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April 12, 2005, 9:00 AM ET, Alert No. 1,113.
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Senate Commerce Committee Holds Hearing on Universal Service and Antideficiency Act

4/11. The Senate Commerce Committee held a hearing on S 241, a bill to exempt the Universal Service Fund (USF) from the Anti-deficiency Act (ADA).

Sen. Daniel Inouye (D-HI), the ranking Democrat on the SCC, wrote in statement that "Congress must act to ensure that schools, libraries, and rural health care providers continue to receive this funding in a timely and predictable manner. I believe that enacting a permanent solution must be one of our highest priorities this session."

The ADA prohibits government expenditures and obligations in excess of the amounts available in an appropriation, fund, or apportionment. That is, it prevents federal agencies from incurring obligations, and then seeking additional appropriations from the Congress. The Office of Management and Budget (OMB), Congressional Budget Office (CBO), and Government Accountability Office (GAO) consider the USF to be a permanent indefinite appropriation.

The Federal Communications Commission's (FCC) Universal Service Administrative Company (USAC) essentially appropriates funds to schools under the FCC's e-rate program, and other universal service programs. These subsidies are funded by taxes imposed upon telecommunications carriers, which in turn, bill their customers. In September 2004, the FCC concluded that the USF was operating in violation of the ADA.

In December of 2004, the Congress enacted, and the President signed, the "Universal Service Antideficiency Temporary Suspension Act", which permits the USF to incur obligations for one year without violating the ADA. The current exemption expires at the end of 2005. S 241 would make permanent the USF's current one year exemption.

See, prepared testimony [36 pages in PDF] of Patricia Dalton (GAO) titled "Telecommunications: Application of the Antideficiency Act and Other Fiscal Controls to FCC's E-Rate Program"; prepared testimony [5 pages in PDF] of Austin Schlick (acting General Counsel of the FCC's Wireless Competition Bureau); prepared testimony [9 pages in PDF] of Brian Talbott (Chairman of the USAC); prepared testimony [PDF] of Sheryl Abshire (Calcasieu Parish Public Schools), and prepared testimony [PDF] of Steve Hamlen (P/CEO of United Utilities, and Alaska constituent of Sen. Ted Stevens).

The level of enthusiasm for this legislation may be greater in the Senate Commerce Committee than in the House Commerce Committee (HCC). For example, the HCC has for years been investigating waste, fraud and abuse in the e-rate program. Also, Rep. Joe Barton (R-TX), the Chairman of the HCC, has suggested that the program be eliminated. See, story titled "Chairman Barton Suggests Ending E-Rate Program" in TLJ Daily E-Mail Alert No. 1,097, March 17, 2005.

Federal Circuit Vacates in Patent Suit Involving Java Technology for Phones

4/11. The U.S. Court of Appeals (FedCir) issued its opinion [PDF] in Nazomi Communications v. Arm Holdings, a patent case involving Java technology. The Court of Appeals vacated the judgment of the District Court.

Nazomi Communications develops and licenses Java hardware acceleration technology for phones and semiconductors. It is the holder of U.S. Patent No. 6,332,215, titled "Java virtual machine hardware for RISC and CISC processors". Java is a programming language that was developed by Sun Microsystems.

The abstract for the patent states that "A hardware Java accelerator is provided to implement portions of the Java virtual machine in hardware in order to accelerate the operation of the system on Java bytecodes. The Java hardware accelerator preferably includes Java bytecode translation into native CPU instructions. The combination of the Java hardware accelerator and a CPU provides a embedded solution which results in an inexpensive system to run Java programs for use in commercial appliances."

Nazomi filed a complaint in U.S. District Court (NDCal) against Arm Holdings, and related entities, alleging infringement of the '215 patent.

The District Court construed the terms of Nazomi's claims, and then granted summary judgment of noninfringement to Arm. This appeal followed.

The Court of Appeals held that the District Court erred in the claims construction, and therefore vacated and remanded. This revives Nazomi's lawsuit.

This case is Nazomi Communications, Inc. v. Arm Holdings, PLC, et al., U.S. Court of Appeals for the Federal Circuit, No. 04-1101, an appeal from the U.S. District Court for the Northern District of California, Judge Jeremy Fogel presiding. Judge Randall Rader wrote the opinion of the Court of Appeals, in which Judges Michel and Prost joined.

Philadelphia to Host Convention on Government Provided Broadband

4/11. There will be a three day convention in Philadelphia, Pennsylvania on May 2-4, 2005 titled "W2i Digital Cities Convention". See, convention web site and agenda. Philadelphia has proposed to provide Wi-Fi service to all of its residents. See also, the Philadelphia's web site named "Wireless Philadelphia".

In advance of this convention, the Progress and Freedom Foundation (PFF) released a paper [14 pages in PDF] titled "Wireless Philadelphia: A Leap Into the Unknown". This paper, which was written by the PFF's Thomas Leonard, analyzes state and local government entry into telecommunications markets in competition with commercial providers. In particular, this paper examines, and criticizes, Philadelphia's proposal to provide Wi-Fi service on a city wide basis.

The PFF paper argues that there is no evidence of market failure to justify government entry into the competitive marketplace. It also argues that the city would not be able to provide Wi-Fi service to all residents at prices lower than commercial providers. It also argues that Wi-Fi is a local technology that has not been proven to work on a city wide basis.

People and Appointments

4/8. The Senate Commerce Committee issued a release listing several recent additions to the Committee's staff. Harry Wingo was named Counsel on telecommunications issues. He previously worked as a Legal Advisor in the Federal Communications Commission's (FCC) Wireless Telecommunications Bureau, as Special Counsel to the FCC's General Counsel, and as an attorney for the law firm of Skadden Arps. He is also a former Navy SEAL officer. Paul Nagle was named Counsel on telecommunications issues. He previously worked as an Attorney Advisor in the FCC's Office of Legislative Affairs, and as an attorney in the Washington DC office of the law firm of Wilkinson Barker & Knauer. Other recent additions to the Committee's staff include Mark Davis, Aaron Saunders (Deputy Press Secretary), Ken Nahigian, (Senior Counsel for transportation security, consumer and domestic trade, and amateur and professional sports issues), and Floyd DesChamps (Senior Advisor on science, technology, and space policy and legislation).

4/11. President Bush nominated Lieutenant General Michael Hayden of the U.S. Air Force to be Principal Deputy Director of National Intelligence. See, White House release.

4/11. Edward Breen was nominated to be an independent director of Comcast Corporation. He is Ch/CEO of Tyco International. Before that, he worked for Motorola. And before that, he worked for General Instrument Corp., which was acquired by Motorola in 2000. See, Comcast release. Comcast also announced that Michael Armstrong "has informed Comcast's Board of Directors that, because of other commitments, he will not stand for re-election as a director at Comcast's annual meeting of shareholders, to be held this year on June 1, 2005 in Philadelphia." See, Comcast release.

4/11. Brian Roberts, the P/CEO of Comcast Corporation, was elected as Chairman of the Board of Directors of the National Cable & Telecommunications Association (NCTA). The NCTA also announced the election of other officers. See, NCTA release.

More News

4/11. Microsoft and Gateway announced that they "have entered into an agreement to resolve legal issues between the two companies and work together on the marketing and development of Gateway personal computing products. ... The agreement provides for periodic Microsoft payments to Gateway totaling an aggregate amount of $150 million over four years. As part of this agreement, Gateway will release all antitrust claims against Microsoft based on past conduct." See, Microsoft release.

4/11. Microsoft filed eight complaints in U.S. District Courts around the country in connection with the distribution of counterfeit, illicit and unlicensed software and software components. See, Microsoft release.

4/11. The U.S. Court of Appeals (8thCir) issued its opinion [PDF] in Taylor Corporation v. Four Seasons Greetings, a copyright dispute between greetings card manufacturers. This case involves issues of ownership of copyright, copying, and substantial similarity. Also, at issue before the Court of Appeals was the standard of review to be applied by the Court of Appeals in reviewing District Court findings of substantial similarity in copyright cases. This Circuit adopted the clearly erroneous standard. This case is Taylor Corporation v. Four Seasons Greetings LLC, U.S. Court of Appeals for the 8th Circuit, No. 04-1088, an appeal from the U.S. District Court for the District of Minnesota.

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Washington Tech Calendar
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Tuesday, April 12

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. It will consider HR 1268, the Iraq/Afghanistan Supplemental Appropriations bill.

TIME? The Senate Judiciary Committee will hold a closed hearing titled "Oversight of the USA PATRIOT Act". Sen. Arlen Specter (R-PA) will preside. Press contact: Blain Rethmeier (Specter) at 202 224-5225, David Carle (Leahy) at 202 224-4242 or Tracy Schmaler (Leahy) at 202 224-2154. Location: undisclosed.  

9:30 AM. The House Appropriation's Committee's Subcommittee on Transportation, Treasury, and Housing and Urban Development, The Judiciary, District of Columbia will hold a hearing on the federal judiciary. See, notice. Location: Room 2358, Rayburn Building.

10:00 AM. The Senate Intelligence Committee will hold an open hearing on the nomination of John Negroponte to be Director of National Intelligence. Location: Room 216, Hart Building.

11:30 AM. The Federal Communications Bar Association (FCBA) will host a luncheon. The speaker will be Rep. Joe Barton (R-TX), the Chairman of the House Commerce Committee. Prices vary from $35 to $65. See, registration form [PDF]. Registrations and cancellations are due by 5:00 PM on April 7. Lunch begins at 12:00 NOON. Location: Mayflower Hotel, 1127 Connecticut Ave., NW.

12:45 or 1:00 PM. Immediately after the Senate Judiciary Committee's closed hearing titled "Oversight of the USA PATRIOT Act", Sen. Arlen Specter (R-PA) will hold a news conference. Press contact: Blain Rethmeier (Specter) at 202 224-5225. Location: Senate Radio/TV Gallery, Capitol Building.

1:00 PM. There will be a news conference to announce the introduction of a bill in the House to forgive interest on undergraduate student loans for math, science and engineering majors who agree to work as a science, technology, engineering or math (STEM) teacher or professional for a minimum of five years. The speakers will include Rep. Vern Ehlers (R-MI), Rep. Frank Wolf (R-VA), and former speaker Newt Gingrich (R-GA). Press contact: Jon Brandt (Ehlers) at 202 225-3831. Location: Cannon Building Terrace. In the event of rain, the location will be Room H-309 Capitol Building.

1:00 PM. The House Appropriation's Committee's Subcommittee on Transportation, Treasury, and Housing and Urban Development, The Judiciary, District of Columbia will hold a hearing on the Supreme Court. Supreme Court Justice Clarence Thomas will testify. See, notice. Location: Room 2358, Rayburn Building.

1:30 - 2:30 PM. There will be a news conference to announce the formation of a group named TeleConsensus that advocates updating telecommunications laws. The speakers will include Rep. Joe Barton (R-TX), Thomas Donohue (P/CEO of the U.S. Chamber of Commerce), John Engler (P/CEO of the National Association of Manufacturers), and Harry Alford (P/CEO of the National Black Chamber of Commerce). Press contact: Larry Neal or Kevin Schweers at 202 225-5735. Location: Room 2322, Rayburn Building.

2:30 PM. The Senate Intelligence Committee will hold a closed hearing on the nomination of John Negroponte to be Director  of National Intelligence. Location: Room 216, Hart Building.

6:00 - 8:30 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host an event titled "Happy Hour". For more information, contact Pam Slipakoff at 202 418-7705 or pam.slipakoff@fcc.gov. Location: Andale, 401 7th Street, NW.

6:00 - 8:15 PM. The DC Bar Association will host a continuing legal education (CLE) seminar titled "What You Need to Know About the DMCA and Its Application". The scheduled speakers are Peter Jaszi (American University Law School), Robert Kasunic (U.S. Copyright Office), Stacey King (Finnegan Henderson), and Alan Lewine (Litman Law Offices). See, notice. Prices vary from $70 to $115. For more information, call 202 626-3488. Location: D.C. Bar Conference Center, B-1 Level, 1250 H St., NW.

Wednesday, April 13

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

9:15 AM - 2:30 PM. The U.S. Patent and Trademark Office (USPTO) will host a seminar on intellectual property enforcement in China. The USPTO states that "Press must confirm attendance by 3:00 p.m., Tuesday, April 12 to (571) 272-8334". Press contact: Brigid Quinn or Ruth Nyblod at 571 272-8400. See, notice. Location: Marriott Inner Harbor Hotel, 110 South Eutaw Street, Baltimore, Maryland.

9:30 AM. The Senate Judiciary Committee will hold a hearing titled "Securing Electronic Personal Data:  Striking a Balance Between Privacy and Commercial and Governmental Use". Press contact: Blain Rethmeier (Specter) at 202 224-5225, David Carle (Leahy) at 202 224-4242 or Tracy Schmaler (Leahy) at 202 224-2154. Location: Room 226, Dirksen Building.

RESCHEDULED FROM APRIL 6. 10:00 AM. The Senate Finance Committee will hold a hearing on the U.S. Dominican Republic Central America Free Trade Agreement (CAFTA). Location: Room 628, Dirksen Building.

10:00 AM. The House Judiciary Committee will meet to mark up several bills, including HR 32, the "Stop Counterfeiting in Manufactured Goods Act". Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

1:30 PM. The House Homeland Security Committee will hold a hearing titled "The Department of Homeland Security: Promoting Risk-Based Prioritization and Management". Secretary of Homeland Security Michael Chertoff will testify. Press contact: DHS at 202 282-8010, or Ryan Patmintra (HHSC) at 202 226-9600. Location: Undisclosed.

1:30 PM. The House International Relations Committee's Subcommittee on the Western Hemisphere will hold a hearing titled "U.S. Trade Agreements with Latin America". Location: Room 2172, Rayburn Building.

2:30 PM. The Senate Commerce Committee's Subcommittee on Trade, Tourism, and Economic Development will hold a hearing on S 714, the "Junk Fax Prevention Act of 2005". The scheduled witnesses are be Michael Griffin (NASA), Dave Feeken (a real estate broker from Kenai, Alaska), Jon Bladine (News-Register Publishing Company, McMinnville, Oregon), and Steve Kirsch (Propel Software Corporation). Press contact: Melanie Alvord or Aaron Saunders (Stevens) at 202 224-8456 or 202 224-3991, or Andy Davis (Inouye) at 202 224-4546. Location: Room 253, Russell Building.

6:00 - 8:15 PM. The DC Bar Association will host a continuing legal education (CLE) program titled "How to Prosecute a Trademark Before the U.S. Patent and Trademark Office". The scheduled speakers are Leigh Ann Lindquist (Sughrue Mion), Mark Bergsman (Dickstein Shapiro Morin & Oshinsky), and Jody Drake (Sughrue Mion). See, notice. Prices vary from $70 to $115. For more information, call 202 626-3488. Location: D.C. Bar Conference Center, B-1 Level, 1250 H St., NW.

Thursday, April 14

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

RESCHEDULED FOR APRIL 28. 9:30 AM. The Federal Communications Commission (FCC) will hold a meeting. The event will be webcast by the FCC. Location: FCC, 445 12th Street, SW, Room TW-C05 (Commission Meeting Room).

9:30 AM. The Senate Judiciary Committee will hold an executive business meeting. Press contact: Blain Rethmeier (Specter) at 202 224-5225, David Carle (Leahy) at 202 224-4242 or Tracy Schmaler (Leahy) at 202 224-2154. Location: Room 226, Dirksen Building. 

10:00 AM. The Senate Commerce Committee will meet to mark up several bills, including S 432, the "Minority Serving Institution Digital & Wireless Technology Opportunity Act of 2005" and S 714, the "Junk Fax Prevention Act of 2005". Press contact: Melanie Alvord or Aaron Saunders (Stevens) at 202 224-8456 or 202 224-3991, or Andy Davis (Inouye) at 202 224-4546. Location: Room 253, Russell Building.

10:00 AM. The House Judiciary Committee's Subcommittee on Crime, Terrorism, and Homeland Security will hold a hearing titled "Oversight Hearing of the Department of Justice to Examine the Use of Section 218 of the USA PATRIOT Act". This is the section that changed the standard for issuance of a FISA order. Location: Room 2141, Rayburn Building.

TIME CHANGE. 11:00 AM. The House Ways and Means Committee will hold a hearing titled "United States-China Economic Relations and China's Role in the World Economy". See, notice. Location: Room 1100, Longworth Building.

12:15 PM. The Federal Communications Bar Association's (FCBA) Cable Practice Committee and Common Carrier Practice Committee will jointly host a brown bag lunch titled "Phone Companies' Entry into Video". The speakers will be Libby Beatty (National Association of Telecommunications Officers & Advisors), Neal Goldberg (National Cable & Telecommunications Association), and Bill Richardson (Wilmer Cutler). RSVP to Quyen Truong at ttruong at dowlohnes dot com or 202 776-2058. Location: Dow Lohnes & Albertson, Suite 800, 1200 New Hampshire Ave., NW.

2:00 PM. The House Appropriation's Committee's Subcommittee on Science, State, Justice, and Commerce, and Related Agencies will hold a hearing on the Federal Communications Commission. See, notice. Location: Room H-309, Capitol Building. (This is a small hearing room with very few public seats.)

2:00 PM. The House Appropriation's Committee's Subcommittee on Homeland Security will hold a hearing titled "Science and Technology". See, notice. Under Secretary of Homeland Security Charles McQueary will testify. Location: Room 2359, Rayburn Building.

4:00 PM. Pamela Samuelson (University of California at Berkeley School of Law) will present a draft paper titled "Why Congress Excluded Processes and Systems from the Scope of Copyright". See, notice of event. This event is part of the Spring 2005 Intellectual Property Workshop Series sponsored by the Dean Dinwoodey Center for Intellectual Property Studies at the George Washington University Law School (GWULS). For more information, contact Robert Brauneis at 202 994-6138 or rbraun at law dot gwu dot edu. The event is free and open to the public. Location: GWULS, Faculty Conference Center, Burns Building, 5th Floor, 716 20th St., NW.

6:00 PM. Day one of a two day conference hosted by the American Enterprise Institute (AEI), Münchner Kreis, and Georgetown University titled "The Future of Telecommunications Industries: Transatlantic Symposium". See, notice. Registration required by April 8. See, registration page. Location: Riggs Library, Main Campus, Georgetown University, 37th and O Streets, NW.

Friday, April 15

8:45 AM - 5:15 PM. Day two of a two day conference hosted by the American Enterprise Institute (AEI), Münchner Kreis, and Georgetown University titled "The Future of Telecommunications Industries: Transatlantic Symposium". See, notice. Registration required by April 8. See, registration page. Location: Riggs Library, Main Campus, Georgetown University, 37th and O Streets, NW.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in U.S. International Trade Commission v. ASAT Inc., No. 05-5009. See, U.S. International Trade Commission's (USITC) proceeding conducted pursuant to Section 337 of the Tariff Act of 1930, 19 U.S.C. § 1337, titled "In the Matter of Certain Encapsulated Integrated Circuit Devices and Products Containing Same" and numbered 337-TA-501. See also ASAT web site. Judges Ginsburg, Rogers and Tatel will preside. Location: Prettyman Courthouse, 333 Constitution Ave., NW.

10:00 AM - 3:00 PM. The Federal Communications Commission's (FCC) Technological Advisory Council will meet. See, notice in the Federal Register, March 25, 2005, Vol. 70, No. 57, at Page 15316. Location: FCC, 445 12th Street, SW, Commission Meeting Room (TW-C305).

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding TSA Stores, Inc.'s Petition for Declaratory Ruling to preempt a provision of the statutes of the state of Florida as applied to interstate telephone calls. This is CG Docket No. 02-278, which pertains to rules implementing the Telephone Consumer Protection Act of 1991 (TCPA). See, notice in the Federal Register, March 1, 2005, Vol. 70, No. 39, at Pages 9875-9876.

Monday, April 18

The Supreme Court will return on from the recess that it began on Monday, April 4. See, Order List [12 pages in PDF] at page 12.

Deadline to submit to the Federal Communications Commission (FCC) replies to oppositions to petitions to deny Nextel's and Sprint's joint applications for FCC approval of the transfer of control to Sprint of the licenses and authorizations held both by Nextel. That is, this is a merger review proceeding. See, FCC Public Notice [7 pages in PDF], No. DA 05-502, in WT Docket No. 05-63. On December 15, 2004, the two companies announced a "definitive agreement for a merger of equals". See, Nextel release and release.

Tuesday, April 19

10:00 AM - 2:00 PM. The American Enterprise Institute (AEI) will host an event titled "Managing Spectrum: Why Economics Matters". The speakers will include William Baumol (New York University), Gerald Faulhaber (University of Pennsylvania), and Robert Hahn (AEI-Brookings Joint Center for Regulatory Studies). See, notice. Location: AEI, 12th floor, 1150 17th St., NW.

6:00 - 815 PM. The Federal Communications Bar Association (FCBA) will host a continuing legal education (CLE) seminar titled "Telecom Act Re-write". Location: Wiley Rein & Fielding Conference Center, 1776 K St., NW.

Day one of a three day conference hosted by the National Institute of Standards and Technology (NIST), National Institute of Health (NIH), and Internet2 titled "4th Annual PKI R&D Workshop: Multiple Paths to Trust". See, NIST notice, registration page, and conference website. Location: NIST, Gaithersburg, MD.