5/4. The Office of the U.S. Trade Representative (OUSTR) issued a release regarding the U.S.'s World Trade Organization (WTO) obligations with respect to trade in internet gambling services.

The nation of Antigua and Barbuda, which is home to internet gambling operations, filed a complaint in 2003 against the U.S. with the WTO. The report of the compliance panel is scheduled to be adopted by the WTO Dispute Settlement Body (DSB) on May 22, 2007.

See also, stories titled "WTO Panel Instructs Congress to Amend Wire Act to Legalize Internet Gambling" in TLJ Daily E-Mail Alert 1,016, November 11, 2004; "WTO Appellate Body Upholds U.S. Laws Affecting Internet Gambling" in TLJ Daily E-Mail Alert No. 1,111, April 8, 2005; and "Allgeier Addresses Trade Agreements and Internet Gambling" in TLJ Daily E-Mail Alert No. 1,118, April 19, 2006.

The OUSTR release states that the U.S. "is invoking procedures under Article XXI of the General Agreement on Trade in Services (GATS) in order to clarify its commitment involving ``recreational services,´´ which was interpreted in the course of WTO dispute settlement as including a U.S. commitment to allow Internet gambling services."

Article XXI of the General Agreement on Trade in Services [35 pages in PDF] provides, in part, that "A Member ... may modify or withdraw any commitment in its Schedule, at any time after three years have elapsed from the date on which that commitment entered into force ..."

It further requires the member to give notice of the modification, and to "enter into negotiations with a view to reaching agreement on any necessary compensatory adjustment" with any affected member of the WTO.

Article XXI also provides that "If agreement is not reached between the modifying Member and any affected Member ... such affected Member may refer the matter to arbitration."

The OUSTR release adds that the U.S. "has decided to make use of the established WTO procedures to correct its schedule in order to reflect the original U.S. intent -- that is, to exclude gambling from the scope of the U.S. commitments under the GATS. The GATS provides that when a Member modifies its services schedule, other Members who allege they will be affected by this action may make a claim for a compensatory adjustment to other areas of the GATS schedule."

The release adds that "since no WTO Member either bargained for or reasonably could have expected the United States to undertake a commitment on gambling, there would be very little, if any, basis for such claims."

John Veroneau, a Deputy United States Trade Representative, stated in this release that “U.S. laws banning interstate gambling have been in place for decades. Most WTO Members have similar laws.  Unfortunately, in the early 1990s, when the United States was drafting its international commitments to open its market to recreational services, we did not make it clear that these commitments did not extend to gambling.  Moreover, back in 1993 no WTO Member could have reasonably thought that the United States was agreeing to commitments in direct conflict with its own laws".

He continued that "Neither the United States nor other WTO Members noticed this oversight in the drafting of U.S. commitments until Antigua and Barbuda initiated a WTO case ten years later.  In its consideration of this matter, the WTO panel acknowledged that the United States did not intend to adopt commitments that were inconsistent with its own laws.  However, under WTO rules, dispute settlement findings must be based on the text of commitments and other international documents, rather than the intent of the party.  The United States strongly supports the rules-based trading system and accepts the dispute settlement findings.  In light of those findings, we will use WTO procedures for clarifying our commitments."

See also, story titled "Rep. Frank Introduces Bill to Facilitate Licensed Internet Gambling" in TLJ Daily E-Mail Alert No. 1,574, May 3, 2007.

5/7. The U.S. District Court (DC) issued an opinion [pages in PDF] in EFF v. DOJ, a Freedom of Information Act (FOIA) case involving the Department of Justice's (DOJ) failure to provide access to records regarding certain electronic surveillance technologies used by the DOJ's Federal Bureau of Investigation (FBI). The District Court stayed the action until May 9, 2008, and indicated it might issue a further stay.

The request pertains to the FBI's DCS-3000 and Red Hook. A March 6, 2006, report of the DOJ's Inspector General contains the following reference to DCS-3000:

"System DCS-3000. The FBI has spent nearly $10 million on this system. The FBI developed the system as an interim solution to intercept personal communications services delivered via emerging digital technologies being used by wireless carriers in advance of any CALEA solutions being deployed. Law enforcement continues to utilize this technology as carriers continue to introduce new features and services."

The same DOJ/IG report also contains the following reference to Red Hook:

"Red Hook. The FBI has spent over $1.5 million to develop a system to collect voice and data calls and then process and display the intercepted information in the absence of a CALEA solution."

CALEA is an acronym for the Communications Assistance for Law Enforcement Act. It is codified at 47 U.S.C. § 1001, et seq. It has also been expanded by a series of orders of the Federal Communications Commission (FCC).

The District Court held that "The instant action shall be stayed for one year -- until May 9, 2008, with the possibility of a further extension of the stay."

The FOIA, which is codified at 5 U.S.C. § 552, requires the government to respond to FOIA requests within 20 government working days, with the possibility for a 10 day extension.

It provides "Each agency, upon any request for records ... determine within 20 days (excepting Saturdays, Sundays, and legal public holidays) after the receipt of any such request whether to comply with such request and shall immediately notify the person making such request of such determination and the reasons therefor ... In unusual circumstances ... the time limits ... may be extended by written notice to the person making such request setting forth the unusual circumstances for such extension and the date on which a determination is expected to be dispatched. No such notice shall specify a date that would result in an extension for more than ten working days ..." See, 5 U.S.C. § 552(a)(6).

The EFF submitted its request for records on August 11, 2006. It requested "all agency records (including, but not limited to, electronic records) concerning electronic surveillance systems known as DCS-3000 and Red Hook", including FBI reports to the Congress on the FBI's use of these systems. (Parentheses in original.)

The EFF filed a complaint [5 pages PDF] in U.S. District Court (DC) on October 3, 2006, alleging violation of the FOIA.

The DOJ had sought a stay of 27 months, through May of 2009. The gist of its argument for delay is that it is too busy, and that it handles FOIA requests on a first in first out basis.

The FOIA also provides an exemption for "records or information compiled for law enforcement purposes but only to the extent that the production of such law enforcement records or information ... would disclose techniques and procedures for law enforcement investigations or prosecutions, or would disclose guidelines for law enforcement investigations or prosecutions if such disclosure could reasonably be expected to risk circumvention of the law ..." See, 5 U.S.C. § 552(b)(7)(E). This may provide the DOJ with grounds for further delay and withholding, after its exhausts its busyness delays.

Government agencies, and the DOJ in particular, frequently violate their statutory obligations under the FOIA. Federal courts frequently decline to enforce the FOIA. Moreover, the EFF, and the Electronic Privacy Information Center (EPIC), which previously employed the attorneys who now make up the EFF's FOIA team, have litigated their FOIA cases in the U.S. District Court (DC), which is hostile to the FOIA and FOIA plaintiffs.

This case is Electronic Frontier Foundation v. Department of Justice, U.S. District Court for the District of Columbia, D.C. No. 06-1708 (CKK), Judge Colleen Kotelly presiding.

This case is separate from another case, also brought by the EFF against the DOJ in the U.S. District Court (DC) in October of 2006 under the FOIA, concerning the FBI's program titled "Investigative Data Warehouse" (IDW). See, EFF's October 17, 2006, IDW complaint [PDF] and story titled "EFF Sues DOJ for Failure to Respond to FOIA Request for Records About FBI's Investigative Data Warehouse" in TLJ Daily E-Mail Alert No. 1,471, October 18, 2006.

5/1. Ben Bernanke, Chairman of the Federal Reserve Board (FRB), gave a speech in Butte, Montana, titled "Embracing the Challenge of Free Trade: Competing and Prospering in a Global Economy".

He argued that while new information and communications technologies are facilitating the offshore outsourcing of many services, businesses in other countries are outsourcing services to the U.S. Moreover, the U.S. "runs a significant trade surplus in services", and is offshoring "less sophisticated" work, while retaining "high-value jobs" in the U.S.

Bernanke (at right) spoke at the Montana Economic Development Summit 2007 regarding the "crucial economic benefits we receive from the ongoing expansion of international trade".

He argued that "a retreat into protectionism and isolationism ... would be self-defeating and, in the long run, probably not even feasible".

He offered the frequently cited benefits of a system of free trade. He said that "it allows people to specialize in the goods and services they produce best and most efficiently". He said that "By creating a global market, trade enhances competition, which weeds out the most inefficient firms and induces others to improve their products and to produce more efficiently." He said that free trade "permits economies of scale, and increases the potential returns to innovation". He said that it leads to higher per capita income, and lifts people in poor nations out of poverty. And, he said that there exists "a consensus among economists".

He identified leading U.S. exporters. He said that "a number of U.S. high-tech companies, including software developers and online service providers, are world leaders in their fields. American films and music attract large worldwide audiences."

He also offered an explanation for resistance to free trade in the U.S. and in other countries. He said that "although trade increases overall prosperity, the benefits for some people may not exceed the costs, at least not in the short run. Clearly, the expansion of trade helps exporting firms and their workers. As consumers, nearly all of us benefit from trade by gaining access to a broader range of goods and services. But some of us, such as workers in industries facing new competition from imports, are made at least temporarily worse off when trade expands. Because the benefits of trade are widely diffused and often indirect, those who lose from trade are often easier to identify than those who gain, a visibility that may influence public perceptions and the political process."

He said that the U.S. should "find ways to minimize the pain of dislocation without standing in the way of economic growth and change". He discussed education and training.

He argued that trade policy is irrelevant to employment levels. He said that "If trade both destroys and creates jobs, what is its overall effect on employment? The answer is, essentially none. In the long run, the workings of a competitive labor market ensure that the number of jobs created will be commensurate with the size of the labor force and with the mix of skills that workers bring. Thus, in the long run, factors such as population growth, labor force participation rates, education and training, and labor market institutions determine the level and composition of aggregate employment."

He also discussed outsourcing to other nations, or offshoring. He said "Offshoring has been driven by several factors, including improvements in international communication, the computerization and digitization of some business services, and the existence of educated, often English-speaking workers abroad who will perform the same services for less pay."

He said that "advancing technology will continue to increase the feasibility of providing services from remote locations". However, he argued that "most high-value work will require creative interaction among employees, interaction which is facilitated by physical proximity and personal contact". Hence, "outsourcing abroad will be uneconomical for many types of jobs, particularly high-value jobs".

Moreover, he argued that businesses in other nations offshore services to the U.S. In addition, the U.S. "runs a significant trade surplus in services -- particularly in business, professional, and technical services. This country provides many high-value services to users abroad, including financial, legal, engineering, architectural, and software development services". In contrast, the U.S. businesses tend to offshore services that "are less sophisticated and hence of lower value".

He also argued that "the uneven protection of intellectual property rights, are both unfair and economically counterproductive". He did not mention the People's Republic of China, or any other nations. He added that "We should also work to ensure that both we and our trading partners live up to existing agreements under the World Trade Organization. When trading partners do not meet their obligations, we should vigorously press our case."

5/4. The Government Accountability Office (GAO) released a report [81 pages in PDF] titled "Information Technology: Numerous Federal Networks Used to Support Homeland Security Need to Be Better Coordinated with Key State and Local Information-Sharing Initiatives". Most of this report consists of presentation slides for use in briefing the staff of the House Homeland Security Committee (HHSC).

The House will meet at 10:30 AM for morning hour, and at 12:00 NOON for legislative business. The House will consider numerous non-technology related items. See, House Majority Leader Hoyer's weekly calendar [PDF].

The Senate will meet at 10:00 AM for morning business. It will then resume consideration of of S 1082, the Food and Drug Administration authorization bill.

9:00 AM - 1:00 PM. The Federal Trade Commission (FTC) and the Department of Justice’s (DOJ) Antitrust Division will hold another of their long running series of workshops on single firm conduct and Section 2 of the Sherman Act. The FTC and DOJ also announced that this is the last panel. The speakers will be Susan Creighton (Wilson Sonsini), Jeffrey Eisenach (Chairman of Criterion Economics), Douglas Melamed (Wilmer Hale), Timothy Muris (George Mason University and O'Melveny & Myers), Robert Pitofsky (Georgetown University Law Center and Arnold & Porter), James Rill (Howrey), Rick Rule (Cadwalader Wickersham & Taft), Gregory Sidak (Georgetown University Law Center). See, FTC notice. Location: FTC HQ, Room 432, 600 New Jersey Ave., NW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Will REAL ID Actually Make Us Safer? An Examination of Privacy and Civil Liberties Concerns". The witnesses will be Allen Gilbert (ACLU of Vermont), Jim Harper (Cato Institute), James Carafano (Heritage Foundation),
Bruce Schneier (BT Counterpane), and Janice Kephart (9/11 Security Solutions). Press contact: Tracy Schmaler at 202-224-2154 or Tracy_Schmaler at judiciary dot senate dot gov. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Commerce Committee (SCC) will meet in executive session. See, notice. Location Room 253, Russell Building.

3:00 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 1684, the "Department of Homeland Security Authorization Act for Fiscal Year 2008". Location: Room H-313, Capitol Building.

TIME? The Department of Defense's (DOD) Defense Science Board Task Force on Integrating Sensor-Collected Intelligence will hold another of its closed sessions regarding intelligence, surveillance and reconnaissance systems. See, notice in the Federal Register, April 2, 2007, Vol. 72, No. 62, at Page 15659. Location: Science Applications International Corporation, 4001 N. Fairfax Drive, Arlington, VA.

The House will meet at 10:00 AM for legislative business. The House may consider HR 1684, the "Department of Homeland Security Authorization Act for Fiscal Year 2008", subject to a rule, and HR 2082, the intelligence authorization bill, subject to a rule. See, House Majority Leader Hoyer's weekly calendar [PDF].

9:30 AM. The House Commerce Committee's (HCC) Subcommittee on Commerce, Trade, and Consumer Protection, the House Ways and Means Committee's (HWMC) Subcommittee on Trade, and the House Financial Services Committee's (HFSC) Subcommittee on Domestic and International Monetary Policy, Trade, and Technology will hold a joint hearing titled "Currency Manipulation and Its Effects on U.S. Business and Workers". See, HWMC notice and HFSC notice. Location: Room 1100, Longworth Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Verve v. Hypercom, a patent infringement case involving electronic payments systems technology. Verve alleged infringement of U.S. Patent No. 4,562,341. Hypercom prevailed below. This case is App. Ct. No. 2006-1469, an appeal from the U.S. District Court for the District of Arizona, D.C. No. 05-CV-0365-PHX-FJM. Location: Courtroom 201, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in AllVoice Computing v. Nuance Communications, a patent infringement case involving speech recognition technology, in which the District Court granted judgment of invalidity. This case is App. Ct. No. 2006-1440, an appeal from the U.S. District Court for the Southern District of Texas. Location: Courtroom 203, 717 Madison Place, NW.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in All Computers v. Intel, a patent infringement case involving microprocessor technology, in which the District Court granted summary judgment for Intel. This case is App. Ct. No. 2007-1016, an appeal from the U.S. District Court for the Eastern District of Virginia. Location: Courtroom 203, 717 Madison Place, NW.

2:00 - 4:00 PM. The Copyright Office (CO) and the U.S. Patent and Trademark Office (USPTO) will hold a "public roundtable discussion concerning the work at the World Intellectual Property Organization (WIPO) in the Standing Committee on Copyright and Related Rights (SCCR) on a proposed Treaty on the Protection of the Rights of Broadcasting Organizations". The CO and USPTO add that "The deadline for receipt of requests to observe or participate in the roundtable is 5:00 p.m. on Friday, May 4, 2007." See, notice in the Federal Register, April 12, 2007, Vol. 72, No. 70, at Pages 18493-18494. See also, WIPO's March 8, 2007, paper [MS Word] titled "Draft Non-paper on the WIPO Treaty on the Protection of Broadcasting Organizations", which includes draft treaty language. Location: Mumford Room, 6th floor, Madison Building, Library of Congress, 101 Independence Ave., SE.

2:00 PM. The House Rules Committee will meet to adopt a rule for consideration of HR 2082, the intelligence authorization bill. Location: Room H-313, Capitol Building.

The House will meet at 9:00 AM and recess immediately for the Former Members' Association annual meeting. It will meet again at 10:00 AM for legislative business. The House may consider HR 1684, the "Department of Homeland Security Authorization Act for Fiscal Year 2008", subject to a rule, and HR 2082, the intelligence authorization bill, subject to a rule. See, House Majority Leader Hoyer's weekly calendar [PDF].

8:00 AM - 5:30 PM. The Information Technology Association of America (ITAA) will host a conference titled "The New New Internet: IPv6 conference". See, notice. For more information, contact Trey Hodgkins at thodgkins at itaa dot org. Location: Hyatt Regency, Arllington, VA.

9:00 AM. The House Financial Services Committee's (HFSC) Subcommittee on Oversight and Investigations will hold a hearing: titled "Suspicious Activity and Currency Transaction Reports: Balancing Law Enforcement Utility and Regulatory Requirements". The witnesses will be Charles Frahm (Deputy Assistant Director, FBI Counterrorism Division), William Baity (Deputy Director of the Financial Crimes Enforcement Network), Steve Bartlett (Financial Services Roundtable), Megan Davis Hodge (Director, Anti-Money Laundering, RBC Centura Bank), Carolyn Mroz (P/CEO of the Bay-Vanguard Savings Bank), and Scott McClain (Winne Banta Hetherington Basralian & Kahn). See, notice. Location: Room 2128, Rayburn Building.

9:30 AM. The House Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will hold a hearing titled "Digital Future of the United States: Part V: The Future of Video". The witnesses will be Thomas Rogers (P/CEO of TiVo), Chad Hurley (CEO of YouTube), Benjamin Pyne (Disney and ESPN Networks), Gina Lombardi (MediaFLO USA), Phil Rosenthal (Writers Guild of America West and the Screen Actors Guild), Blake Krikorian (Ch/CEO of Sling Media), Mark Cuban (Co-Founder of HDNet). Press contact: Jodi Seth or Carrie Annand at 202-225-5735. Location: Room 2123, Rayburn Building.

9:30 AM. The House Judiciary Committee (HJC) will hold a hearing titled "Oversight Hearing on the Department of Justice". See, notice. Location: Room 2141, Rayburn Building.

10:00 AM. The Senate Judiciary Committee (SJC) may hold a hearing titled "Judicial Nominations". This hearing pertains to the nominations of Leslie Southwick (to be a Judge of the U.S. Court of Appeals for the 5th Circuit), Janet Neff (U.S. District Court for the Western District of Michigan), and Liam O’Grady (U.S.D.C., Eastern District of Virginia). See, notice. Press contact: Tracy Schmaler (Leahy) at Tracy_Schmaler at judiciary dot senate dot gov or 202-224-2154. Location: Room 226, Dirksen Building.

10:00 AM. The House Homeland Security Committee's (HHSC) Subcommittee on Intelligence, Information Sharing and Terrorism Risk Assessment will hold a hearing titled "Fixing the Homeland Security Information Network: Finding the Way Forward For Better Information Sharing". See, notice. This hearing will not be webcast by the HHSC. For more information, contact Dena Graziano or Adam Comis at 202-225-9978. Location: Room 311, Canon Building.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in Furnace Brook v. Overstock.com, a patent infringement case, in which the District Court granted summary judgment of non-infringement of U.S. Patent No. 5,721,832, titled "Method and apparatus for an interactive computerized catalog system", to Overstock. This case is App. Ct. No. 2007-1064, an appeal from the U.S. District Court for the Southern District of New York. Location: Courtroom 203, 717 Madison Place, NW.

2:00 - 4:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will hold the second of a series of three meeting to prepare advice for the next meetings of the Organization for Economic Co-operation and Development Working Parties on the Information Economy (WPIE) and Communications and Infrastructure Services Policy (CISP). See, notice in the Federal Register, April 5, 2007, Vol. 72, No. 65, at Page 16868. Location: Room 2533a, Harry Truman Building, 2201 C St., NW.

? 2:00 PM. The Department of State's (DOS) International Telecommunication Advisory Committee (ITAC) will hold the second of a series of three teleconferences to prepare advice for the next meeting of the International Telecommunication Union's Study Group 9 (Integrated broadband cable networks and television and sound transmission). See, notice in the Federal Register, April 5, 2007, Vol. 72, No. 65, at Page 16868.

2:30 PM. The Senate Homeland Security and Governmental Affairs Committee (SHSGAC) will hold a hearing titled "Violent Islamist Extremism: Government Efforts to Defeat It". Sen. Joe Lieberman (D-CT), the Chairman of the SHSGAC, has advocated disrupting terrorist web sites. See, story titled "Sen. Lieberman Advocates Disrupting Terrorist Web Sites" in TLJ Daily E-Mail Alert No. 1,575, May 4, 2007. See, notice. Location: Room 342, Dirksen Building.

3:00 PM. The Senate Banking Committee (SBC) will hold a hearing on numerous nominees, including Mario Mancuso (to Under Secretary of Commerce for Export Administration). Location: Room 538, Dirksen Building.

6:00 - 8:30 PM. The Federal Communications Bar Association's (FCBA) Enforcement Committee will host a continuing legal education (CLE) seminar titled "What to do When the FCC Comes a' Calling: A Practitioner's Guide to FCC Enforcement". The price to attend ranges from $50 to $125. See, registration form [PDF]. Location: Arnold & Porter, 10th floor, 555 12th Street, NW.

The House will meet at 10:00 AM for legislative business. The House may consider HR 1684, the "Department of Homeland Security Authorization Act for Fiscal Year 2008", subject to a rule, and HR 2082, the intelligence authorization bill, subject to a rule. See, House Majority Leader Hoyer's weekly calendar [PDF].

The Information Technology Association of America (ITAA) will host a seminar titled "Overview of Final Section 409A Rules". See, notice.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) [53 pages in PDF] in its proceeding titled "In the Matter of Assessment and Collection of Regulatory Fees for Fiscal Year 2007". This NPRM is FCC 07-55 in MD Docket No. 07-81.

11:00 - 11:30 AM. The U.S. Chamber of Commerce will host an event titled "Intellectual Property Enforcement: An Update from the Administration". The speaker will be Carlos Gutierrez, Secretary of Commerce. For more information, please contact Katie Wilson at 202-463-5500 or email ncfevents at uschamber dot com. See, notice and registration page. Location: U.S. Chamber, 1615 H St.,  NW.

TIME? The Federal Communications Commission (FCC) will hold a mock auction for Auction 71, the broadband PCS spectrum auction to be held on May 16, 2007. See, DA 07-30 [69 pages in PDF].

8:30 AM - 3:00 PM. The American Enterprise Institute (AEI) will host an event titled "The Role of Competition Analysis in Regulatory Decisions". See, notice. Location: AEI, 12th floor, 1150 17th St.,  NW.

8:30 AM - 3:00 PM. The National Institute of Standards and Technology (NIST) Advanced Technology Program Advisory Committee will hold a partially closed meeting. See, notice in the Federal Register, April 13, 2007, Vol. 72, No. 71, at Page 18632. Location: NIST, Administration Building, Employees' Lounge, Gaithersburg, MD.

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