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December 2, 2005, 8:00 AM ET, Alert No. 1,264.
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FTC Takes Action Against Retailer for Lax Data Security Practices

12/1. The Federal Trade Commission (FTC) filed an administrative complaint [3 pages in PDF] against DSW, Inc., which operates about 190 retail shoe stores, alleging violation of the Federal Trade Commission Act (FTCA) in connection with its failure to provide security for personal information collected at its stores. Hackers stole credit card and other personal information.

The complaint states that "The breach compromised a total of approximately 1,438,281 credit and debit cards (but not the personal identification numbers associated with the debit cards), along with 96,385 checking accounts and driver’s license numbers. To date, there have been fraudulent charges on some of these accounts." (Parentheses in original.)

The FTC complaint alleges that DSW's failure to provide reasonable data security constitutes an unfair practice in violation of Section 5 of the Federal Trade Commission Act (FTCA), which is codified at 15 U.S.C. § 45.

Subsection 45(a)(1) 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."

The FTC and DSW simultaneously executed an Agreement Containing Consent Order [8 pages in PDF].

This agreement requires DSW to "establish and implement, and thereafter maintain, a comprehensive information security program that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers".

The agreement also requires DSW to obtain independent third party reports on its security program every two years for twenty years.

The agreement also states that it "does not constitute an admission by proposed respondent that the law has been violated as alleged in the draft complaint, or that the facts as alleged in the draft complaint, other than the jurisdictional facts, are true".

See also, FTC release of December 1, 2005, and DSW release of April 18, 2005, announcing the theft of data.

BEA Data Shows Growth in Tech Investment

11/30. The Department of Commerce's (DOC) Bureau of Economic Analysis (BEA) released revised quarterly gross domestic product (GDP) data. See, BEA release. The BEA reports that the GDP increased at an annual rate of 4.3 % in the third quarter of 2005.

The data released by the BEA also shows that over the last year investment in both software and computers and peripherals has grown far faster than the economy as a whole. In the third quarter of 2004 spending on fixed investment in nonresidential software (annual rate, in current dollars, seasonally adjusted) was $179.9 Billion. In the third quarter of 2005 it was $203.1 Billion.

In the third quarter of 2004 the same statistic for fixed investment in nonresidential computers and peripheral equipment was $92.3 Billion. It rose to $105 Billion in the third quarter of 2005.

See also, statement by Deputy Secretary of Commerce David Sampson.

People and Appointments

12/1. Ann Mather was named to Google's Board of Directors. See, Google release.

12/1. The Consumer Electronics Association (CEA) announced the selection of its 2006 TechHome Division Board. Jay McLellan (President of Home Automation Inc.) was named Chairman, and David Epstein (President of Sound Solution) was named Co-chairman. See, CEA release for other Board members.

More News

12/1. December 1, 2005, was the deadline to submit initial comments to the Copyright Office (CO) in response to its notice of inquiry (NOI) regarding exempting certain classes of works from the prohibition against circumvention of technological measures that control access to copyrighted works. The relevant statute, which is codified at 17 U.S.C. § 1201(a), requires the CO to conduct this proceeding every three years. The CO published copies of comments in its web site for its proceedings concluded in 2000 and 2003. The CO has not yet published comments in the current proceeding. Reply comments are due by February 2, 2006. See also, notice in the Federal Register, October 3, 2005, Vol. 70, No. 190, at Pages 57526 - 57531.

12/1. The Government Accountability Office (GAO) released a letter [12 pages in PDF] titled "Potential Spectrum Interference Associated with Military Land Mobile Radios". The letter is addressed to Rep. Todd Platts (R-PA), Chairman of the House Government Reform Committee's Subcommittee on Government Management, Finance, and Accountability. The letter primarily addresses interference with unlicensed devices operating under Part 15 of the Federal Communications Commission's (FCC) rules in the 380 MHz-399.9 MHz spectrum band. In other words, consumers' garage door openers do not always open garage doors that are located near certain military bases. The letter recommends that the military engage in more "community outreach", so that consumers will not buy new garage door openers when they experience interference related malfunctions.

11/30. The Recording Industry Association of America (RIAA) announced the filing of yet another round of civil complaints in U.S. District Courts on behalf of large record companies against 754 individuals alleged to have infringed copyrights on peer to peer file sharing systems. See, RIAA release.

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Washington Tech Calendar
New items are highlighted in red.
Friday, December 2

The House will next meet on Tuesday, December 6, 2005.

The Senate will next meet on Monday, December 12, 2005.

8:30 AM - 3:00 PM. The National Institute of Standards and Technology's (NIST) Malcolm Baldrige National Quality Award Board of Overseers will meet. See, notice in the Federal Register, November 18, 2005, Vol. 70, No. 222, at Page 69954. Location: NIST, Administration Building, Room A1038, Gaithersburg, MD.

12:00 NOON - 2:00 PM. The Public Knowledge (PK) will host a briefing for Congressional staff titled "Importance of an Open Internet for the National Economy". The speakers will be Gigi Sohn (PK), Chris Murray (Vonage), Matthew Zinn (TiVo), Mark Cooper (Consumer Federation of America), Mark Luker (Educause), and Barbara van Schewick (author of the paper [48 pages in PDF] titled "Towards an Economic Framework for Network Neutrality Regulation"). The PK notice states that "Hill staffers get first crack at questions". Lunch will be served. RSVP to pk at publicknowledge dot org or 202 518-0020. Press contact: Art Brodsky at 202 518-0020 ext 103. Location: Room 2226, Rayburn Building.

12:00 NOON - 1:45 PM. The American Enterprise Institute (AEI) will host a luncheon titled "The State of Trade: The Doha WTO Round, APEC, and the FTAA". The speakers will be Claude Barfield (AEI), James Glassman (AEI), and Arvind Panagariya (Columbia University). See, notice. Location: Twelfth floor, 1150 17th St., NW.

Deadline to submit comments to the Office of the U.S. Trade Representative (USTR) regarding its out of cycle reviews (OCRs) of Russia, Canada, Indonesia and the Philippines. These OCRs pertain to the identification of 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. See, notice in the Federal Register: September 29, 2005, Vol. 70, No. 188, at Pages 56963 - 56964.

Monday, December 5

1:00 - 5:00 PM. The Antitrust Modernization Commission (AMC) will meet. The topic will be "Antitrust in Regulated Industries". The witnesses will be Scott Alvarez, Ellen Hanson, Rob McKenna, Mark Cooper, Harold Furchtgott-Roth, Diana Moss, and John Thorne. See, AMC notice and notice in the Federal Register, November 16, 2005, Vol. 70, No. 220, at Page 69511. Location: Federal Trade Commission, Conference Center, 601 New Jersey Ave., NW.

Tuesday, December 6

The House will return from its Thanksgiving recess at 2:00 PM.

8:30 AM - 5:00 PM. Day one of a two day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). The agenda includes the following items: (1) Privacy Act framework effort, (2) status reports on ISPAB work plan items, (3) briefing on NIST Next Generation Internet Protocol (IPv6), (4) briefing on NIST National Vulnerability Database Project, (5) NTIA Information Security Outreach Briefing, and (6) discussion of NIST's Cryptographic Hash Function Workshop. See, notice in the Federal Register, November 18, 2005, Vol. 70, No. 222, at Pages 69953 - 69954. Location: Doubletree Hotel and Executive Meeting Center, 1750 Rockville Pike, Rockville, MD.

8:30 AM - 4:30 PM. The Department of Homeland Security's (DHS) Data Privacy and Integrity Advisory Committee will meet. Secretary of Homeland Security Michael Chertoff is scheduled to speak at 8:30 AM. See, agenda [PDF]. Location: JW Marriott Hotel, Capitol Ballroom (E&F), 1331 Pennsylvania Ave., NW.

9:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Regulations and Procedures Technical Advisory Committee will hold a partially closed meeting. The agenda includes a discussion of the BIS's deemed export rules. See, notice in the Federal Register, November 23, 2005, Vol. 70, No. 225, at Page 70784. Location: Room 3884, Hoover Building, 14th Street between Constitution and Pennsylvania Avenues, NW.

5:00 - 7:00 PM. The Public Knowledge will host an event titled "celebration of the season". RSVP by December 1, 2005 to aoliverio at publicknowledge dot org or 202 518-0020. Location: Suite 650, 1875 Connecticut Ave., NW.

Wednesday, December 7

8:00 AM - 11:00 AM. The DC Bar Association's Intellectual Property Law Section will host a panel discussion titled "Trademark Office Speaks". The speakers will include Lynne Beresford (Commissioner for Trademarks), Sharon Marsh (Deputy Commissioner for Trademark Examination Policy), and David Sams (Chief Administrative Trademark Judge, Trademark Trial and Appeal Board). The price to attend ranges from $25-$40. For more information, call 202 626-3463. See, notice. Location: Cosmos Club, 2121 Massachusetts Ave., NW.

8:30 AM - 5:00 PM. Day two of a two day meeting of the National Institute of Standards and Technology's (NIST) Information Security and Privacy Advisory Board (ISPAB). The agenda includes the following items: (1) Privacy Act framework effort, (2) status reports on ISPAB work plan items, (3) briefing on NIST Next Generation Internet Protocol (IPv6), (4) briefing on NIST National Vulnerability Database Project, (5) NTIA Information Security Outreach Briefing, and (6) discussion of NIST's Cryptographic Hash Function Workshop. See, notice in the Federal Register, November 18, 2005, Vol. 70, No. 222, at Pages 69953 - 69954. Location: Doubletree Hotel and Executive Meeting Center, 1750 Rockville Pike, Rockville, MD.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Courts, the Internet, and Intellectual Property (CIIP) will hold an oversight hearing titled "International IPR Report Card -- Assessing U.S. Government and Industry Efforts to Enhance Chinese and Russian Enforcement of Intellectual Property Rights". The hearing will be webcast by the HJC. Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in MIT v. Abacus Software, No. 05-1142, an appeal from the U.S. District Court (EDTex) in a patent infringement case involving image editing software. Location: Courtroom 203, 717 Madison Place, NW.

3:30 - 5:30 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "Antitrust and the New Economy: Transatlantic Turmoil". The speakers will be Makan Delrahim (Brownstein Hyatt & Farber), Richard Epstein (University of Chicago law school), and Robert Pitofsky (Georgetown law school). See, notice. Location: AEI, Twelfth floor, 1150 17th St., NW.

4:00 - 7:00 PM. The Progress and Freedom Foundation (PFF) will host an event titled "DACA USF Conference". The PFF's Digital Age Communications Act (DACA) project is in the process of developing draft legislation. One of the topics that it is examining is Universal Service Fund (USF) reform. The keynote speaker will be Sen. John Sununu (R-NH), a member of the Senate Commerce Committee. There will be a panel presentation by the PFF's DACA Universal Service Working Group. The presenters will be Ray Gifford (PFF), Adam Peters (Kamlet Shepherd & Reichert), Michael Riordan (Columbia Business School), Robert Atkinson (Columbia Institute for Tele-Information), and Jerry Ellig (Mercatus Center, George Mason University). Then there will be a panel of industry representatives will provide reaction. The panelists will be Jonathan Askin (General Counsel, Pulver.com), Bob Blau (BellSouth), David Cohen (US Telecom), Gary Lytle (Qwest), John Nakahata (Harris Wiltshire & Grannis), and Joe Waz (Comcast). See, notice and registration pages. Location: Thornton Room, Hyatt Regency Capitol Hill, 400 New Jersey Ave., NW.

7:00 PM. The Progress and Freedom Foundation (PFF) will host a "holiday gala" that will include "libations". The PFF invites not only supporters of "telecom reform", but also "erstwhile advocates for commons, mandated ``openness´´ and regulatory interventions". Location: Thornton Room, Hyatt Regency Capitol Hill, 400 New Jersey Ave., NW.

TIME? The Securities and Exchange Commission (SEC) will hold a presolicitaion conference regarding the draft RFP [154 pages in PDF] for remaking the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) Platform. See also, SEC release, draft RFP cover letter [PDF], and story titled "SEC Seeks Contractor to Remake EDGAR" in TLJ Daily E-Mail Alert No. 1,259, November 23, 2005. Location: __.

The Federal Communications Commission (FCC) will begin its Multichannel Video Distribution and Data Service (MVDDS) auction (Auction No. 63). See, notice in the Federal Register, September 15, 2005, Vol. 70, No. 178, at Pages 54541 - 54555.

Thursday, December 8

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in CTIA v. FCC, No. 05-1008. This is a petition for review of the final order of the Federal Communications Commission (FCC) that adopted the "Nationwide Programmatic Agreement Regarding the Section 106 National Historic Preservation Act Review Process", which regulates tower and antenna construction. This order is FCC 04-222 in WT Docket No. 03-128. At issue is whether the FCC has authority under Section 106 of the NHPA, which is codified at 16 U.S.C. § 470f, to write these rules. See, stories titled "FCC Announces NPRM Regarding Communications Facilities and the National Historic Preservation Act" in TLJ Daily E-Mail Alert No. 677, June 10, 2003, and "FCC Adopts Report and Order Re FCC Licensing and the National Historic Preservation Act" in TLJ Daily E-Mail Alert No. 975, September 13, 2004. See also, brief [PDF] of the FCC. Judges Tatel, Garland and Griffith will preside. Location: Courtroom 20, Prettyman Courthouse, 333 Constitution Ave., NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Inpro II Licensing v. T-Mobile USA, No. 05-1233. Location: Courtroom 201, 717 Madison Place, NW.

The Federal Communications Bar Association (FCBA) will host an event titled "19th Annual Chairman's Dinner". Location: Washington Hilton Hotel.

Friday, December 9

RESCHEDULED FROM DECEMBER 15. 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). December 9 is Commissioner Kathleen Abernathy's last day at the FCC.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Semitool v. Dynamic Micro Devices, No. 05- 1299. Location: Courtroom 201, 717 Madison Place, NW.

11:00 AM - 12:00 NOON. The Advisory Committee for the 2007 World Radiocommunication Conference will meet. See, notice and agenda [PDF] and notice in the Federal Register, October 19, 2005, Vol. 70, No. 201, at Pages 60840 - 60841. Location: FCC, Commission Meeting Room, TW-C305, 445 12th Street, SW.

Deadline to submit initial comments to the Office of the U.S. Trade Representative (USTR) regarding the operation, effectiveness, and implementation of and compliance with (1) the World Trade Organization (WTO) agreements affecting market opportunities for telecommunications products and services of the U.S., (2) the telecommunications provisions of the North American Free Trade Agreement (NAFTA), (3) the U.S. free trade agreements (FTAs) with Chile, Singapore, and Australia, and (4) any other FTAs coming into effect by January 1, 2006. See, notice in the Federal Register, November 16, 2005, Vol. 70, No. 220, at Pages 69621 - 69622.