever ... intentionally accesses a protected computer without authorization, and as a result of such conduct, causes damage; ... shall be punished as provided in subsection (c) of this section."

The Court held that this subsection requires intentional conduct, which was lacking in this case. The Court also granted summary judgment on the trespass and conversion and intentional interference claims for the same reason.

The Court also held that the complaint did not allege facts amounting to a nuisance, and that the Massachusetts commercial relations statute claim is inapplicable because CNI and Sears had no commercial relationship.

DOD and NIST Enter Into MOU Re Defense Technology

6/9. The Department of Commerce's (DOC) Technology Administration (TA) and the Deputy Under Secretary of Defense for Advanced Systems and Concepts entered into a Memorandum of Understanding (MOU) [PDF] "for the purpose of piloting focused, collaborative efforts to support the U.S. warfighter's technology superiority".

The TA stated in a release that this MOU "will help small manufacturers tap into DoD technologies and expertise" through the Manufacturing Extension Partnership (MEP), a program managed by TA's National Institute of Standards and Technology (NIST).

The DOD's Advanced Systems & Concepts Office (ASCO) is a component of the Defense Threat Reduction Agency (DTRA). The ASCO web site states that it "stimulates, identifies and executes high-impact seed projects to encourage new thinking, address technology gaps and improve the operational capabilities of DTRA, DOD and other government agencies in response to weapons of mass destruction (WMD) threats." However, while the focus of the ASCO is WMD, this MOU also references information technologies, including radio frequency identification (RFID) and cyber security.

The MOU states that the "DoD's focus ... is to ... Establish direct relationships, where feasible between DoD and DoC director and program manager level staff ..." and "Identify defense emerging technology needs and related critical manufacturing processes needed domestically for defense production capabilities ..."

The MOU also states that "DoC's focus to better utilize NIST ... is to ... Provide a professional detail assignment to facilitate the collaborative efforts with specific programs/laboratories such as DoD's Technology Transfer Initiative ..." and "Support the development and deployment of a set of specific defense performance-based commercial standards for high-tech defense manufacturing processes and supply chain interactions (i.e., UID/RFID, cyber security, Homeland Defense, etc.) ..." (Parentheses in original.)

The MOU was signed by the TA's Phil Bond and the DOD's Sue Peyton.

Washington Tech Calendar
New items are highlighted in red.
Monday, June 14

The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislation. The House will consider 25 items under suspension of the rules. The agenda includes consideration of HR 4417, a bill to modify certain deadlines pertaining to machine readable, tamper resistant entry and exit documents. See, Republican Whip Notice.

The Senate will meet at 1:00 PM for morning business. It will then resume consideration of S 2400, the Department of Defense authorization bill for FY 2005.

The Supreme Court will return from a recess that it began on Monday, June 7, 2004.

2:00 - 5:00 PM. The Federal Communications Commission's (FCC) Advisory Committee on Diversity for Communications in the Digital Age will meet. For more information, contact Jane Mago at 202 418-2030 or Maureen McLaughlin at 202 418-2030. See, FCC notice [PDF] and notice in the Federal Register, May 6, 2004, Vol. 69, No. 88, at Pages 25390 - 25391. Location: FCC, 445 12th Street, SW.

5:00 PM. The House Ways and Means Committee will meet to mark up HR 4520, the "American Jobs Creation Act of 2004". This bill would, among other things, replace the ETI/FSC tax regimes. Press contact: 202-225-8933. See, notice. Location: Room 1100, Longworth Building.

6:30 - 8:30 PM. The National Press Club (NPC) will host an event titled "Cybersecurity: The Threat and the Response". The speakers will be Wilson Dizard (Senior Editor, Government Computer News), Bob Dix (House Government Reform Committee's Technology and Information Policy Subcommittee), Richard Forno, and Hun Kim (Department of Homeland Security's National Cyber Security Division). Prices vary. For more information, call 202 662-7129. Location: NPC, 529 14th St., NW.

6:30 - 8:30 PM. The DC Bar Association's Arts, Entertainment and Sports Law Section will host a panel discussion titled "D.C. Confidential: Does The First Amendment Protect A Journalist's Conversations With A Source? A Roundtable Debate". Prices vary. See, notice. For more information, contact 202 626-3463. Location: National Press Club, Holeman Lounge, 13th Floor, 529 14th Street, NW.

Tuesday, June 15

8:30 AM. The House and Senate will meet in joint session for the purpose of hearing an address by Hamid Karzai, President of Afghanistan.

The House will meet at 9:10 AM for legislative business. The agenda includes several non technology related items. See, Republican Whip Notice.

8:00 AM - 3:00 PM. The Information Technology Association of America (ITAA) will host a conference on radio frequency identification (RFID), titled "ITAA RFID Forum: Business and Policy Considerations". See, notice. Prices vary. For more information, contact Eerik Kreek at 703 284-5316 or ekreek@itaa.org. Location: J.W. Marriott Hotel.

8:30 AM - 5:00 PM. Day one of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board. See, notice in the Federal Register, May 28, 2004 Vol. 69, No. 104, at Page 30621. Location: Hilton Hotel, 620 Perry Parkway, Gaithersburg, MD.

9:30 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet will hold a hearing on HR __, the "Junk Fax Prevention Act of 2004". The hearing will be webcast. Location: Room 2322, Rayburn Building.

10:00 AM. The House Ways and Means Committee's Subcommittee on Social Security will hold a hearing titled "Enhancing Social Security Number Privacy". See, notice. Location: Room B-318, Rayburn Building.

10:00 AM. The Senate Banking Committee will hold a hearing on the nomination of Alan Greenspan to be Chairman of the Federal Reserve Board. Greenspan will be the only witness. See, notice. Location: undisclosed.

10:00 AM. The Senate Finance Committee will hold a hearing to examine U.S. Australia and U.S. Morocco free trade agreements. Location: Room 215, Dirksen Building.

10:00 AM. The Senate Judiciary Committee will hold a hearing to examine S 2324, the "Visa Waiver Program Compliance Amendments of 2004", a bill to extend the deadline on the use of technology standards for the passports of visa waiver participants. Press contact: Margarita Tapia (Hatch) at 202 224-5225 or David Carle (Leahy) at 202 224-4242. Location: Room 226, Dirksen Building.

TIME CHANGE. 11:00 AM. The House Financial Services Committee will meet to complete its mark up of HR 3574, the "Stock Option Accounting Reform Act". Location: Room 2128, Rayburn Building.

6:00 - 8:00 PM. The Federal Communications Bar Association's (FCBA) will host a continuing legal education (CLE) program titled "National Security Review of Telecommunications and Internet Transactions". This program will address both the review processes of the Federal Communications Commission (FCC) and the Committee on Foreign Investment in the U.S. (CFIUS). The speakers will include Patrick Kelly (Deputy General Counsel of the Federal Bureau of Investigation), Gay Sills (Director, Office of International Investment, Department of the Treasury), Jeanne Archibald (Hogan & Hartson), Kristen Verderame (BT Americas Inc.), and Joel Winnik (Hogan and Hartson). To register, contact Wendy Parish at wendy@fcba.org. Location: Hogan & Hartson, 555 13th Street, NW.

Deadline to submit comments to the Federal Trade Commission (FTC) in response to its notice of proposed rulemaking regarding the proper disposal of consumer report  information and records. See, notice in the Federal Register, April 20, 2004, Vol. 69, No. 76, at Pages 21387 - 21392.

Deadline to submit comments to the Federal Trade Commission (FTC) in response to its notice of proposed rulemaking regarding the identity theft provisions of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). See, notice in the Federal Register, April 28, 2004, Vol. 69, No. 82, at Pages 23369 - 23378.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding presubscribed interexchange carrier (PIC) change charge policies. This NPRM is FCC 04-96 in CC Docket No. 02-53. See, notice in the Federal Register, May 26, 2004, Vol. 69, No. 102, at Pages 29913 - 29917.

Wednesday, June 16

The House will meet at 10:00 AM for legislative business. The agenda includes possible consideration of the homeland security appropriations bill and HR 4520, the "American Jobs Creation Act of 2004". Both bills large, and contain technology related provisions. See, Republican Whip Notice.

8:30 AM - 5:00 PM. Day two of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board. See, notice in the Federal Register, May 28, 2004 Vol. 69, No. 104, at Page 30621. Location: Hilton Hotel, 620 Perry Parkway, Gaithersburg, MD.

9:30 AM. The Senate Commerce Committee will hold a hearing on S 2281, the "VOIP Regulatory Freedom Act of 2004", sponsored by Sen. John Sununu (R-NH). See, stories titled "Sununu and Pickering Introduce VOIP Regulatory Freedom Bills" and "Summary of VOIP Regulatory Freedom Bills" in TLJ Daily E-Mail Alert No. 872, April 8, 2004. See, notice. Press contact: Rebecca Fisher (McCain) at 202 224-2670 or Andy Davis (Hollings) at 202 224-6654. Location: Room 253, Dirksen Building.

10:00 AM. The Senate Judiciary Committee will hold a hearing on several judicial nominees: Richard Griffin (to be a Judge of the U.S. Court of Appeals for the 6th Circuit), David McKeague (6th Circuit), Virginia Covington (Middle District of Florida). Press contact: Margarita Tapia (Hatch) at 202 224-5225 or David Carle (Leahy) at 202 224-4242. Location: Room 226, Dirksen Building.

10:30 AM. The House Ways and Means Committee will hold a hearing titled "Implementation of the U.S.-Australia Free Trade Agreement". See, notice. Press contact: 202 225-1721. Location: Room 1100, Longworth Building.

10:45 AM - 12:15 PM. The Business Software Alliance (BSA) will host an event titled "2004 Business Software Alliance CEO Forum Policy Roundtable". The speakers will be Robert Holleyman (BSA), James Glassman (AEI), Bruce Chizen (Adobe) David Krall (Avid), Greg Bentley (Bentley Systems), Dale Fuller (Borland), Bill Conner (Entrust), Dominique Goupil (Filemaker), Tom Noonan (Internet Security Systems), Steve Ballmer (Microsoft), George Samenuk (McAfee), Art Coviello (RSA Security), John McEleney (SolidWorks), John Thompson (Symantec), and Gary Bloom (Veritas). The BSA's notice states that this event "is open to the media". For more information, contact Jeri Clausing at jeric@bsa.org or 202 530-5127. Location: Room 106, Dirksen Building.

2:00 PM. The House Government Reform Committee's Subcommittee on on Technology, Information Policy, Intergovernmental Relations and the Census will hold a hearing titled "Locking Your Cyber Front Door -- The Challenges Facing Home Users And Small Businesses?" Location: Room 2154, Rayburn Building.

Deadline for the Federal Trade Commission (FTC) to submit its report to the Congress regarding a National Do Not E-mail Registry. Section 9 of S 877, the "Controlling the Assault of Non-Solicited Pormography and Marketing Act of 2003" (CAN-SPAM Act), requires the FTC to write this report. See, story titled "FTC Announces CAN-SPAM Act Rulemaking" in TLJ Daily E-Mail Alert No. 855, March 15, 2004.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rule Making (FNPRM) and Notice of Inquiry (NOI) regarding digital audio broadcasting (DAB). This item is FCC 04-99 in MB Docket No. 99-325. See, story titled "FCC Announces FNPRM and NOI Regarding Digital Audio Broadcasting" in TLJ Daily E-Mail Alert No. 878, April 16, 2004, and notice in the Federal Register, May 17, 2004, Vol. 69, No. 95, at Pages 27874 - 27885.

Thursday, June 17

The House will meet at 10:00 AM for legislative business. The agenda includes possible consideration of the homeland security appropriations bill and HR 4520, the "American Jobs Creation Act of 2004". Both bills are large, and contain technology related provisions. See, Republican Whip Notice.

8:30 AM - 1:30 PM. The Cato Institute will host an event titled "The Law and Economics of File Sharing & P2P Networks" The speakers will include Jack Valenti (Motion Picture Association of America). See, notice. The event will be webcast. Lunch will be served. Free. Location: Cato, 1000 Massachusetts Ave., NW.

8:30 AM - 1:00 PM. Day three of a three day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board. See, notice in the Federal Register, May 28, 2004 Vol. 69, No. 104, at Page 30621. Location: Hilton Hotel, 620 Perry Parkway, Gaithersburg, MD.

9:00 AM. The Senate Governmental Affairs Committee will hold a hearing titled "Buyer Beware: The Danger of Purchasing Pharmaceuticals Over The Internet". See, notice. Location: Room 342, Dirksen Building.

9:30 AM. The House Commerce Committee's Subcommittee on Oversight and Investigations will hold a hearing titled "Problems with the E-rate Program: Waste, Fraud, and Abuse Concerns in the Wiring of Our Nation's Schools to the Internet". The hearing will be webcast. See, notice. Location: Room 2322, Rayburn Building.

9:30 AM. The Senate Foreign Relations Committee will hold a hearing on several treaties, including the Council of Europe Convention on Cybercrime. The witnesses will be Michael Schmitz (Bureau of Customs and Border Protection, Department of Homeland Security), Bruce Swartz (Criminal Division, Department of Justice), and Samuel Witten (Department of State). See, notice. Location: Room 419, Dirksen Building.

2:00 PM. The House Ways and Means Committee's Subcommittee on Health will hold a hearing titled "Health Care Information Technology". See, notice. Location: Room 1100, Longworth Building.

Day one of a three day event titled "China-U.S. Telecommunications Summit". See, NTIA notice and TIA notice. Location: Chicago, Illinois.

Friday, June 18

The House will meet at 9:00 AM for legislative business. The agenda includes possible consideration of the homeland security appropriations bill and HR 4520, the "American Jobs Creation Act of 2004". Both bills large, and contain technology related provisions. See, Republican Whip Notice.

8:30 AM - 5:30 PM. There will be a one day conference titled "Washington Digital Media Conference". See, conference web site. Location: Hilton McLean, McLean, VA.

9:00 AM - 4:00 PM. The Federal Communications Commission (FCC) Consumer Advisory Committee (CAC) will meet. See, notice and agenda [4 pages in PDF] and notice in the Federal Register, May 27, 2004, Vol. 69, No. 103, at Pages 30293 - 30294. Location: FCC, Commission Meeting Room, Room TW-C305, 445 12th Street, SW.

The Defense Science Board Task Force on Global Positioning System will hold a closed meeting to discuss Galileo and other future radio navigation satellite systems. See, notice in the Federal Register, May 18, 2004, Vol. 69, No. 96, at Pages 28125 - 28126. Location: Strategic Analysis Inc., 3601 Wilson Boulevard, Arlington, VA.

Day two of a three day event titled "China-U.S. Telecommunications Summit". See, NTIA notice and TIA notice. Location: Chicago, Illinois.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its notice of propose rulemaking (NPRM) regarding imposing mandatory minimum Customer Account Record Exchange (CARE) obligations on all local and interexchange carriers. This item is FCC 04-50 in CG Docket No. 02-386. See, notice in the Federal Register, April 19, 2004, Vol. 69, No. 75, at Pages 20845 - 20851.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft [91 pages in PDF] of Special Publication 800-58, titled "Security Consideration for Voice Over IP Systems". Submit comments to Rick Kuhn at sp800-58@nist.gov.

Microsoft Appeals European Commission Decision

6/7. Microsoft filed an appeal with the European Union's Court of First Instance of the March 24 ruling of the European Commission. This is case number T-201/04. See, Microsoft release.

On April 22, 2004, the European Commission released its Commission Decision [302 pages in PDF] regarding Microsoft. This document provides the language of the EC's mandate that Microsoft remove certain code from its products sold in the Europe, and that it license certain proprietary technology and intellectual property rights to its competitors. The EC announced this decision on March 24, 2004. However, the EC did not release the Decision until April 22, 2004. See, story titled "European Commission Releases Microsoft Decision in TLJ Daily E-Mail Alert No. 883, April 23, 2004.

See also, related stories: "EU and Microsoft Fail to Reach Settlement" in TLJ Daily E-Mail Alert No. 859, March 19, 2004; "European Commission Seeks 497 Million Euros and Code Removal from Microsoft", "US Antitrust Chief Says EU's Microsoft Decision Could Harm Innovation and Consumers" and "Microsoft Will Challenge EC Decision in Court" in TLJ Daily E-Mail Alert No. 863, March 25, 2004; "U.S. Legislators Criticize EU Action Against Microsoft" in TLJ Daily E-Mail Alert No. 866, March 30, 2004; and "Pate Criticizes EC Decision Regarding Microsoft" in TLJ Daily E-Mail Alert No. 869, April 5, 2004.

About Tech Law Journal
Tech Law Journal publishes a free access web site and subscription e-mail alert. The basic rate for a subscription to the TLJ Daily E-Mail Alert is $250 per year. However, there are discounts for subscribers with multiple recipients. Free one month trial subscriptions are available. Also, free subscriptions are available for journalists, federal elected officials, and employees of the Congress, courts, and executive branch. The TLJ web site is free access. However, copies of the TLJ Daily E-Mail Alert are not published in the web site until one month after writing. See, subscription information page.

Contact: 202-364-8882; E-mail.
P.O. Box 4851, Washington DC, 20008.
Privacy Policy
Notices & Disclaimers
Copyright 1998 - 2004 David Carney, dba Tech Law Journal. All rights reserved.