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March 5, 2009, Alert No. 1,909.
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Obama Names Kundra Chief Information Officer

3/5. President Obama named Vivek Kundra to be Federal Chief Information Officer (CIO). He was previously Chief Technology Officer (CTO) for the District of Columbia. See, White House news office release.

This is a newly created position. In addition, he will serve in the Office of Management and Budget (OMB) as e-government administrator.

Obama has stated that there will also be a federal CTO. Although, he has not yet named one.

Kundra spoke with reporters in a conference call on March 5. He said that the CTO "will be named in due time by the President".

He said that the government needs to rethink "the way the private sector interacts with the government". He advocated "open, transparent, participatory, collaborative government".

He also said the the federal government needs to "embrace new technologies".

He said that the federal government will look into the use of cloud computing, including its "security implications".

He also said that the federal government "will publish data feeds". He elaborated that this would be things like the National Institute of Health's (NIH) release of human genome project data online, and geospatial satellite data.

He was asked how the government would receive input, as opposed to publishing information, so that people are not "writing emails into a void". Kundra made vague references to the Facebook self-organization model, and "two way interaction" between government and citizens.

The White House news office release states that "The Federal Chief Information Officer directs the policy and strategic planning of federal information technology investments and is responsible for oversight of federal technology spending.  The Federal CIO establishes and oversees enterprise architecture to ensure system interoperability and information sharing and ensure information security and privacy across the federal government. The CIO will also work closely with the Chief Technology Officer to advance the President's technology agenda."

Ken Wasch, head of the Software and Information Industry Association (SIIA), stated in a release that "Vivek is a great choice who will carry out the incoming administration's plan to use cutting-edge technologies in our public sector to bring government into the 21st Century."

OMB Releases Annual FISMA Report

3/1. The Office of Management and Budget (OMB) released a report [125 pages in PDF] titled "Fiscal Year 2008 Report to Congress on Implementation of The Federal Information Security Management Act of 2002".

This report states that it provides information about the federal government's "performance against key security and privacy performance measures" for FY 2002 through FY 2008, and the OMB's "assessment of government-wide IT security strengths and weaknesses" and a "plan of action to improve performance".

It finds that "Over the past year, most of the 25 major Federal agencies made incremental progress in closing the Federal government’s IT security performance gaps against established performance criteria."

However, this report gives the Department of Defense (DOD) a "Failing" grade on both "Quality of Certification and Accreditation Process" and "Quality of Privacy Impact Assessment Process".

This annual report is required by the Federal Information Security Management Act of 2002, which was enacted in the 107th Congress as part of HR 2458, the "E-Government Act of 2002". The E-Gov Act is now Public Law No. 107-347. It is codified at 44 U.S.C. § 3501 note.

Obama Administration Announces Review of Cyber and Communications Security

3/2. The White House news office released a short and vaguely worded statement of John Brennan, Assistant to the President for Homeland Security and Counterterrorism, regarding the Obama administration's plans related to cyber and communications security.

Brennan disclosed in this statement that "the National Security Council and Homeland Security Council are presently conducting a 60-day review", to be completed "by the end of April", to formulate "a new vision", an "action plan", and a "strategic framework".

He stated that one set of goals is to "deter, prevent, detect, defend against, respond to, and remediate disruptions and damage to U.S. communications and information infrastructure".

He acknowledged that facilities involved are "largely privately-owned".

Brennan's statement does not identify what it is that the government is contemplating. However, Brennan said that "respect for the rule of law" will be integrated and harmonized with government objectives.

The statement does not disclose whether the administration contemplates imposing requirements or promulgating regulations that would include government mandates, or alter intellectual property or other proprietary rights.

This statement does not disclose who will be involved in the review process. It states that there is a "review team", but does not disclose any of its members or staff.

However, the Office of Management and Budget's (OMB) annual FISMA report,  states that "OMB will be participating in this review." See, related story in this issue titled "OMB Releases Annual FISMA Report".

The statement does not disclose whether there will be any public or closed hearings, roundtables, or other events. It does not disclose any deadlines for submitting comments, information or communications. It does not disclose to whom comments, information, or communications should be submitted.

TLJ has requested, but not received, further information regarding this review from the White House news office.

Mark Bohannon, General Counsel and SVP for Public Policy of the Software and Information Industry Association (SIIA), told TLJ that "This is an important step. We welcome it."

"We think that cyber security is a tier one national security and economic security issue." Bohannon added that "we are pleased that this was seen as a priority issue early on".

Bohannon also stated that there should be an "opportunity to comment" and that this should be a "strong public private partnership".

Copyright Office Publishes Webcaster Agreements

3/3. The Copyright Office (CO) published a notice in the Federal Register that announces, describes, and attaches, three agreements that "set rates and terms for the reproduction and performance of sound recordings made by certain specified webcasters, under two statutory licenses".

The CO added that "Webcasters who meet the eligibility requirements may choose to operate under the statutory licenses in accordance with the rates and terms set forth in the agreements published herein rather than the rates and terms of any determination by the Copyright Royalty Judges."

These three items are (1) Agreement made between SoundExchange and CPB, (2) Agreement made between SoundExchange and NAB, and (3) Agreement made between SoundExchange and Small Webcasters.

See, Federal Register, March 3, 2009, Vol. 74, No. 40, at Pages 9293-9307.

The 110th Congress passed HR 7084 [LOC | WW], the "Webcaster Settlement Act of 2008", also known as the WSA. It is now Public Law No. 110-435. It amended those portions of 17 U.S.C. § 114 that pertain to webcasting, and authorized the negotiation of agreements on behalf of webcasters.

FTC Invokes FTC Act, Not Sherman Act, to Stop Information Exchanges by Music Merchants

3/4. The Federal Trade Commission (FTC) released an Agreement Containing Consent Order to Cease and Desist [4 pages in PDF] and a Decision and Order [12 pages in PDF] in its administrative proceeding titled "In the Matter of National Association of Music Merchants".

The FTC filed an administrative complaint [2 pages in PDF] that alleges violation of the FTC Act in connection with the alleged exchange of retail price information by National Association of Music Merchants (NAMM) members.

Specifically, the complaint alleges violation of Section 5 of the FTC Act, which is codified at 15 U.S.C. § 45. The complaint does not allege violation of the Sherman Act, which is codified at 15 U.S.C. §1, et seq.

Section 5 provides in part that "Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful." This is the FTC's primary statute for protecting consumers against fraudulent business practices. The Sherman Act and Clayton Act are the primary federal antitrust statutes.

The complaint does not allege that there were any anti-competitive agreements, collusion or price fixing.

Pursuant to this Agreement and this Order, the NAMM "shall cease and desist from ... Urging, encouraging, advocating, suggesting, coordinating, participating in, or facilitating in any manner the exchange of information between or among Musical Product Manufacturers or Musical Product Dealers relating to ... the retail price of Musical Products ..."

The NAMM admitted no wrongdoing. There is no fine or other financial transaction associated with this settlement. However, the order requires the NAMM to spend more money on antitrust lawyers.

David Wales, acting Director of the FTC's Bureau of Competition, stated in a release that "Trade associations properly provide many services for their members, but enabling competing sellers to work together to coordinate higher prices for their products is not a legitimate function".

The NAMM stated in a release that "Rather than pursuing costly and time-consuming litigation on this matter, we are choosing to put it behind us so that NAMM can concentrate on our primary mission of strengthening the global music products industry and increasing active participation in music making."

People and Appointments

3/5. The Senate Judiciary Committee (SJC) approved the nominations of Elena Kagan to be Solicitor General (by a vote of 13-3), Thomas Perrelli to be Associate Attorney General (by a vote of 17-1), and David Kris to be Assistant Attorney General in charge of the National Security Division (by a voice vote). On February 26, the SJC approved the nomination of David Ogden to be the Deputy Attorney General. All four await confirmation by the full Senate.

3/3. President Obama announced his intent to nominate Craig Fugate to be Administrator of the Department of Homeland Security's (DHS) Federal Emergency Management Agency (FEMA). Janet Napolitano, the Secretary of Homeland Security, named Jason McNamara Chief of Staff of the FEMA. See, DHS release.

3/4. James Brigagliano was named Deputy Director of the Securities and Exchange Commission's (SEC) Division of Trading and Markets. See, SEC release.

3/5. John Johnson was named President of Criterion Economics. Matthew Milner was named a Vice President. Both previously worked for NERA Economic Consulting. Gregory Sidak remains Chairman. See, Criterion release.

More News

3/3. The Federal Communications Commission (FCC) adopted and released a Public Notice [PDF] regarding the government's efforts to plan consumers', broadcasters' and equipment manufacturers' transition to digital television. This item is FCC 09-15.

3/2. The U.S. Patent and Trademark Office (USPTO), which now administers the National Medal of Technology and Innovation program, announced that May 29, 2009, is the deadline to submit nominations for the next round of awards. The USPTO also announced that it seeks nominations for four vacancies on its National Medal of Technology and Innovation Nomination Evaluation Committee. See, USPTO release.

In This Issue

This issue contains the following items:
 • Obama Names Kundra Chief Information Officer
 • OMB Releases Annual FISMA Report
 • Obama Administration Announces Review of Cyber and Communications Security
 • Copyright Office Publishes Webcaster Agreements
 • FTC Invokes FTC Act, Not Sherman Act, to Stop Information Exchanges by Music Merchants
 • People and Appointments (SJC clears Ogden, Kagan, Kris & Perrelli; Fugate picked for FEMA)

Washington Tech Calendar
New items are highlighted in red.
Thursday, March 5

The House will meet at 10:00 AM for legislative business. The agenda includes consideration of several non-technology related items. See, Rep. Hoyer's schedule for the week of March 2, and schedule for March 5.

The Senate will meet at 9:30 AM. It will resume consideration of HR 1105 [LOC | WW], the "Omnibus Appropriations Act, 2009".

9:30 - 11:00 AM. The Information Technology and Innovation Foundation (ITIF) will host an event titled "The Need for Speed: The Importance of Next-Generation Broadband Networks". Location: ITIF, Suite 200, 1250 Eye St., NW.

10:00 AM. The Senate Judiciary Committee (SJC) may hold an executive business meeting. The agenda includes consideration of the nominations of Elena Kagan to be Solicitor General, Thomas Perrelli to be Associate Attorney General, and David Kris to be Assistant Attorney General in charge of the National Security Division. The SJC rarely follows its published agendas. The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice, and Science will hold a hearing titled "Science Education". Location: Room 2359, Rayburn Building.

2:00 PM. The House Appropriations Committee's (HAC) Subcommittee on Commerce, Justice, and Science will hold a hearing. The witness will be Norm Augustine. Location: Room H-309, Rayburn Building.

3:00 PM. The Senate Finance Committee (SFC) will hold a hearing on the nomination of Ron Kirk to be head of the Office of the U.S. Trade Representative (OUSTR). See, notice. Location: Room 215, Dirksen Building.

The Federal Communications Commission (FCC) will hold an event titled "Open Meeting". Location: FCC, Commission Meeting Room (Room TW-C305), 445 12th St., SW.

Friday, March 6

Rep. Hoyer's schedule for the week of March 2 states that the House will meet at 9:00 AM for legislative business.

10:00 AM. The U.S. Court of Appeals (FedCir), Panel I, will hear oral argument in Digital Impact v. Bigfoot Interactive, App. Ct. No. 2008-1255, a patent case regarding e-mail distribution technology. See, Federal Circuit oral argument calendar for March, 2009. Location: Courtroom 201, 717 Madison Place, NW.

Sunday, March 8

Daylight savings time begins.

Deadline to submit to the U.S. Patent and Trademark Office (USPTO) nominations of individuals to serve on the National Medal of Technology and Innovation Nomination Evaluation Committee. See, notice in the Federal Register, January 8, 2009, Vol. 74, No. 5, at Pages 800-801.

Monday, March 9

Deadline to submit initial comments to the Federal Communications Commission's (FCC) Media Bureau in response to the petitions for declaratory rulings of the Alliance for Community Media (ACM) and others regarding carriage of public, educational and governmental (PEG) channels. See, order [PDF] setting deadlines.

Deadline to submit comments to the Federal Trade Commission (FTC) regarding the proposed settlement agreement between the FTC and Genica Corporation and Compgeeks.com. See, notice in the Federal Register, February 10, 2009, Vol. 74, No. 26, at Pages 6627-6629. See, also story titled "FTC Brings and Settles Administrative Action Against Hacked Online Retailers" in TLJ Daily E-Mail Alert No. 1,893, February 6, 2009.

Deadline to submit reply comments to the Federal Communications Commission (FCC) regarding the October 8, 2008, Petition for Rulemaking [18 pages in PDF] submitted by the CTIA regarding transitioning certain cellular licensing rules to a geographic market area based licensing system. See, FCC's Public Notice numbered DA 09-5, and notice in the Federal Register, January 22, 2009, Vol. 74, No. 13, at Pages 4036-4037. This proceeding is RM No. 11510.

Tuesday, March 10

8:00 - 10:00 AM. The BroadbandCensus dot com [http colon slash slash broadbandcensus dot com] will host a breakfast event titled "Broadband Competition: Do We Have It, and How Do We Get More of It?" The speakers will include Kathleen Ham (T-Mobile USA), Brent Olson (AT&T), Emmett O'Keefe (Amazon), Art Brodsky (Public Knowledge), and Scott Wallsten (Technology Policy Institute). For more information, contact Drew Clark at drew at broadbandcensus dot com or 202-580-8196. Breakfast begins at 8:00 AM. The program begins at 8:40 AM. The price to attend these monthly events is $45. These events are open to the public. Location: Old Ebbitt Grill, 675 15th St., NW.

9:00 AM. The Bureau of Industry and Security's (BIS) Regulations and Procedures Technical Advisory Committee will meet. See, notice in the Federal Register, February 23, 2009, Vol. 74, No. 34, at Page 8053. Location: Room 4830, Hoover Building, 14th Street between Constitution and Pennsylvania Aves., NW.

10:00 AM. The House Judiciary Committee (HJC) will hold a hearing on HR 848 [LOC | WW], the "Performance Rights Act". See, notice. The HJC will webcast this hearing. See also, story titled "Performance Rights Act Reintroduced" in TLJ Daily E-Mail Alert No. 1,896, February 10, 2009. Location: Room 2141, Rayburn Building.

10:00 AM. The Senate Judiciary Committee (SJC) will hold a hearing titled "Patent Reform in the 111th Congress: Legislation and Recent Court Decisions". See, notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.

10:00 - 11:30 AM. The Department of Commerce's (DOC) National Telecommunications and Information Administration (NTIA), the Department of Agriculture's (DOA) Office of Rural Development, and the Federal Communications Commission (FCC) will hold a public meeting regarding the broadband subsidy programs created by HR 1 [LOC | WW], the "American Recovery and Reinvestment Act of 2009", Public Law No. 111-5. See, notice in the Federal Register, February 27, 2009, Vol. 74, No. 38, at Pages 8914-8915. Location: auditorium, DOC, 1401 Constitution Ave., NW.

12:00 NOON - 3:00 PM. The Technology Policy Institute (TPI) will host an event titled "High-Skilled Immigration: Budgetary and Economic Effects". The lunch speaker will be Rep. Zoe Lofgren (D-CA). There will be a panel discussion with Stuart Anderson (National Foundation for American Policy), Robert Atkinson (Information Technology and Innovation Foundation), Arlene Holen (TPI), Vin O'Neill (IEEE-USA), and Thomas Lenard (TPI). Location: Holeman Lounge, National Press Club, 13th Floor, 529 14th St., NW.

Wednesday, March 11

Day one of a three day conference hosted by the International Association of Privacy Professionals titled "IAPP Privacy Summit 2009". Reporters' contact: Tammy Vigliotti at 207-351-1500 x106. See, conference web site. Location: Washington Marriott Wardman Park, 2660 Woodley Road, NW.

12:00 NOON. Deadline to submit written comments to the Office of the U.S. Trade Representative (OUSTR) in connection with its March 4, 2009, hearing regarding its plans to initiate negotiations on a Trans-Pacific Partnership free trade agreement with Singapore, Chile, New Zealand, Brunei Darussalam, Australia, Peru and Vietnam. See, notice in the Federal Register, January 26, 2009, Vol. 74, No. 15, at Pages 4480-4482.

1:00 - 5:00 PM. The National Institute of Standards and Technology's (NIST) Office of Law Enforcement Standards (OLES) will hold a meeting via the internet to bring Project 25 Compliance Assessment Program stakeholders together to discuss what the process will be to assess software based test tools for the Project 25 Compliance Assessment Program. The deadline to register is March 4, 2009. See, notice in the Federal Register, February 17, 2009, Vol. 74, No. 30, at Pages 7397-7398.

2:00 PM. The House Judiciary Committee's (HJC) Subcommittee on Commercial and Administrative Law will hold a hearing titled "Circuit City Unplugged: Why Did Chapter 11 Fail To Save 34,000 Jobs?". See, notice. The HJC will webcast this hearing. Location: Room 2141, Rayburn Building.

Thursday, March 12

Day two of a three day conference hosted by the International Association of Privacy Professionals titled "IAPP Privacy Summit 2009". Reporters' contact: Tammy Vigliotti at 207-351-1500 x106. See, conference web site. Location: Washington Marriott Wardman Park, 2660 Woodley Road, NW.

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