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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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12/8. Long Yongtu, head of the Chinese delegation to WTO meeting on China's accession to the WTO, gave a speech that included comments on intellectual property rights in China. He stated that "China is still making unremitting efforts in its WTO accession negotiations ... China is revising and amending relevant laws, regulations and rules to meet the WTO requirements. ... China will finish the drafting the legislation on the protection of layout and design of integrated circuit upon accession. China is not only accelerating the revision of its laws, but also putting more emphasis on the enforcement of laws. The 12-page plan on the IPR protection worked out at this session will ensure the comprehensive implementation of IPR laws and regulations consistent with international practices in China, which will create important conditions for further improving China's investment environment and strengthening China's cooperation with all countries in the world in the field of hi- and new technology." See also, Dec. 8 speech by WTO Dep. Director General Paul-Henri Ravier. 12/8. The National Association of Manufacturers (NAM) wrote a letter to Secretary of Commerce Norman Mineta regarding the U.S. Singapore free trade agreement (FTA). NAM requests that the FTA include a provision for investor state dispute settlement. 12/8. The U.S. District Court (SDNY) granted Register.com, Inc.'s (RCOM) motion for a preliminary injunction against Verio, Inc. enjoining it from accessing RCOM's Whois database to target its customers with unsolicited commercial e-mail, direct mail and telemarketing activity. The order also enjoins Verio from engaging in conduct that misleads RCOM's customers into believing that RCOM is affiliated with Verio or its services. RCOM, based in New York City, provides domain name registration services. See, RCOM release. Verio, based in Englewood Colorado, is a wholly owned subsidiary of NTT Communications. It provides a web hosting, high speed Internet access, VPNs, and e-commerce products. RCOM filed its complaint on Aug. 3. 12/8. The U.S. Copyright Office (CO) issued rules [PDF] which provide that radio stations that stream their broadcasts over the Internet must pay additional royalty fees. The CO stated that it "has amended its regulations to clarify that transmissions of an AM/FM broadcast signal over a digital communications network, such as the Internet, are subject to a sound recording copyright owner's exclusive right to perform his or her work publicly by means of digital audio transmissions. Broadcasters who choose to transmit their radio signals over a digital communications network such as the Internet may do so under a compulsory license." See also, CO release. The RIAA issued a release praising the rules, while the NAB issued a statement condemning them. The NAB is also litigating the issue in U.S. District Court (SDNY). 12/8. FCC Commissioner Michael Powell gave a speech in Washington DC about "the great exodus from legacy business models, legacy technical infrastructures, and legacy regulations" to the "Promised Land" of broadband digital technologies. He also stated that "balkanized regulatory treatment of different technologies and industries" does not account for new technologies, and has become "cracked and unstable". He offered his recommendations for how the FCC can help this "Digital Broadband Migration", including focusing on promoting competition through innovation (rather than price competition), and focusing on enforcement (rather than regulation). 12/8. The FCC released its Notice of Proposed Rulemaking [PDF] regarding the authorization and use of software defined radio (SDR). The FCC proposes to "define software defined radios as a new class of equipment with equipment authorization rules that reflect the additional flexibility incorporated into such radios. We propose to permit equipment manufacturers to make changes in the frequency, power and modulation of such radios without the need to file a new equipment authorization application with the Commission. We also propose to permit electronic labeling so that a third party may modify a radio's technical parameters without having to return to the manufacturer for re-labeling." Comments are due 75 days from the date of publication in the federal register. Reply comments are due in 135 days. (ET Docket No. 00-47.) See also, contact info. 12/8. The FCC released its First Report and Order [huge PDF file] in ET Docket No. 98-206, permitting non-geostationary satellite orbit (NGSO) fixed-satellite service (FSS) providers to operate in various segments of the Ku-band. The R&O also adopts rules and policies to govern these operations. NGSO FSS can be used to provide many services, including high speed Internet access, high speed data, video, and telephony services. See also, FCC release. See also, contact info. 12/8. Rep. Julian Dixon (D-CA) died. He was the ranking Democrat on the House Permanent Select Committee on Intelligence. Under the leadership of Chairman Porter Goss (R-FL) and Rep. Dixon, this committee has opposed efforts to liberalize U.S. encryption export laws. See, statement by Cal. Gov. Davis. 12/8. The Intellectual Property Owners Association (IPO) named Graham Taylor of Dow Chemical Chairman of the IPO Trade Secrets Division for the coming year. 12/8. The Recording Industry Association of America (RIAA) announced the appointment of George Borkowski as its acting Director of Civil Litigation. He is on loan from the Los Angeles office of the law firm of Mitchell Silberberg & Knupp. He will serve in this position until a permanent replacement can be found for Steve Fabrizio, who will leave in January. See, RIAA release. 12/8. The European Patent Office announced that it received its first online filing of a European Patent Application. See, release. 12/8. NorthPoint Communications filed a complaint in California Superior Court for the City and County of San Francisco against Verizon alleging violation of an agreement to merge the two companies. Northpoint seeks specific performance of its merger agreement with Verizon, or alternatively, monetary damages. Northpoint is a DSL provider. See, Northpoint release. 12/8. The U.S. International Trade Commission (ITC) announced that it will conduct an investigation, at the request of the USTR, to assess the economic impact of the U.S. Singapore free trade agreement (FTA). The USITC will issue a report to the USTR by Jan. 12, 2001. The report will not be made public, and no public hearings will be held. However, the USITC requests public comments on a range of topics, including the "potential trade and economic effects of changes in intellectual property rights regimes" under the FTA. The deadline for comments is Dec. 20. See, USITC release. 12/8. The WTO's General Council met in Geneva, Switzerland. Among the issues discussed was electronic commerce. See, USTR summary and reaction. 12/8. President Bill Clinton gave a speech at the University of Nebraska in which he addressed China's joining the WTO. "It is a statement by them, by agreeing to the conditions of membership, that they can't succeed over the long run without opening to the world. It is a declaration of interdependence," said Clinton. "And if China goes on and follows through with this, they'll have to dismantle a lot of their old command and control economy, which gave the Communist Party so much power. They'll open their doors to more foreign investment and more foreign information, and the Internet revolution. Will it inevitably bring freedom? No, but it will increase the chances of China taking the right course." 12/8. Clinton also addressed cyber security in his Nebraska speech. "And one of the biggest threats to the future is going to be cyberterrorism -- people fooling with your computer networks, trying to shut down your phones, erase bank records, mess up airline schedules, do things to interrupt the fabric of life. Now, we have the first national strategy to protect America's computer systems and critical infrastructure against that kind of sabotage. It includes, interestingly enough, a scholarship for service program to help students who are studying information security and technology, pay for their education if they will give us a couple of years' service in the government. It's really hard to get talented people in the government, because we can't pay them enough." 12/7. A federal trial court jury of the U.S. District Court (SDNY) rendered its verdict SEC v. Cassano. The jury found that four defendants engaged in illegal insider trading of stock of Lotus Development Corp. in violation of §14(e) of the Exchange Act and Rule 14e-3 thereunder. The SEC's original complaint, filed on May 26, 1999, charged 25 individuals with engaging in insider trading in advance of IBM's takeover of Lotus in 1995. 17 defendants settled with the SEC prior to the trial. Of the 8 who went to trial, one settled on the last day of trial, four were found liable for insider trading, and three were found not liable. See, SEC release. 12/7. The WTO Appellate Body issued its opinion rejecting an EU appeal claiming that U.S. tariffs on bananas violate WTO rules. Ongoing disputes between the EU and US over bananas, beef, and the Foreign Sales Corporation replacement act, if unresolved, could result in the European retaliatory tariffs on US high tech exports. See, USTR release of Dec. 11. 12/7. The U.S. Department of Commerce announced that Lisa Prager will be placed in a Senior Executive Service position at the Bureau of Export Administration (BXA). She will be Dep. Asst. Sec. of Commerce for Export Enforcement in the BXA. This is a permanent position, not subject to removal. She is not now an employee of the BXA. Rather, she is an Asst. U.S. Atty. for the District of Columbia. The BXA enforces, among other things, encryption export rules, and rules restricting the export of high performance computers. See, BXA release. 12/7. The U.S. Court of Appeals for the Federal Circuit issued its Opinion in Apple Computer v. Articulate Systems. Apple brought suit against Articulate alleging patent infringement. Apple alleged that Articulate's PowerSecretary product infringed Apple's U.S. Patent No. 5,469,540 patent, which pertains to the generation of multiple active windows in a graphical user interface. The U.S. District Court (NDCal) invalidated this patent. Apple appealed. The Appeals Court affirmed in part, reversed in part, and remanded. 12/7. Patriot Computer Corp., maker of Mattel Barbie and Hot Wheels personal computers, filed for bankruptcy. The Markham, Ontario, company has had difficulty with production and delivery delays. Patriot was one of seven online retailers fined in July by the U.S. FTC for violating the Mail Order Rule (which also applies to Internet orders). See, FTC Complaint and Consent Decree. 12/7. An individual named James Burton filed a complaint [PDF] in U.S. District Court (SDCal) against Gateway and two of its top officers, alleging violation of federal securities laws. Gateway makes personal computers. The plaintiff, who seeks class action status, is represented by the law firms of Milberg Weiss and Cauley Geller. Count one alleges violation of §10b of the Securities Exchange Act of 1934, and Rule 10b5 thereunder, for making allegedly false statements about the financial status of Gateway. Count two of the complaint alleges violation of §20a of the Act by Chairman Ted Waitt and VP/CFO John Todd. Milberg Weiss is a law firm that specializes in bringing class action securities suits against technology companies with volatile stock prices. 12/7. Napster hired Manus Cooney to be its VP for Corporate and Policy Development. He is currently Chief Counsel and Staff Director to the Senate Judiciary Committee, which is chaired by Sen. Orrin Hatch (R-UT). Napster stated that he will be "charged with setting the company's strategic course on legislative policy issues that effect the company, its users, and artists; he will represent Napster before Congress and the Administration, and will advise the company on licensing, strategic alliances, and partnerships both domestically and abroad." See, Napster release. 12/7. A group of music publishers and songwriters filed a complaint in U.S. District Court (SDNY) against Universal Music Group alleging copyright infringement in connection with UMG's streaming of plaintiff's music recordings from its farmclub.com web site. 12/7. The U.S. District Court (NDCal) dismissed some of Marketel's claims against Priceline, an online travel services company. On Jan. 19, 1999, Marketel filed a complaint against Priceline, which it has since twice amended. Marketel alleged misappropriation of trade secrets, misappropriation of business model, conversion, false advertising, and entitlement to a correction of inventorship of Priceline's U.S. Patent 5,794,207. Marketel claims that it previously operated a fax and telephone based reverse auction for travel services. Priceline is also involved in other IP related legal proceedings concerning online auctions. It has filed complaints against Microsoft alleging infringement of this same patent, and its U.S. Patent 6,085,169, in connection with Microsoft Expedia's "Hotel Price Matcher" and "Flight Price Matcher" services. In addition, Priceline states that on Jan. 6, 1999, it "received notice that a third party patent applicant and patent attorney, Thomas G. Woolston, purportedly had filed in December 1998 with the United States Patent and Trademark Office a request to declare an interference between a patent application filed by Woolston and the Company's U.S. Patent 5,794,207." See, Priceline's Form 10-Q filed with the SEC on Nov. 14. 12/7. WTO Director General Mike Moore released his annual report [518 KB in MS Word]. 12/7. The WIPO began its Diplomatic Conference on the Protection of Audiovisual Performances, which is taking place in Geneva, Switzerland, from Dec. 7 to 20. See, release. 12/7. Ingo Kober, the President of the European Patent Office, issued a decision on the electronic filing of European patent applications and subsequent documents. 12/7. David Kornblau was named Chief Litigation Counsel of the SEC's Division of Enforcement. He succeeds Christian Mixter, who left the SEC in Sept. to join the law firm of Morgan Bokius & Lewis. See, SEC release. 12/7. The Dept. of Justice (DOJ) published in its web site a copy of its Dec. 4 comments to the FCC regarding SBC's Section 271 application to provide long distance service in Oklahoma and Kansas. (FCC CC Docket No. 00-217.) 12/6. An individual named Adele Selinger filed a complaint in U.S. District Court (SDNY) against AT&T, its Chairman, Michael Armstrong, and Goldman Sachs, Merrill Lynch, and Salomon Smith Barney, underwriters of the AT&T wireless tracking stock. The plaintiff, who seeks class action status, is represented by the law firm of Milberg Weiss. The complaint alleges violation of §11 and §15 of the Securities Act of 1933. The Stanford Securities Class Action Clearinghouse reports that 189 federal securities class actions have been filed so far this year. 12/6. SEC Commissioner Paul Carey gave a speech in Athens, Greece, on how technology is changing the U.S. capital markets. He stated that "The Internet is providing another vehicle for companies to access the U.S. capital markets by offering them a cheap and efficient way to communicate with potential investors." He detailed the SEC's treatment of electronic road shows and electronic offerings. 12/6. The Financial Accounting Standards Board (FASB) reached a tentative decision at its Dec. 6 meeting to modify certain provisions of its September 1999 proposed statement titled Business Combinations and Intangible Assets. At issue is treatment of goodwill in mergers of high tech companies. The FASB had previously proposed eliminating the use of pooling as a proper method of accounting for business combinations, instead requiring the use of the purchase method. This approach was opposed by high tech companies that own little tangible property. The Congress held hearings, and pressured the FASB to allow the pooling method. See for example, transcript from the House Finance Subcommittee's hearing of May 4, 2000. The FASB has published a release, but not a copy of the revised statement, in its web site. 12/6. McConnell International (MI) released a report titled Cyber Crime ... and Punishment? Archaic Laws Threaten Global Information. The report, which is a continuation of previous work by MI, analyzes laws in 52 countries, and finds widespread absence of necessary prohibitions and penalties. The report states that "Undeterred by the prospect of arrest or prosecution, cyber criminals around the world lurk on the Net as an omnipresent menace to the financial health of businesses, to the trust of their customers, and as an emerging threat to nations' security." The report also finds that "The majority of countries are relying on archaic statutes that predate the birth of cyberspace and have not yet been tested in court" and that "The weak penalties in most updated criminal statutes provide limited deterrence for crimes that can have large-scale economic and social effects." See also, release. MI and others will hold a press conference on Oct. 7 at 10:30 AM ET at SAIS, Kenney Auditorium, 1740 Massachusetts Ave. NW, Washington DC. 12/6. The FCC's Technology Advisory Council (TAC) held a day long meeting at which it discussed a wide range of developing technologies, and related regulatory issues. The topics included broadband wireless Internet access, 3G and 4G, spectrum management, secondary markets in spectrum rights, unlicensed spectrum, shared spectrum, military spectrum, software defined radio, security threats to SDR, ultra wideband, BLAST, frequency hopping, Bluetooth, 802.11, cell sizes, and related developments in the EU and Japan. The group also addressed making future telecommunications and Internet services accessible to people with disabilities, including deafness, blindness, and inability to speak. Bob Lucky (Telcordia) presided. Dale Hatfield (Chief of the FCC's Office of Engineering and Technolgy) and Kent Nilsson (Deputy Chief of OET's Network Technology Division) participated. Other active participants and presenters included Vint Cerf (MCI WorldCom), Paul Kolodzy (DARPA), Joe Nowack and Dennis Robertson (Motorola), Charles Jackson, DeWayne Hendricks, Greg Vanderheiden, Bob Martin (Lucent), Stagg Newman, Christine Hendrick (Cisco), Ross Ireland (SBC), and Jules Bellisio (Telcordia). FCC Commissioner Furchtgott- Roth appeared briefly; he praised the FCC's OET and TAC. The TAC provides discussion and advice only. 12/5. The FTC filed a Complaint [PDF] in U.S. District Court (CDCal) against Jeremy Martinez alleging unfair and deceptive trade practices in connection with the sale of computerized templates for the creation of fake identification in violation of § 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a). Defendant sold from a web site templates and programs that enabled purchasers to produce fake drivers licenses and birth certificates. The FTC further alleged that these activities further identity theft and underage drinking. The FTC seeks a permanent injunction, and disgorgement of ill gotten gains. The FTC also filed an ex parte motion for a temporary restraining order [PDF], which the Court granted on Dec. 5. The Order freezes Defendant's assets, orders an accounting of assets, gives the FTC broad access to Defendant's records, and enjoins further sales by Defendant. (Case No. 00-12701 CAS.) See, contact info. See also, FTC release. 12/5. The Department of Justice's Antitrust Division issued a recommendation to the FCC regarding SBC's Section 271 application to provide long distance service in Oklahoma and Kansas. It recommended that "the FCC should independently review the prices SBC charges its competitors for the use of 'unbundled network elements', such as local telephone lines, to ensure that these prices are appropriately cost-based." The DOJ also recommended that "additional information is needed to support SBC's claim that it provides nondiscriminatory access to the operation support systems that it uses to provide wholesale services to competitors in both states." See, DOJ release and SBC response. 12/5. The FBI's NIPC issued an assessment regarding the "Shockwave worm". The NIPC "assesses that it represents a medium threat in the United States. Although this worm does not damage user files it does have the potential to clog e-mail networks due to its mass mailing capabilities. The Shockwave worm arrives as an attachment to an e-mail message with the subject 'great Shockwave flash movie' ". The NIPC issues three levels of warnings: assessments, advisories, and alerts. Advisories are the lowest level. See, release. 12/5. The U.S. Court of Appeals for the Federal Circuit heard oral argument in Crater v. Lucent. Plaintiff holds a patent on an underwater coupling device for fiber optic cable. It filed suit in U.S. District Court (EDMo) against Lucent and AT&T alleging patent infringement. Defendants moved to dismiss on the grounds that since their use of the invention is pursuant to contracts with the federal government (U.S. Navy), 18 U.S.C. § 1498(a) provides that the only action available to the plaintiff is against the government in the U.S. Court of Federal Claims. The District Court agreed, and dismissed. Meanwhile, the government aggressively asserts the military and state secrets privilege to prevent plaintiff from obtaining information about infringing use. Indeed, it intervened in the District Court proceeding to prevent most discovery in that action. Damnum absque injuria? 12/5. The EPIC published in its web site a copy of a June 9, 1999 order [PDF] issued by the U.S. District Court (DNJ) pertaining to a search and seizure in a criminal investigation of Nicodemo Scarfo, an encryption savvy mobster involved in illegal gambling and loan sharking operations. The F.B.I. obtained authority to surreptitiously install on Scarfo's computer "recovery methods" that could capture password and encryption key information. The Court order stated: "IT IS ORDERED ... that Special Agents of the F.B.I. ... deploy recovery methods which will capture the necessary key related information and encrypted file(s) ... that Special Agents of the F.B.I. ... be authorized to enter the TARGET LOCATION surreptitiously, covertly, and by breaking and entering, if necessary, in order to deploy recovery methods which will capture the necessary key related information and encrypted file(s) whether they are stored on Nicodemo S. Scarfo's computer hard drive in the TARGET LOCATION or on removable media." The order further permits multiple entries. It also states that the FBI is "authorized to retrieve such key related information and encrypted file(s) through electronic means." The Order was sealed at the time it was issued. See also, Sealed Application [PDF] of Asst. U.S. Atty. Ronald Wigler. 12/5. The Rural Utilities Service (RUS) published a notice in the Federal Register regarding its new $100 Million loan program to support the construction and installation of broadband telecommunications services in rural areas. The broadband pilot program is authorized by 7 U.S.C. § 950 aaa. See, Federal Register, Dec. 5, 2000, Vol. 65, No. 234, at pages 75920 - 75921. 12/5. The FTC released a notice, to be published in the Federal Register, regarding changes to its Rules of Practice. The changes include a revised description of the responsibilities of the Bureau of Competition. 12/5. The FCC's Common Carrier Bureau released its bi-annual report on local telephone competition. This report provides summary statistics of data that incumbent and competitive local exchange carriers, and mobile wireless telephone service providers, filed twice a year on FCC Form 477. See, report [caution: this is a 1.7 MB PDF file]. 12/4. Qualcomm announced that it signed a Memorandum of Understanding (MOU) with China's Ministry of Information Industry (MII). The MOU pertains to cooperation between Qualcomm and China on development of CDMA technology, and deployment in China of a nationwide network based on CDMA technology. See, release. 12/4. Jing Jing Fan Mou plead guilty to, and was sentenced for, two felonies, conspiracy and trafficking in counterfeit goods, in U.S. District Court (CDCal). The original six count indictment was returned on May 11. The defendant trafficked in foreign manufactured counterfeit software products, including Microsoft's Windows NT Server and Office 97. Under the plea agreement one count of trafficking, and three count of money laundering, were dropped. The defendant was sentenced to 12 months in prison. This case was the product of a U.S. Customs Service investigation. See, releases of the U.S. Atty's. office dated Dec. 4, Sept. 25, and May 23. [Contact info.] 12/4. Xilinx filed a complaint against Altera with the U.S. International Trade Commission (ITC) seeking to bar Altera from importing or selling products into the U.S. that it alleges infringe three Xilinx patents regarding field programmable gate array technology. See, Xilinx release. Altera stated that it "believes that Xilinx's ITC complaint is a reaction to Altera's most recent patent infringement suit filed in June of this year." See, Altera release. Both companies produce programmable logic devices. 12/4. United Microelectronics Corp. (UMC) filed a complaint [PDF] in U.S. District Court (NDCal) against Silicon Integrated Systems Corp. alleging patent infringement, misappropriation of trade secrets, breach of confidentiality agreements, unfair competition, and other claims. See, UMC release. SIS stated that it was "astounded by the allegations". See, SIS release. UMC makes semiconductors used in electronic and computing devices. 12/4. Calif. Gov. Gray Davis announced the appointment of state Superior Court judges for Los Angeles and Madera Counties. See, LA release and Madera release. 12/4. The House of Representatives began a lame duck session. Several key appropriations bills which fund technology related agencies have yet to be passed. House Republicans are also campaigning for key committee chairmanships, including Ways and Means, Commerce, and Judiciary. Outgoing Chairmen Bill Archer (R-TX) and Tom Bliley (R-VA) did not seek re-election. Rep. Henry Hyde (R-IL) has served three terms as Chairman of the Judiciary Committee, and is thus barred by Republican Rules from continuing as Chairman. Rep. Billy Tauzin (R-LA) and Rep. Mike Oxley (R-OH) both want to be Chairman of the Commerce Committee. Rep. Bill Thomas (R-CA) and Rep. Phil Crane (R-IL) are vying for the Ways and Means post. 12/4. FCC Chairman Wm. Kennard gave a speech in Budapest, Hungary, in which he advocated the creation of strong independent regulatory agencies that are "infused with a culture of transparent, independent decisionmaking". He also argued for competition and universal access. Moreover, he described universal access as Internet access, rather than telephone access. 12/4. EPIC wrote a letter to the FTC requesting that it "investigate whether Amazon has deceived consumers in its representations about privacy, particularly regarding the circumstances under which information about customers and their purchases might be sold or otherwise disclosed." 12/4. Bill Gates, Sen. Elect Hillary Clinton, Sen. Joe Biden (D-DE), and Sen. Charles Schumer (D-NY) held a media event in New York City. Gates announced that Microsoft will donate $12.3 Million in cash and $88 Million in software over the next five years for materials, training and software to technology enable every Boys & Girls Club in the United States. Sen. Biden is a long time supporter of the Boys & Girls Club. Both Sen. Biden and Sen. Schumer are members of the Senate Judiciary Committee, which oversees the Antitrust Division of the Department of Justice. See, MSFT release. 12/3. Steven Bellovin (AT&T Laboratories), Matt Blaze (AT&T Laboratories), David Farber (University of Pennsylvania), Peter Neumann (SRI International), and Eugene Spafford (Purdue University CERIAS) submitted Comments on the Carnivore System Technical Review to the Department of Justice. They concluded that "the limited nature of the analysis described in the draft report simply cannot support a conclusion that Carnivore is correct, safe, or always consistent with legal limitations." In addition, they stated that "we were disappointed that more attention was not paid to operational and "systems" issues. It is simply not possible to draw meaningful conclusions about isolated pieces of software without also considering the computing, networking, and user environment under which they are running." 12/3. EchoStar filed a complaint in U.S. District Court (DColo) against Gemstar TV Guide alleging violation of state and federal antitrust and unfair competition laws in connection with its interactive program guide technology. See, Echostar release. EchoStar is a direct broadcast satellite (DBS) TV company based in Littleton, Colorado. Its DISH Network serves over 5 Million customers. Gemstar develops, markets and licenses proprietary technologies and systems for consumers' interaction with electronics products and other platforms that deliver video, programming information and other data. It acquired TV Guide in 1999. On Oct. 23, Starsight Telecast, a Gemstar subsidiary, filed a complaint against EchoStar in U.S. District Court (WDNC) alleging patent infringment. Gemstar's U.S. Patent No. 4,706,121 relates to electronic program guide functions. EchoStar also filed an answer and counterclaim in that action. It denies infringement, and challenges the validity and enforceability of Gemstar's patent. EchoStar also seeks to have the North Carolina action moved to Colorado. 12/1. The CDT filed comments with the FCC in its Inquiry Concerning High-Speed Access to the Internet Over Cable and Other Facilities. The CDT urged the FCC to mandate open access. It stated "that unless private industry acts immediately to open their systems, the Commission must act to require openness. Voluntary industry efforts toward achieving verifiable openness have not, to date, been successful. ... CDT urges the FCC to publicly embrace third party access and set a clear deadline by which its implementation must be complete. Failing its implementation by some time in the year 2001, the FCC should act to require open access." 12/1. The SEC filed a civil complaint in U.S. District Court (NDGa) against LinkTel Communications and Jeffrey Altman alleging fraud in connection with the sale of investment contracts in coin-operated telephones and public access Internet phones. The Court issued an order that freezes defendants' assets, orders an accounting, and appoints a receiver. See, SEC release. 12/1. Dec. 1 was the deadline for filing comments with the FCC in its Inquiry Concerning High-Speed Access to the Internet Over Cable and Other Facilities. For background, see FCC Notice of Inquiry [PDF] and release, both dated Sept. 28. The Consumers Union, Consumer Federation of America, Center for Media Education, and Media Access Project jointly filed comments [PDF] urging the FCC to begin a rule making proceeding to mandate open access. OpenNET also filed comments in support of FCC mandated open access. See, release. AT&T filed comments opposing FCC regulation. AT&T General Counsel Jim Cicconi stated that "Regulation here would only slow the delivery of these new services to residential customers". See, AT&T release. The Telecommunications Industry Association (TIA) urged the FCC not to mandate open access to cable operators' high speed networks used for Internet access via cable modems. See, TIA release. Reply comments are due by Jan. 10, 2000. 12/1. Bill Gates published an essay titled "Shaping the Internet Age." He addressed protecting intellectual property on the Internet, regulating e-commerce, privacy, network security, the "digital divide," and the role of government. He recommended that governments "speed the implementation of broadband technologies, deregulate where necessary to stimulate competition, resist the temptation to enact new regulations, and redouble our efforts to protect content on the Internet by strengthening and enforcing intellectual- property rights." Bill Gates and Hillary Clinton will hold a joint press conference on Mon. Dec. 4 in NYC. Gates will announce Microsoft donations and a program with the Boys & Girls Clubs of America to "bridge the digital divide". The event will be web cast. See, MSFT release. 12/1. ICANN published a report by the IANA recommending that authority for registering the .ca (Canada) country-code top level domain (ccTLD) be re-delegated from the University of British Columbia to the Canadian Internet Registration Authority (CIRA). 12/1. The EPIC filed comments with the Carnivore Review Panel at the Department of Justice (DOJ). The comments conclude: "We further believe that comprehensive Congressional oversight hearings and review of Carnivore's source code by the technical community must occur to determine (1) the actual capabilities of the Carnivore system; (2) whether use of Carnivore complies with federal statutory requirements; and (3) whether amendments to federal wiretap law are required before use of this system is permitted. While the IITRI review represents an important contribution to public understanding of Carnivore, it is clearly no substitute for the open process we suggest. Until Carnivore is subject to such open review and debate, we urge the Department of Justice and the Attorney General to suspend its use." (More on EPIC.) Background: the DOJ released a redacted copy of the 121 page study [PDF, very large file] regarding the Carnivore Internet surveillance system conducted for the FBI by the Illinois Institute of Technology Research Institute (IITRI) on Nov. 21. See also, FBI Carnivore web page. 12/1. The ACLU also filed comments with the DOJ regarding Carnivore. The ACLU argued that the IITRI reviewed a retired version of Carnivore, that it had too small a budget, and that it "failed to address the fundamental issues of whether Carnivore violates the Constitution’s guarantee against unreasonable searches and seizures and whether it complies that with existing statutory schemes authorizing electronic surveillance." See also, ACLU release, and testimony to House Const. Subcommittee on July 24. (More on ACLU.) 12/1. The FBI's NIPC issued an advisory that "there has recently been an increase in hacker activity specifically targeting U.S. systems associated with e-commerce and other internet-hosted sites." NIPC issues three levels of warning: assessments, advisory, and alerts. Advisories are the middle level. 12/1.The NTIA held its second government industry meeting on Third Generation (3G) wireless. See, NTIA's 3G web page. 12/1. The FCC issued a Notice of Proposed Rulemaking [MS Word] that states that the FCC will require all entities and people who interact with the FCC to obtain an FCC identification number. The NPRM states that the purpose is "to better manage the financial systems of the agency and improve compliance with various statutes that govern the financial operations of the Federal government". The NPRM also states that the requirement would extend to non-profit entities and amateur radio operators (neither of which pay fees to the FCC). The deadline for submitting comments in this rulemaking is 30 days after publication in the Federal Register. However, the NPRM adds that commenters in rulemakings need not obtain or submit an identification number. (MD Docket No. 00-205.) 12/1. The Federal Election Commission (FEC) announced that General Counsel Lawrence Noble will depart on Jan. 1, 2001. He will be Exec. Dir. and General Counsel for the Center for Responsive Politics. Lois Lerner, the FEC’s Associate General Counsel for Enforcement, will be Acting General Counsel for six months while the FEC selects a new General Counsel. The FEC, which is responsible for enforcing the Federal Election Campaign Act (FECA), has increasingly been addressing questions regarding the Internet, including determining whether certain Internet activities constitute campaign contributions or expenditures, and applying the FECA to fund raising on the Internet. See, FEC release and CRP release. 12/1. The USPTO issued a notice that it will hold an examination on April 18, 2001 for persons seeking registration before the USPTO as patent attorneys and agents. The deadline for applications is Jan. 5, 2001. The next examination will be held on Oct. 17, 2001. 12/1. The Copyright Office (CO) issued a notice in the Federal Register regarding compulsory license copyright royalties. It set a cost of living adjustment of 3.4% in the royalty rates paid by colleges, universities, or other nonprofit educational institutions that are not affiliated with National Public Radio for the use of copyrighted published nondramatic musical compositions. Background: see, 17 U.S.C. § 118. 12/1. The law firm of Vinson & Elkins named 15 new partners, including Stuart Ford, who handles computer technology intellectual property matters in the Houston office, Barry Burgdorf, who handles transactional matters for technology companies in the Austin office, Dean Harvey, who handles privacy, digital signatures, and e-contracts matters in the Austin office. |
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