Source: http://www.techlawjournal.com/alert/2011/05/27.asp
Timestamp: 2019-04-23 10:04:49+00:00

Document:
TLJ Daily E-Mail Alert No. 2,246, May 27, 2011.
May 27, 2011, Alert No. 2,246.
5/20. The Federal Communications Commission (FCC) adopted and released the seventh in a series of reports required by Section 706 of the Telecommunications Act of 1996 regarding "the availability of advanced telecommunications capability".
This report [99 pages in PF] concludes that because "26 million Americans live in areas unserved by broadband", and because "approximately one-third of Americans do not subscribe", "broadband is not being deployed in a reasonable and timely fashion".
This report's conclusion was predictable, because it was necessary for the Commission's majority to continue their goal of instituting a regulatory regime for, among other things, broadband internet access service (BIAS) providers.
Section 706 requires that the FCC conduct studies, and write reports, that "determine whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion". It also states that if the FCC's "determination is negative, it shall take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market". Thus, a negative conclusion gives the FCC a pretext for taking action.
The FCC has express statutory authority to do some of the things that the FCC is doing, and could do, to remove barriers and promote competition.
However, the FCC's majority has searched for a pretext to regulate BIAS providers, because the Congress has enacted no statute that expressly delegates authority to the FCC to regulate the BIAS providers.
The FCC's August 2008 order [67 pages in PDF] regarding Comcast, which asserted regulatory authority under its August 2005 policy statement [3 pages in PDF] was rejected by the U.S. Court of Appeals (DCCir) in its April 6, 2010, opinion [36 pages in PDF] in Comcast v. FCC.
In 2010, the FCC considered reclassifying BIAS as Title II telecommunications service, which the FCC has broad authority to regulate, but did not do so. Rather, the FCC issued a Section 706 report [143 pages in PDF] in July of 2010 asserting that broadband is not being deployed in a reasonable and timely fashion. Then, it adopted rules regulating BIAS providers in December of 2010, asserting authority under Section 706, and the finding of its July 2010 report.
The December 2010 rules will be subjected to judicial review. The FCC's already tenuous legal argument would have been further impeached had it not reached the conclusion that it did in the just released report.
In order to reach the conclusion that broadband is not being deployed in a reasonable and timely fashion, the just released FCC report engages in linguistic sleight of hand in order to give the words of Section 706 meanings that are contrary to their plain meanings. For example, the statute does not use the term "broadband". Rather, the statute concerns "advanced telecommunications". The report treats this as "broadband". Also, the statute states that if the FCC makes a negative finding, it shall take action to increase competition in the "telecommunication" market. The FCC construes this too as though it were "broadband", even though the FCC has declared that broadband internet access is an information service and not a telecommunications service.
However, the FCC report's most significant departure from the plain meaning of the statute pertains to the words "availability" and "capability" in the phrase "availability of advanced telecommunications capability". The report treats these words as though they were "subscription". That is, there exists broadband internet capability that is available to well over 90% of the population. However, many persons for whom service is available do not subscribe.
Chairman Genachowski wrote in his statement that "approximately one third of Americans -- more than 100 million people -- don't subscribe to broadband. America's broadband adoption rate is approximately 67 percent". He concluded that "too many Americans are still being left behind".
FCC Commissioner Robert McDowell dissented, writing his his statement that this report contains "flawed analyses and conclusions".
Former FCC Chairman Michael Powell called the report's conclusion "regrettable and wrong".
Powell, who is now the head of the National Cable and Telecommunications Association (NCTA), stated in a release that the report's conclusions "are regrettable and wrong -- not only because they fly in the face of the $250 billion investment made by broadband providers since 2008 to improve and extend networks, but also because they appear to ignore the Commission’s own facts. The Commission’s own research shows that 95 percent of U.S homes have access to high-speed broadband service and more than 90 percent of consumers are satisfied with the speed of their service."
Rep. Greg Walden (R-OR), Chairman of the House Commerce Committee's (HCC) Subcommittee on Telecommunications and Technology, stated in a release that "It's difficult to understand how an objective look at the facts can lead the FCC to conclude that our progress on broadband is lacking. Congress has tasked the Commission in section 706 with examining the ‘availability’ and ‘deployment’ of high-speed broadband, and the numbers don’t lie. Even the FCC has confessed that wired broadband is available to 95 percent of Americans and that wireless broadband is available to 98 percent. This doesn’t even account for new satellite broadband offerings, which the FCC has recognized as a potentially efficient way of ensuring universal coverage. Even the small percent of homes that don’t have access is shrinking. Last year the FCC estimated that 8.9 million out of 130 million households did not have high-speed broadband available; using the same analysis, the FCC itself estimates that number has dropped to 4.6 million."
Walter McCormack, head of the US Telecom, stated in a release that "The FCC's own data show that 95 percent of Americans have access to wired broadband, and 93 percent are happy with their service. Moreover, private sector investment in broadband grew from $63 billion to $66 billion from 2009-10, according to USTelecom and Yankee Group data. Clearly the private sector is doing its part -- broadband has been deployed to virtually every corner of America where a business case can be made for investment."
McCormack added that "It is now important for government to do its part as well -- by taking action to remove barriers to investment, eliminate uneconomic regulation, make additional spectrum available, and provide financial assistance to areas where it is economically unfeasible to provide broadband on an unsupported basis."
6th report [143 pages in PDF] released July 20, 2010. See also, story titled "FCC Releases 6th Section 706 Report" in TLJ Daily E-Mail Alert No. 2,114, July 29, 2010.
The just released report is FCC 11-78 in GN Docket No. 10-159.
The House will meet in pro forma session only. See, Rep. Cantor's schedule for the week.
5:00 PM. Deadline to submit notices of intent to testify at the Copyright Office's (CO) June 10 public hearing in its inquiry in to possible mechanisms, methods, and recommendations for phasing out the statutory licensing requirements set forth in 17 U.S.C. § 111, § 119, and § 122. See, notice in the Federal Register, Vol. 76, No. 90, May 10, 2011, at Pages 27091-27092. See also, story titled "Copyright Office to Hold Hearing on Phasing Out Statutory Licensing Requirements" in TLJ Daily E-Mail Alert No. 2,238, May 11, 2011.
Deadline to submit comments to the Federal Trade Commission (FTC) regarding its April 28, 2011, event titled "Public Workshop: Debt Collection 2.0: Protecting Consumers as Technologies Change". See, notice in the Federal Register, March 15, 2011, Vol. 76, No. 50, at Pages 14010-14014, and story titled "FTC Workshop to Address Use of Facebook and Other New Technologies for Debt Collection" in TLJ Daily E-Mail Alert No. 2,204, March 15, 2011.
Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) [52 pages in PDF] regarding retransmission consent negotiations. The FCC adopted and released this NPRM on March 3, 2011. It is FCC 11-31 in MB Docket No. 10-71. See, notice in the Federal Register, March 28, 2011, Vol. 76, No. 59, at Pages 17071-17088.
Deadline to submit comments regarding, and deadline to register to attend the open portion of, the Executive Office of the President's (EOP) National Security Telecommunications Advisory Committee's (NSTAC) meeting on June 2 at 2:00 PM. The agenda includes government use of cloud computing, the Federal Emergency Management Agency's (FEMA) national security and emergency preparedness (NSEP) communications, communications resiliency, commercial satellite mission assurance, implementation of a national public safety broadband network, and secure communications for mobile devices. See, notice in the Federal Register, Vol. 76, No. 95, Tuesday, May 17, 2011, at Pages 28443-28444.
Three provisions of surveillance law are scheduled to sunset. The three provisions are codified in the Foreign Intelligence Surveillance Act (FISA). They pertain to (1) treating lone wolf individuals like agents of foreign governments or terrorists organizations (see, 50 U.S.C. § 1801(b)'s definition of the term "agent of a foreign power"), (2) access to business records, including library records (see, 50 U.S.C. § 1861 as amended by Section 215 of the 2001 surveillance act), and (3) roving wiretaps (see, 50 U.S.C. § 1805).
Memorial Day. This is a federal holiday. See, OPM list of 2011 federal holidays.
The House will not meet. However, it will meet the rest of the week. See, Rep. Cantor's schedule.
The House will meet at 12:00 NOON for morning hour, and at 2:00 PM for legislative business. It will consider several non-technology related items under suspension of the rules. Votes will be postponed until 6:30 PM. See, Rep. Cantor's schedule.
5:30 PM. The American Constitution Society (ACS), National LGBT Bar Association, and other interest groups will host a news conference and reception to condemn the filibuster of the nomination of Goodwin Liu to be a Judge of the U.S. Court of Appeals (9thCir), and address judicial nominations. RSVP to press at acslaw dot org. Location: Jones Day, 51 Louisiana Ave., NW.
Deadline to submit initial comments to the Federal Communications Commission (FCC) in response to its Further Notice of Proposed Rulemaking (FNPRM) regarding amending its aviation service regulations regarding audio visual warning systems (AVWS). This FCC adopted this item on February 22, 2011, and released the text on March 4, 2011. It is FCC 11-25 in WT Docket No. 10-61. See, notice in the Federal Register, March 30, 2011, Vol. 76, No. 61, at Pages 17613-17615.
Deadline to submit petitions to deny AT&T's acquisition of T-Mobile USA to the Federal Communications Commission (FCC). See, FCC Public Notice (PN). It is DA 11-799 in WT Docket No. 11-65. See also, story titled "FCC Sets Comments Deadlines for AT&T T-Mobile USA Antitrust Merger Review" in TLJ Daily E-Mail Alert No. 2,229, April 29, 2011.
9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a panel discussion titled "Governments Should Neither Subsidize nor Operate Broadband Networks to Compete with Commercial Ones". The speakers will be James Baller (Baller Herbst Law Group), Jeffrey Eisenach (Navigant Economics), Harold Feld (Public Knowledge), and Robert Atkinson (ITIF). See, notice and registration page. Location: ITIF/ITIC, Suite 610A, 1101 K St., NW.
9:30 - 11:30 AM. The House Oversight and Government Reform Committee will hold a hearing titled "Cybersecurity: Assessing The Nation's Ability To Address The Growing Cyber Threat". See, notice. Location: Room 2154, Rayburn Building.
10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on the Constitution will hold an oversight hearing on the Department of Justice's (DOJ) Civil Rights Division. See, notice. Location: Room 2141, Rayburn Building.
10:30 AM. The House Commerce Committee's (HCC) Subcommittee on Communications and Technology will hold a hearing titled "Promoting Broadband, Jobs and Economic Growth Through Commercial Spectrum Auctions". The witnesses will be Christopher McCabe (CTIA), Michelle Connolly (Duke University), Dean Brenner (Qualcomm), Harold Feld (Public Knowledge), Todd Schurz (Schurz Communications), and Bert Ellis (Titan Broadcasting Management). See, notice. Location: Room 2123, Rayburn Building.
11:30 AM. Cisco Systems will host an event to release and discuss a report titled "Forecast of Global Internet Traffic, 2010 - 2015". Registration and lunch begin at 11:30 AM. At 12:00 NOON Surag Shetty (Cisco) will present the report. At 12:30 PM there will be a panel discussion titled "The Impact of Internet Growth". The speakers will be Blair Levin (Aspen Institute), John Horrigan (TechNet), Carlos Rodríguez (Telefónica Internacional USA Inc.), Philippe Dongier (World Bank), and Robert Pepper (Cisco). RSVP to CiscoRSVP at 463 dot com. For more information, contact Lauren Sacks 202-463-0013 ext.207. Location: National Press Club, 13th floor, 529 14th St., NW.
12:00 NOON - 2:00 PM. The DC Bar Association will host a panel discussion titled "Copy Owners v. Copyright Owners: Is the First-Sale Doctrine Dead in the Digital Era?". The speakers will be Scott Bain (Software & Information Industry Association), Jonathan Band (Policybandwidth.com), Gregory Beck (Public Citizen Litigation Group), Seth Greenstein (Constantine Cannon), Matthew McGill (Gibson Dunn), John Mitchell (Interaction Law), and Daniel Volchok (Wilmer Hale). The price to attend ranges from $10 to $45. No CLE credits. The DC Bar has a history of barring reporters from its events. For more information, call 202-626-3463. See, notice. Location: DC Bar, 1101 K St., NW.
1:30 PM. The House Judiciary Committee's (HJC) Subcommittee on Intellectual Property, Competition and the Internet will hold a hearing titled "Promoting Investment and Protecting Commerce Online: The ART Act, the NET Act and Illegal Streaming". See, notice. Location: Room 2141, Rayburn Building.
1:30 PM. The U.S. Patent and Trademark Office (USPTO) will hold a hearing regarding its ex parte and inter partes reexamination proceedings. See, notice in the Federal Register, April 25, 2011, Vol. 76, No. 79, at Pages 22854-22861. See also, story titled "USPTO to Hold Hearing on Inter Partes Reexamination Proceedings" in TLJ Daily E-Mail Alert No. 2,226, April 26, 2011. Location: USPTO, South Auditorium of Madison West, 600 Dulany Street, Alexandria, VA.
Deadline to submit initial comments to the Federal Communications Commission (FCC) Further Notice of Proposed Rulemaking (FNPRM) regarding internet based telecommunications relay services (TRS). The FCC adopted this item on April 5, 2011, and released it on April 6, 2011. It is FCC 11-54 in CG Docket No. 10-51. See, notice in the Federal Register, May 2, 2011, Vol. 76, No. 84, at Pages 24437-24442.
9:00 AM. The House Commerce Committee's (HCC) Subcommittee on Commerce, Manufacturing, and Trade will hold a hearing titled "Sony and Epsilon: Lessons for Data Security Legislation". See, notice. Location: Room 2123, Rayburn Building.
9:00 AM - 5:00 PM. Day one of a two day meeting of the Copyright Office (CO) regarding bringing sound recordings fixed before February 15, 1972 under federal jurisdiction. See, notice in the Federal Register, Vol. 76, No. 89, Monday, May 9, 2011, at Pages 26769-26771. See also, notice in the Federal Register, November 3, 2010, Vol. 75, No. 212, at Pages 67777-67781, and story titled "Library of Congress Issues NOI on Extending Copyright Act to Pre 1972 Sound Recordings" in TLJ Daily E-Mail Alert No. 2,150, November 8, 2011. Location: Copyright Hearing Room, Room LM-408, Madison Building, 101 Independence Ave., SE.
10:00 AM. The House Small Business Committee's (SBC) Subcommittee on Healthcare and Technology will hold a hearing titled "Not What the Doctor Ordered: Health IT Barriers for Small Medical Practices". See, notice. Location: Room 2360, Rayburn Building.
10:00 - 11:30 AM. The Executive Office of the President's (EOP) National Security Telecommunications Advisory Committee (NSTAC) will hold a closed meeting. The NSTAC will "review information on implementation of the National Public Safety Broadband Network as well as secure communications for mobile devices". See, notice in the Federal Register, Vol. 76, No. 95, Tuesday, May 17, 2011, at Pages 28443-28444. Location: undisclosed.
1:00 PM. The US Telecom will host a webcast seminar titled "IPv6 and Telecom Networks". The speaker will be Dan York (Voxeo). This event is free. See, notice.
10:00 - 11:30 AM. The Executive Office of the President's (EOP) National Security Telecommunications Advisory Committee (NSTAC) will hold a meeting that is open to the public. The agenda includes government use of cloud computing, the Federal Emergency Management Agency's (FEMA) national security and emergency preparedness (NSEP) communications, communications resiliency, and commercial satellite mission assurance. See, notice in the Federal Register, Vol. 76, No. 95, Tuesday, May 17, 2011, at Pages 28443-28444. Location: U.S. Chamber of Commerce, 1615 H St., NW.
12:30 - 2:30 AM. The House Oversight and Government Reform Committee's (HOGRC) Subcommittee on Government Organization will hold a hearing titled "IRS E-File And Identity Theft". See, notice. Location: Room 2247, Rayburn Building.
Day one of a two day meeting of the Department of Justice's (DOJ) National Advisory Committee on Violence Against Women. The agenda includes discussion of "stalking and technology". See, notice in the Federal Register, Vol. 76, No. 92, Thursday, May 12, 2011, at Pages 27664-27665. The deadline to register is May 27. Location: Fairfax at Embassy Row Hotel, 2100 Massachusetts Ave., NW.
9:00 AM - 1:30 PM. Day two of a two day meeting of the Copyright Office (CO) regarding bringing sound recordings fixed before February 15, 1972 under federal jurisdiction. Location: Copyright Hearing Room, Room LM-408, Madison Building, 101 Independence Ave., SE.
Day two of a two day meeting of the Department of Justice's (DOJ) National Advisory Committee on Violence Against Women. The agenda includes discussion of "stalking and technology". See, notice in the Federal Register, Vol. 76, No. 92, Thursday, May 12, 2011, at Pages 27664-27665. Location: Fairfax at Embassy Row Hotel, 2100 Massachusetts Ave., NW.
Deadline to register to attend the June 8-9 meeting of the Department of the Interior's (DOI) National Geospatial Advisory Committee (NGAC). See, NGAC notice and notice in the Federal Register, Vol. 76, No. 95, Tuesday, May 17, 2011, at Pages 28449-28450.
5/19. The Information Technology and Innovation Foundation (ITIF) released a paper [18 pages PDF] titled "University Research Funding: The United States is Behind and Falling". It laments the level of funding of research at U.S. universities. It argues that federal and state governments should spend more, and Congress should give businesses a greater tax credit for research at universities than for in house research.
This paper asserts that "our innovation system is faltering". It states that "in 2008 the United States ranked 22nd out of 30 countries in government-funded university research and 21st in business-funded university research".
The solution, this paper argues, is for the federal government and the states to give more money to universities. In addition, to incent businesses to give more money to universities, the paper argues that the Congress should enact a "collaborative R&D tax credit that provides companies with a generous tax credit for expenditures on research conducted at universities".
This paper is silent on research conducted by businesses in house, and state and federal policies that may inhibit such research, such not increasing, modernizing, and making permanent the R&D tax credit.
There already is an R&D tax credit, albeit scheduled to sunset at the end of this year. Moreover, it covers collaborative research conducted at universities. This paper does not explain with particularity that what it is advocating is creating a greater incentive for businesses to fund university research than to conduct research in house.
That is, the existing credit has two calculation formulas. First, the basic credit rate is 20%. But it only applies to research over a certain base amount related to the business's historical research intensity, which is the ratio of its research spending to gross receipts back in the 1980s. It is outdated and obsolete. Second, the alternative simplified credit (ASC) rate is 14%. It applies only to qualified research expenses that exceed 50 percent of the average qualified research expenses for the three preceding taxable years.
For a more detailed explanation of this topic, see the Department of the Treasury's March 25, 2011, report [13 pages in PDF] titled "Investing in U.S. Competitiveness: The Benefits of Enhancing the Research and Experimentation (R&E) Tax Credit"
In contrast, the ITIF proposes at credit rate of 20%. Moreover, the ITIF proposes that it apply to all collaborative research conducted at universities, federal laboratories and research consortia.
The authors of this paper are Robert Atkinson and Luke Stewart, both of the ITIF.

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