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July 18, 2008, Alert No. 1,795.
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FCC Announces Tentative Agenda for August 1 Meeting

7/16. The Federal Communications Commission (FCC) released a tentative agenda [pages in PDF] for its event scheduled for August 1, 2008, titled "Open Commission Meeting".

First, the FCC's agenda states that it will adopt a "Memorandum Opinion & Order that addresses Comcast's network management practices".

Second, the FCC's agenda states that it will adopt a "Report & Order concerning regulatory fees for Fiscal Year 2008 and a Further Notice of Proposed Rulemaking seeking comment on regulatory fee issues".

Third, the FCC's agenda states that its will adopt a "Memorandum Opinion & Order and Declaratory Ruling considering the transfer of control of licenses and authorizations from Rural Cellular Corporation to Verizon Wireless".

Background on Comcast Matter. On November 1, 2007, the Public Knowledge and Free Press (FP) filed with the FCC a document [48 pages in PDF] captioned "Formal Complaint of Free Press and Public Knowledge Against Comcast Corporation For Secretly Degrading Peer-to-Peer Applications".

See, story titled "Free Press Files Complaint with FCC Alleging that Comcast Is Violating 2005 Policy Statement" in TLJ Daily E-Mail Alert No. 1,669, November 5, 2007.

That complaint alleged that Comcast interferes with its subscribers use of applications like BitTorrent. However, Comcast reached an agreement with BitTorrent back in March. Both companies also agreed that there is no need for government intervention. See, story titled "Comcast and BitTorrent Reach Accord on Network Management Practices" in TLJ Daily E-Mail Alert No. 1,738, March 27, 2008. See also, story titled "Comcast and Pando Networks to Create P2P Bill of Rights and Responsibilities" in TLJ Daily E-Mail Alert No. 1,747, April 15, 2008.

Gigi Sohn, head of the Public Knowledge, stated in a release on July 11 that "Comcast's conduct in throttling Internet traffic was deplorable when it was discovered, and remains deplorable today."

She added that she hopes that the FCC "will order the company to stop blocking and throttling Internet traffic and will make it clear that this type of behavior from any Internet Service Provider will not be tolerated."

She concluded that "At the same time, this case is limited in scope to one company and to one type of behavior. Even if the Commission ultimately issues an order against Comcast, there is still a need for legislation to prohibit discrimination by telephone and cable companies while preserving the rights of Internet users and companies that do business on the Internet."

NCTA and NCMEC Announce MOU Regarding Porn on Cable Company Controlled Servers

7/17. The National Cable & Telecommunications Association (NCTA) and National Center for Missing and Exploited Children (NCMEC) announced in a joint release that "all cable operators represented on NCTA's Board of Directors have agreed to help reduce the proliferation of child pornography by signing a Memorandum of Understanding (MOU) with NCMEC.

There are numerous bills pending in the House and Senate that sponsors argue would protect children on the internet. Some of these bills would also increase government regulation of service providers, impose costs and burdens upon service providers, or diminish the privacy and security of law abiding internet users.

One consequence of the just announced MOU is that it provides opponents for new forms of internet regulation another argument that legislation is not necessary.

See also, following story titled "Sen. Stevens Touts Bill to Give FCC Authority to Enforce Online Porn Statutes".

Neither the NCTA nor the NCMEC released a copy of the MOU.

Patrick Lynch, head of the and National Association of Attorneys General (NAAG), wrote a letter to Kyle McSlarrow, head of the NCTA, praising the MOU and the cable companies that signed it, and describing its content. He wrote that the cable companies "agree to utilize NCMEC's database of websites identified as containing child pornography to ensure that no such site is hosted on servers owned or controlled by any NCTA member cable company".

Federal Communications Commission (FCC) Commissioner Deborah Tate also praised the MOU. She released a statement [PDF], in which she wrote that "cable operators who provide internet service the tools to effectively guard against the proliferation of child pornography on their servers, and help build a barrier to protect children from unlawful content. With the information provided, cable providers will have critical access to lists of child pornography websites identified by Center experts so that those sites can be purged from their servers, material can be reported, and offenders duly referred to law enforcement for punishment."

Sen. Stevens Touts Bill to Give FCC Authority to Enforce Online Porn Statutes

7/17. Sen. Ted Stevens (R-AK), the ranking Republican on the Senate Commerce Committee (SCC), issued a release in which he praised the Memorandum of Understanding (MOU) between the National Cable & Telecommunications Association (NCTA) and the National Center for Missing and Exploited Children (NCMEC) regarding online child porn.

See above story titled "NCTA and NCMEC Announce MOU Regarding Porn on Cable Company Controlled Servers".

Sen. Stevens stated in this release that "This agreement is an important step in combating online child pornography and I commend the groups involved for fighting against its spread across the Internet”.

He added that "There is still more that government and industry can do together to protect children online, including education about proper online behavior and how to avoid viewing illicit material.”

Sen. Stevens also used this release to tout his bill, S 1965 [LOC | WW], the "Protecting Children in the 21st Century Act".

The Senate amended and passed S 1965 on May 22, 2008. The House has not yet approved this bill.

The bill would impose additional porn related conditions upon schools and libraries that seek Federal Communications Commission (FCC) e-rate subsidies. It would also give the FCC redundant authority to enforce certain existing statutes related to online child porn. It also provides for further study of other proposals.

Additional E-Rate Conditions. This bill would amend 47 U.S.C. § 254(h)(5)(B). Section 254 pertains to the FCC administered universal service tax and subsidy programs. Subsection 254(h)(5) imposes obligations upon schools that receive e-rate subsidies.

Subsection 254(h)(5)(b) already requires schools receiving e-rate subsidies to certify that they are enforcing "a policy of Internet safety for minors that includes monitoring the online activities of minors and the operation of a technology protection measure with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are (A) obscene; (B) child pornography; or (C) harmful to minors", and that they are "enforcing the operation of such technology protection measure during any use of such computers by minors".

S 1965 would add an additional requirement. Schools receiving e-rate subsidies must also certify that they are "educating minors about appropriate online behavior, including interacting with other individuals on social networking websites and in chat rooms and cyberbullying awareness and response". The bill does not define "cyberbullying".

FCC Enforcement of Online Porn Statutes. The bill would also amend 47 U.S.C. § 503(b)(1) to add 18 U.S.C. § 2252 and 42 U.S.C. § 13032 as predicate offenses for imposing forfeiture penalties on FCC regulated entities.

Subsection 501(b)(1) already authorizes the FCC to impose penalties upon certain FCC regulated entities that commit certain acts. Section 2252 is one of the sections of the criminal code that prosecutors use to prosecute people accused of sending, receiving or possessing child porn on their computers or laptops.

Section 503, if amended by S 1965, would provide that "Any person who is determined by the Commission ... to have ... violated any provision of section ... 2252 of title 18 ... shall be liable to the United States for a forfeiture penalty ...".

Section 503 reaches anyone with "a license, permit, certificate, or other authorization issued by the Commission", including "a cable television operator".

Section 2252 also reaches "any person who ... knowingly transports or ships in interstate or foreign commerce by any means including by computer ... any visual depiction" that constitutes child porn.

Section 13032 requires electronic communication service providers to report any person to the NCMEC if such providers obtain knowledge of an "apparent" violation of Section 2252 by such person.

The Senate passed S 1965 without any substantial discussion or debate. Hence, the Senators did not explain this language. The SCC's report (No. 110-245) provides no explanation either.

Violation of Section 2252 by an entity that holds an FCC license, permit, certificate, or other authorization is already subject to criminal prosecution by the Department of Justice (DOJ). However, as a practical matter, the DOJ prosecutes individual internet users -- not service providers. This bill would empower the FCC to penalize certain service providers, for example, if they "knowingly transport" child porn.

Similarly, failure by electronic communication service providers to report their customers is subject to an action for civil penalties. This bill would also empower the FCC to penalize these electronic communication service providers.

The DOJ already has prosecutorial and enforcement authority with respect to Sections 2252 and 13032, respectively. This bill would not take away or limit this DOJ authority. Rather, it would give the FCC redundant enforcement authority. The SCC report on the bill does not recite any evidence that the DOJ is failing to enforce these statutes, or that service providers constitute part of a child porn problem.

Moreover, this is essentially a law enforcement matter within the expertise of the DOJ, rather than a communications industry regulatory matter within the expertise of the FCC. Finally, perhaps it should be noted that this bill, if enacted, would involve the House and Senate Commerce Committees, and their members, in a high profile crime issue, that has heretofore been primarily a matter of House and Senate Judiciary Committee jurisdiction.

Social Networking Sites. This bill, unlike some other proposals, contains no regulatory mandates for social networking sites, or data retention requirements for these or other service providers. Rather, it provides for further study and education.

The bill would require the Department of Commerce's National Telecommunications and Information Administration (NTIA) to form a working group to study "industry efforts to promote online safety through educational efforts, parental control technology, blocking and filtering software, age-appropriate labels for content or other technologies or initiatives".

This group would also be tasked with studying the "practices of electronic communications service providers and remote computing service providers related to record retention in connection with crimes against children".

This bill, unlike some other pending proposals, contains no data retention requirement. Also, the SCC's report (No. 110-245) concluded that "The reported bill would have no significant impact on the personal privacy of United States citizens."

S 1965 would also require the Federal Trade Commission (FTC) to "carry out a nationwide program to increase public awareness and provide education regarding strategies to promote the safe use of the Internet by children".

Also, the bill as reported by the SCC would also have tripled the maximum fines that could be levied against providers of electronic communication services or remote computing services for violation of Section 13032. However, the full Senate approved an amended version of the bill that deleted this provision.

FRB Reports on Economy

7/15. The Senate Banking Committee (SBC) held a hearing titled "The Semiannual Monetary Policy Report to the Congress". The witness was be Ben Bernanke, Chairman of the Federal Reserve Board (FRB). See, prepared testimony and FRB report [48 pages in PDF].

The FRB report states that "Real business outlays for equipment and software were flat in the first quarter. Growth in real spending on high-tech equipment and software slowed to an annual rate of about 10 percent, down from the 13 percent pace recorded in 2007."

The FRB report adds that "High-tech equipment consists of computers and peripheral equipment and communications equipment." The report also notes that "The available indicators suggest that capital spending on equipment and software fell in the second quarter."

Much of Bernanke's testimony and the FRB report are devoted to troubles at financial institutions and tightening credit. Other, the FRB reports "sluggish" recent economic growth, and projects that "the economy is expected to expand slowly over the rest of this year".

The FRB also reports "a further deterioration in the labor market". That is, the unemployment rate rose to 5 1/2 percent, and "Although wages rose in nominal terms, the purchasing power of those nominal gains was eroded by the rapid increases in consumer prices."

The Department of Commerce's (DOC) Bureau of Economic Analysis (BEA) reported on June 26, 2008, that "Real gross domestic product ... increased at an annual rate of 1.0 percent in the first quarter of 2008 (that is, from the fourth quarter to the first quarter) ... In the fourth quarter, real GDP increased 0.6 percent." (Parentheses in original.)

See, latest BEA release. The BEA's next report is due to be released on July 31, 2008.

Washington Tech Calendar
New items are highlighted in red.
Monday, July 21

The House will meet at 12:30 PM in pro forma session only. See, Rep. Hoyer's schedule for week of July 21.

The Senate will meet at 3:00 PM. It will resume consideration of the motion to proceed to S 3268 [LOC | WW], the "Stop Excessive Energy Speculation Act of 2008", a bill introduced to enable Senators to posture on gas prices.

8:30 AM - 5:00 PM. Day one of a three day conference hosted by the Department of Justice's (DOJ) National Institute of Justice (NIJ) titled "2008 NIJ Conference". At 8:30 AM Associate Attorney General Kevin O'Connor will deliver opening remarks. At 10:30 AM there will be a panel titled "Cell Phone Forensics: Catching the Bad Guys in the Age of Mobile Technology". See, agenda. Location: Marriott Crystal Gateway, 1700 Jefferson Davis Highway, Arlington, VA.

11:00 - 11:45 AM. Attorney General Michael Mukasey will give a speech. He will discuss the Supreme Court's June 12, 2008, opinion [PDF] in Boumediene v. Bush. Registration is closed. Location: American Enterprise Institute (AEI), 12th floor, 1150 17th St., NW.

3:00 PM. Deadline to submit applications for grants to the National Institute of Standards and Technology (NIST) for construction of research science buildings. See, notice in the Federal Register, May 27, 2008, Vol. 73, No. 102, at Pages 30380-30381.

Tuesday, July 22

The House will meet at 12:30 PM for morning hour, and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. The House will consider numerous items under suspension of the rules, including HR 6362 [LOC | WW], an untitled bill to provide that Secretary of Commerce, in consultation with the Director of the U.S. Patent and Trademark Office (USPTO), shall appoint administrative patent judges and administrative trademark judges. See, Rep. Hoyer's schedule for week of July 21.

8:30 AM - 5:00 PM. Day two of a three day conference hosted by the Department of Justice's (DOJ) National Institute of Justice (NIJ) titled "2008 NIJ Conference". At 3:30 PM there will be a panel titled "Taking the Information Highway Beyond the Next Interchange", which will address use of the internet in community policing. See, agenda. Location: Marriott Crystal Gateway, 1700 Jefferson Davis Highway, Arlington, VA.

12:30 - 1:30 PM. The DC Bar Association will host a panel discussion titled "Will Orphan Works Finally Find a Home". The topic is HR 5889 [LOC | WW], the "Orphan Works Act of 2008". The speakers will be Allan Adler (Association of American Publishers), Gigi Sohn ( Public Knowledge), Victor Perlman ( American Society of Media Photographers), Joe Keeley (Arent Fox), and Maria Pallante (Copyright Office). See also, Joe Keeley's web site OrphanWorks.net. The price to attend ranges from $20 to $30. For more information, contact 202-626-3463. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

2:00 PM. The House Commerce Committee's (HCC) Subcommittee on Telecommunications and the Internet will hold a hearing titled "Issues in Telecommunications Competition". This hearing will also address HR 3914 [LOC | WW], the "Protecting Consumers through Proper Forbearance Procedures Act". The HCC will webcast this hearing. Location: Room 2123, Rayburn Building.

2:00 PM. The House Education and Labor Committee will hold a hearing titled "Innovation in Education through Business and Education STEM Partnerships". Location: Room 2175, Rayburn Building.

Wednesday, July 23

The House will meet at 10:00 AM for legislative business. See, Rep. Hoyer's schedule for week of July 21.

9:00 AM - 3:30 PM. Day three of a three day conference hosted by the Department of Justice's (DOJ) National Institute of Justice (NIJ) titled "2008 NIJ Conference". At 10:45 AM there will be a panel titled "Verifying Identity with Technology". At 2:00 PM there will be a panel titled "New Tools to Stop Child Exploitation over the Internet". See, agenda. Location: Marriott Crystal Gateway, 1700 Jefferson Davis Highway, Arlington, VA.

9:00 AM. Day one of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The agenda for July 23 includes "Computational Photography", "3B001 Commerce Control List Review", "Control Parameters for High-Performance Converters", and a "Discussion of Wassenaar Proposals for 2009". 3B001 relates to equipment for the manufacturing of semiconductor devices or materials, and specially designed components and accessories therefor. See, Category 3.B of the export administration regulations. The July 23 portion of the meeting is open to the public. See, notice in the Federal Register, July 7, 2008, Vol. 73, No. 130, at Pages 38395-38396. Location: Hoover Building, Room 3884, 14th Street between Constitution and Pennsylvania Aves. NW.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Courting Big Business: The Supreme Court's Recent Decisions on Corporate Misconduct and Laws Regulating Corporations". A SJC notice lists two opinions to be addressed at this hearing: Exxon Shipping v. Baker and Stoneridge Investment Partners  v. Scientific-Atlanta. See, January 15, 2008, opinion [33 pages in PDF] in Stoneridge, a securities fraud case involving stock in Charter Communications, a cable television provider, and the liability of secondary actors Scientific Atlanta and Motorola. This opinion limits the ability of class action law firms to sue vendors or purchasers of companies that are alleged to have committed securities fraud. See also, story titled "Supreme Court Rules in Stoneridge v. Scientific Atlanta" in TLJ Daily E-Mail Alert No. 1,701, January 16, 2008. The SJC will webcast this hearing. Location: Room 226, Dirksen Building.

10:00 AM - 12:00 NOON. The House Intelligence Committee will hold a closed hearing titled "Cyber Security". Location: Room H-405, Capitol Building.

12:00 NOON. The Cato Institute will host a panel discussion titled "The FBI Turns 100". The speakers will be John Fox (Historian, Federal Bureau of Investigation), Athan Theoharis (author of the book [Amazon] titled "The FBI & American Democracy"), John Kelly, author of the book [Amazon] titled "Tainting Evidence: Inside the Scandals at the FBI Lab", and Tim Lynch (Cato). See, notice and registration page. Location: Cato, 1000 Massachusetts Ave., NW.

2:00 PM. The Senate Judiciary Committee (SJC) will hold a hearing on several Department of Justice (DOJ) nominations, including that of Patrick Rowan to be Assistant Attorney General (AAG) in charge of the National Security Division. Rowan is currently the acting AAG. See, notice. Location: Room 226, Dirksen Building.

6:00 - 8:00 PM. The DC Bar Association will host an event titled "Young Lawyers' Summer Networking Event -- Famous Wine & Beer Trademark Cases". The speaker will be Roger Schechter (George Washington University law school). The price to attend is $15. For more information, contact 202-626-3463. See, notice. Location: Science Club, 1136 19th St., NW.

Thursday, July 24

The House will meet at 10:00 AM for legislative business. See, Rep. Hoyer's schedule for week of July 21.

8:30 AM - 4:30 PM. Day one of a two day public workshop hosted by the Department of Homeland Security (DHS) titled "Implementing Privacy Protections in Government Data Mining". See, notice in the Federal Register, June 25, 2008, Vol. 73, No. 123, at Pages 36093-36094. Location: Hilton Washington, International Ballroom East, 1919 Connecticut Ave., NW.

9:00 AM. Day two of a two day meeting of the Bureau of Industry and Security's (BIS) Information Systems Technical Advisory Committee. The July 24 portion of the meeting is closed to the public, and its agenda is not disclosed. See, notice in the Federal Register, July 7, 2008, Vol. 73, No. 130, at Pages 38395-38396. Location: Hoover Building, Room 3884, 14th Street between Constitution and Pennsylvania Aves. NW.

10:00 AM. The House Ways and Means Committee's Subcommittee on Heath will hold a hearing titled "Promoting the Adoption and Use of Health Information Technology". See, notice. Location: Room 1001, Longworth Building.

12:00 - 2:00 PM. The DC Bar Association will host a program titled "The ABCs of IP: A Primer on Patent, Copyright, and Trademark Law". Janet Fries (Drinker Biddle & Reath) will review copyright law. Gary Krugman (Sughrue Mion) will review trademark law. Steven Warner (Fitzpatrick Cella Harper & Scinto) will review patent law. Maureen Browne (Heller Ehrman) will moderate. For more information, contact 202-626-3463. See, notice. Location: DC Bar Conference Center, B-1 Level, 1250 H St., NW.

1:00 - 5:00 PM. The Department of Health and Human Services' (DHHS) Office of the National Coordinator for Health Information Technology's (ONCHIT) American Health Information Community Confidentiality, Privacy, & Security Workgroup will hold a meeting. See, notice in the Federal Register, June 20, 2008, Vol. 73, No. 120, at Page 35139. Location: Switzer Building, Conference Room 1114, 330 C St., SW.

Friday, July 25

The House will meet at 9:00 AM for legislative business. See, Rep. Hoyer's schedule for week of July 21.

8:30 AM - 12:30 PM. Day one of a two day public workshop hosted by the Department of Homeland Security (DHS) titled "Implementing Privacy Protections in Government Data Mining". See, notice in the Federal Register, June 25, 2008, Vol. 73, No. 123, at Pages 36093-36094. Location: Hilton Washington, International Ballroom East, 1919 Connecticut Ave., NW.

10:00 AM - 12:00 NOON. The House Intelligence Committee's (HIC) Subcommittee on Oversight and Investigations will hold a closed hearing titled "Department of Justice Office of the Inspector General". Location: Room H-405, Capitol Building.

Extended deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its further notice of proposed rule making (FNPRM) regarding service rules for licensed fixed and mobile services, including Advanced Wireless Services (AWS), in the 1915-1920 MHz, 1995-2000 MHz, 2155-2175 MHz, and 2175-2180 MHz bands. This FNPRM is FCC FCC 08-158 WT Docket Nos. 07-195 and 04-356. See, original notice in the Federal Register, June 25, 2008, Vol. 73, No. 123, at Pages 35995-36013, and notice of extension in the Federal Register, July 14, 2008, Vol. 73, No. 135, at Pages 40271-40272.

People and Appointments

7/17. The Senate confirmed Paul Gardephe to be a Judge of the U.S. District Court for the Southern District of New York. See, Congressional Record, July 17, at Page S6946.

7/17. The Senate confirmed Kiyo Matsumoto to be a Judge of the U.S. District Court for the Eastern District of New York. See, Congressional Record, July 17, at Page S6946.

7/17. Republican members of the Senate Judiciary Committee (SJC) issued a release in which they argued that Senate Democrats are preventing Senate consideration of qualified judicial nominees. Sen. Charles Grassley (R-IA) stated that "The Democrats have employed a lot of fancy footwork to dance around their constitutional responsibility to give fair consideration of President Bush's judicial nominees. They are doing nothing more than burning down the clock, having dreamt up every stalling tactic in the book to prevent qualified Americans from serving on the federal bench." One of the nominees being blocked by Democrats, without a vote, is Peter Keisler, who President Bush nominated two years ago for a seat on the U.S. Court of Appeals for the District of Columbia.

7/17. President Bush nominated Anthony John Trenga to be a Judge of the U.S. District Court for Eastern District of Virginia. See, White House release.

7/15. President Bush nominated Timothy Dugan to be a Judge of the U.S. District Court for the Eastern District of Wisconsin. See, White House release.

7/15. President Bush nominated Brian Albritton to be the U.S. Attorney for the Middle District of Florida for the term of four years. See, White House release.

7/15. President Bush nominated Benton Campbell to be the U.S. Attorney for the Eastern District of New York for the term of four years. See, White House release.

7/15. President Bush nominated Michael Considine to be the U.S. Attorney for the District of Connecticut for the term of four years. See, White House release.

7/15. President Bush announced his intent to appoint Edward Gee, Phillip Jenkins, Nancy Ann Starnes, and Hans Van Winkle to be members of the Architectural and Transportation Barriers Compliance Board (ATBC) for four year terms beginning on December 4, 2008. See, White House release. The ATBC also addresses information and communications technologies, and has a committee titled "Telecommunications and Electronic and Information Technology Advisory Committee".

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