9th Circuit Considers Commerce
Clause |
9/9. The U.S. Court of Appeals (9thCir) issued its
opinion [14 pages in PDF] in Los Angeles v. Kern County,
rejecting a commerce clause challenge to a county ordinance.
This case involves recycling of wastes by the City of Los Angeles, and other
recyclers. It does not involve information technology. However, the key legal
issues involve the Constitution's commerce clause, which also serves to protect
participants in electronic commerce from local and state government regulators
who would burden or discriminate against online commerce.
Kern County, California, passed an ordinance banning the type of recycling used by
Los Angeles. The City of Los Angeles and others filed a complaint in the
U.S. District Court (CDCal) against the Kern
County Water Agency and others alleging, among other things, violation of the commerce
clause. The District Court held that Kern County violated the commerce clause.
The Court of Appeals held otherwise, on the basis of standing.
The commerce clause and the concept of standing are both in the Constitution.
The Court of Appeals concluded that Los Angeles lacks "prudential standing", a
concept not found in the Constitution. In so doing, it applied the "zone of
interests test", which is not in the Constitution either. Hence, the Court
applied extraconstitutional judicially created principles to hold that it would
not be prudent to allow Los Angeles to invoke a Constitutional principle.
Waste disposal and recycling is interstate commerce. Kern County's ordinance regulates
all recyclers. Los Angeles suffered financial harm as a result of the ordinance. But, the
Court reasoned that "Financial injury, standing alone, does not implicate the zone of
interests protected by the dormant Commerce Clause. That financial injury must somehow be
tied to a barrier imposed on interstate commerce." Both Los Angeles and Kern
County are in the same state. Thus, the Court wrote that, hypothetically, had the ordinance
allowed out of state recyclers to do business in Kern County, Los Angeles would
have suffered the same injury, but there would be not barrier to interstate commerce.
This limited notion of interstate commerce does not bode well for e-commerce actors who
might seek to invoke the protections afforded by the commerce clause in the 9th Circuit.
Perhaps it should be noted that the 9th Circuit applies a far broader
concept of interstate commerce in the context of federal criminal statutes,
including those that bar certain internet based conduct. That is, crimes are
created by statute; the Constitution provides that the Congress only has
legislative powers enumerated in the Constitution; there is no general grant of
criminal authority; the Congress relies upon the commerce clause as authority
for most of the criminal statutes that it enacts.
This case is City of Los Angeles, et al. v. Kern County Water Agency, et
al., U.S. Court of Appeals for the 9th Circuit, App. Ct. No.
07-56564, an appeal from the U.S. District Court
for the Central District of California, D.C. No. CV-06-05094-GAF, Judge
Gary Fees presiding. Judge Diarmuid O'Scannlain wrote the opinion of the Court
of Appeals, in which Judges Pam Rymer and Kim Wardlaw joined.
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Export Regulators Seek Comments
on Rules |
9/8. The Department of Commerce's (DOC)
Bureau of Industry and Security (BIS) published a
notice in the
Federal Register that requests comments on the BIS's "foreign policy-based
export controls".
The BIS conducts these reviews annually. The deadline to submit comments is
October 8, 2009.
The BIS promulgates regulations that implement the Export Administration Act
of 1979 (EAA), as expired. The BIS regulates the export, and non-export, of,
among other things, computers, software, and encryption products.
The main rationale for this regulatory regime is promoting national security
by limiting hostile foreign nations' access to certain military products and
technologies. Section 5 of the EAA pertains to "National Security Controls".
Section 6, the subject of the just released notice, pertains "Foreign Policy
Controls". Some of its provisions are related to national security (such as
regulation of exports to nations that support terrorism), while others are not
(such as regulation of exports of crime control and detection items). Section 6 serves as
the basis for the BIS's regulation of information and communications technologies.
The BIS has also leveraged its control over exports to limit access of U.S.
purchasers to certain products and technologies. Also, Section 7 pertains to
further regulation, including limits on the export of cedar logs, crude oil, and
refined petroleum products.
The just published notice poses numerous questions. For example, it asks
about "The likelihood that such controls will achieve the intended foreign
policy purpose, in light of other factors, including the availability from other
countries of the goods, software or technology proposed for such controls".
It also asks about the
effect of controls on "the competitive position of the United States in the
international economy", and the government's ability "to enforce the controls
effectively".
The BIS also seeks comments on "Information that illustrates the effect of
foreign policy-based export controls on trade or acquisitions by intended
targets of the controls."
See, Federal Register, September 8, 2009, Vol. 74, No. 172, at Pages
46088-46089.
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BIS Loosens Controls on Export of ICT Items
to Cuba |
9/8. The Department of Commerce's (DOC)
Bureau of Industry and Security (BIS) published a
notice in the
Federal Register that announces, describes, recites, and sets the effective date
for, its new rules liberalizing rules affecting the export of information and communications
technology (ICT) products to Cuba.
This notice states that "These actions do not suspend or terminate the United
States embargo of Cuba." Rather, it is asserted that the embargo remains in
effect, while exceptions are created for enumerated ICT products that are
"consolidated gift parcels", personal luggage, or donated consumer devices.
These changes pertain to computers, computer peripherals, monitors, cell phones, SIM
cards, satellite phones, digital cameras, television and radio receivers, and other products.
This notice also states that these rule changes revise "the scope of existing
licensing policy regarding certain telecommunications links including satellite
radio and satellite television services".
These rule changes are effective as of September 3, 2009. The BIS also seeks
public comments. There is no deadline to submit comments.
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OUSTR to Hold Hearing on PRC Compliance with
WTO Trade Obligations |
8/31. The Office of the U.S. Trade
Representative (OUSTR) published a
notice in the
Federal Register announcing that the interagency Trade Policy Staff Committee (TPSC)
will hold a hearing on the People's Republic of China's (PRC) compliance with
the commitments made in connection with its accession to the
World Trade Organization (WTO).
The hearing will be held on Friday, October 2, 2009, at Room 1, 1724 F St.,
NW. The deadline to submit requests to testify, and copies of written testimony,
is 12:00 NOON on September 18. The deadline to submit written comments is 12:00
NOON on September 22.
The OUSTR will use this hearing, testimony and comments to assist it in
preparing its annual report to the Congress on the PRC's WTO compliance.
Terrence McCartin is the Deputy Assistant U.S. Trade Representative for China
Enforcement. Claire Reade is the Chief Counsel for China Trade Enforcement.
The OUSTR seeks comments on, among other things, intellectual property rights
(IPR), and IPR enforcement.
See, Federal Register, August 31, 2009, Vol. 74, No. 167, at Pages 44895-44896.
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More Trade News |
9/9.
Catherine
Ashton, the EU Trade Commissioner, gave a
speech on September 8 at the China International Fair for Investment and Trade in Xiamin,
People's Republic of China (PRC). She stated that "Protection of intellectual property,
especially patents, is also crucial if more companies are to bring their ideas and their
technology to China. Without the promise of protection for their innovations, European
companies are sometimes hesitant to invest here. It is therefore very encouraging that
the Chinese leadership sees the necessity of a well-enforced IPR system as a stepping-stone
to future economic development." She also gave a
speech on September 9 at the University of International Business and
Economics in Beijing, PRC. She said that the "High Level Economic and Trade
Dialogue" between the EU and PRC "gives both sides a means of working towards
more effective protection of intellectual property rights, especially patents --
as these are crucial for innovation, investment and the transfer of technology.
We are also working on strengthening our customs cooperation, which is vital in
the fight against IPR infringement, as well as streamlining administrative and
legal procedures in IPR protection. These issues, rather than tariffs, are now
the big issues of EU/China trade relations."
9/9. The European Commission (EC) announced an investigation into "misleading
advertising and unfair practices on websites selling consumer electronic goods". See, EC
release.
9/8. The Department of Commerce's (DOC) Bureau of
Industry and Security (BIS) published a
notice in the
Federal Register that announces, describes, recites, sets the effective date of,
and requests comments upon, rules changes regarding export license requirements
for non-exports (in country transfers) and the BIS's Entity List. See, Federal
Register, September 8, 2009, Vol. 74, No. 172, at Pages 45990-45993. These rules
changes are effective September 8, 2009. There is no deadline to submit written
comments on these rules changes.
9/8. The European Commission (EC) reappointed Damien Neven as the
Chief Competition Economist for a term of three years. See, EC
release.
9/3. President Obama announced his intent to nominate Michael Punke to be the U.S.
Ambassador and Permanent Representative to the World Trade
Organization (WTO) in Geneva, Switzerland. See, White House news office
release.
Peter Allgeier, whose responsibilities including this position, has left
the Office of the U.S. Trade Representative (OUSTR). The OUSTR also stated in its
release that "David Shark, Deputy Chief of the United States Mission
to the WTO, is serving as interim Charge d'Affaires at the U.S. Mission pending
Punke's confirmation, and Matt Rohde, Assistant United States Trade
Representative for the WTO and Multilateral Affairs, will serve as interim
senior official for the Doha round of negotiations". (Emphasis added.)
8/24. The European Commission (EC) released a
document [338 pages in PDF] titled "EU Competition Law: Rules Applicable
to Merger Control".
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About Tech Law
Journal |
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Copyright 1998-2009 David Carney. All rights reserved.
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In This
Issue |
This issue contains the following items:
• 9th Circuit Considers Commerce Clause
• Export Regulators Seek Comments on Rules
• BIS Loosens Controls on Export of ICT Items to Cuba
• OUSTR to Hold Hearing on PRC Compliance with WTO Trade Obligations
• More Trade News
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Washington Tech
Calendar
New items are highlighted in
red. |
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Wednesday, September 9 |
The House will meet at 10:00 AM for legislative business. It will
consider numerous non-technology items under suspension of the rules. See, Rep. Hoyer's
schedule for week of September 7.
The Senate will meet at 10:00 AM for morning
business. It will then resume consideration of S 1023
[LOC |
WW] ,
the "Travel Promotion Act of 2009".
10:00 AM. The Senate Judiciary
Committee (SJC) will hold a hearing titled "Strengthening Forensic Science
in the United States". It will cover, among other topics, computer forensics.
See, notice.
Location: Room 226, Dirksen Building.
POSTPONED. 10:30 AM.
The House Judiciary
Committee's (HJC) Subcommittee on the Constitution, Civil Rights, and Civil Liberties
will hold a hearing on
HR 3162 (107th Congress), the "USA PATRIOT Act", as amended. Title
II of this bill pertains to searches and seizures, electronic surveillance and access to data.
See, notice.
Location: Room 2141, Rayburn Building.
12:15 - 1:30 PM. The Federal Communications
Commission's (FCC) Office of Strategic Planning and Policy (OSPP) will host an event
titled "Opportunity to Help Shape FCC Data Practices and Follow-up to Access to
Government's 2009 Survey on FCC Transparency and Openness". The speakers will include
Paul de Sa (Chief of the OSPP), Chris Bjornson, Michelle Cohen, Peter Corea, and Howard
Weiss. The Federal Communications Bar Association (FCBA)
states that this is an FCBA event. Location: Covington &
Burling, 12th floor, 1201 Pennsylvania Ave., NW.
1:30 PM. The Federal Communications Commission (FCC) will host an
event titled "staff workshop for the development of a National Broadband
Plan". The speakers will be John Horrigan (Consumer Research Director, Omnibus
Broadband Initiative), Marc Berejka (Department of Commerce), Robert Cannon (FCC, Senior
Counsel for Internet Law), Michael Wroblewski (Deputy Director of the FTC's Office of
Policy Planning), Michael Nelson (Georgetown University), Sascha Meinrath (New
America Foundation), Joel Kelsey (Consumers Union), Ari Schwartz (Center for
Democracy and Technology, (Debra Berlyn (Consumer Policy Solutions), Adam
Thierer (Progress & Freedom Foundation), Alan Simpson (Common Sense Media),
Burke Culligan (Yahoo), Michael McKeehan (Verizon), Timothy Sparapani (Facebook).
Location: FCC, Commission Meeting Room, 445 12th St., NW.
2:30 PM. The Senate Judiciary
Committee (SJC) will hold a hearing on the nominations of Joseph Greenaway (to
be a Judge of the U.S. Court of Appeals for the 3rd
Circuit), Roberto Lange (USDC for the District of South Dakota), Irene Berger (USDC
for for the Southern District of West Virginia), and Charlene Honeywell (USDC for the
Middle District of Florida). See,
notice.
Location: Room 226, Dirksen Building.
6:00 PM. The Federal Communications
Bar Association (FCBA) will host an event titled "CLE Seminar on Lobbying
Rules for a New Administration". Most FCBA events are not open to the public.
Location: Wiley Rein, 1776 K St., NW.
Day one of a two day event hosted by the National Defense Industrial
Association (NDIA) titled "2009 Homeland Security Symposium and Exhibition".
See, event web
site. Location: Arlington Crystal Gateway Marriott, 1700 Jefferson Davis Hwy.,
Arlington, VA.
Deadline to submit comments to the Department of the Treasury's
Financial Crimes Enforcement Network (FinCEN) in response
to its notice of proposed rulemaking regarding expanding the definition of money services
businesses. See, notice in
the Federal Register, May 12, 2009, Vol. 74, No. 90, at Pages 22129-22142.
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Thursday, September 10 |
The House will meet at 10:00 AM for legislative business. It will
consider numerous non-technology items under suspension of the rules. See, Rep. Hoyer's
schedule for week of September 7.
8:15 AM - 12:45 PM. The U.S. China
Economic and Security Review Commission will hold a hearing titled "China's
Media and Information Controls -- The Impact in China and the United States". See,
notice in the
Federal Register, August 18, 2009, Vol. 74, No. 158, at Pages 41784-41785.
Location: Room 562, Dirksen Building, Capitol Hill.
9:00 AM - 4:00 PM. The Federal Communications
Commission's (FCC) Consumer Advisory
Committee (CAC) will meet. See, August 24, 2009,
public
notice, and notice in
the Federal Register, August 31, 2009, Vol. 74, No. 167, at Pages 44843-44844. The Federal
Register notice states that the CAC "is expected to consider an outline of its
recommendations to be submitted in connection with the National Broadband Plan Notice
of Inquiry (NOI), Docket 09-51". Location: FCC, Commission Meeting Room, Room TW-C305,
445 12th St., SW.
9:30 - 11:30 AM. The
Free State Foundation
(FSF) will host an event discuss and release a book titled "New
Directions in Communications Policy". It is a collection of
essays by Gerald Brock, Diane Disney, Richard Epstein, Randolph May, John
Mayo, Bruce Owen, Glen Robinson, James Speta, Dennis Weisman, Steven
Wildman, and Christopher Yoo. RSVP to Susan Reichbart at sreichbart at
freestatefoundation dot org. Location: Murrow Room, National Press Club, 13th
floor, 529 14th St., NW.
10:00 AM. The House Judiciary Committee
(HJC) will hold a hearing titled "Competition and Commerce in Digital Books".
See, notice.
Location: Room 2141, Rayburn Building.
10:00 AM. The House
Commerce Committee's (HCC) Subcommittee on Communications, Technology, and the Internet
will hold a hearing titled "Oversight of the American Recovery and Reinvestment Act:
Broadband, Part 2". The witnesses will be Larry Strickling (NTIA) and
Jonathan Adelstein (RUS). See,
notice. Location: Room 2123 Rayburn Building.
10:00 AM. The Senate Judiciary
Committee (SJC) will hold an executive business meeting. The agenda again includes
consideration of HR 985
[LOC
| WW]
and S 448 [LOC
| WW],
both titled the "Free Flow of Information Act of 2009". These bills
have been on many previous agendas. The agenda also includes consideration of
the nominations of Beverly Martin (to be a Judge of the U.S. Court of
Appeals for the 11th Circuit), Jeffrey Viken (USDC/South Dakota), Neil
MacBride (U.S. Attorney for the Eastern District of Virginia), Peter
Neronha (U.S. Attorney for the District of Rhode Island), Daniel Bogden (U.S.
Attorney for the District of Nevada), and Dennis Burke (U.S. Attorney for the
District of Arizona). See,
notice.
Location: Room 226, Dirksen Building.
1:00 PM. The House
Foreign Affairs Committee's (HFAC) Subcommittee on Asia, the Pacific and the Global
Environment will hold a hearing titled "U.S.-China Relations: Maximizing
the Effectiveness of the Strategic and Economic Dialogue". See,
notice. Location: Room 2172, Rayburn Building.
Day one of a two day event hosted by the National Defense Industrial
Association (NDIA) titled "2009 Homeland Security Symposium and Exhibition".
At 9:00 to 10:30 AM there will be a panel discussion titled "Securing Cyberspace
and America’s Cyber Assets: Threats, Strategies and Opportunities". The speakers
will include DHS Assistant Secretary for Cybersecurity and Communications Gregory Schaffer.
See, event web site.
Location: Arlington Crystal Gateway Marriott, 1700 Jefferson Davis Hwy., Arlington, VA.
Deadline to submit reply comments to the Federal Communications
Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) regarding
additional spectrum for the Medical Device Radiocommunication Service. The FCC
adopted this NPRM on March 17, 2009, and released the text on March 20, 2009. It is
FCC 09-20 in ET Docket No. 09-36 and RM-11404. See,
notice in the Federal
Register, May 13, 2009, Vol. 74, No. 91, at Pages 22491-22498.
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Saturday, September 12 |
Deadline to submit comments to the
Department of Homeland Security's (DHS)
Homeland Security Advisory Council (HSAC) regarding the findings and
recommendations of the HSAC's Homeland Security Advisory System Task Force.
The HSAC will meet by teleconference on this subject on September 15, 2009.
See, notice in
the Federal Register, September 8, 2009, Vol. 74, No. 172, at Pages
46215-46216.
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Monday, September 14 |
Deadline to submit nominations to the Department of
Commerce's (DOC) National Oceanic and Atmospheric Administration (NOAA) for
membership on the NOAA Science Advisory Board (SAB). See,
notice in the
Federal Register, July 16, 2009, Vol. 74, No. 135, at Page 34559.
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Tuesday, September 15 |
RESCHEDULED FOR DECEMBER 1 and 2. The
Federal Trade Commission (FTC) will hold the first in
a series of workshops titled "Can News Media Survive the Internet Age? Competition,
Consumer Protection, and First Amendment Perspectives". See, original FTC
release, and
notice of postponement.
12:30 - 2:00 PM. The
Federal Communications Bar Association's (FCBA) Engineering and Technical
Committee will host a brown bag lunch to discuss "upcoming activities and your
suggestions for the new 2009-2010 year". For more information, contact Karen
Higa at 202-974-5764 or email to khiga at chadbourne dot com. Location:
Chadbourne & Parke,1200 New Hampshire Ave., NW.
1:00 PM. The
House Judiciary Committee's (HJC) Subcommittee on Commercial and Administrative Law
will hold a hearing titled "Mandatory Binding Arbitration -- Is it Fair and
Voluntary?". See,
notice. See also,
HR 1020 [LOC
| WW],
and S 931 [LOC
| WW], both titled
the "Arbitration Fairness Act of 2009". Many information and communications
technology companies, including wireless communications service providers, include
arbitration clauses in consumer contracts. Location: Room 2141, Rayburn Building.
5:00 - 6:00 PM. The
Department of Homeland Security's (DHS) Homeland Security Advisory
Council (HSAC) will meet by teleconference to review the findings and
recommendations of the HSAC's Homeland Security Advisory System Task Force.
See, notice in
the Federal Register, September 8, 2009, Vol. 74, No. 172, at Pages 46215-46216.
Deadline to submit comments to the
Office of the U.S. Trade Representative (OUSTR)
regarding the free trade agreement (FTA) between the U.S. and Korea. Representatives of
the two nations signed this FTA back on June 30, 2007. Democrats in the Congress have
declined to approve it. This FTA includes technology related provisions. See,
text of the FTA, and sections regarding
telecommunications [17 pages in PDF],
electronic commerce [4 pages in PDF], and
intellectual property rights [35 pages in PDF]. See,
notice in the Federal Register,
July 27, 2009, Vol. 74, No. 142, at Page 37084.
12:00 NOON. Deadline to submit comments to the
Office of the U.S. Trade Representative (OUSTR)
regarding the free trade agreement (FTA) between the U.S. and Columbia.
Representatives of the two nations signed this FTA back on November 22, 2006,
and amendments on June 28, 2007. Democrats in the Congress have
declined to approve it. This FTA includes technology related provisions. See,
notice in the
Federal Register, July 29, 2009, Vol. 74, No. 144, at Pages 37759-37760.
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Wednesday, September 16 |
10:00 AM. The
Senate Judiciary Committee (SJC) will hold an oversight hearing on the
Federal Bureau of Investigation (FBI). FBI
Director Robert Mueller will testify. Location: Room 226, Dirksen Building.
5:30 - 6:30 PM. The DC
Bar Association will host an event titled "E-Discovery, Sanctions, and the
Bench: Have the Courts Gone Too Far?". The speaker will be John Facciola (U.S.
District Court). The price to attend ranges from $15 to $35. Most DC Bar events are not
open to the public. See,
notice.
For more information, call 202-626-3463. Location: DC Bar Conference Center, 1101 K
St., NW.
6:00 - 8:00 PM. The Federal Communications Bar
Association's (FCBA) Young Lawyers Committee will host an event titled "Happy
Hour". For more information, contact Micah Caldwell at mcaldwell at fh-law dot com,
Stefanie Desai at szdesai at mintz dot com, or Darren Abernethy at djabernethy at mintz
dot com. Location: Elephant & Castle, 900 19th St., NW. |
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