2/3. The Macmillan publishing company released a statement on Sunday, January 31, 2010, by its CEO, John Sargent, regarding ongoing negotiations with Amazon regarding the sale, and pricing, of digital books. Amazon stopped selling Macmillan books, both physical and digital.

Amazon stated in a release on January 20, 2010, regarding its Kindle Digital Text Platform, that "The author or publisher-supplied list price must be between $2.99 and $9.99". Macmillan insists on a different pricing system.

Sargent stated that "This past Thursday I met with Amazon in Seattle. I gave them our proposal for new terms of sale for e books under the agency model which will become effective in early March. In addition, I told them they could stay with their old terms of sale, but that this would involve extensive and deep windowing of titles. By the time I arrived back in New York late yesterday afternoon they informed me that they were taking all our books off the Kindle site, and off Amazon."

Windowing means delaying the release of cheaper editions of books during a window of time in which a higher priced edition are sold -- for example, by withholding paperbacks for a time while only hardbacks are sold.

Sargent continued that "In the ink-on-paper world we sell books to retailers far and wide on a business model that provides a level playing field, and allows all retailers the possibility of selling books profitably. Looking to the future and to a growing digital business, we need to establish the same sort of business model, one that encourages new devices and new stores. One that encourages healthy competition. One that is stable and rational. It also needs to insure that intellectual property can be widely available digitally at a price that is both fair to the consumer and allows those who create it and publish it to be fairly compensated."

He elaborated that "Under the agency model, we will sell the digital editions of our books to consumers through our retailers. Our retailers will act as our agents and will take a 30% commission (the standard split today for many digtal media businesses). The price will be set for each book individually. Our plan is to price the digital edition of most adult trade books in a price range from $14.99 to $5.99. At first release, concurrent with a hardcover, most titles will be priced between $14.99 and $12.99. E books will almost always appear day on date with the physical edition. Pricing will be dynamic over time." (Parentheses in original.)

The Authors Guild (AG) published a comment on Tuesday, February 2, 2010, in support of Macmillan.

It stated that "Amazon quickly and pre-emptively escalated matters by removing the buy buttons from all Macmillan titles (with some exceptions for scholarly and educational books), in all editions, including all physical book editions. Thousands of authors and titles are affected; hardest and most unfairly hit are authors with new books published by Macmillan that are in their prime sales period." (Parentheses in original.)

"Yet if Macmillan prevails", the AG wrote, "the eventual payoff for its authors (and all authors, if a successful result ripples through the industry) is likely to be significant and lasting." (Parentheses in original.)

The AG stated that "Amazon has a well-deserved reputation for playing hardball. When it doesn't get its way with publishers, Amazon tends to start removing ``buy buttons´´ from the publisher's titles. It's a harsh tactic, by which Amazon uses its dominance of online bookselling to punish publishers who fail to fall in line with Amazon's business plans."

It continued that "Generally, the ending is not a good one for the publisher or its authors -- Amazon's hold on the industry, controlling an estimated 75% of online trade book print sales in the U.S., is too strong for a publisher to withstand. The publisher caves, and yet more industry revenues are diverted to Amazon. This isn't good for those who care about books."

The AG added that "This is a direct attempt to use its clout in the physical book industry to enforce its business model in the e-book industry."

Although, the AG stopped short of alleging anticompetitive conduct in violation of Sherman or Clayton Acts. See for example, 15 U.S.C. § 1, 15 U.S.C. § 2, and 15 U.S.C. § 14.

TLJ searched the Amazon web site on February 3, 2010, for several physical books published by Macmillan. They were listed, but there was no mechanism for purchasing the books from Amazon. Amazon's "Add to Shopping Cart" and "Add to Wish List" buttons, and Kindle links, were absent. However, an Amazon user could still purchase second hand copies from third party sellers who use the Amazon web site.

Macmillan's decision to stand firm against Amazon on pricing came almost immediately after Apple's January 27, 2010, announcement of the introduction of its iPad, a device that can, among many other things, download and display e-books. Apple named its e-book service "iBooks".

The Apple web site states that "The iBooks app is a great new way to read and buy books. Download the free app from the App Store and buy everything from classics to best sellers from the built-in iBookstore. Once you’ve bought a book, it’s displayed on your Bookshelf. Just tap it to start reading. The high-resolution, LED-backlit screen displays everything in sharp, rich color, so it’s easy to read, even in low light." (Footnote omitted.)

Apple's iPad/iBooks is now competing with Amazon's Kindle for both e-book consumers and book publishers.

Apple's approach includes taking a percentage of the book transaction price, and allowing the publishers greater discretion is setting prices. Amazon's approach includes selling books with a ceiling price, while making profits out of sales of the Kindle devices.

Online sales of physical books have already affected consumers' book buying habits, and adversely impacted brick and mortar retail book sales businesses. E-books sales and readers are furthering these trends, and changing how consumers read books. Storefront book retailers are being disintermediated. However, the extent to which these new technologies and business models might disintermediate publishers is not yet certain.

There is also uncertainty regarding the long run valuation of books under a transformation to digital format. That is, physical books, once sold, are in the possession of the purchaser, durable, and subject to the first sale doctrine. See, 17 U.S.C. § 109. Used book sales can undermine new book sales, and result in low prices for both new and used books a short time after original release.

Unlike some other intellectual property assets, many physical books have short depreciation schedules. In contrast, if a book is sold only in digital format subject to digital rights management technology that precludes copying or transferring the book, there may be no secondary market to drive down prices charged by the publisher or rights holder. One can sell one's Kindle, along with the entire book collection stored on it, but one cannot sell and transfer the individual e-books.

Other intellectual property based industries have maintained the value of their assets in part by periodically changing the formats in which their products are sold, thereby rendering older copies obsolete. Consider for example, the music industry's migration from plastic records, to tapes, to CDs. Old hardback books, in contrast, remain just as accessible today as decades ago.

Prices of books, as a function of time, may turn out to be much different in a digital only world. How this might affect the incentive structures for creating new works, promote the progress of science and useful arts, and affect the public's reading of books, is not clear.

1/28. The University of California's (USC) Annenberg School of Communication and Journalism released a paper [20 pages in PDF] titled "Public Policy and Funding the News". The authors are the USC's Geoffrey Cowan and David Westphal.

This paper states that the internet "is both an existential threat to the survival of mainstream media, particularly the printed sheet, and a powerful reason to be hopeful about the future of news and information".

It argues that the government should increase funding of public broadcasting.

It also states that "The government has always supported the commercial news business", through such things as "copyright protections, postal subsidies and taxes", as well as providing spectrum, funding research and development of satellite and internet technology, and imposing a moratorium on certain state taxation of internet access. It advocates continued support.

In particular, this paper argues that "The government should find ways to make sure that reporters, news organizations and other content creators are paid for work that might otherwise be used without permission or compensation (which is one reason why the founders provided for copyright laws in the Constitution)." (Parentheses in original.)

It also notes that "France also is weighing a proposal to tax Internet portals like Google to even the playing field between Internet aggregators and news content providers."

1/28. The Senate confirmed Ben Bernanke to be Chairman of the Board of Governors of the Federal Reserve System for a term of four years by a vote of 70-30 on January 28, 2010. Senators' votes did not correlate with their party affiliation. See, Roll Call No. 16. See also, Bernanke's speech at his February 3, 2010 swearing in ceremony.

1/28. The Senate Judiciary Committee (SJC) approved the nominations of James Wynn and Albert Diaz to be Judges of the U.S. Court of Appeals for the 4th Circuit. See, Congressional Record, January 28, 2010, at Page S340.

1/28. The Senate Judiciary Committee (SJC) approved the nomination of Richard Hartunian to be the U.S. Attorney for the Northern District of California for the term of four years. See, Congressional Record, January 28, 2010, at Page S340.

1/28. The Senate Judiciary Committee (SJC) approved the nomination of Andre Birotte to be the U.S. Attorney for the Central District of California for the term of four years. See, Congressional Record, January 28, 2010, at Page S340.

1/28. The Senate Judiciary Committee (SJC) approved the nomination of Ronald Machen to be the U.S. Attorney for the District of Columbia for the term of four years. See, Congressional Record, January 28, 2010, at Page S340.

1/28. The Senate Judiciary Committee (SJC) held an executive business meeting at which it held over consideration of the nominations of Chris Schroeder (to be Assistant Attorney General in charge of the Office of Legal Policy), Dawn Johnsen (AAG/Office of Legal Counsel), and Mary Smith (AAG/Tax Division). It also held over consideration of the nominations of Edward Chen (to be a Judge of the U.S. District Court for the Northern District of California) and Louis Butler (USDC/WDWisc). All five of these nominations are on the agenda for the SJC executive business meeting on February 4, 2010.

1/25. The Motion Picture Association of America (MPAA) issued a release regarding the departure of Dan Glickman. It states that Bob Pisano, the P/COO of the MPAA, "will become interim CEO, while the search continues for Glickman's replacement".

1/22. Neil Smit joined Comcast Cable Communications as President. He was previously CEO of Charter Communications. Before that he was President of Time Warner's America Online Access Business. See, Comcast release.

2/3. The House began consideration of HR 4061 [LOC | WW], the "Cybersecurity Enhancement Act of 2009".

2/2. Google announced in a release that it is has entered into a "partnership" with Stanford University that will enable it to scan Stanford University's books as part of its Google Books service.

2/1. The Public Citizen Litigation Group (PCLG), and others, filed an objection [PDF] with the U.S. District Court (NDCal) to the proposed class action settlement in Lane v. Facebook. This case involves allegations that social networking web site Facebook published users' private information without notice or consent. The PCLG's Greg Beck stated in a release that "Facebook and the lawyers in this case will benefit from this proposed settlement, but it is virtually worthless to Facebook users who are part of this class action". This case is Sean Lane, et al. v. Facebook, Inc., et al., U.S. District Court for the Northern District of California, San Jose Division, D.C. No. 5:08-cv-03845-RS.

1/28. The Government Accountability Office (GAO) released a report [31 pages in PDF] titled "Electronic Health Records: DOD and VA Interoperability Efforts Are Ongoing; Program Office Needs to Implement Recommended Improvements".

1/27. The Information Technology and Innovation Foundation (ITIF) released a paper [58 pages in PDF] titled "Intelligent Transportation Systems". The author is the ITIF's Stephen Ezell. This paper states that "Information technology (IT) has transformed many industries, from education to health care to government, and is now in the early stages of transforming transportation systems. While many think improving a country's transportation system solely means building new roads or repairing aging infrastructures, the future of transportation lies not only in concrete and steel, but also increasingly in using IT. IT enables elements within the transportation system -- vehicles, roads, traffic lights, message signs, etc. -- to become intelligent by embedding them with microchips and sensors and empowering them to communicate with each other through wireless technologies. In the leading nations in the world, ITS bring significant improvement in transportation system performance, including reduced congestion and increased safety and traveler convenience. Unfortunately, the United States lags the global leaders, particularly Japan, Singapore, and South Korea in ITS deployment."

1/27. Google released a short and vaguely worded document titled "Privacy Principles" that "help guide decisions we make at every level of our company". It states nothing about data retention, or data access, for government agencies.

1/26. The Information Technology and Innovation Foundation (ITIF) released a paper [6 pages in PDF] titled "Create Jobs by Expanding the R&D Tax Credit". The author is the ITIF's Rob Atkinson. This paper states that the U.S. ranks 17th among OECD in R&D tax generosity. This paper argues that "One of the best ways to spur job creation is to expand the federal R&D tax credit".

1/25. The International Intellectual Property Alliance (IIPA) filed a comment [PDF] with the Office of the U.S. Trade Representative (OUSTR) regarding the proposed Trans-Pacific Partnership Free Trade Agreement with Singapore, Chile, New Zealand, Brunei Darussalam, Australia, Peru and Vietnam. The IIPA urges "Enhancement of copyright standards and enforcement". It also urges extension of free trade agreement provisions that preclude customs duties on "electronically delivered digital products" and assure the nondiscriminatory treatment of digital products. The IIPA also urges the elimination of market access barriers.

1/22. The Computer and Communications Industry Association (CCIA) released a paper titled "Internet Freedom: How National Policies Have Failed To Protect It And What Can Be Done Now To Build It". It addresses threats within the U.S., and internationally, to internet freedom. It states that the U.S. government "must elevate this issue to the top of our diplomatic and trade agendas". Domestically, the paper advocates network neutrality regulation, restricting the use of deep packet inspection, "balanced IP law that does not restrict Internet access as a means of enforcing intellectual property rights", and blocking "policy changes that would deputize Internet Access Providers to proactively investigate and enforce laws". See also, CCIA release.

The House will meet at 10:00 AM for legislative business. It will continue its consideration of HR 4061 [LOC | WW], the "Cybersecurity Enhancement Act of 2009". See, Rep. Hoyer's schedule for the week of February 1.

The Senate will meet at 12:00 NOON. It will resume consideration of the nomination of Patricia Smith to be Solicitor of the Department of Labor.

8:30 AM - 12:00 NOON. 10:30 AM - 5:00 PM. Day two of a two day meeting of the Social Security Administration's (SSA) Future Systems Technology Advisory Panel. See, notice in the Federal Register, January 11, 2010, Vol. 75, No. 6, at Page 1446. Location: Latham Hotel Georgetown, 3000 M St., NW.

8:40 AM - 5:00 PM. The Department of Commerce's (DOC) National Telecommunications and Information Administration's (NTIA) Online Safety and Technology Working Group (OSTWG) will meet. The agenda includes presentations and discussions on "online safety and technology, with an emphasis on issues relevant to the work of the subcommittees on data retention and child pornography reporting". See, agenda [PDF] and notice in the Federal Register, January 11, 2010, Vol. 75, No. 6, at Pages 1338-1339. Location: DOC, Hoover Building, Room 4830, 1401 Constitution Ave., NW.

9:00 - 12:00 NOON. The House Intelligence Committee will hold a partially closed hearing titled "Annual Threats Assessment". The witness will be Dennis Blair, Director of National Intelligence. From 11:00 AM - 12:00 NOON the hearing will be closed to the public. Location: Rooms HVC-210 (for open portion of hearing) and HVC-304 (closed portion), Capitol Building.

9:30 AM. The House Commerce Committee's (HCC) Subcommittee on Communications, Technology and the Internet will hold a hearing titled "An Examination Of The Proposed Combination Of Comcast And NBC Universal". See, notice. Location: Room 2123, Rayburn Building.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. It may consider several Department of Justice (DOJ) nominees, including Chris Schroeder (to be Assistant Attorney General in charge of the Office of Legal Policy), Dawn Johnsen (AAG/Office of Legal Counsel), and Mary Smith (AAG/Tax Division). It may also consider several District Court nominees: Edward Chen (to be a Judge of the U.S. District Court for the Northern District of California), Louis Butler (USDC/WDWisc), Nancy Freudenthal (USDC/DWyo), Denzil Marshall (USDC/EDArk), Benita Pearson (USDC/NDOhio), and Timothy Black (USDC/SDOhio). 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, State and Related Agencies will hold a second hearing titled "Science, Technology, Engineering and Math Education". Location: Room H-309, Capitol Building.

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Commercial and Administrative Law will hold a hearing titled "State Taxation -- The Role of Congress in Defining Nexus". The witnesses will include Walter Helerstein (University of Georgia law school) and Bruce Johnson (Utah State Tax Commission). The HJC will webcast this event. See, notice. Location: Room 2141, Rayburn Building.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing on President Obama's FY 2011 budget proposal. The witness will be Peter Orszag, Director of the President's Office of Management and Budget (OMB). See, notice. Location: Room 215, Dirksen Building.

10:30 AM. The Senate Banking Committee (SBC) will meet in executive session to consider, among other things, the nominations of Kevin Wolf and David Mills (to be Assistant Secretaries of Commerce for Export Enforcement) and Suresh Kumar (to be Assistant Secretary of Commerce and Director General of the U.S. and Foreign Commercial Service). Location: Room 538, Dirksen Building.

2:30 PM. The Senate Judiciary Committee's (SJC) Subcommittee on Antitrust, Competition Policy and Consumer Rights will hold a hearing titled "The Comcast/NBC Universal Merger: What Does the Future Hold for Competition and Consumers?". The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

2:30 PM. The Senate Commerce Committee (SCC) will hold a hearing titled "Financial Services and Products: The Role of the Federal Trade Commission in Protecting Consumers". See, notice. Location: Room 253, Russell Building.

5:00 PM. Deadline to submit television and nonbroadcast applications to the National Telecommunications and Information Administration (NTIA) for planning and construction grants for public telecommunications facilities under the Public Telecommunications Facilities Program (PFFP) for FY 2010. This deadline does not apply to applications new FM stations filed during the February 2010 Federal Communications Commission (FCC) FM Window. That deadline is 5:00 PM on February 26, 2010. See, notice in the Federal Register, December 2, 2009, Vol. 74, No. 230, at Pages 63120-63122.

Deadline to submit petitions to participate in the Copyright Royalty Judges' proceeding to adjust the rates for the cable statutory license, and a $150 filing fee. This license is codified at 17 U.S.C. § 111. See, notice in the Federal Register, January 5, 2010, Vol. 75, No. 2, at Pages 455-456.

The House will meet at 9:00 AM in pro forma session only. See, Rep. Hoyer's schedule for the week of February 1.

10:00 AM. The U.S. Court of Appeals (FedCir) will hear oral argument in TruePosition v. Andrew Corp., App. Ct. No. 2009-1389, an appeal from the U.S. District Court (DDel) in a patent infringement case involving wireless location monitoring technology. Location: Courtroom 402, 717 Madison Place, NW.

10:00 AM - 12:00 PM. The Heritage Foundation will host a panel discussion titled "The Future of the U.S.-Taiwan Economic Relationship". The speakers will be Rep. Lincoln Diaz-Balart (R-FL), Chao-shiuan Liu (Senior Advisor to the President and former Premier of Taiwan), Rupert Hammond-Chambers (President, U.S.-Taiwan Business Council), Merritt Cooke (GC3 Strategy, Inc.), Vincent Wang (University of Richmond), Derek Scissors (Heritage), and Walter Lohman (Heritage). See, notice. Location: Heritage, 214 Massachusetts Ave., NE.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its Public Notice (PN) [3 pages in PDF] requesting comments on the Petition for Reconsideration or Clarification [16 pages in PDF] of the FCC's Declaratory Ruling (DR) regarding cell towers citing requests and 47 U.S.C. § 332(c)(7)(B). The DR is FCC 09-99 in WT Docket No. 08-165. The PN is DA 09-2629 in WT Docket No. 08-165. See also, stories titled "FCC Adopts Declaratory Ruling Regarding State and Local Tower Siting Procedures" in TLJ Daily E-Mail Alert No. 2,017, November 23, 2009, and "State and Local Government Groups Seek Revision of FCC Tower Citing Application Shot Clock" in TLJ Daily E-Mail Alert No. 2,029, December 29, 2009. See also, notice in the Federal Register, January 11, 2010, Vol. 75, No. 6, at Pages 1382-1383.

7:45 AM. The Atlantic will host an event titled "State of the Union for Technology". The speakers will include Robert Atkinson (Information Technology and Innovation Foundation), Leslie Harris (Center for Democracy and Technology) and Nancy Scola (TechPresident). See, notice. Location: Columbus Club, Union Station, 50 Massachusetts, Ave., NW.

12:15 - 1:45 PM. The New America Foundation (NAF) will host a program titled "Making Media Work Collaboration, Community Building and the Future of Journalism". The speakers will be Tracy Van Slyke and Jessica Clark, co-authors of the book [Amazon] titled "Beyond the Echo Chamber: How a Networked Progressive Media Can Reshape American Politics". See, notice and registration page. Location: NAF, Suite 400, 1899 L St., NW.

9:30 AM. The Senate Homeland Security and Government Affairs Committee (SHSGAC) will hold a hearing on President Obama's FY 2011 budget proposal for the Department of Homeland Security (DHS). The witness will be Janet Napolitano. See, notice. Location: Room 342, Dirksen Building.

9:30 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Transportation and Related Equipment Technical Advisory Committee will hold a partially closed meeting. See, notice in the Federal Register: January 26, 2010, Vol. 75, No. 16, at Page 4047. The open portion of this event will be teleconferenced. Location: Room 6087B, DOC, Hoover Building, 14th St., NW.

10:00 AM. The Senate Judiciary Committee will hold a hearing titled "Combating Cyber Crime and Identity Theft in the Digital Age". The witnesses will be Lanny Breuer (Assistant Attorney General in charge of the Department of Justice's Criminal Division), Ari Schwartz (Center for Democracy and Technology), and Vincent Weafer ( Symantec). The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The House Judiciary Committee (HJC) will hold a hearing titled "Sharing and Analyzing Information to Prevent Terrorism". The HJC will webcast this event. See, notice. Location: Room 2141, Rayburn Building.

11:00 AM - 12:00 NOON. The Federal Communications Commission's (FCC) Advisory Committee for the 2012 World Radiocommunication Conference will meet. See, notice in the Federal Register, January 14, 2010, Vol. 75, No. 9, at Page 2141. Location: FCC, Commission Meeting Room, 445 12th St., SW.

4:00 PM. The Senate Judiciary Committee (SJC) will hold a hearing on pending nominations. The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.

10:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Security's (BIS) Materials Technical Advisory Committee will hold a partially closed meeting. See, notice in the Federal Register: January 26, 2010, Vol. 75, No. 16, at Page 4047. The open portion of this event will be teleconferenced. Location: Room 6087B, DOC, Hoover Building, 14th St., NW.

Deadline to submit initial nominations for membership on the National Institute of Standards and Technology's (NIST) Smart Grid Advisory Committee. See, notice in the Federal Register, January 12, 2010, Vol. 75, No. 7, at Pages 1595-1596.

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