January 2011

Recording industry thanks Rep Berman with fundraiser at Grammys

A select group of donors to Rep Howard Berman (D-CA) will get to party like rock stars at next month's Grammy Awards — provided they pay $5,000. According to an invitation, a donation of $5,000 each will earn attendees a welcome brunch with Rep Berman, a private box seat to the show and a chance to hang out with the winners at the afterparty. This isn't the first time the recording industry has opened its wallets for Rep Berman, who has long been a favorite thanks to his support for performance rights, which would require radio stations to pay royalties to musicians in addition to songwriters. According to data from the Sunlight Foundation, last May the RIAA held a cocktail reception fundraiser for Berman at its offices.

Vivendi Exits NBCU

General Electric agreed to purchase French utility Vivendi S.A. 12.3% stake in NBC Universal for about $3.8 billion, the final installment in a $5.8 billion deal that paves the way toward the closing of its 50-50 joint venture with Comcast.

Vivendi, formerly Vivendi Universal, had sold its Universal Studios and cable channels to NBC in 2004 for $14 billion which created NBCU, but retained a 20% interest in the venture. It was Vivendi's desire to divest of that stake in 2009 that sparked speculation that GE would either sell the unit or seek a partner.

House Approves Repealing Public Financing of Presidential Campaigns

The House voted 239 to 160 for a bill that would repeal public financing of presidential campaigns.

If it became law, it would open the door to even more campaign money for broadcast and cable outlets. "Today's vote is a win for common sense, as supporters of this political pyramid scheme could offer no compelling reason to continue wasting taxpayers' dollars," said Center for Competitive Politics President Sean Parnell. "Hopefully, the Senate will follow up with a vote to end these unnecessary subsidies for would-be presidents." But that hope is unikely to bear fruit. The measure has a slim to none chance of being passed in the Democratic-controlled Senate or signed by President Barack Obama. According to the Center, Sen Mitch McConnell (R-KY) introduced a similar bill not long after the House vote. But Senate Majority Leader Harry Reid (D-NV) has already signaled he will block the House bill, according to the Center.

Rep Bono Mack Resolution Urges White House To Keep UN Away From Internet

Rep Mary Bono Mack (R-CA) re-introduced a nonbinding resolution calling on President Barack Obama to oppose any efforts by the United Nations to take over governance of the Internet.

"It has become increasingly clear that international governmental organizations, such as the United Nations, have aspirations to become the epicenter of Internet governance. And I'm going to do everything I can to make sure this never happens," said Rep Bono Mack, the new chairwoman of the House Commerce Committee's Subcommittee on Commerce, Manufacturing and Trade. She introduced a similar resolution in the last Congress. Rep Bono Mack wrote House Foreign Affairs Committee Chairwoman Ileana Ros-Lehtinen (R-FL) to urge her to advance the measure. The resolution notes that some countries that favor having the United Nations or another international entity play a bigger role in Internet governance "use the Internet as a tool of surveillance to curtail legitimate political discussion and dissent." Such countries want the United Nations or another international entity to "endorse national policies that block access to information, stifle political dissent, and maintain outmoded communications structures," according to the resolution.

Netflix: ISPs Overcharging Subs With Tiered Data Plans

In a statement issued along with today’s earnings announcement, Netflix CEO Reed Hastings said:

“An independent negative issue for Netflix and other Internet video providers would be a move by wired ISPs to shift consumers to pay-per-gigabyte models instead of the current unlimited-up-to-a-large-cap approach. We hope this doesn't happen, and will do what we can to promote the unlimited-up-to-a- large-cap model. Wired ISPs have large fixed costs of building and maintaining their last mile network of residential cable and fiber. The ISPs’ costs, however, to deliver a marginal gigabyte, which is about an hour of viewing, from one of our regional interchange points over their last mile wired network to the consumer is less than a penny, and falling, so there is no reason that pay-per-gigabyte is economically necessary. Moreover, at $1 per gigabyte over wired networks, it would be grossly overpriced.”

That means that ISPs introducing tiered data plans could be overcharging subscribers by up to 100 percent. Netflix also takes issue with the way that some ISPs treat traffic coming into their network. While Netflix doesn't call out Comcast by name, the country’s largest cable provider recently got into a spat with Level 3, one of Netflix’s content delivery networks. That fight resulted in Comcast asking Level 3 to pay higher interconnection fees for connecting to Comcast’s last-mile network.

House, Senate Judiciary chairs clash over extending online spy provisions

House and Senate committee leaders backed dueling legislation to extend online surveillance provisions of the USA PATRIOT Act that are set to expire at the end of February.

Senate Judiciary Committee Chairman Patrick Leahy (D-VT) introduced the bipartisan 2011 USA PATRIOT Act Sunset Extension Act, which would continue to allow roving wiretaps of suspects who change computers or phone numbers to avoid monitoring; tracking of "lone wolves" -- people of interest with no known links to terrorist groups; and retrieval of records and other tangible evidence from organizations with a court order. The proposal, which would expire in December 2013, also demands greater judicial supervision. Meanwhile, House Judiciary Committee Chairman Lamar Smith (R-TX) announced he has thrown his support behind a bill, HR 67, that Rep. Mike Rogers (R-MI) unveiled on Jan. 5 that would extend the three expiring provisions for a shorter period of time, to 2012. It contains no additional oversight provisions. Chairman Leahy said: "Earlier this month, a bill was introduced in the House of Representatives to extend the expiring provisions only until February 2012, an expiration date chosen deliberately to try to force a debate over national security in an election year. My bill sets a longer sunset period, which law enforcement strongly favors." But Chairman Smith defended his approach, calling the short-term extension "a step toward the long-term reauthorization of important and necessary national security provisions. It gives Congress time for an open and meaningful debate, while ensuring that our law enforcement and intelligence communities can continue to prevent attacks and save lives."

Google Blocks ‘Instant’ Results For BitTorrent, Cyberlocker Sites

If you want to use Google to find pirated material online, don't expect help from Google Instant.

The company has altered the feature so that search results related to several popular BitTorrent and cyberlocker-based file-sharing services don't automatically show up as a user types. The move appears to fulfill a pledge Google made last month to stop automatically suggesting search terms “closely associated with piracy.” Obviously, this small change won't stop anyone from running a search for torrent files. But it does mean that just typing in the name of a popular movie like “Inception” won't lead Google to immediately show users results for “Inception BitTorrent,” which was a common occurrence until now. The new system blocks some legitimate search terms, as well. BitTorrent is often used to transfer open-source programs like the Linux operating system; users who type “Linux” into Google won't see a suggestion of “Linux BitTorrent” anymore.

Obama No Longer Leads The Pack On Social Media

The White House took what can best be described as a "blitzkrieg" approach to social media for President Obama's State of the Union address. There were live question-and-answer sessions, Twitter exchanges and the president will take questions via YouTube. Of course, the Obama social media operation was a juggernaut during the 2008 campaign. On Facebook and Twitter, in text messages and on YouTube, there was no comparison between Republicans and Democrats. So the reality just two years later is striking: In social media, Republicans have caught up. That's the conclusion of a report released by the Pew Research Center. "Lots more people — including Republicans, independents, supporters of the Tea Party — are just as active in this space as Democrats used to be," says Lee Rainie, director of Pew's Internet and American Life Project. "So the Democratic advantage, in some sense, is being washed away by the mainstreaming of the populations who are using these tools."

Obama's wireless goal 'realistic,' Mobile Future chairman says

Jonathan Spalter, the chairman of wireless industry coalition Mobile Future, says that President Obama's ambitious goals for mobile connectivity have a valid chance of coming true -- if the government does not create a regulatory environment that will make it hard for companies to move on this goal. The key challenge for government is making sure the wireless industry has access to spectrum, according to Spalter, citing the Federal Communications Commission's (FCC) broadband agenda as a solid way forward.

NCTA: Broadband Video Migration Needs No FCC Push

The National Cable & Telecommunications Association suggests that the free market forces behind video's move to broadband have outpaced the Federal Communications Commission's attempt to put its shoulder to that wheel.

The cable organization says video is already moving online without the government having to step in and mandate a technological path via its AllVid inquiry. The FCC has been looking to put out a rulemaking proposal in the first quarter. The FCC is looking to create a gateway device that weds over-the-air, over-the-wire and over-the-top video as a way to drive broadband adoption, for one thing, but it could also potentially be used to disaggregate content and threaten the business model of those, like cable operators, whose business is to aggregate and deliver content. In a letter to FCC Chairman Julius Genachowski, NCTA president Kyle McSlarrow reiterated that the marketplace is where that box should evolve, rather than from a government technology mandate that could jeopardize a system already meeting consumer demand. "The fact that tens of millions of tablets, game consoles, Internet-connected TVs, and other smart, video-capable devices have been sold and will be sold means that the Commission no longer needs to ‘create' a retail market for navigation devices," McSlarrow wrote. "Instead, the Commission should focus on ‘keeping the runway clear' of impediments and unnecessary rules that could slow these exciting developments."