Under nearly continuous questioning by 2 U.S. Appeals Court, D.C., judges, FCC attorney spent more than 30 minutes Thurs. morning defending way Commission wrote revisions in its payphone rules last year. All of parties at oral argument -- Sprint, which challenged ruling, FCC and judges - - agreed Commission probably should have published notice of rulemaking (NPRM) in Federal Register. Question was whether lack of NPRM was enough to require vacating rules.
Incoming Senate Communications Subcommittee Chmn. Burns (R-Mont.) is considering “hybrid” approach to spectrum auctions that which would require participants to prove effectiveness of their business models before they could enter process, aide said Tues. in audioconference sponsored by Communications Daily’s parent Warren Communications News. Mike Rawson, Burns’ senior policy adviser, likened senator’s tentative approach to way that public lands were allocated in 1800s.
FCC is expected to act by mid-Dec. on interim changes aimed at improving way carriers make contributions to Universal Service Fund (USF). Sources said Commission had planned to act by end of Nov. but decided to delay action until Comr.-Designate Jonathan Adelstein was sworn in.
Content owners’ worst nightmare has arrived with availability of DVD X Copy -- $99.99 software program that makes perfect digital copies of DVDs on PC-based DVD burners, including all navigational menus, special features, multichannel audio.
While some members of Congress share FCC Comr. Copps’ view that indecency in media is problem, broadcast indecency isn’t likely to be first “cultural issue” new session addresses. Senate sources told us music lyrics still were viewed as most offensive element in media and probably would be first issue to receive hearing in Senate Commerce Committee. Sources told us senators who were most interested in cultural issues viewed Copps as their ally on Commission. While music lyrics are regarded by some as first priority, some senators still have problems with amount of violent and sexual content on TV and there will be more pressure from Congress on that issue, we're told.
Privacy and industry groups responded with opposing views of the homeland security bill signed into law by President Bush, particularly in response to provisions that will keep certain data about critical infrastructure and cybersecurity vulnerabilities out of the public domain. Bush said the law would improve the govt.’s ability to collect and analyze terrorist threat information: “The Department [of Homeland Security -- DHS] will match this intelligence against the nation’s vulnerabilities, and work with other agencies, and the private sector, and state and local governments to harden America’s defenses against terror.”
FCC International Bureau Chief Donald Abelson expressed concerns about Chinese govt.’s raising settlement rates for international calls. “This is just another vain attempt at stopping what will be inevitable -- that is, the cost of connectivity should go down,” Abelson said at news conference Fri. Noting progressive stance that China had taken in past on IP telephony, he said that was “exactly the kind of policy I thought that we were going to see from China going on in the future. This particular action… I am surprised by it.”
Broadcasters and cable operators appear to have most to fear from tentative agenda announced by Sen. McCain (R- Ariz.), who will become Senate Commerce Committee Chmn. in next term of Congress (CD Nov 22 p1). He said committee would “assess whether broadcasters are meeting their public interest obligations.” Commerce Committee also will also examine cable rates.
European and other foreign-owned mobile companies seeking access to U.S. market “still face important barriers,” European Commission (EC) said in “Report on United States Barriers to Trade and Investment” released Wed. It said in spite of commitments U.S. made in World Trade Organization (WTO) pursuant to GATS Basic Telecom negotiations, mobile service sector still faced investment restrictions, lengthy and burdensome proceedings, “protectionist attitudes” in certain congressional circles and lack of access to frequencies for 3G services.
Bills introduced in recent weeks to promote fair use “purport to benefit consumers” but would “in actuality do the exact opposite,” coalition of content owners argued in Nov. 15 letter to members of Congress. Copyright Assembly (CA) -- which includes BMI, Interactive Digital Software Assn., MPAA and RIAA - - wrote that codifying fair use would “undermine the delicate balance Congress has worked so hard to achieve in our copyright law.” In its arguments, CA targeted not only substantive legislation such as HR-5522 by Rep. Lofgren (D-Cal.) and HR-5544 by House Internet Caucus Co-Chmn. Boucher (D-Va.) but also joint resolution (H.J. Res.-116) by House Policy Committee Chmn. Cox (R-Cal.) that merely called for consensus of Congress on fair use. All 3 bills are “overbroad and inappropriate,” because they would: (1) Raise prices by “forcing honest consumers to bear the higher costs of imposed by ‘free riders'” using content without paying for it. (2) “Legitimize hacking of digital rights management (DRM) technologies in a way that would undermine copyright owners’ ability to protect their works from illegal copying.” In Boucher’s bill, for example, it no longer would be illegal under Digital Millennium Copyright Act to evade copy- protection device if one were engaged in fair use. (3) Reduce incentive of content producers to innovate. (4) Stifle DRM innovation and thus limit choices for consumers. Letter comes as 107th Congress is winding down, but Lofgren, Boucher and Cox intended their bills to set debate in 108th Congress. Debate will be continuing during congressional recess. Washington Legal Foundation last Fri. released report by U. of Chicago Law Prof. Richard Epstein arguing that DRM should be conducted under private contracts rather than federal mandates, recognizing that there were licensing possibilities that could come from secondary and tertiary reproductions of digital content. U.S. Appeals Court, Chicago, Judge Richard Posner was to speak Tues. night at American Enterprise Institute on the recent “significant expansion” of intellectual property rights.