The FTC released a long-awaited report Thursday on its study of the business practices of patent assertion entities, as expected (see 1610040082). The agency proposed several reforms in the report, aimed at mitigating what it called “nuisance infringement litigation” brought by PAEs. The recommendations are largely aimed at balancing the rights of defendants during the early stages of patent lawsuits brought by PAEs, the FTC said. The commissioners approved the report 3-0. The report's scope was narrower than the FTC originally envisioned, but its data provide a strong basis for future patent litigation revamp efforts in Congress and federal courts, stakeholders told us.
Jimm Phillips
Jimm Phillips, Associate Editor, covers telecommunications policymaking in Congress for Communications Daily. He joined Warren Communications News in 2012 after stints at the Washington Post and the American Independent News Network. Phillips is a Maryland native who graduated from American University. You can follow him on Twitter: @JLPhillipsDC
Confidence is growing that the FTC may release a report in coming weeks on its years-long study of the business practices of patent assertion entities, patent stakeholders said in interviews. Release of the report, begun in 2013 (see report in the Sept. 20, 2013, issue), has been repeatedly delayed. Commission Chairwoman Edith Ramirez said in February the agency would issue it last spring (see 1602010021). The study likely will hold some diminished value in influencing the patent law revamp debate, lobbyists said.
The Internet Assigned Numbers Authority transition took place as expected Saturday (see 1609300065). NTIA confirmed it allowed its contract with ICANN to administer the IANA functions to lapse just before midnight Friday, after U.S. District Court Judge George Hanks ruled in Galveston, Texas, against a temporary restraining order request to delay the switchover. Four Republican state attorneys general filed the TRO request (see 1609290073). Industry officials lauded the transition’s completion, with several telling us the handoff provides certainty to the internet industry and allows them to move on to other pressing issues.
The pathway to the U.S.' spinoff of its authority over the Internet Assigned Numbers Authority functions appeared clear Friday. U.S. District Court Judge George Hanks ruled in Galveston, Texas, against a temporary restraining order (TRO) request aimed at delaying the switchover, as was expected (see 1609290073). Hanks' ruling (in Pacer) against a delay was a loss for four states' attorneys general seeking to block NTIA from allowing the handoff to occur as planned just after 12 a.m. Saturday.
Internet governance stakeholders told us they're closely following a last-minute lawsuit by Texas Attorney General Ken Paxton and three other state attorneys general aimed at delaying the imminent Internet Assigned Numbers Authority transition. The suit, filed in U.S. District Court in Galveston, Texas, followed Congress’ passage of a short-term continuing resolution to fund the government after FY 2016 ends Friday that didn’t contain sought-after language to delay the handoff (see 1609220067 and 1609280067).
The DOJ and the FTC got praise and criticism in comments posted Tuesday for taking a high-level approach in their proposed update of joint guidelines for enforcing antitrust policy on IP licensing. The refresh, proposed in August, is meant to reflect IP-related court cases and changes since the original guidelines took effect in 1995 (see 1608120045). It doesn’t address hot-button copyright and patent issues such as patent assertion entities (PAEs), standard-essential patents (SEPs) and reverse payment settlements (see 1608180056).
A jettisoned proposal to include language in the short-term continuing resolution to fund the government after FY 2016 expires Friday that would delay the imminent Internet Assigned Numbers Authority transition appears unlikely to re-emerge in negotiations. The proposed language would extend a rider in the Department of Commerce's FY 2016 budget that bars NTIA from using its funds during the fiscal year to execute the handover (see 1609130050). Senate Republicans' perceived unwillingness to revisit the transition funding ban rider likely removes the major obstacle to the transition, though House legislators are continuing to explore a legal challenge, industry lobbyists told us.
U.S. cybersecurity policies depend on strong partnerships with Canada and Mexico, said Deputy Assistant Secretary of Commerce Bruce Andrews and industry executives Monday. President Barack Obama, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto agreed in June to engage on cross-border cybersecurity practices, including on incident responses that affect the three main North American nations. Andrews said during a New America event the goal is to “start a dialogue between our three governments and our business communities on our cybersecurity threats, practices and priorities.”
The 2015 Cybersecurity Act's efficacy is still largely to be determined because it's been less than a year since the bill was enacted, said former government officials and industry stakeholders Thursday evening at an FCBA event. Congress passed the information-sharing-centric Cybersecurity Act in December as part of the FY 2016 omnibus spending bill (see 1512180052). The act codified the Department of Homeland Security National Cybersecurity and Communications Integration Center's role as the main civilian hub for cyberthreat information sharing. It enacted strong liability protections for information sharing and required private sector entities to remove personally identifiable information from data prior to sharing.
Senate Majority Leader Mitch McConnell, R-Ky., filed Senate Appropriations Committee Republican-backed language Thursday for a short-term continuing resolution to fund the government when FY 2016 ends Sept. 30 that doesn't contain sought-after language aimed at delaying the planned Internet Assigned Numbers Authority handoff. Senate Commerce Committee Chairman John Thune, R-S.D., and other leading Senate Republicans pushed for CR language to extend an existing rider in the Department of Commerce's FY 2016 budget that bars NTIA from using its funds during the fiscal year to execute the IANA move (see 1609130050). GOP FCC members back a delay in the handoff (see 1609220028).