Minn. Commerce Dept. denied having improperly cozy relationship with AT&T and said Qwest lawsuit seeking information from Commerce to support its claim had become moot because most of information Qwest wanted had been handed over. Deputy Commerce Comr. Tony Mendoza said Qwest’s complaint sought to divert attention away from its own regulatory issues. Ramsey County Dist. Court had scheduled hearings July 26 on Qwest motion to compel Commerce to supply documents relating to its relationships with AT&T. Mendoza said suit was moot because Qwest received everything it asked for except for certain documents protected by attorney-client privilege, which he said didn’t involve AT&T and so weren’t germane to Qwest’s purpose. He said AT&T initially opposed release of requested documents on ground they contained trade secrets, but later waived trade secret protection so Commerce could hand over materials. Qwest contended Commerce had bias in favor of AT&T and therefore had taken positions adverse to Qwest’s interests, such as the Commerce complaint alleging that Qwest had made secret preferential deals with selected CLECs in order to buy off their opposition to its long distance entry.
Long-anticipated bill designed to thwart digital piracy online was introduced Thurs. by House Judiciary Courts, Internet and Intellectual Property ranking Democrat Berman (Cal.). Bill would amend U.S. statutes to make it legal for content owners to use technology to travel on peer-to-peer (P2P) networks and interdict copyrighted material. “I am a big fan of P2P networks and the technology behind them,” Berman said, adding “it should remain the creator’s choice to distribute their works through a P2P network, not the pirate’s. P2P piracy must be cleaned up, and cleaned up now.” Berman’s bill was co-sponsored by Subcommittee Chmn. Coble (R-N.C.), who is expected to hold hearing on it after Aug. recess. Also co-sponsoring bill were House Judiciary Crime Subcommittee Chmn. Smith (R-Tex.) and Courts Subcommittee member Wexler (D-Fla.). Berman’s Chief of Staff Gene Smith said Berman was seeking feedback on bill not only from other members but from consumer, high-tech, entertainment and software groups.
Senate Governmental Affairs Committee moved forward on homeland security under Presidential veto threat Thurs. while House took up its version (HR-5005) on floor. High-tech community continued to monitor issues of interest, including exception to Freedom of Information Act for voluntary disclosures of cybersecurity breaches and possible move of Computer Security Div. of National Institute of Standards & Technology (NIST) to new Dept. of Homeland Security. Veto threat, issued by White House spokesman Ari Fleischer, was related to Presidential authority on personnel moves unrelated to high-tech.
Bush Administration Tues. released long-awaited 3G viability assessment under which Defense Dept. agreed to clear most of 1710-1755 MHz but said freeing additional 15 MHz beyond that was untenable between now and 2008. Result is that report finds way to clear 90 MHz of spectrum for advanced wireless services at 1.7 GHz and in 45 MHz of 2110- 2170 MHz, which is occupied by nongovt. users. That’s less than 120 MHz that NTIA and other Executive Branch agencies had left on table last fall for 3G evaluation, after taking 1770-1850 MHz occupied by DoD out of consideration following Sept. 11 attacks (CD Oct 9 p3). While spectrum is less than originally sought by industry, private sector and govt. officials at Commerce Dept. briefing touted outcome as providing certainty that allocation decisions and auction could be held in 2004-2005 time frame. Also Tues., Commerce Dept. released draft bill to create spectrum relocation fund to pay incumbent govt. users for relocating and modernizing equipment. Commerce Secy. Donald Evans said 3G assessment strikes “a necessary balance between our country’s economic growth and national security, as well as public safety.”
Commerce Secy. Donald Evans and senior FCC officials plan to release long-awaited 3G viability assessment at news conference today (Tues.). As release has neared, speculation has mounted that final report on how to make at least 90 MHz of spectrum available for advanced wireless services would include provisions under which Defense Dept. would vacate 14 of 16 protected sites, several sources said. NTIA evaluation of govt.-occupied spectrum that could be vacated for advanced wireless services has been hung up, in part, by 16 protected sites in 1710-1755 MHz band now occupied by federal operations such as fixed microwave, tactical radio relay, aeronautical mobile stations. Wireless industry has expected viability assessment to free up close to 90 MHz for 3G- related services, rather than 120 MHz originally sought by carriers. Sources have said NTIA report is likely to focus on 2110-2155 MHz and 1710-1755 MHz, with some spectrum to be made available in 2004 and rest under longer timeline. NTIA interim report on 3G spectrum released last year had outlined 16 protected areas, including sites in major cities such as N.Y., Boston, Philadelphia, Baltimore, L.A., Miami, Dallas. Understanding brokered by NTIA with DoD apparently outlines way for military users to relocate from 14 of those sites, including movement of not just tactical radio relay but satellite-related services, source said.
Minn. PUC hearings on allegedly secret and preferential agreements between Qwest and selected CLECs are to resume next month. PUC Administrative Law Judge Allan Klein plans hearings Aug. 6-8 to examine additional unfiled oral agreements that Minn. Dept. of Commerce in June said it had uncovered. New agreements differed from those that already were part of case record, Commerce said, and would shed further light on allegations. New discoveries caused original procedural schedule to be suspended. Commerce in Feb. filed complaint (Case P-421/C-02-197) alleging Qwest made secret deals with certain CLECs, giving them preferential rates and terms in return for CLECs’ dropping their opposition to Qwest regulatory initiatives such as its merger with U S West and its Sec. 271 interLATA long distance entry bid. Qwest denied improper conduct, saying agreements at issue didn’t have to be filed because they dealt with dispute settlements and administrative mechanics. Qwest had petition pending at FCC asking whether its interpretation of filing laws was correct. Final Minn. briefing cycle will conclude around end of Aug., with ALJ’s recommended decision expected in mid-Sept. In related matter, Minn. Dist. Court, Ramsey County, is to hold July 26 hearing on Qwest motion seeking information from Minn. Commerce Dept. about its relationships with AT&T. Qwest charges that state Commerce Dept. has been biased toward AT&T in major cases involving Qwest. It submitted data request to Commerce in March under state’s open govt. law but said agency hadnt responded fully, say many requested documents contained proprietary trade secrets, so Qwest filed suit in May to compel disclosure. Qwest said Commerce then changed grounds for withholding documents, saying they related to active investigation as well as containing trade secrets. Qwest said Commerce had taken positions that deprive carrier of its statutory right-to-know basis for Commerce’s adverse positions against Qwest in at least 2 major cases. First was 2001 case in which AT&T alleged Qwest had violated interconnection agreement by not allowing AT&T to test Qwest’s unbundled network element platforms. That case ended in May with Qwest being fined $900,000. Second case was Feb. complaint by Commerce about unfiled Qwest interconnection agreements.
House Select Committee on Homeland Security will take up bill for new agency (HR-5005) today (Fri.) that includes limited Freedom of Information Act (FOIA) provision as well as privacy provision. As that bill moves toward select committee markup, House Internet Caucus Co-Chmn. Goodlatte (R-Va.) continued his lobbying campaign to keep Computer Security Div. (CSD) of National Institute of Standards & Technology (NIST) with NIST under Dept. of Commerce. With Congress aiming to have HR-5005 on President Bush’s desk by Sept. 11, it appears that new agency will have its basic outlines set before White House Cybersecurity Czar Richard Clarke releases his much-anticipated report on Administration’s plan on cybersecurity. Goodlatte and Internet Caucus Co-Chmn. Boucher (D-Va.) wrote Select Committee Chmn. Armey (R-Tex.) 2nd time Wed. on NIST issue, contending that standards-setting duties at NIST would be compromised in law enforcement agency. Among those signing letter were House Judiciary Committee Chmn. Sensenbrenner (R- Wis.), House Commerce Committee Chmn. Tauzin (R-La.) and Trade Subcommittee Chmn. Stearns (R-Fla.), House Science Committee Chmn. Boehlert (R-N.Y.) and 29 other members. “The credibility and success of NIST’s CSD depends on effective independence from and appropriate collaboration with law enforcement and national security agencies,” they wrote, citing problems in past when CSD was pressured by military to capitulate on encryption standards and other measures viewed unfavorably in high-tech community. Clarke is scheduled to release White House cybersecurity report Sept. 19, and Homeland Security debate has moved forward without that report’s input.
There’s technical progress in digital rights management (DRM) standards-setting process, but that movement has opened door to broader issues such as fair use, said Undersecy. of Commerce-Technology Philip Bond. His comments came Wed. at Commerce Dept. Technology Administration (TA) roundtable on digital content and rights management. ContentGuard CEO Michael Miron said that since last TA DRM roundtable 7 months ago, many technical groups had continued to work on DRM-related standards. Motion Picture Experts Group (MPEG) is expected to unveil near- final standard at end of next year, and European organization is putting together report on DRM standards as well, he said. Miron warned, however, that interoperability was paramount and that various groups pursuing DRM solutions would end up by fragmenting interoperability of devices.
Senate Appropriations Committee approved the Commerce- Justice-State appropriations bill Thurs. with FCC receiving $247 million in funding, $1.9 million increase from 2002. Sen. Hollings (D-S.C.) said bill included $12.18 billion for a variety of homeland security issues. He said most agencies received 4.1% increases for pay adjustment. Budget bill proposes allocations totaling $43.48 billion, up $2.9 billion in year. Most of increase would go to Justice Dept. (DoJ) counterterrorism efforts. Bill proposals included: NTIA, $81.7 million, up $415,000 from 2002, with $51.8 million for public telecommunications facilities, planning and construction ($8.2 million increase) that would be used for converting public TV stations to digital, and $15.6 million for Technology Opportunities Program grants. FBI, $4.2 billion, including $100 million for communications interoperability as part of Community Oriented Policing program (COPS); $21 million for National Infrastructure Protection Center and Computer Intrusion Program, and $145.9 million for information technology upgrade. FTC, $159.1 million, up $3.2 million. National Institute of Standards & Technology (NIST), $692.5 million, up $11.7 million. Technology Administration, cut $306,000 to $7.9 million. Patent and Trademark Office, $1.1 billion.
Given growing frustration in Congress over digital rights management (DRM) issues, “possibility of legislation in the future” is “very real” if private sector doesn’t agree on standards, said Philip Bond, undersecy. of commerce-technology, on eve of Commerce Dept. Technology Administration (TA) roundtable on digital content and rights management Wed. Session was to assess progress in earlier discussions among music and movie industries, CE and information technology (IT) industries and consumer groups on topics including DRM, broadcast flag, analog hole and other issues, Bond said at late Tues. news briefing. It’s “terrifically important for us to keep some focus here,” he said, and for various industries to know that executive and legislative branches of govt. are watching for progress. Bond said that although Administration believed private, voluntary standards were “most beneficial,” it was clear that “legislative bodies will respond at some point to high-level frustration” if such standards weren’t forthcoming. Asked for his response to parties that contended there was no need for DRM legislation given amount of content available online without technological protocols, Bond likened situation to broadband deployment. Frustrations in each area is same, he said, in that there’s been some -- but not enough -- progress. “We're not satisfied with the pace” in either area, he said. There are so many voices wanting to be heard in DRM debate that TA has set up Web site for comments, said Bruce Mehlman, asst. secy.-technology policy. As for rumblings (CED July 16 p3) that some in tech community believed TA discussion panels were tilted toward content owners, Mehlman said he had yet to hear any “discouraging word from anyone in the IT space” about TA’s efforts to help form DRM standards. He said agency was taking very measured approach to issue but, as with any hot issue, “you can’t please everybody.”