Source: http://www.techlawjournal.com/alert/2011/07/08.asp
Timestamp: 2019-04-22 10:32:23+00:00

Document:
TLJ Daily E-Mail Alert No. 2,254, July 8, 2011.
July 8, 2011, Alert No. 2,254.
7/7. Broadband internet access service (BIAS) providers, major movie and record industry companies, and their trade groups announced an agreement that establishes a detailed set of procedures for notifying alleged online peer to peer infringers of their infringing activity, and affording alleged infringers of an opportunity for a non-judicial review. The agreement references, but does not require, suspension or termination of internet access.
Summary of the Agreement. This agreement [36 pages in PDF] is titled Memorandum of Understanding". It is an enforceable contract between certain content providers and certain BIAS providers.
They agree to create, incorporate, and run a Center for Copyright Information (CCI) to educate the public on copyright infringement. The content parties to the agreement will develop "methodologies" for identifying P2P online infringement. The CCI will retain an expert with power to review and recommend changes to these methodologies.
The BIAS providers (which the agreement terms "ISPs") will then develop "methodologies" for matching IP addresses identified by the content side with subscriber accounts, keep a record of repeat alleged infringement, and apply "Mitigation Measures". Under this process, the content side, which has IP numbers for alleged infringers, does not obtain their identities, which the BIAS side possesses.
The content providers' representatives (that is, the RIAA and MPAA, but not member companies, or others) will write notices of alleged infringement, and send them to the BIAS providers. The agreement sets the required content of these notices, and establishes limitations upon the issuance of such notices. The BIAS providers will then send notices to subscribers.
The agreement sets minimum requirements for the BIAS providers' terms of service (TOS). These must provide, among other things, that copyright infringement violates the TOS.
The agreement requires BIAS providers to establish a "Copyright Alert Program". This program shall consist of sending six notices, spaced at least seven days apart. The agreement sets the substance of each alert, which are to contain "escalating warning language".
The body of the agreement sets out in detail the procedure for these escalating notices. The agreement also provides for a review process for subscribers who have received notices, set out in even greater detail in an attachment to the agreement.
This non-judicial review process allows for only seven grounds for review: misidentification of the account, unauthorized use of the account, authorization by the copyright owner, fair use, misidentification of the file, and publication before 1923.
While this process allows the defense of fair use, which is codified at 17 U.S.C. § 107, it does not recognize other defenses or limitations upon the exclusive rights of copyright, such as reproduction for blind or other people with disabilities (17 U.S.C. § 121) or reproduction by libraries and archives (17 U.S.C. § 108).
Nor does it recognize as a defense that the complaining content company is not the owner or licensee of the copyright for the work at issue.
The substantially identical NCTA release, RIAA release, MPAA release, and CCI release state that this agreement provides for "a series of early alerts -- up to six -- in electronic form, notifying the subscriber that his or her account may have been misused for online content theft of film, TV shows or music".
These releases add that "The system will also provide subscribers the opportunity for an independent review to determine whether a consumer’s online activity in question is lawful or if their account was identified in error. There are no new laws or regulations established as a part of this voluntary agreement."
Termination of Subscriber Accounts. These releases state that "Termination of a subscriber's account is not part of this agreement."
The agreement, which is subject to revision, does not require BIAS providers to suspend or terminate service following the required notice and review processes.
It does however contain several references to suspension or termination, and adds that "All references in this Agreement to the possibility of termination of a subscriber account are intended solely as an informational element of the Copyright Alerts required by the Copyright Alert program."
Parties to the Agreement. The content parties are the MPAA and member companies -- Walt Disney Studios Motion Pictures, Paramount Pictures Corporation, Sony Pictures Entertainment Inc., Twentieth Century Fox Film Corporation, Universal City Studios LLC, and Warner Bros. Entertainment -- and the RIAA and member companies -- UMG Recordings, Inc., Warner Music Group, Sony Music Entertainment, and EMI Music North America.
The BIAS parties are AT&T subsidiaries, Verizon subsidiaries, Comcast, Time Warner and CSC's Cablevision systems. Numerous other and smaller BIAS providers are not original parties to the agreement, but may become parties.
The recitation of facts at the beginning of the agreement mentions the American Association of Independent Music (AAIM) and the Independent Film and Television Alliance (IFTA), which represent independent record labels and film production companies. However, there are no signature lines for either group.
The recitation of facts at the beginning of the agreement also states that peer to peer infringement is a problem for "computer software, gaming software, e-books and the like". However, neither the Business Software Alliance (BSA), its members, the Entertainment Software Association (ESA), its members, the Association of American Publishers (AAP), nor its members are parties.
The agreement provides that parties may withdraw for any of several enumerated reasons.
Broadband/Dial-up and Wired/Wireless. The agreement covers broadband internet access service (BIAS) providers, but not dial-up access service. It also applies to both wired and wireless service, and residential and non-residential service.
However, there is a paragraph in the recitation of facts that states that the AAIM and IFTA, who are not original signatories, "seek to establish a consumer-focused process for identifying and notifying residential wired Internet access service customers".
Center for Copyright Information. The agreement provides for the creation of a Center for Copyright Information (CCI), to be governed by a six member "Executive Committee", with three representatives each from the content and BIAS industries.
It also provides that a three member "Advisory Board shall be drawn from relevant subject matter expert and consumer interest communities". However, it would be picked by the parties to the agreement. The agreement provides for the CCI to be incorporated in the state of Delaware.
It then provides that the "CCI shall develop an educational program to inform the public about laws prohibiting Online Infringement and lawful means available to obtain digital works online and through other legitimate means".
Choice of Law and Fora. The agreement includes a choice of law clause (state of New York) which would control in matters to which state law applies, such as breach of contract.
It also contains a choice of forum clause (Manhattan, New York).
Other Persons and Entities. This agreement creates rights and obligations for parties to the agreement only. It creates no third party beneficiaries.
Only certain content companies, service providers, and their trade groups can become parties. Customers of BIAS providers, other companies, and other groups, are not eligible to become parties to the agreement.
Hence, for example, neither customers nor affected device makers or service providers could be sued, or bring suit, under the agreement.
Reaction. Sandra Aistars, head of the Copyright Alliance, stated in a release that "This is a great example of private industry coming together to recognize the harm caused to creators the world over by content theft and working toward practicable solutions. We applaud the leadership of these companies and trade groups. This is a tremendously positive step and we support its goals of consumer education, and preservation of creativity and innovation. We would welcome the dialogue expanding in the future to address other kinds of copyrighted works that also suffer from overwhelming digital theft."
Ed Black, head of the Computer and Communications Industry Association (CCIA), stated in a release that "This shows that the private sector can credibly address problems without government interference in Internet architecture, such as the PROTECTIP Act (formerly COICA). At the very least, policy makers should wait and see how this and other private sector solutions work before irrevocably committing us to government regulation of the Internet." He continued that "This industry based solution comes as the Senate proposes plans for the government to keep blacklists and mandate that thousands of tech and telecommunications companies patrol the Internet and even erase search results and links to content. These government regulations would have unprecedented collateral damage on the infrastructure of the Internet." Rob Atkinson, head of the Information Technology and Innovation Foundation (ITIF), praised the agreement in a release. He stated that "digital piracy is a serious and widespread problem negatively affecting the Internet ecosystem. ISP warning programs like the one announced today can have a significant impact on reducing illegal digital content piracy and as such, can better enable the continued robust production of high quality digital content."
The Center for Democracy and Technology (CDT) and Public Knowledge (PK) wrote in a joint statement that "Today's agreement has the potential to be an important educational vehicle that will help reduce online copyright infringement. A voluntary, notification-centric approach can sidestep many of the serious concerns that would be raised by government mandates, the adoption of new snooping or filtering technologies, or a draconian 'three strikes' approach centered on disconnecting Internet users."
The CDT and PK added that "we are particularly disappointed that the agreement lists Internet account suspension among the possible remedies. We believe it would be wrong for any ISP to cut off subscribers, even temporarily, based on allegations that have not been tested in court."
The PK's Sherwin Siy wrote in a separate piece that "the program could be a reasonable effort to reduce P2P infringement and reduce the need for expensive and inefficient litigation. But it clearly has lots of kinks to be worked out and devils to be cleared in the details."
He also noted that "It's important, though, to consider that this agreement still sits within a larger framework of actions and consequences for the individual accused user. The ISP, independently of this system, could still kick a user off for a terms of service violation without any of this process. Content companies can still subpoena ISPs for user information at any time and proceed in a civil suit against the individual. And the DMCA requires ISPs to terminate “repeat infringers."
Commentary: Authors v. Aggregators. This agreement will likely contribute to the ongoing trend in copyright enforcement, away from an authorial system, and towards an aggregator system.
There is a trend away from reliance upon rights holders' actions brought under 17 U.S.C. § 501 for direct infringement under 17 U.S.C. § 106, in which the rights holder obtains damages. This remedy has historically been the cornerstone of the authorial system, but is of little use in the face of new information technologies.
There is a trend towards reliance upon other mechanisms, which do little for authors and other creators, such as (1) actions and threats of actions for indirect, vicarious, contributory, or inducement of, infringement, (2) limiting access to protected works technologically, (3) assertion of violation of the anti-circumvention provisions of Digital Millennium Copyright Act, and now (4) enforcement of contracts between BIAS providers and large content aggregators.
The Congress would further this trend by enacting orphan works legislation, or bills such as S 968 [LOC | WW], the "Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act of 2011", or "PROTECT IP Act".
7/8. The U.S. District Court (SDNY) heard oral argument on a government motion to dismiss in Abidor v. Napolitano, a Constitutional challenge to the Department of Homeland Security's (DHS) practice of searching, copying and detaining electronic devices at international borders without reasonable suspicion. The Court has yet to rule on the motion.
Catherine Crump of the ACLU, which is representing the plaintiffs, stated in a release that "Allowing government officials to look through Americans' most personal materials -- the things we store on our laptops, cameras and cell phones – without reasonable suspicion is unconstitutional, inconsistent with American values and a waste of limited resources".
She added that "The government has no limits on what it can search at the border, and maintains that a computer or cell phone should be treated just like any other baggage at a border check. But we all know that an electronic device is very different than a suitcase."
See, DHS's January 28, 2011 memorandum [35 pages in PDF] in support of motion to dismiss, ACLU's March 9, 2011, opposition [45 pages in PDF] to the motion to dismiss, and DHS's March 30, 2011, reply brief.
See also, story titled "ACLU Sues DHS Over Suspicionless Searches of Electronic Devices at Borders" in TLJ Daily E-Mail Alert No. 2,129, September 9, 2011, and story titled "Update on Abidor v. DHS" in TLJ Daily E-Mail Alert No. 2,224, April 20, 2011.
This case is Pascal Abidor, et al. v. Janet Napolitano, Alan Bersin and John Morton, U.S. District Court for the Eastern District of New York, D.C. No. 10-CV-4059-ERK, Judge Robert Korman presiding.
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. Votes will be postponed until 6:30 PM. See, Rep. Cantor's schedule for the week of July 11.
12:30 PM. The Computer and Communications Industry Association (CCIA) will host an event to release and discuss the 2011 edition of a report titled "Fair Use in the U.S. Economy". It pertains to the economic importance of fair use and other exceptions to copyright. Lunch will be served. For more information, contact Heather Greenfield or Ed Black at 202-783-0070. Location: Cannon Caucus Room, Cannon Building.
Extended deadline to submit reply comments to the Federal Communications Commission (FCC) in response to the December 3, 2010, petition for declaratory ruling (PDR) filed by the CTIA regarding the scope of the federal ban on state and local entry regulation, codified at 47 U.S.C. § 332(c)(3)(A), and the state of Connecticut's new regulatory regime for wireless service provides. See, CTIA's PDR part 1 and part 2, CTIA's request to extend comment deadlines, and FCC's extension notice in the Federal Register, April 18, 2011, Vol. 76, No. 74, at Pages 21742-21743. This proceeding is WT Docket No. 11-35.
The House will meet at 10:00 AM for morning hour, and at 12:00 NOON for legislative business. See, Rep. Cantor's schedule for the week of July 11.
8:00 AM - 5:00 PM. The Federal Trade Commission (FTC) will host an event titled "Stolen Futures: A Forum on Child Identity Theft". See, conference web site. Location: FTC Conference Center, 601 New Jersey Ave., NW.
9:00 - 10:30 AM. The Center for American Progress (CAP) will host an event titled "Reinvigorating Antitrust Enforcement". The main speaker will be Christine Varney (outgoing Assistant Attorney General in charge of the DOJ's Antitrust Division). The other speakers will be Winnie Stachelberg (CAP), Mark Cooper (Consumer Federation of America), Albert Foer (American Antitrust Institute), Howard Morse (Cooley), Scott Sher (Wilson Soncini), and David Balto (CA). Location: CAP, 10th floor, 1333 H St., NW.
10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Crime, Terrorism and Homeland Security will hold a hearing on HR 1981 [LOC | WW], the "Protecting Children from Internet Pornographers Act of 2011". The witnesses will be Ernie Allen (National Center for Missing and Exploited Children), Michael Brown (Bedford County Sheriff's Office), and Marc Rotenberg (EPIC). See, notice. Location: Room 2141, Rayburn Building.
10:30 AM. The Federal Communications Commission (FCC) will hold an event titled "open meeting". See, tentative agenda. Location: FCC, Commission Meeting Room, 445 12th St., SW.
1:00 - 2:00 PM. Fulbright & Jaworski (F&J) will host a web seminar titled "Making Sense of Therasense: Past, Present and Future of Inequitable Conduct". The speakers will be Mark Emery, Sheila Kadura, Michael Krawzsenek, and Daniel Leventhal of F&J, and Dennis McNamara of Pozen, Inc. See, notice and registration page.
1:30 - 4:30 PM. The Department of Homeland Security's (DHS) National Infrastructure Advisory Council will meet. See, meeting agenda [PDF] and notice in the Federal Register, Vol. 76, No. 119, Tuesday, June 21, 2011, Pages 36137-36138. Location: Washington Marriott at Metro Center, Salon A, 775 12th St., NW.
2:30 PM. The Senate Homeland Security and Government Reform Committee's (SHSGAC) Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security will hold a hearing titled "Can New Technology and Private Sector Business Practices Cut Waste and Fraud in Medicare and Medicaid?". The witnesses will be Peter Budetti (Centers for Medicare and Medicaid Services), Lewis Morris (Department of Health and Human Services), Valerie Melvin (Government Accountability Office), and Louis Saccoccio (National Health Care Anti-Fraud Association). The SHSGAC will webcast this event. See, notice. Location: Room 342, Dirksen Building.
8:00 AM - 2:00 PM. The Information Technology and Innovation Foundation (ITIF) and National Journal will host an event titled "National Journal Innovation Works Conference". See, ITIF notice. Location: Ronald Reagan Building and International Trade Center Atrium Ballroom, Concourse Level. 1300 Pennsylvania Ave., NW.
8:45 - 11:00 AM. The Free State Foundation (FSF) will host an event titled "Universal Service and Intercarrier Compensation: Will the FCC Finally Bite the Reform Bullet?" The speakers will include James Assey (NCTA), Jerry Ellig (Mercatus Center), Mike Romano (NTCA), and Tom Tauke (Verizon). See, notice. A light breakfast will be served. This event is free and open to the public. To register to attend, e-mail Kathee Baker at kbaker at freestatefoundation dot org Location: National Press Club, 13th Floor, 529 14th St., NW.
10:00 AM. The House Appropriations Committee (HAC) will mark up HR __, the FY 2012 Commerce, Justice, Science Appropriations Bill. See, notice. Location: Room 2359, Rayburn Building.
10:00 AM. The House Financial Services Committee (HFSC) will hold a hearing titled "Monetary Policy and the State of the Economy". The witness will be Ben Bernanke, Chairman of the Federal Reserve Board (FRB). See, notice. Location: Room 2128, Rayburn Building.
10:00 AM. The Senate Commerce Committee (SCC) will hold a hearing titled "Unauthorized Charges on Telephone Bills: Why Crammers Win and Consumers Lose". The witnesses will be Lisa Madigan (Attorney General of Illinois), Elliot Burg (Office of the Vermont Attorney General), Susan Eppley, David Spofford (CEO of Xigo, LLC), and Walter McCormick (U.S. Telecom Association). See, notice. Location: Room 253, Russell Building.
2:00 - 6:00 PM. The New America Foundation (NAF) will host an event titled "How to Ignite, or Quash, a Revolution in 140 Characters or Less: The Promise and Limitations of New Technologies in Spreading Democracy". There will be numerous speakers and panels. Michael Posner (Assistant Secretary of State for Bureau of Democracy, Human Rights and Labor) will address "Internet Freedom and Human Rights: The Obama Administration's Perspective". Ian Schuler (Senior Program Manager for the Department of State's Internet Freedoms Program) will address "Bypassing the Master Switch". See, notice. Location: NAF, Suite 400, 1899 L St., NW.
2:30 PM. The Senate Judiciary Committee (SJC) will hold a hearing on the nominations of Morgan Christen (to be a Judge of the U.S. Court of Appeals for the 9th Circuit), Yvonne Rogers (USDC/NDCal), Richard Andrews (USDC/DDel), Scott Skavdahl (USDC/DWyo), and Sharon Gleason (USDC/DAk). See, notice. The SJC will webcast this hearing. Location: Room 226, Dirksen Building.
9:00 - 11:00 AM. The Internet Caucus and the European Internet Foundation (EIF) will host an event titled "Transatlantic Roundtable on Privacy and Intellectual Property". The speakers will include Rick Boucher (Sidley Austin), Erika Mann, James Elles (European Parliament), Pilar del Castillo (EP), Ivailo Kalfin (EP), Catherine Trautmann (EP), and Marietje Schaake (EP). Register by emailing rsvp at netcaucus dot org or by calling 202-407-8829. Location: Reserve Officers Association, One Constitution Ave., NE.
10:00 AM - 12:00 PM. The House Intelligence Committee (HIC) will hold a closed hearing titled "Intelligence Oversight". See, notice. Location: Room HVC-304, Capitol Building.
10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda again includes consideration of Steve Six (to be a Judge of the U.S. Court of Appeals for the 10th Circuit), Stephen Higginson (to be a Judge of the U.S. Court of Appeals for the 5th Circuit), Jane Milazzo (USDC/EDLa), Alison Nathan (USDC/SDNY), Katherine Forrest (USDC/SDNY), and Susan Hickey (USDC/WDArk). The SJC will webcast this event. See, notice. Location: Room 226, Dirksen Building.
10:00 AM - 12:00 PM. The Senate Banking Committee (SBC) will hold a hearing titled "Semiannual Monetary Policy Report to the Congress". The witness will be Ben Bernanke, Chairman of the Federal Reserve Board (FRB). See, notice. Location: Room 538, Dirksen Building.
10:00 AM. The Senate Commerce Committee's (SCC) Subcommittee on Science and Space will hold a hearing titled "National Nanotechnology Investment: Manufacturing, Commercialization, and Job Creation". The witnesses will be Chad Mirkin (Northwestern University ), Charles Romine (National Institute of Standards and Technology), Diandra Pelecky (West Virginia University), Thomas O'Neal (University of Central Florida), and George McLendon (Rice University). See, notice. Location: Room 253, Russell Building.
11:00 AM. The House Commerce Committee's (HCC) Subcommittee on Commerce, Manufacturing, and Trade and Subcommittee on Communications and Technology will hold a joint hearing titled "Internet Privacy: The Views of the FTC, the FCC, and NTIA". The witnesses will be Julius Genachowski (Chairman of the FCC), Lawrence Strickling (head of the NTIA), and Edith Ramirez (FTC Commissioner). See, notice. Location: Room 2123, Rayburn Building.
1:30 - 4:30 PM. The House Oversight and Government Reform Committee's (HOGRC) Subcommittee on Technology, Information Policy, Intergovernmental Relations, and Procurement Reform will hold a hearing titled "Transparency And Federal Management IT Systems". See, notice. Location: Room 2247, Rayburn Building.
4:00 - 7:15 PM. The DC Bar Association will host an event titled "Antitrust Investigations: Tactical and Ethical Issues". The speakers will be Kathryn Fenton (Jones Day), Ray Hartwell (Hunton & Williams), Donald Klawiter (Sheppard Mullin Richter & Hampton), and Ann O'Brien (DOJ's Antitrust Division). The price to attend ranges from $89 to $129. CLE credits. The DC Bar has a history of barring reporters from its events. For more information, call 202-626-3488. See, notice. Location: DC Bar, 1101 K St., NW.
6:30 PM. There will be a panel discussion titled "Up Next -- Hyperlocal Coverage: Neighborhood Blogs, Community Websites, and the Future of the News". The price to attend is $10. Tickets are required. See, notice. Location: National Press Club, First Amendment Lounge, 13th Floor, 529 14th St., NW.
The House will meet at 9:00 AM for legislative business. See, Rep. Cantor's schedule for the week of July 11.
8:30 AM. The House Commerce Committee's (HCC) Subcommittee on Communications and Technology will hold a hearing titled "Spectrum and Public Safety Issues". See, notice. Location: Room 2123, Rayburn Building.
10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Intellectual Property, Competition and the Internet will hold a hearing on HR __, the "Innovative Design Protection and Piracy Prevention Act". See, notice. Location: Room 2141, Rayburn Building.

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