Source: http://www.techlawjournal.com/alert/2005/04/18.asp
Timestamp: 2019-04-19 04:18:50+00:00

Document:
TLJ Daily E-Mail Alert No. 1,117, April 18, 2005.
April 18, 2005, 9:00 AM ET, Alert No. 1,117.
4/18. The House of Representatives is scheduled to consider two intellectual property bills on Tuesday, April 19, under suspension of the rules. The House will consider S 167, the "Family Entertainment and Copyright Act of 2005", and HR 683, the "Trademark Dilution Revision Act of 2005". See, Republican Whip Notice.
S 167, which is also known as the FECA, contains four separate copyright related parts. It includes the ART Act, which includes a provision that criminalizes certain uses of camcorders in movie theaters. It includes the Family Movie Act, which pertains to ClearPlay type content skipping technology. It also contains the Film Preservation Act and the Orphan Works Act.
The House Judiciary Committee approved S 167 on March 9, 2005. See, story titled "House Judiciary Committee Approves Copyright Bill" in TLJ Daily E-Mail Alert No. 1,093, March 11, 2005.
The Senate approved this bill on February 1, 2005. See, story titled "Senate Approves Copyright Bill" in TLJ Daily E-Mail Alert No. 1,069, February 3, 2005. That story contains a more detailed summary of its contents.
HR 683 is a reaction to the Supreme Court's March 4, 2003 opinion [21 pages in PDF] in Moseley v. V Secret. See, story titled "Supreme Court Rules in Trademark Dilution Case" in TLJ Daily E-Mail Alert No. 618, March 6, 2003.
The House Judiciary Committee's Subcommittee on Courts, the Internet and Intellectual Property (CIIP) held a hearing on February 17, 2005. See, story titled "CIIP Subcommittee Holds Hearing On Trademark Dilution Revision Act" in TLJ Daily E-Mail Alert No. 1,081, February 23, 2005. The CIIP Subcommittee amended and approved this bill on March 3, 2005. See, story titled "House CIIP Subcommittee Amends and Approves Trademark Dilution Revision Act" in TLJ Daily E-Mail Alert No. 1,088, March 4, 2005. The House Judiciary Committee approved HR 683 on March 9, 2005. See, story titled "House Judiciary Committee Approves Trademark Dilution Bill" in TLJ Daily E-Mail Alert No. 1,093, March 11, 2005.
The Senate has not taken action on this bill.
S 167 and HR 683 are listed as the 2nd and 4th items on the agenda, respectively. The House will meet at 12:30 PM for morning hour, and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. Items considered under suspension of the rules cannot be amended. However, these items also require a two-thirds majority. Almost all items considered under suspension of the rules have widespread support.
There is a third intellectual property related item on the agenda, HConRes 53. This is a non-controversial resolution expressing the sense of the Congress regarding the issuance of the 500,000th design patent by the U.S. Patent and Trademark Office (USPTO) to DaimlerChrysler Corporation, which has operations in the state of Michigan. The sponsor is Rep. John Conyers (D-MI). The new Secretary of Commerce, Carlos Gutierrez is also from Michigan.
The agenda for April 19 also includes HR 1038, the "Multidistrict Litigation Restoration Act of 2005". This bill would amend 28 U.S.C. § 1407, which pertains to multidistrict litigation, to allow a designated U.S. district court, known in the statute as the "transferee" court, to retain jurisdiction over referred cases arising from the same fact scenario for purposes of determining liability and punitive damages, or to send them back to the respective courts from which they were transferred.
This bill responds to the 1998 opinion of the Supreme Court in Lexecon v. Milberg Weiss, which is also reported at 523 U.S. 26. See also, House Report 109-024.
In addition, both the House and Senate will hold hearings this week on patent issues. On Wednesday, April 20, the House Judiciary Committee's CIIP Subcommittee will hold a hearing titled "Oversight Hearing on Committee Print Regarding Patent Quality Improvement". On Thursday, April 21, the Senate Judiciary Committee's Subcommittee on Intellectual Property will hold a hearing titled "The Patent System Today and Tomorrow".
4/15. The Government Accountability Office (GAO) released a report [30 pages in PDF] titled "Information Security: Internal Revenue Service Needs to Remedy Serious Weaknesses over Taxpayer and Bank Secrecy Act Data".
This report finds that the Internal Revenue Service (IRS) "has not effectively implemented controls over key financial and tax processing systems", and that these "weaknesses impair IRS’s ability to ensure the confidentiality, integrity, and availability of its sensitive financial and taxpayer data and FinCEN’s Bank Secrecy Act data".
The report finds that the "IRS has not implemented effective electronic access controls to prevent, limit, or detect unauthorized access to computing resources from the internal IRS computer network."
The report also finds that the IRS has not "effectively implemented certain other information security controls relating to physical security, segregation of duties, and service continuity".
The report concludes that "These information security control weaknesses exist primarily because IRS has not fully implemented an agency-wide information security program to effectively protect the information and information systems that support the operations and assets of the agency."
The IRS has a long history of information security weakness. See for example, story titled "Sen. Grassley Condemns IRS for 2,300 Missing Computers" in TLJ Daily E-Mail Alert No. 342, January 9, 2002; story titled "IRS Loses More Computers, Jeopardizes Taxpayer Info" in TLJ Daily E-Mail Alert No. 493, August 16, 2002; story titled "GAO Report Finds That Computer Weaknesses At IRS Put Taxpayer Data At Risk" in TLJ Daily E-Mail Alert No. 673, June 4, 2003; and story titled "IRS Data Vulnerable" in TLJ Daily E-Mail Alert No. 145, March 16, 2001.
The just released GAO report states that the "IRS has made progress".
4/13. The U.S. Court of Appeals (4thCir) issued its opinion [9 pages in PDF] in Directv v. Nicholas, a case regarding civil actions by satellite television providers against individuals who use pirate access devices to avoid paying for service. The Court of Appeals held that a satellite company may maintain an action for damages under 18 U.S.C. § 2520 against someone who has violated 18 U.S.C. § 2511.
Directv asserts that Dennis Nicholas used a pirate access devices to decrypt Directv signals, without paying Directv.
18 U.S.C. § 2511(1) criminalizes pirate access. It provides, in part, that "any person who -- (a) intentionally intercepts, endeavors to intercept, or procures any other person to intercept or endeavor to intercept, any wire, oral, or electronic communication ... shall be punished ..."
18 U.S.C. § 2520, among other things, creates a private right of action for violation of § 2511. It provides, in part, that "Except as provided in section 2511(2)(a)(ii), any person whose wire, oral, or electronic communication is intercepted, disclosed, or intentionally used in violation of this chapter may in a civil action recover from the person or entity, other than the United States, which engaged in that violation such relief as may be appropriate."
The Court of Appeals wrote that there is no dispute that "the government could criminally proceed against Nicholas for his alleged conduct". Moreover, it is undisputed that "satellite television transmissions constitute electronic communications under § 2510(12)", and that "the act of using a device to decrypt encrypted satellite television transmissions unquestionably falls under the definition of ``interception´´ as defined in § 2510(4). Thus, the Court of Appeals wrote that "under the plain language of the statutes, using a pirate access device to intercept the encrypted satellite transmissions of a satellite television provider constitutes a violation of § 2511(1)(a)".
The issue in this case is whether satellite company can recover damages under 18 U.S.C. § 2520 against the person who access its signal in violation of 18 U.S.C. § 2511(1)(a).
The Court of Appeals concluded that "the plain language of the statutes decidedly favors DIRECTV and provides it a cause of action. As evinced by the plain language of the section, § 2520(c) provides two methods of computing damages. One method is applicable to interceptions of transmissions that are not encrypted. The other method is applicable to all other actions, including those that intercept encrypted satellite transmissions. Because DIRECTV alleges that Nicholas intercepted its encrypted satellite transmissions, DIRECTV may maintain its private cause of action against Nicholas."
It should also be recalled that on June 16, 2004, the U.S. Court of Appeals (11thCir) issued its opinion [12 pages in PDF] in Directv v. Treworgy, holding that 18 U.S.C. § 2520 does not provide a private right of action against persons who possess devices used to intercept satellite transmissions in violation of 18 U.S.C. § 2512(1)(b). Section 2512 criminalizes manufacturing, assembling, possessing, and selling pirate access devices, while Section 2511 criminalizes using those devices to actually intercept signals.
See, story titled "11th Circuit Limits Private Suits by DBS Providers Against Pirates" in TLJ Daily E-Mail Alert No. 922, June, 21, 2004.
This case is Directv Incorporated v. Dennis Nicholas, U.S. Court of Appeals for the 4th Circuit, No. 04-1845, an appeal from the U.S. District Court for the Eastern District of North Carolina, at Raleigh, D.C. No. CA-03-697-5-BO, Judge Terrence Boyle presiding.
In the present case the Court of Appeals reversed the District Court. President Bush has nominated the reversed Judge, Terrence Boyle, for a seat on the U.S. Court of Appeals for the 4th Circuit. He is one of many judicial nominees being blocked by Senate Democrats.
4/15. The Federal Communications Commission (FCC) released an order [PDF] that names Kevin Martin the "Defense Commissioner".
This order states that the responsibilities include "(1) representing the Commission in interagency matters pertaining to homeland security, national security and emergency preparedness, and defense matters, including matters pertaining to continuity of government during national emergencies; (2) serving as the principal point of contact for the Commission on all matters pertaining to the Department of Homeland Security; (3) developing emergency programs covering service provision by wireless and wireline telecommunications carriers, broadcast, cable, and satellite facilities, as well as radio frequency assignment, investigation, and enforcement; and (4) assuming the duties of the Commission under certain emergencies."
The emergency powers of the Defense Commissioner are set forth in 47 C.F.R. § 0.181. This rule provides, in part, that the Defense Commissioner has the authority, "In the event of enemy attack, or the imminent threat thereof, or other disaster resulting in the inability of the Commission to function at its offices in Washington, D.C., to assume all of the duties and responsibilities of the Commission and the Chairman ..."
This order is FCC 05-85. It was adopted on April 13, and released on April 15, 2005.
4/15. Michael Benson was named EVP and CIO of Directv. He previously worked for Businessedge Solutions, Inc. See, Directv release.
4/14. The House Appropriation's Committee's Subcommittee on Science, State, Justice, and Commerce, and Related Agencies postponed its hearing on the Federal Communications Commission. This hearing had been scheduled for April 14. It has been rescheduled for April 26.
4/14. The House Commerce Committee's Subcommittee on Telecommunications and the Internet held a hearing titled "The ORBIT Act: An Examination of Progress Made in Privatizing the Satellite Communications Marketplace". See, prepared testimony [9 pages in PDF] of Donald Abelson (Chief of the Federal Communications Commission's International Bureau), prepared testimony [7 pages in PDF] of Phillip Spector (Intelsat Global Service Corporation), prepared testimony [14 pages in PDF] of JayEtta Hecker (Government Accountability Office), prepared testimony [16 pages in PDF] of Daniel Goldberg (New Skies Satellites B.V.), and prepared testimony [6 pages in PDF] of Alan Auckenthaler (Inmarsat Ventures Limited).
4/14. The House Armed Services Committee and the House International Relations Committee held a joint hearing titled "EU Arms Embargo Against China". One of the witnesses was Peter Lichtenbaum, the acting Under Secretary for Industry and Security at the Department of Commerce. He discussed the U.S. export control regime on dual use technologies, including electronics. See, prepared testimony of Lichtenbaum.
4/14. The European Commission announced in a release that it "launched legal proceedings against ten EU Member States to remedy infringements of EU rules on electronic communications. It points to defects in national laws, and incorrect practical application of EU rules, in Germany, Italy, Latvia, Malta, the Netherlands, Austria, Poland, Portugal, Slovakia and Finland. The opening of these proceedings follows concerns identified in the Commission’s Implementation Reports on the electronic communications sector, the most recent of which was published at the end of 2004."
The Senate will meet at 1:00 PM for morning business. At 2:00 PM it will resume consideration of HR 1268, the Iraq/Afghanistan Supplemental Appropriations bill.
The Supreme Court will return on from the recess that it began on Monday, April 4. See, Order List [12 pages in PDF] at page 12.
Deadline to submit to the Federal Communications Commission (FCC) replies to oppositions to petitions to deny Nextel's and Sprint's joint applications for FCC approval of the transfer of control to Sprint of the licenses and authorizations held both by Nextel. That is, this is a merger review proceeding. See, FCC Public Notice [7 pages in PDF], No. DA 05-502, in WT Docket No. 05-63. On December 15, 2004, the two companies announced a "definitive agreement for a merger of equals". See, Nextel release and release.
11:00 AM. The House Homeland Security Committee's Subcommittee on Economic Security, Infrastructure Protection, and Cybersecurity will meet. The agenda contains one item, HR 285, the "Department of Homeland Security Cybersecurity Enhancement Act of 2005". Location: Room 210, Cannon Building.
2:00 PM. The House Judiciary Committee's Subcommittee on Crime, Terrorism, and Homeland Security will hold a hearing titled "Oversight Hearing on Implementation of the USA PATRIOT Act: Effect of Sections 203 (b) and (d) on Information Sharing". Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.
10:00 AM. The House Commerce Committee's Subcommittee on Telecommunications and the Internet "How Internet Protocol-Enabled Services Are Changing the Face of Communications: A Look at Video and Data Services". The hearing will be webcast by the Committee. See, notice. Press contact: Larry Neal or Jon Tripp at 202 225-5735. Location: Room 2123, Rayburn Building.
2:00 PM. The House Judiciary Committee will hold a hearing titled "Oversight Hearing on the Industry Competition and Consolidation: The Telecom Marketplace Nine Years After the Telecom Act". Press contact: Jeff Lungren or Terry Shawn at 202 225-2492. Location: Room 2141, Rayburn Building.

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