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Tech Law Journal |
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| News, records, and analysis of legislation, litigation, and regulation affecting the computer, internet, communications and information technology sectors | |
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10/31. The Marietta Cobb Smyrna (Georgia) Organized Crime Intelligence Unit executed two search warrants, and made arrests, at two Smyrna area businesses engaged in the illegal counterfeiting of CDs. See, RIAA release. 10/31. Bertelsmann and Napster announced the formation of a "strategic alliance." The Napster music file copying system will be developed into a "secure membership-based service" which provides "payments to rightsholders, including recording artists, songwriters, recording companies and music publishers." Bertelsmann will loan money to Napster for this purpose, obtain equity in Napster, and upon implementation, dismiss its legal claims against Napster. See, Napster release and Bertelsmann release. Hillary Rosen, CEO of the RIAA, had this to say: "Today's announcement ... makes clear that Napster has come to the same conclusion we have been urging from the start: that it is better to work with the creative community than against it. This is a welcome development. We welcome anyone's decision to become a legitimate player in the online music industry, building a business based on licensed uses of copyrighted works." However, Rosen added that this "does not bring an end to the court case. There are multiple plaintiffs in addition to BMG; and BMG itself has said that it won't withdraw its complaint against Napster until they actually implement a legitimate business model." 10/31. WTO Director General Mike Moore gave a speech on e-commerce and GATS in Geneva. He stated that "We are not in the business of regulating the Internet and we never shall be. The huge potential of electronic commerce may be yet stifled by over-regulation and interference by governments. But if that happens, it will be despite, not because of, the WTO." He also discussed the WTO agreement on trade in services, or GATS. He stated that "it contains the disciplines which guarantee the right to do international business electronically. As far as international trade is concerned, electronic commerce essentially means two things. First, it is an important channel for retailing and wholesaling goods and services. Rights to provide retail and wholesale distribution are covered by the GATS. Second, and probably more important, electronic commerce is the delivery of services direct to the consumer in the form of digitised information. The GATS covers the delivery of services by any means, including electronic." Moore spoke at the ITC Briefing Session on E-Commerce. See also, agenda. 10/31. The FTC and other government agencies held another in a series of press conferences to announce their latest actions against persons and entities engaging in fraud on the Internet. See, FTC release. 10/31. The FCC issued a press release about its bi-annual report on the deployment of high-speed Internet services in the U.S. It states that "High-speed lines connecting homes and small businesses to the Internet increased by 57% during the first half of 2000". The study measured the change from the end of 1999 to June 30, 2000. DSL service grew 157% to "almost one million homes"; cable grew 59% to 2.2 million; and, optical fiber, satellite, fixed wireless, and other technologies increased 18%. The study is based on data collected in FCC Form 477, See, release (MS Word). 10/31. The FCC's Office of Engineering and Technology and the Center for Global Security Research at Lawrence Livermore National Laboratory of the University of California held a day long conference on network, computer, and e-commerce security. David Farber, the FCC's Chief Technologist, presided. The topics addressed included network security threats, including backhoes, denial of service attacks, and buggy code; host security, including firewalls; PKI and end-to-end security for e-commerce; cybercrime legislation; government research and funding; and government networks. 10/31. Clinton spoke to reporters about his veto of the Treasury Department appropriations bill, which also includes the repeal of the 3% tax on telephones. The tax was instituted as a temporary luxury tax in 1898 to fund the Spanish American War. Clinton apparently seeks a replay of the 1995 government shutdown in order to create a political issue in the final week before the general election. Clinton then left Washington DC for a series of campaign events. See, transcript. Tom Wheeler, CEO of the CTIA, released a statement in which he said that "the repeal of the tax on talking has broad bipartisan support in both the House and the Senate. Therefore, we see this as only a temporary setback." USTA CEO Gary Lytle also released a statement: "We applaud Congress for passing legislation to repeal the tax, but we are disappointed that the President passed up an opportunity to lower telecommunications taxes, which in addition to being regressive, are harmful to the growth of technology." 10/31. MP3.com, an Internet music company beleaguered by claims of violation of copyright laws, announced that it has appointed retired California Court of Appeal Justice Howard Wiener to its board of directors. See, release. 10/31. Microsoft published an essay on Internet voting. It argued that "Internet voting could significantly reduce the cost of counting, tabulating and processing votes" and "stimulate public interest in government". However, it also pointed out that "Some critics of Internet voting are concerned that it will increase the participation of affluent voters who have convenient access to the Web from their homes or offices, further widening the voter turnout gap between rich and poor." 10/30. Milberg Weiss is counsel in yet another securities class action suit against a tech company. See, complaint against Clarus filed in U.S.D.C. (NDGa). Clarus provides business to business (B2B) e-commerce solutions, including B2B procurement software. 10/30. RegLand.com filed a complaint in state court in Texas against ICANN alleging defamation, business disparagement and tortious interference. Regland sells pre-registrations of domain names for top level domains which have not yet been approved by ICANN. On Sept. 29 ICANN released a statement which included the following: "The Names Council feels it is premature for companies to offer pre-registration services for domain names in speculative new TLDs. To date, no new TLDs have been selected and there is no guarantee that any particular organization will be authorized to take registrations for any particular TLD. The registration of names in new TLDs will be done on a fair basis, and the practice of pre-registration should not be encouraged." See, Regland release. 10/30. The U.S. District Court (CDCa) entered a default judgment against defendants in SEC v. Yes Entertainment, a civil securities fraud enforcement action. The SEC plead that Yes Entertainment, a Nevada limited liability company that purported to operate Internet web site based "channels" of streaming media, violated for violation of § 17(a) of the Securities Act of 1933 and § 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court ordered disgorgement of ill gotten gains and civil fines. See, release. 10/30. Both Microsoft and the DOJ filed pleadings with the U.S. Court of Appeals (DCCir) regarding the filing of amicus curiae briefs in the antitrust appeal. Numerous individuals and entities have sought leave to file amicus briefs, including: Assoc. for Competitive Technology (ACT). Computing Technology Industry Assoc. (CompTIA). American Online (AOL). Computer & Communications Industry Assoc. (CCIA). Lee Hollaar. Carl Lundgren. Laura Peterson. ProComp. Software & Information Industry Assoc. (SIIA). The Assoc. for Objective Law (TAFOL). Center for the Moral Defense of Capitalism (CMDC). The DOJ submitted a short response stating that all should be allowed to file amicus briefs. Microsoft argued in its response that the joint motion of ACT and CompTIA to file a joint brief should be granted. These groups are supportive of Microsoft. It argued that the rest should only be allowed to submit one joint brief. It also stated that CCIA and SIIA are groups dominated by Microsoft competitors, while AOL is a Microsoft competitor whose employees already testified at trial, and ProComp is "a trade association founded in 1998 by Netscape and other Microsoft competitors to provide lobbying and public relations support for the governments assault on Microsoft." On Oct. 26, the Court released a short order [PDF] regarding responses to the many motions for leave to file amicus curiae briefs. 10/30. Late on Monday Oct. 30 Bill Clinton vetoed the Treasury Dept. appropriations bill. This was an apparent retaliation for the Congress not acceding to his demands that certain provisions be added to the Labor and Health and Human Services appropriations bill. Several key tax and appropriations and bills remain in dispute, 30 days into the new fiscal year. Congress remains in session, just one week before election day. Many tech related provisions are attached to these bills. In addition, funding for most of the agencies involved in tech related matters (including the USPTO, NTIA, FCC, FTC, and SEC) are included in the Commerce, Justice and State departments appropriations bill, which the Congress has passed, but Clinton has not signed. Earlier in the day Clinton held a press conference to criticize Republicans. See, transcript. 10/30. The Copyright Office of the Library of Congress published in the Federal Register final regulations governing the adjustment of the royalty rates for the cable statutory license. The Copyright Act, at 17 U.S.C. 111, creates a statutory license for cable systems that retransmit to their subscribers over the air broadcast signals. Royalty fees for this license are calculated as percentages of a cable system's gross receipts received from subscribers for receipt of broadcast signals. See, Federal Register, Oct. 30, 2000, Vol. 65, No. 210, pages 64622-64623. 10/30. The Copyright Office published in the Federal Register its rule [PDF] that designates the classes of copyrighted works that the Librarian of Congress has determined shall be subject to exemption from the prohibition against circumvention of a technological measure that effectively controls access to a work protected under Title 17 of the U.S. Code. The BSA released a statement commending the Copyright Office. 10/29. Microsoft issued a statement in which it said that it "is working with law enforcement to resolve a situation -- and to apprehend the person(s) responsible -- in which a hacker gained access to certain parts of the company's internal corporate network." 10/27. The FCC's Wireless Telecommunications Bureau approved by MOO the merger of TeleCorp and Tritel. The applications involved licenses for PCS and LMDS spectrum. The Bureau denied a petition to deny filed by Nextel. (WT Docket No. 00-130) See, FCC release. 10/27. The Department of Justice Antitrust Division concluded that Verizon "has not provided sufficient evidence in support of its pending application to provide long distance services in Massachusetts" and "has not adequately addressed competitive concerns regarding current and future access to lines for digital subscriber line services (DSL)--lines used for high speed internet access." See, DOJ release. Verizon has filed a Section 271 petition with the FCC requesting authority to provide long distance service in Massachusetts. 10/27. The U.S. Court of Appeals (DCCir) issued its opinion in Qwest v. FCC, a case pertaining to requirements that RBOCs maintain detailed accounting records of property used in their local telephone operations, including the property's description, location, and cost. 10/27. The Senate passed HR 4942, the Commerce State and Justice (CJS) Departments appropriations bill by a vote of 49 to 42. The House passed the bill on Oct. 26. Bill Clinton said he would veto the bill. See, TLJ story titled Status of Tech Legislation. The bill contains funding for the SEC, FTC, FCC, DOJ, NTIA, and USPTO, among other agencies. It also contains the Hart Scott Rodino reform bill, a low power FM bill, and a social security number privacy bill. The House and Senate met on both Saturday, Oct. 28, and Sunday, Oct. 29, to pass continuing resolutions (CRs) to fund the government while the Congress and President negotiate over appropriations and tax bills. Clinton has said he will veto any CR that extends funding for more than one day, thus forcing Members of Congress to interrupt their re-election campaigns every day to fly back to Washington DC to vote. 10/27. The FCC adopted and released an Order [MS Word] that modifies its April 7 Protective Order [MS Word] in the AOL Time Warner antitrust merger review proceeding regarding the access of in house counsel to confidential documents. There have been several leaks of confidential documents in this proceeding. AOL and Time Warner filed their application (part 1) [PDF] with the FCC on Feb. 11. See also, FCC "transactions" AOL-TW web section. 10/27. The USPTO announced that now all patent applications may be filed through its electronic patent application filing system (EFS). It had previously been operating a pilot electronic filing system. For more information, see the USPTO's Patent Electronic Business Center. See also, release. 10/27. The FCC released a Request for Comments on SBC's Section 271 application to provide long distance service in Kansas and Oklahoma. See also, Protective Order, which pertains to the leaks of confidential information by the FCC. (CC DOCKET NO. 00-217) Deadlines: Public comments are due by Nov. 15. Reply comments are due by Dec. 11. 10/27. The NTIA announced that it will hold a public meeting on Nov. 2 on obtaining more spectrum for use by 3G wireless communications. See, release. Third Generation wireless technology currently being developed will bring broadband Internet access to hand-held devices. The reassignment of spectrum is likely to be a contentious topic. 10/27. The FTC completed a two day public symposium to examine warranty protection for software and other high-tech goods and services marketed to consumers. See, FTC release. 10/26. The SEC announced that the U.S. District Court (DHa) issued a permanent injunction on Oct. 23 against Robert Moore, individually and dba The Kingdom of Enenkio. The Kingdom, also know as Wake Island, offered "war bonds" for sale on the Internet in connection with its war for independence against the United States. The SEC asserted that the Kingdom violated the antifraud and securities registration provisions of the federal securities laws. Judge Susan Mollway reserved the issue of disgorgement. See, SEC release. 10/26. The House and Senate remain in session. Several major tax and appropriations bills, which may serve as vehicles for passage of technology related provisions, are still under consideration. 10/26. The House passed HR 2614, a large tax package that includes, among other things, the Foreign Sales Corporation bill. The current FSC tax regime, and the replacement language contained in HR 2614, benefit high tech companies that sell goods and services abroad. The WTO recently held that the current FSC tax regime constitutes an illegal export subsidy. Passage of the replacement language would, at least temporarily, avert a potential trade war with the EU. There is little debate in the U.S. over whether the FSC bill should be passed. However, the underlying tax bill to which it is attached is being delayed by pre-election posturing and publicity seeking. HR 2614 passed on a largely partisan vote of 237 to 174. 203 Republicans and 33 Democrats voted in favor. See, Roll Call No. 560. The White House press office released a statement that said that Bill Clinton will veto the bill. "As the President made clear today, the majority in Congress put forward a partisan legislative tax proposal ... If H.R. 2614 reaches his desk, he will be forced to veto it." Earlier in the day, Bill Clinton sent a letter to House Speaker Denny Hastert (R-IL) and Senate Majority Leader Trent Lott (R-MS) about the tax bill. He stated that "While we have already reached substantial agreement in important areas, such as replacement of the Foreign Sales Corporations regime, your legislation has substantial flaws in several key areas." The bill also contains a variety of tax cuts, raises the minimum wage by $1, and restores Medicare cuts for health care providers. The Senate has debated, but not yet voted on, this bill. 10/26. The House passed HR 4942, an appropriations bill which contains funding for the Commerce, Justice, and State (CJS) departments. This bill includes USPTO funding. At issue is how much of the fees collected by the USPTO will be diverted to pay for other government programs. USPTO Director Todd Dickinson stated in a speech on Friday, Oct. 20, that the USPTO needs all of the fees that it collects to conduct its operations. Opponents of the diversion call it a "tax on innovation." The bill also contains a provision limiting the FCC's authority to grant low power FM licenses. The measure is supported by members of the House Commerce Committee, the National Association of Broadcasters, and National Public Radio. The bill also contains a Social Security Number privacy protection provision; however, some privacy groups oppose the measure for being "riddled with loopholes and exceptions." See, opposition letter. The bill passed on a partisan vote of 206 to 198. See, Roll Call No. 562. Bill Clinton wrote a letter to House Speaker Denny Hastert (R-IL) and Senate Majority Leader Trent Lott (R-MS) stating that he will veto the bill. The Senate has not yet passed the bill. 10/26. Neither the House nor the Senate have passed the Labor, Health and Human Services, and Education appropriations bill. This bill may include a provision mandating the use of porn filtering technology by schools and libraries that receive e-rate subsidies. Opponents, including the ALA and ACLU, continue to lobby against the measure. Supporters are confident that it will remain in the bill when passed. 10/26. The U.S. Court of Appeals (DCCir) released an Notice [PDF] in the Microsoft antitrust appeal in which it stated: "Upon consideration of the parties' responses to the Court's October 18, 2000, Notice, the Court has decided not to proceed with the review session described in that Notice." On Oct. 18 the Court issued a notice requesting the parties to respond to its proposal that Michael Hites, CTO of the Illinois Institute of Technology, conduct a review session on the "fundamentals of automation". On Oct. 25 the DOJ filed a Response in which it sought to limit Hites' role. Microsoft filed a Response in which it pointed out that Hite had ties to Microsoft adversary Sun Microsystems. 10/26. The FTC released its long awaited report on its June 29-30 workshop on electronic B2Bs and antitrust law enforcement. Susan DeSanti, the FTC's lead person on B2Bs, and David Balto, also of the FTC, will participate in a panel on this topic at 8:30 AM on Friday, Oct. 27. See, agenda. The report is published in the FTC web site as 7 separate PDF documents. See: Table of Contents Introduction and Executive Summary Overview of B2B Electronic Marketplaces Efficiencies of B2B Electronic Marketplaces Antitrust Analysis of B2Bs Appendix A: Workshop Panelists Appendix B: Written Statements See also, FTC release. 10/26. FCC Chairman Wm. Kennard released a statement regarding AT&T's restructuring plan. He said: " Over 60 million American consumers rely on AT&T's long distance phone service. The Commission has the authority and the responsibility to ensure that this restructuring does not adversely impact the quality of consumer service, competition in the telecommunications markets, and the integrity of the telecommunications network. I will continue to closely question the company about today's announcement and will insist that consumers' interests are protected." On Oct. 25, AT&T announced that it would form four separate publicly traded companies: AT&T Broadband (cable TV and broadband services company), AT&T Wireless, AT&T Business, and AT&T Consumer. See, AT&T release. Meanwhile, MCI WorldCom CEO Bernie Ebbers indicated that his company may restructure also. He stated that "we have intensified our efforts to become a more business-focused communications company. Our planning efforts to restructure our company into a data and Internet focused, high-growth business and a voice-based, high cash flow business are substantially complete. We look forward to communicating the details of this exciting new strategy on November 1, 2000." See, release. 10/26. SBC Communications Inc. SBC filed §271 petitions with the FCC to provide long distance service in Kansas and Oklahoma. Both the Kansas Corporation Commission (KCC) and the Oklahoma Corporation Commission (OCC) support the requests. The FCC has already approved SBC's request to provide long distance service in Texas. See, SBC release and USTA release. 10/26. The FTC held the first of two sessions of a two day public symposium to examine warranty protection for software and other high-tech goods and services marketed to consumers. The symposium continues on Friday, Oct. 27 at 8:30 AM at the FTC, 600 Pennsylvania Avenue, NW, Washington DC. See, FTC release. 10/26. Bill Clinton announced his intent to nominate Isaac Hunt as a SEC Commissioner. He has been a SEC Commissioner since Feb. 1996. See, WH release. 10/25. The Association for Competitive Technology (ACT) announced that Vince Sampson is its new VP of Public Affairs. He replaces Allison Rosen. 10/25. Richard Walker, Director of the Division of Enforcement at the SEC gave a speech in New York City on Internet securities fraud enforcement proceedings. 10/25. Stanley Lipides entered a plea of guilty to mail fraud in U.S. District Court (DNJ). The one count information charged him with fraud for selling over the Internet AIDS testing devices that he represented were FDA approved, when in fact, the devices were neither FDA approved, nor accurate. Sentencing is scheduled for 10:30 AM on Feb. 13, 2001. See, release. 10/25. The FTC released an administrative complaint against WebTV which alleges that the advertising practices of WebTV constitute unfair or deceptive acts or practices in violation of §5(a) of the Federal Trade Commission Act. The FTC and WebTV also simultaneously settled the matter. The complaint alleges that WebTV advertised that "The WebTV set-top box is equivalent to a personal computer with respect to its Internet-related performance" whereas, in fact, "The WebTV set-top box is not equivalent to a personal computer with respect to its Internet-related performance. For example, WebTV set-top box users are unable to download, store, or run software available on the Internet, display certain Web pages or play certain Web files, or open email attachments in certain common formats". The FTC released a agreement settling the matter. WebTV agreed not to advertise that its product "and a computer are equivalent in their ability to provide access to content available on the Internet" or that its product "provides access to all of the Internet's content". See also, FTC release. WebTV is a subsidiary of Microsoft. 10/25. Senate Finance Committee Chairman Sen. William Roth (R-DE) announced late on Wed. Oct. 24 that both House and Senate negotiators had agreed upon tax and health care package. It brings the Congress and Clinton closer to agreement. Included in the deal is the FSC Repeal and Extraterritorial Income Exclusion Act of 2000. The House passed HR 4986 as a stand alone bill on Sept. 13. The Senate Finance Committee amended and reported it on Sept. 20. The Foreign Sales Corporation tax regime benefits high tech companies that sell their goods and services abroad. Following a complaint from the EU, the WTO held the existing FSC tax regime to be an illegal export subsidy. HR 4986 bill repeals and replaces the old FSC tax regime. It also averts, temporarily, the possibility of a trade war with the EU. However, the EU will complain that this bill is also an illegal export subsidy. Earlier in the day Bill Clinton sent a letter to Rep. Denny Hastert (R-IL) and Sen. Trent Lott (R-MS), in which he stated that "it is essential for our commitment to economic growth to include the replacement of the Foreign Sales Corporation regime, which has passed the House and Senate with broad bipartisan support... " 10/25. The DOJ and Microsoft both filed responses to to the Court of Appeals' proposal to hold a technology review session in the Microsoft antitrust appeal. On Oct. 18, the U.S. Court of Appeals (DCCir) issued a notice requesting the parties to respond to a proposal that Michael Hites, CTO of the Illinois Institute of Technology, conduct a review session on the "fundamentals of automation" for the Court on Nov. 14. The DOJ response seeks to greatly limit the scope of Hites' review session to only those matters which all parties agree. See, Plaintiff's Joint Response to the Court's Request for the Parties Views Regarding the Proposed Review Session. Microsoft asks that the parties be given access to his presentation ahead of time. It also asks for more information about Hites' previous contacts with Sun Microsystems. See, Response of Microsoft Corporation to the Courts October 18, 2000 Notice. 10/25. The FCC released its order [143 pages in MS Word] pertaining to compelling access by telecommunications and Internet service providers to apartment buildings. 10/25. The FCC named Mania Baghdadi Deputy Chief of the Policy & Rules Division of the Mass Media Bureau. She has been Assistant Chief (Law) of the Policy & Rules Division since May 1997. See, release [MS Word]. 10/24. The National Academies' National Research Council released a report titled "Building A Workforce for the Information Economy." It recommends that the government reduce the time it takes to obtain a "green card", which grants a foreign worker permanent residency in the United States, and make H1B visas more portable, so that highly skilled foreign workers would be able to more easily change jobs. See, release. 10/24. The House passed HR 2413, the Computer Security Enhancement Act of 2000, by a voice vote. The bill, which is sponsored by Rep. James Sensenbrenner (R-WI), Rep. Bart Gordon (B-TN), and Rep. Connie Morella (R-MD), seeks to promote security and privacy of sensitive information in federal government computer systems. The bill would require the NIST to provide assistance to other agencies, conduct studies, and establish voluntary interoperabilty guidelines. The bill also provides that NIST "shall develop electronic authentication infrastructure guidelines and standards for use by Federal agencies". 10/24. The House rejected HR 4271, the National Science Education Act, by a vote of 215 to 156. It was considered under a suspension of the rules, which meant that a 2/3 majority was required for passage. Republicans voted 171 to 15 in favor. Democrats voted 140 to 44 against. See, Roll Call 543. The bill, which is sponsored by Rep. Vernon Ehlers (R-MI), would establish and expand programs relating to science, mathematics, engineering, and technology education. 10/24. USTR Charlene Barshefsky designated two additional Jordanian Israeli Qualifying Industrial Zones (QIZs), from which goods can enter the U.S. duty free. The two new QIZs are Aqaba Industrial Estate and Jordan Cybercity. Both seek to attract producers of information technology, telecommunications equipment and software. See, USTR release. Background on QIZs: On Oct. 2, 1996, the Congress enacted the U.S. Israel Free Trade Area Implementation Act of 1985 (19 U.S.C. 2112 note), to authorize the President to proclaim the elimination of duties for articles produced in the West Bank, Gaza Strip, and Qualifying Industrial Zones. President Bill Clinton issued Proclamation No. 6955 on Nov. 13, 1996 (published in the Federal Register on Nov. 18, 1996 (61 Fed. Reg. 58761)) implementing this statute. See also, U.S. Customs notice re QIZs. 10/24. The U.S. and Jordan signed a Free Trade Agreement [19 pages in PDF], which covers, among other things, intellectual property rights and electronic commerce. See, USTR release. The FTA addresses patents, trademarks, copyright, and enforcement of IPR (at pages 4-8). Jordan agreed to ratify and implement the WIPO's Copyright Treaty and WIPO Performances and Phonograms Treaty within two years. The FTA also provides that "each Party shall seek to refrain from: (a) deviating from its existing practice of not imposing customs duties on electronic transmissions; (b) imposing unnecessary barriers on electronic transmissions, including digitized products; and (c) impeding the supply through electronic means of services ..." (at page 10). See also, USTR summary. Networking equipment maker Cisco, which has invested in Jordan, praised the agreement. See, release. The FTA also incorporates non trade related social provisions pertaining to labor and the environment. 10/24. The USPTO extended until Jan. 3, 2001 its deadline for proposals in response to its Request for Agreements regarding conducting business over the Internet, including its electronic filing systems. The USPTO seeks "partnerships with industry to stimulate electronic filing and correspondence in regard to patent and/or trademark application filing". This is a solicitation of proposals for non-monetary agreements only. 10/24. Lynne Beresford was named Deputy Assistant Commissioner for Trademark Policy at the USPTO. She was previously an attorney advisor in the Office of Legislation and International Affairs (OLIA) at the USPTO. See, release. 10/24. Asite.com, a new electronic B2B for the European construction industry, announced the signing of an agreement to form the consortium. See, Asite release. On Friday, Oct. 27, David Balto and Susan DeSanti, of the U.S. Federal Trade Commission, will participate in a panel discussion of B2Bs and antitrust law, at the U.S. Capitol, hosted by the George Mason Law Review. 10/23. The U.S. District Court (EDVa) entered a permanent injunction against defendants in SEC v. Tutornet.com and Euburn Forde. The SEC filed a complaint on Aug. 29 that alleged that defendants filed false and misleading 8-K forms with the SEC, to wit, that Tutornet.com was in the process of co-branding with AOL, which would result in a revenue sharing arrangement with AOL that would provide it with access to over 18 million AOL subscribers and the potential to generate annual revenues of $324 Million. The injunction enjoins defendants from further violations of securities laws, imposes fines, and orders that corrected forms be filed with the SEC. See, release. 10/23. Sen. Trent Lott (R-MS), the Senate Majority Leader, had this to say about HR 4986, the Foreign Sales Corporation (FSC) bill: "I have tried to move, several times, the Foreign Sales Corporation legislation reported overwhelmingly by the Finance Committee -- very important for our ability to do business in the trade area with Europe. We have not been able to clear it from an objection." He also stated that the HR 4986 "would also probably be done on Wednesday." The current FSC tax regime, and this bill, benefit high tech companies that export goods and services. The current law was held to be an illegal export subsidy by the WTO. HR 4986 is its "replacement legislation." If passed, it will also be challenged by the EU as an illegal export subsidy. 10/23. Gemstar-TV Guide International filed a complaint in U.S. District Court against Echostar alleging patent infringement in connection with selling satellite receivers containing an interactive program guide. 10/23. Labor Sec. Alexis Herman and the ITAA held a meeting to discuss high tech workforce issues. See, ITAA release. In January, the ITAA and other tech groups and Sec. Herman butted heads over an OSHA opinion letter that purported to extend OSHA workplace regulation to the homes of teleworkers. OSHA "withdrew" this, but not other, opinion letters. 10/23. FCC Commissioner Furchtgott-Roth released a statement in which he argued that Appeals Court opinion in In the Matter of GWI PCS No. 1 v. FCC "casts renewed doubt on the proper scope of the Communications Act on the one hand and the Bankruptcy code on the other" and called for the C-Block re-auction, currently set for Dec. 12 to "be delayed until the legal cloud surrounding these licenses dissipates." 10/23. USTR Charlene Barshefsky gave a speech to the Federal Communications Bar Association titled "The Networked World Initiative: Trade Policy Enters a New Era." See, TLJ story. 10/23. The ICANN issued an update on the status of applications for new TLDs. 10/23. The FTC held the first of two sessions of a two day workshop on identity theft. The workshop continues on Oct. 24. See, agenda. 10/23. The Cellular Telecommunications Industry Association changed its name to the Cellular Telecommunications and Internet Association. It will continue to use the acronym CTIA. 10/23. Calif. Gov. Gray Davis visited High Tech High, a charter school in San Diego Calif. which opened last month. See, Davis release. 10/21. On Oct. 19 the SEC sought a civil contempt order in U.S. District Court (DHa) against Robert Moore, who offered "war bonds" for sale on the Kingdom of Enenkio web site. See, SEC release. In his web site, e-mails, and Internet posting, Moore offered to sell bonds to fund Enenkio's (i.e., Wake Island's) war of independence against the United States. On Oct. 5, the SEC filed its complaint, and obtained a temporary restraining order. See, SEC release of Oct. 6. But, the king continued to offer war bonds for sale over the Internet. However, on Oct. 21 the Kingdom issued a release, which stated that the bond offering has been suspended. It explained that "Certain unresolved legal questions have arisen and the EnenKio government is cooperating with the United States Securities and Exchange Commission ..." (Case No. CV 0000651 SOM) |
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