Source: http://www.techlawjournal.com/alert/2004/11/23.asp
Timestamp: 2019-04-18 10:16:18+00:00

Document:
TLJ Daily E-Mail Alert No. 1,024, November 23, 2004.
November 23, 2004, 9:00 AM ET, Alert No. 1,024.
11/20. The Senate amended and approved by unanimous consent S 3021, the "Family Entertainment and Copyright Act of 2004" on Saturday, November 20, 2004. The House has yet to approve this large composite bill.
This bill was just introduced on November 20 by Sen. Orrin Hatch (R-UT) and Sen. Patrick Leahy (D-VT). However, it is a composite bill made up mostly of language from bills that have already been the subject of committee hearings, markups, House approval, and/or Senate approval. Also, a pre-introduction draft of this bill was the subject of the story titled "Senate May Consider Intellectual Property Bill" in TLJ Daily E-Mail Alert No. 1,022, November, 19, 2004.
Also, on October 9, 2004, the Senate Judiciary Committee approved a package of copyright bills. That bill, numbered HR 2391, is also a composite bill. It is titled the "Intellectual Property Protection Act of 2004", or IPPA. See, text of bill [44 pages in PDF], and text of bill, in HTML, with hyperlinked table of contents, and U.S. Code hyperlinks. See also, story titled "Senate Judiciary Committee Approves Large Collection of Copyright Bills" in TLJ Daily E-Mail Alert No. 994, October 11, 2004. S 3021 adds some provisions to the IPPA, and removes some provisions from the IPPA.
Note that HR 2391, as enacted by the House, is a patent bill. The Senate Judiciary Committee made the content of HR 2391 EH a part of the IPPA, and gave the whole IPPA its number.
Title I: ART Act. Title I of S 3021, as amended, is titled the "Artists' Rights and Theft Prevention Act of 2004", or "ART Act". It is a revised version of S 1932, which the full Senate approved as a stand alone bill on June 25, 2004.
This title includes, among other provisions, criminalization of certain unauthorized recording of motion pictures in a motion picture exhibition facility. § 208 of the IPPA, and § 108 of HR 4077, the "Piracy Deterrence and Education Act of 2004", which the House approved on September 28, 2004, contain similar language. It criminalizes using camcorders to copy movies in motion picture exhibition facilities, such as movie theaters.
Title I also gives movie theater owners limited immunity for detaining violators.
Title I also requires the Register of Copyrights to "establish procedures for preregistration of a work that is being prepared for commercial distribution and has not been published ... for any work that is in a class of works that the Register determines has had a history of infringement prior to authorized commercial distribution". It also provides that infringement actions may be based upon these preregistrations.
Title II: Family Movie Act. Title II of S 3021 is titled the "Family Movie Act", but is also known as the ClearPlay bill.
§ 212 of the IPPA (§ 112 of HR 4007 EH) contains another version of the "Family Movie Act". This provision, which is included with the ClearPlay technology in mind, adds a new ¶ 11 to 17 U.S.C. § 110 (which provides exceptions to the exclusive rights of copyright).
S 3021 contains a content skipping exception: "the making imperceptible, by or at the direction of a member of a private household, of limited portions of audio or video content of a motion picture, during a performance in or transmitted to that household for private home viewing, from an authorized copy of the motion picture, or the creation or provision of a computer program or other technology that enables such making imperceptible and that is designed and marketed for such use at the direction of a member of a private household, if no fixed copy of the altered version of the motion picture is created by such computer program or other technology".
S 3021 does not include the IPPA's language regarding ad skipping. That is, the IPPA provided that the new exception applies only if "no changes, deletions or additions are made by such computer program or other technology to commercial advertisements, or to network or station promotional announcements, that would otherwise be performed or displayed before, during or after the performance of the motion picture".
In other words, under the bill as approved by the Senate, ClearPlay and other companies can market products that skip violent or obscene content, and ads, in movies.
The movie industry opposes the "Family Movie Act".
In contrast, Gigi Sohn, of Public Knowledge, stated in a release after Senate passage that "We strongly support the version of the Family Movie Act, included in the bill, which gives families more control over how they watch movies and television, preserving the right to skip over commercials. The bill will benefit consumers, both in their entertainment choices now, and from the innovation in technology that will result in coming years."
See also, story titled "House CIIP Subcommittee Holds Hearing on DVD Filtering Technology" in TLJ Daily E-Mail Alert No. 903, November 21, 2004.
Title III: Film Preservation. Title III of S 3021 includes the "National Film Preservation Act of 2004" and the "National Film Preservation Foundation Reauthorization Act of 2004". Both of these are in the IPPA.
Title IV. Title IV of S 3021 is the "Preservation of Orphan Works Act". This too is in the IPPA.
The entire substance of this title is as follows: "Section 108(i) of title 17, United States Code, is amended by striking ``(b) and (c)´´ and inserting ``(b), (c), and (h)´´." See, 17 U.S.C. § 108.
Sen. Hatch explained that this "ensures the preservation of valuable historic records by correcting a technical error that unnecessarily narrows a limitation on the copyright law applicable to librarians and archivists. This will strengthen the ability of librarians and archivists to better meet the needs of both researchers and ordinary individuals and will result in greater accessibility of important works."
Title V, Subtitle A: Anticounterfeiting Act. Title V of S 3021 includes a Subtitle A, titled the "Anticounterfeiting Act of 2004", and a Subtitle B, titled the "Fraudulent Online Identity Sanctions Act".
Sen. Hatch stated that the Anticounterfeiting Act of 2004 "amends our criminal and civil anti-counterfeiting laws to ensure that these laws keep pace with the counterfeiters. Traffic in counterfeit copies of goods protected by American copyrights, patents or trademarks has become a multi-billion dollar drain on our economy. The proceeds of this illegal traffic are stolen from legitimate American companies and then used to fund other criminal enterprises. Unlike several of the other bills in this package that provide tools for combating music and movie piracy, the Anticounterfeiting Act is directed primarily toward combating counterfeiting practices that enable software piracy around the world."
He continued that "To combat this counterfeiting, companies are using increasingly sophisticated authentication features to distinguish genuine, authorized copies of their products and to protect their customers and distributors. Now, the counterfeiters are fighting back by counterfeiting authentication features or by stealing legally produced authentication features and selling them to counterfeiters. The Anticounterfeiting Act of 2004 will impose criminal and civil penalties upon those who traffic in counterfeit or stolen authentication features. This will ensure that law-enforcement agencies and private rights-holders can halt criminal traffic in counterfeit or stolen authentication features before it even creates an illusion of authenticity that allows counterfeit goods to penetrate legitimate markets and endanger both the growth of our economy and the personal safety of our citizens."
Related bills have been introduced in the House and Senate in this Congress and the 107th Congress. See, for example, S 2227, the "Anticounterfeiting Act of 2004", and story titled "Sen. Biden Introduces Anticounterfeiting Bill" in TLJ Daily E-Mail Alert No. 866, March 30, 2004.
Title V, Subtitle B: Domain Name Fraud. Subtitle B, the "Fraudulent Online Identity Sanctions Act", is very similar to HR 3754, a stand alone bill with the same name, that was approved on May 12, 2004, by the House Judiciary Committee. See, story titled "House Judiciary Committee Approves Domain Name Fraud Bill" in TLJ Daily E-Mail Alert No. 897, May 13, 2004.
This subtitle addresses the registration of domain names with false information. Law enforcement authorities use the Whois database to identify and locate people who use web sites to commit crimes. False registration information makes identifying the fraud artists more difficult. False registration information also makes it harder for trademark holders to pursue cybersquatters, for copyrights holders to locate online infringers, and for manufacturers to locate online sellers of counterfeit goods.
Title VI: CREATE Act. Title VI is the "Cooperative Research and Technology Enhancement (CREATE) Act of 2004". This is HR 2391, which has been approved by the House, and S 2192, which has been approved by the Senate. The language of these bills is also in the IPPA.
This is a patent provision, intended to promote collaborative research. The CREATE Act amends Section 103(c) of the Patent Act, which is codified at 35 U.S.C. § 103, to address the August 8, 1997 opinion of the U.S. Court of Appeals for the Federal Circuit in OddzOn Products, Inc. v. Just Toys, Inc., which ruled that derived prior art may serve as evidence of obviousness.
See also, story titled "House Passes CREATE Act" in TLJ Daily E-Mail Alert No. 854, March 11, 2004.
Title VII: Professional Boxing. One more title was added to S 3021 after the draft was circulated last week. It is the "Professional Boxing Amendments Act of 2004''. This lengthy title has nothing to do with intellectual property, or any of the other subject matter of S 3021, the "Family Entertainment" bill.
What is Not in S 3021. Many copyright related bills that have been considered in the 108th Congress, some of which have been approved by committees or by the House or the Senate, are not in S 3021.
Two of the titles of the IPPA are not in S 3021. It does not include Title III of the IPPA, titled the "Protecting Intellectual Rights Against Theft and Expropriation Act of 2004", or "PIRATE Act".
The PIRATE Act would authorize the Department of Justice (DOJ) to bring civil actions for copyright infringement for conduct that already constitutes criminal copyright infringement under 17 U.S.C. § 506. This would accomplish two things. It would make it easier to prevail, because, among other things, the civil action would have a lower burden of proof. It would also provide a less punitive action for youthful P2P music pirates. This is § 302 of the IPPA. This provision would not make any conduct illegal that is not already illegal. Nevertheless, some of the groups that oppose effective protection of copyrights adamantly oppose this provision.
Also, S 3021 does not include Title VI of the IPPA, titled the "Enhancing Federal Obscenity Reporting and Copyright Enforcement Act of 2004", also known as the "EnFORCE Act". This is S 1933.
Also, there are many other intellectual property bills that that are not in S 3021. For example, it does not include S 2560, the "Inducing Infringement of Copyrights Act of 2004", a bill that responds to the opinions of the U.S. District Court and the U.S. Court of Appeals (9thCir) in MGM v. Grokster. It would create a new cause of action for "intentional inducement of infringement". S 3021 does not include HR 107, the "Digital Media Consumers' Rights Act of 2003", Rep. Rick Boucher's (D-VA) bill. Nor does it include HR 3261, the "Database and Collections of Information Misappropriation Act", or HR 3872, the "Consumer Access to Information Act of 2004", bills related to databases.
Gigi Sohn of Public Knowledge stated that "Consumers won a major victory when the Senate passed legislation removing the most egregious elements of the omnibus copyright bill that had previously been under consideration." She added that the Senate "wisely removed the PIRATE Act, which would have made the government the entertainment industry’s private law firm at taxpayer expense."
11/19. The Federal Communications Commission's (FCC) Media Bureau (MB) released a study [217 pages in PDF] titled "Report On the Packaging and Sale of Video Programming Services To the Public". It examines the possibility of satellite and cable companies providing a la carte and themed tier services.
The FCC prepared this study in response to requests from senior members of the House and Senate Commerce Committees. Before writing this study, the MB sought and reviewed public comments.
The study concludes that "Although the Commission shares the public’s concern about rising MVPD rates and the growing coarseness of programming on television and strongly believes in providing the public with greater choice in how they consume television, the Report finds that many of the harms suggested by opponents of a la carte or themed-tier services have merit, although not necessarily to the degree advocated by its most vocal critics. The Report concludes that a la carte regulation will likely increase operational expenses for MVPDs in three main areas: (1) equipment and infrastructure; (2) customer service operations; and (3) billing and back office support. Unless constrained by regulation, many of these increased costs would likely be passed on to subscribers, resulting in higher subscriber fees. In addition, the MVPD cost increases would be most detrimental to smaller cable operators, who often have more limited and more costly options when it comes to obtaining capital to support investment in their operations. The Report discusses how this would have an adverse impact on competition as smaller cable operators would have a difficult time competing with the industry’s primary competitors-the DBS providers."
It also finds "legitimacy to programmers’ concerns about an a la carte regime. Existing networks sold on an a la carte basis spend a significant amount of their revenue marketing themselves to consumers. Under an a la carte mandate, networks formerly sold in tiers would need to significantly increase their marketing expenses to induce consumers to affirmatively select the network. Moreover, any type of a la carte requirement would have a significant negative effect on a program network’s advertising revenues and license fee structure. The loss of cost savings, combined with the loss in advertising revenue and the likely rise in license fees to compensate such losses, may cause many program networks to fail, thus adversely affecting diversity."
Also, it finds that "it is unclear that an a la carte regime would produce the desired result of lower MVPD prices for many pay-television households. The Report's economic analysis estimates that the impact on retail rates of pure or mandatory a la carte sales indicates that only those consumers who would purchase fewer than 9 program networks may see a reduction in their monthly cable bill."
Sen. John McCain (R-AZ), the current Chairman of the Senate Commerce Committee, stated in a release that "I am disappointed in what appears to be a paucity of discussion on the effect of cable and satellite companies offering an a la carte pricing option to consumers in addition to existing pricing options. Instead, it appears the industry has been successful once again in distracting policy makers with a ``parade of horribles´´ that they allege would result from a mandatory a la carte offering. Unfortunately, this creates a fog that obscures the reality that allowing consumers to purchase individual channels would give consumers more control over their cable and satellite bills, particularly for those consumers who watch only a few channels."
Sen. McCain (at right) added that "On behalf of consumers, I will continue working to provide them with more choices and lower prices in the pay television market, whether it be through advocating a voluntary a la carte option or promoting greater competition in the pay television market."
FCC Chairman Michael Powell stated in a release that "We remain committed to our long-standing policy goals of making communications and media technologies available to all Americans at affordable rates and fostering diversity in our nation's media. Many Americans are frustrated with year after year increases in their pay-television bills and we will continue to address those concerns through the recommendations provided in this report and other avenues available to the Commission."
Robert Sachs, P/CEO of the National Cable & Telecommunications Association (NCTA), stated in a release that "The FCC report to Congress makes clear that government-mandated per-channel pricing would not offer any benefits to the vast majority of consumers and would in fact result in higher prices, fewer choices and less diversity in programming. The FCC's report confirms the October 2003 conclusions of the government's General Accountability Office (GAO), and a July 2004 NCTA commissioned study by Booz Allen Hamilton. The FCC report shows that, in order for cable and satellite customers to pay less than their current monthly service, customers who choose a la carte would only be able to purchase and view a handful of channels. Under this scenario, all other customers would end up paying more – even those who chose to continue purchasing the same expanded basic tiers that they buy today."
On October 24, 2003, the General Accounting Office (GAO) released a study [94 pages in PDF] titled "Telecommunications: Issues Related to Competition and Subscriber Rates in the Cable Television Industry". See, story titled "GAO Releases Study on Cable Industry" in TLJ Daily E-Mail Alert No. 766, October 27, 2003.
The TLJ Daily E-Mail Alert will be published on Wednesday, November 24, 2004, but not on Thursday, November 25, or Friday, November 26.
There was considerable Congressional activity last week and over the weekend. TLJ has yet to write about House and Senate passage of S 150, the "Internet Tax Nondiscrimination Act", passage of the "Satellite Home Viewer Extension Reauthorization Act" (SHVERA), and other matters.
The Supreme Court will return from the recess that it began on Monday, November 25, 2004. See, Order List [14 pages in PDF] at page 14.
6:00 - 9:15 PM. The DC Bar Association will host a continuing legal education (CLE) program titled "How to Litigate an Intellectual Property Case Series, Part 3: How to Litigate a Patent Case". The speaker will be Patrick Coyne (Finnegan Henderson). See, notice. Prices vary from $70 to $115. For more information, call 202 626-3488. Location: D.C. Bar Conference Center, B-1 Level, 1250 H St., NW.
Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to its notice of proposed rulemaking (NPRM) regarding the Emergency Alert System (EAS). The FCC adopted this NPRM at its August 4, 2004 meeting, and released it on August 12, 2004. This NPRM is FCC 04-189 in EB Docket No. 04-296. See, notice in the Federal Register, August 30, 2004, Vol. 69, No. 167, at Pages 52843 - 52847.
8:30 AM - 3:00 PM. The Department of Commerce's (DOC) National Institute of Standards and Technology's (NIST), Advanced Technology Program Advisory Committee will meet. Pre-registration is required. Contact Carolyn Peters by November 23 at carolyn.peters@nist.gov or 301 975-5607. See, notice in the Federal Register, November 9, 2004, Vol. 69, No. 216, at Page 64907. Location: NIST, Administration Building, Lecture Room B, Gaithersburg, MD.
Extended deadline to submit comments to Federal Communications Commission (FCC) in response to its Notice of Proposed Rulemaking (NPRM) [38 pages in PDF] regarding use by unlicensed devices of broadcast television spectrum where the spectrum is not in use by broadcasters. See, story titled "FCC Adopts NPRM Regarding Unlicensed Use of Broadcast TV Spectrum" in TLJ Daily E-Mail Alert No. 898, May 14, 2004, and story titled "FCC Releases NPRM Regarding Unlicensed Use of TV Spectrum" in TLJ Daily E-Mail Alert No. 905, May 26, 2004. This NPRM is FCC 04-113 in ET Docket Nos. 04-186 and No. 02-380. See, notice (setting original deadlines) in the Federal Register, June 18, 2004, Vol. 69, No. 117, at pages 34103-34112; and notice [PDF] of extended deadlines, and erratum [PDF].
9:00 AM. Federal Communications Commission (FCC) Commissioner Kathleen Abernathy will hold an event titled "briefing for members of the media". She will discuss her role in the ITU Global Symposium for Regulators (GSR) Conference, to be held in Geneva, Switzerland on December 8-10, 2004. RSVP to Marybeth McCarrick at 202 418-0654 or Meribeth.McCarrick@fcc.gov. Location: FCC, Room 8B115, 445 12th Street, SW.
12:15 PM. The Federal Communications Bar Association's (FCBA) Mass Media Practice Committee will host a brown bag lunch. The title of the event is "Meet the Trade Press". No RSVP is required. Location: NAB, 1771 N St., NW.
9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Rainbow Push Coalition v. FCC, No. 01-1072. Judges Henderson, Rogers and Tatel will preside. Location: Prettyman Courthouse, 333 Constitution Ave., NW.
The Federal Communications Bar Association (FCBA) will host an event titled "18th Annual Chairman's Dinner". The reception will begin at 6:00 PM. The dinner begins at 7:30 PM. Location: Washington Hilton, 1919 Connecticut Ave., NW.
Day one of a two day event hosted by the Federal Communications Bar Association (FCBA) and the Practicing Law Institute (PLI) titled "22nd Annual Telecommunications Policy and Regulation Conference". The price to attend ranges from $1,165.50 to $1,295.00. See, registration form [PDF]. Location. Watergate Hotel, 2650 Virginia Ave., NW.
Day two of a two day event hosted by the Federal Communications Bar Association (FCBA) and the Practicing Law Institute (PLI) titled "22nd Annual Telecommunications Policy and Regulation Conference". The price to attend ranges from $1,165.50 to $1,295.00. See, registration form [PDF]. Location. Watergate Hotel, 2650 Virginia Ave., NW.
12:00 NOON - 2:00 PM. The Progress and Freedom Foundation (PFF) will host a panel discussion titled "The Myths and Realities of Universal Service: Revisiting the Justification for the Current Subsidies". The speakers will include Randolph May and Joseph Kraemer. See, notice and online registration page. Press contact: Patrick Ross at 202 289-8928 or pross@pff.org. Lunch will be served. Location: Room B369, Rayburn Building.
11/22. The Federal Communications Commission (FCC) released a Notice of Apparent Liability for Forfeiture (NAL) [7 pages in PDF] against Pilot Travel Centers for apparently willfully and repeatedly offering for sale radio frequency devices without the required FCC equipment authorizations. This NAL proposes to fine Pilot $125,000.
Pilot sells Amateur Radio Service (ARS) transmitters that are easily converted by consumers into Citizens Band (CB) radio transmitters. Radio frequency devices that transmit solely on ARS frequencies are not subject to FCC equipment authorization requirements prior to manufacture or marketing. However, CB radios are subject to equipment authorization requirements. Moreover, the FCC's rules provide that CB radios include "a transmitter that operates or is intended to operate at a station authorized in the CB".
The FCC issued numerous citations to Pilot over several years. Pilot continued to market its devices. The NAL also notes that "The proliferation of non-certified CB transmitters may result in interference to certified CB transmitters and other devices, thereby undermining the effectiveness of our technical rules."
Pilot is a travel center business, not a business that focuses on consumer electronics. That is, its retail operations, which are located on major highways, provide gas, meals, groceries, and services, including internet kiosks, check cashing, money orders, laundry, game rooms, pay phones with data ports, wireless internet, audio book rentals, Western Union, and pre-paid phone cards.
On October 28, 2004, the FCC's Enforcement Bureau (EB) released an Order and Consent Decree [8 pages in PDF] that fines TON Services, Inc. $40,000 for violating the universal service reporting and contribution requirements of 47 U.S.C. § 254, and the FCC's rules thereunder. TON Services does not focus telecommunications. It provides services to truck drivers and other travelers. It provides load/equipment posting, freight matching, advertising services, truck insurance, flower bouquet ordering, and other truck driver related services. It also provides access to pre-paid calling cards, payphones, WiFi access and data jacks at truck stops.
This NAL is FCC 04-272. The FCC adopted this item on November 18, 2004, and released it on November 22, 2004. See also, FCC release [PDF].
11/22. The Council of the European Union appointed the President and Members of the Commission of the European Communities, effective November 22, 2004. See, list [PDF].
José Barroso was appointed President.
Neelie Kroes was appointed to replace Mario Monti as Commissioner for Competition Policy. She is a member of the Liberal Party in the Netherlands.
Kroes (at left) gave a speech [9 pages in PDF] on her appointment in which she stated that "New economies are emerging quickly; new technologies mean our network economy moves ever quicker. We need to ensure that Europe can retain and increase its competitive edge. Based on the triangle of knowledge, entrepreneurship and access to finance, innovation and competition can take on new dimensions to meet these challenges. I want to ensure that European rules allow all three elements of this triangle to flourish."
She also said that "I think more should be done to remove obstacles to competition in recently liberalised sectors, such as telecommunications, postal services, energy and transport, and to stimulate innovation and new ideas."
Peter Mandelson was appointed to replace Pascal Lamy as Commissioner for Trade. He is from the United Kingdom, and is a member of the Tony Blair's Labour Party.
Mandelson (at right) gave a speech on October 4, 2004 in which he stated that "If confirmed, I hope to achieve the following ... First and foremost, complete the Doha Round: to open markets for industrial goods, services and agriculture, including between developing countries. In the face of globalisation, the Round should make trade's rule book fair for all, integrate development goals into trade policies, and benefit the poor. The Hong Kong ministerial must make a critical advance."
He also addressed the "transatlantic agenda". He said that "We should find new ways to move forward by reducing the scope for conflict between our regulatory approaches and by forging closer cooperation. There is no more important partnership for the world's prosperity and security than that between Europe and America. We need to strengthen it further. We need dialogue between EU and US civil society, and I intend to be a good listener. I will do all I can to manage and resolve the inevitable disputes, so that they do not undermine the wider relationship."
Viviane Reding was appointed to replace Erkki Liikanen as Commissioner for Information Society. She is from Luxembourg.
11/19. The Office of the U.S. Trade Representative (USTR) issued a release [PDF] regarding discussions at the Asia-Pacific Economic Cooperation (APEC) summit in Santiago, Chile pertaining to protection of intellectual property rights. It states that the participants "stressed the importance of effective intellectual property rights protection and enforcement regimes, and their contribution towards promoting investment, innovation, and growth."

References: § 208
 § 108

§ 212
 § 110
 § 108
 § 103
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 § 506
 § 302
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 § 254