News Briefs from May 1-15, 2000

5/15. Rep. Billy Tauzin (R-LA) introduced HR 4445 IH, the Reciprocal Compensation Adjustment Act of 2000, a bill to exempt calls to ISPs from reciprocal compensation requirements.
5/15. Commerce Sec. Wm. Daley gave another speech in Washington DC on PNTR status for China. He stated: "I am working non-stop for the President and Vice President on the China vote, which will be sometime next week. No question it will come down to the wire. We don't have the 218 votes yet to win it, and the opposition doesn't have them to defeat it."
5/15. AOL agreed to pay a $3.5 Million fine to the SEC for alleged improper accounting practices in 1995 and 1996. See, SEC release and litigation release. See also, TLJ story.
5/15. A Luntz poll of 800 adults conducted May 4 and 5 surveyed public support for PNTR status for China:
"Should America support conditional normal trade relations with China, which we now have with almost every other country?"
   Support 58%
   Oppose 34%
"Would free trade with China be in the best interest of the U.S.?"
   Yes, in U.S. best interest 66%
   Against U.S. best interest 31%
The House will take up the issue next week.
5/12. Clinton assistant Gene Sperling gave a speech in Dallas on China trade. He stated: "Right now only 12 percent of Chinese have phones; less than 1 percent have Internet access. But passage of PNTR coupled with Chinese accession to the WTO will help change this situation dramatically by allowing our world- beating telecomm firms to compete in the Chinese market. This will not only create jobs in the USA; it will also make the tools of communication cheaper, better, more reliable, and more widely available to the Chinese people."
5/12. The FTC published its final privacy rule for consumer financial information, as required by Section 504(a) of the Gramm- Leach- Bliley Act, Pub. L. 106-102. See, 16 C.F.R. Part 313 [330 KB PDF].
5/12. The DOJ filed comments with the FCC on SBC's § 271 application to provide long distance service in Texas. The DOJ commented that SBC has adequately addressed one of the four competitive concerns raised by the DOJ, but deferred its evaluation of the other three concerns until more performance data becomes available later this month. See also, DOJ release. Priscilla Ardoin, SBC's SVP for Federal Regulatory Affairs, issued a statement in which she asserted that the "local market in Texas is open to competition."
5/12. The merger of U S West and Qwest was approved by the Wyoming Public Service Commission. See, USW release.
5/12. Jackie Ruff was named Associate Division Chief of the FCC's International Bureau, Telecommunications Division.
5/11. An anonymous plaintiff filed a complaint in U.S. District Court, C.D.Cal., against Yahoo! alleging breach of privacy for divulging personal information in response to a subpoena in another civil case. See also, EPIC press release, and statement by AquaCool.
5/11. U.S. District Court Judge Williams overturned the decision of Henrico County, Virginia, requiring AT&T to provide open access to competing ISPS to its cable facilities. The ruling is likely to be appealed to the U.S.C.A. for the 4th Circuit. See, AT&T release and OpenNet release.
5/11. The House Commerce Committee's Subcommittee on Finance held a hearing titled "Competition in the New Electronic Market: Part II," which focused on ECNs.
5/10. The FCC adopted a proposal to consider permitting the operation of ultra- wideband (UWB) technology on an unlicensed basis. UWB devices operate on spectrum already occupied by existing radio services. UWB devices can be used for the transmission of very high data rates over short distances, including computer networking in a building or home. The FCC is seeking comments. See, FCC release and NPRM [MS Word].
5/10. The House passed HR 3709, the Internet Non-Discrimination Act, by a vote of 352 to 75. This bill extends the current moratorium on new, special, and discriminatory Internet taxes, enacted in October 1998, for five years. The bill also eliminates state taxes on Internet access regardless of when the tax was created (the "grandfather clause").
5/10. The House Judiciary Committee delayed its mark up of HR 4227, Rep. Lamar Smith's H1B visa bill. See, TLJ story.
5/10. House Republicans unveiled their new e-contract, an agenda for high tech. See, TLJ story. See also, address by Speaker Denny Hastert (R-IL).
5/10. The House Science Committee's Subcommittee on Technology held a hearing on the "Love Bug" computer virus.
5/10. Microsoft filed its proposed remedies in DOJ v. Microsoft. See, Microsoft's Proposed Final Judgment, Memorandum In Support Of Its Proposed Final Judgment, Summary Response to Plaintiffs' Proposed Final Judgment, and Position As To Future Proceedings On The Issue Of Remedy. See also, DOJ reaction.
5/9. Joel Klein, AAG for the Antitrust Division, gave a speech at UC Berkeley in which he compared his attempt to break up Microsoft to the AT&T divestiture.
5/9. The House Judiciary Committee began markup of HR 4227, Rep. Lamar Smith's (R-TX) H1B visa bill. It approved a major amendment offered by Rep. Smith. See, TLJ story.
5/9. The House Judiciary Committee approved HR 4034, the Patent and Trademark Office Reauthorization Act, by unanimous consent. The bill, sponsored by Rep. Howard Coble (R-NC), prevents the diversion of fees collected by the U.S. Patent and Trademark Office.
5/9. U.S. District Court Judge Ronald Whyte dismissed Sun Microsystems' claim of copyright infringement related to Microsoft's distribution of software products with an implementation of the Java virtual machine. Other claims remain, and no trial date has been set. See, MSFT release.
5/9. FCC Chairman Wm. Kennard gave a speech at the NCTA convention in New Orleans. He stated that "it is instructive to look at the Internet model and think about how consumers get to choose what and when and where their content is delivered. The openness of the Internet architecture has leant legitimacy to voices that insist that they can and should control what and when and how their content is delivered."
5/9. NCTA CEO Robert Sachs spoke at the NCTA convention. He stated that "Cable high speed Internet service faces intense competition too. Telephone companies, electric utilities, fixed wireless and satellite providers all are rolling out high speed Internet services. Broadband competition is booming. All this competition is producing tangible consumer benefits."
5/9. The Senate Banking Committee held a hearing on the China and World Trade Organization agreement and financial services. See, opening statements of Sen. Phil Gramm (R-TX) and Sen. Jim Bunning (R-KY). See also, prepared testimony of
Lawrence Summers (Treasury Sec.), Charlene Barshefsky (USTR), Marc Lackritz (SIA), Gary Benanav (NY Life Ins.), and Robert Morrow (Bank of America).
5/9. Former Presidents George Bush, Jimmy Carter and Gerald Ford wrote a letter regarding China trade. They stated that "the agreement to bring China into the WTO represents a turning point in our relationship with that profoundly important country and in its future development. We urge the Congress to embrace this agreement and to bring its benefits home by voting for PNTR." See also, transcript of remarks by former Presidents, Secretaries of State, Al Gore and Mad. Allbright regarding PNTR status for China.
5/9. The BSA presented Sen. Orrin Hatch (R-UT) with its Cyber Champion Award.
5/9. The Montana Public Service Commission issued a Final Order [PDF] approving the merger of Qwest and U S West. See, USW release.
5/8. The International Telecommunications Union's (ITU)World Radiocommunication Conference convened in Istanbul, Turkey. It will continue through June 2.
5/8. Atty. Gen. Janet Reno made a statement about fraud on the Internet. "I am so pleased to announce the opening of the Internet Fraud Complaint Center, or the IFCC. The Center will provide law enforcement at all levels - federal, state and local - with something they have been asking for a long time - a "one-stop-shopping" approach to identifying Internet fraud schemes and referring them to the proper law enforcement agency. See also, IFCC FBI web site.
5/8. Eight former Secretaries of Commerce sent a letter to Members of Congress in support of PNTR status for China.
5/5. A WTO dispute settlement panel agreed with the U.S. that Canada has not met its obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights ("TRIPS Agreement") by not providing a term of protection of at least 20 years from filing to all patents in existence in Canada since January 1, 1996. Canada provided 17 years of protection. See, USTR release.
5/5. Commerce Sec. Wm. Daley gave a speech to the Asia Society in Houston TX in which covered PNTR status for China. "A vote against this would leave China with less access to information. It would leave it with less contact with the democratic world. Ironically, it would do it as the cyberworld has brought great change to our society, and could do the same for China," said Daley. "They know if our high tech industry goes in and wires China, and everybody is connected to the Internet, that change will come more rapidly in ways they cannot control."
5/4. Commerce Sec. Wm. Daley wrote a letter to Rep. Tom Bliley (R-VA) and other Members of Congress opposing pending bills that would limit the FCC's antitrust merger review authority. See also, TLJ summary of bills pertaining to antitrust merger reviews.
5/4. The SEC filed a complaint in U.S. District Court, C.D.Cal., against Mark Malatesta, individually and d/b/a Financial Solutions Web. The SEC alleges that he used his web site to fraudulently tout stocks, in violation of §§ 17(a) and (b) of the 1933 Act, and § 10(b) of the 1934 Act. The complaint seeks permanent injunctive relief and civil monetary penalties. See, SEC release.
5/4. The House Judiciary Committee amended and approved HR 3709, the Internet Nondiscrimination Act, by a vote of 29-8. The bill as amended would extend the existing moratorium on new and discriminatory Internet taxes for five years. See, TLJ story.
5/4. The House Commerce Committee's Subcommittee on Finance held a hearing on a rule proposed by the Financial Accounting Standards Board (FASB) that would eliminate the pooling method of accounting for business combinations. See, statements of Rep. Bob Goodlatte (R-VA), Rep. Cal Dooley (D-CA), Edmund Jenkins, (FASB) (opposing use of pooling method), and Dennis Powell (Cisco) (supporting use of pooling method).
5/4. The House Judiciary Committee's Subcommittee on Commercial and Administrative Law held a legislative hearing on HR 3489, the Wireless Telecommunications Sourcing and Privacy Act.
5/4. AOL and Time Warner announced top positions in the merged entity. Paul Cappuccio, currently SVP and General Counsel of AOL, will become EVP and General Counsel of AOL Time Warner George Vradenburg, currently AOL's SVP of Global and Strategic Policy, will become EVP for Global and Strategic Policy, with responsibility for public policy matters and shaping the development of the interactive medium.  Timothy Boggs will continue as SVP of Global Public Policy, and will report to Vradenburg. See, AOL release.
5/4. The FTC announced that it will hold a public workshop on business-to-business (B2B) electronic marketplaces on June 29. See, release.
5/4. The NTIA announced the award of a $100,450 contract to the Virginia Tech in Blacksburg, VA, to conduct a survey of 100 Community Technology Centers (CTCs). See, release.
5/4. Bill Clinton gave a speech at the City Academy in St. Paul, Minnesota. He stated, "When the Vice President and I started and we got the so-called e-rate passed in Congress ..." He then stated in an online question session that "95 percent of our schools are hooked up now to the Internet ... Frankly, the big issue now is making sure that the teachers are well-trained ..."
5/3. The House passed S 2323, The Worker Economic Opportunity Act, a bill that would would prevent stock options from being included in overtime pay calculations, by a vote of 421 to 0. The companion bill passed the Senate on April 12 by a vote of 95 to 0. S 2323 amends § 207(e) of the FLSA to give stock option plans equal status of other benefits such as holiday bonuses, thrift sharing plans, savings plans, retirement, life, accident or health or similar benefits plans, excluding them from the regular rate of pay. The bill makes it easier for employees, particularly in high-tech companies, to participate in stock purchase plans.
5/3. The FCC's Cable Services Bureau ruled that Time Warner Cable violated Section 614(b)(9) of the Communications Act and 47 CFR 76.58 [PDF] when it ceased carriage of ABC stations on its cable systems in several markets during a "sweeps" rating period. See, Memorandum Opinion and Order [MS Word] (DA 00-987). See also, FCC release and Kennard statement.
5/3. The FCC adopted a Memorandum Opinion and Order [PDF] approving the merger of CBS and Viacom. See, FCC release and Viacom release.
5/3. The U.S. District Court, E.D.Va. overturned a Henrico County, Virginia, decision that mandated open access for AT&T's cable facilities. The OpenNet Coalition stated in a release that GTE and probably Henrico County would appeal to the U.S.C.A, 4th Circuit, and the trial court would be overturned. The U.S. District Court in Oregon upheld a similar Portland ordinance. That case is on appeal to the U.S.C.A., 9th Circuit. See, TLJ summary of AT&T v. Portland.
5/3. Bill Clinton gave a speech in Davenport, Iowa. "We have school buildings so old they can't be hooked up, they cannot be wired to the Internet." Clinton proposed that "one of the things we ought to do with our prosperity is to help build or massively overhaul 6,000 schools, and we ought to give the states enough money to repair another 500 schools every single year for the next five years."
5/3. Bill Clinton also spoke in Owensboro, Kentucky. He stated that "The Vice President fought very hard to get something called the e-rate ..."
5/3. The House Ways and Means Committee held a hearing on accession of China to the WTO. Rep. Bill Archer (R-TX), Chairman of the Committee, stated that "winning the China vote will not be easy, especially since the House minority leader is against it and the House minority whip is devoting enormous amounts of time and energy working toward its defeat." See statements of Rep. Bill Archer (R-TX) and Wm. Daley and DOC release. See also, witness list with links to testimony.
5/3. The NAM announced that it will bring dozens of business leaders to Capitol Hill on May 16-18, just before the vote on PNTR status for China to illustrate the importance of passage of the bill to the future prosperity of their companies and workers. See, release.
5/3. The House Commerce Committee's Subcommittee on Telecommunications held a hearing on HR 4202, the Internet Services Promotion Act and HR 1291, the Internet Access Charge Prohibition Act. See, statement by Rep. Tom Bliley (R-VA) (HCC Chairman) and statement by Rep. Fred Upton (R-MI) (sponsor of HR 1291).
5/3. The Private Sector Council gave awards to Rep. Bill Archer (R-TX) and Michael Armstrong (AT&T CEO), at its 2000 Leadership Awards Dinner in Washington DC. See, PSC release and AT&T release.
5/3. Bell Atlantic accused AT&T of "bringing its road show of deception to Virginia ..." See, BA release.
5/2. Voter.com filed a Request for An Advisory Opinion [PDF] with the Federal Election Commission which raises several issues regarding application of the Federal Election Campaign Act to activity on the Internet.
5/2. The SIIA announced the results of its annual Board of Directors election. See, release.
5/2. The USTR released its annual Special 301 Report on intellectual property protection. Ukraine was identified for "potential Priority Foreign Country designation on August 1, 2000" as a result of its CD piracy. Paraguay and China were designated for "Section 306 monitoring." 16 states were placed on the "Priority Watch List": Argentina, the Dominican Republic, Egypt, the European Union, Greece, Guatemala, India, Israel, Italy, Korea, Malaysia, Peru, Poland, Russia, Turkey, and Ukraine.
5/2. Rep. J.C. Watts (R-OK), Chairman of the House Republican Conference, sent a "Dear Colleague" letter to all House Members urging them to support PNTR status for China, which he called "the number one priority to ensure continued growth in the New Economy."
5/2. Commerce Secretary William Daley gave a speech to the ITAA. He said that "one big reason to give China permanent normal trade status is technology. Next year, the second largest market in the world for personal computers will be China. In telecom, China is linking so many people through wireless communication, it is like they add a new Baby Bell every year. The Internet is growing faster in China than anywhere in Asia."
5/2. Sandy Berger gave a speech at Columbia Univ. on China. He said: "Granting China PNTR won't create a perfect China and it certainly won't put an end to all of our concerns. But it will increase the probability of a future of greater openness and freedom for China. It will contribute to a more peaceful and secure Asia."
5/2. The ITAA and the USPTO announced a plan to help the USPTO keep pace with the changes in software and related technologies. The plan includes roundtables and regular meetings between ITAA members and USPTO executives.
5/2. Excite@Home appointed Chris Kelly as its Chief Privacy Officer. He will be responsible for privacy policy and practices and working with legislative bodies and industry leaders. See, release.
5/2. Time Warner filed its opposition [PDF] to Disney/ABC's emergency petition regarding TW's decision to stop carrying ABC programming.
5/2. The Supreme Court denied certiorari Lunney v. Prodigy (Case No. 99-1430). Plaintiff sought to impose liability on an interactive computer service.
5/1. Time Warner stopped carrying ABC programming in several cities. Disney/ABC filed a petition [PDF] with the FCC requesting emergency relief that would require TW to continue to carry ABC programming. FCC Cable Services Bureau Chief Deborah Lathen released a statement in which she said, "FCC staff has met with the parties and has requested that Time Warner file its response to the Disney/ABC petition with the FCC within 24 hours, no later than the close of business on May 2. ... We continue to encourage the parties to resolve this issue privately and expeditiously."
5/1. The 2000 Democratic National Convention Committee announced that AT&T will be the primary technology partner for the convention, to be held August 14-17 in Los Angeles. AT&T will provide communications, web hosting and Internet services. See, AT&T release.
5/1. The CFTC announced that it has commenced ten administrative proceedings against the operators of web sites that fraudulently promoted commodity trading systems and advisory services. See, CFTC release.
5/1. The SEC brought and settled civil administrative fraud charges against Robert Garganese, a convicted felon, and his company, Genesis Trading, for enticing day traders to subscribe to his stock picking service through false and misleading advertising. Garganese ran the web site from prison, where he was serving time for money laundering and telemarketing fraud. See, SEC release.
5/1. FTC brought and settled three actions against day traders. See, consent agreements with CompuTrade, Ellery Coleman, and Michael Chrisman.
5/1. The U.S. government decided to discontinue its intentional degradation of the Global Positioning System (GPS) for civilian users through the technique of Selective Availability (SA). This will provide civilians more accurate information. See, DOS release and DOC release.

 Go to News Briefs from April 16-30, 2000.