August 2012

Senate looks at state sales taxes for online purchases

The Senate Commerce Committee holds a hearing August 1 on the Marketplace Fairness Act (MFA), which would allow states to collect sales tax on all remote purchases and make it easier for merchants to determine each state's tax rate.

If passed, it would reverse the effects of a 1992 Supreme Court decision exempting many online retailers from collecting state sales taxes unless they had a physical presence in the state, such as a warehouse. The decision argued it was too tough for remote sellers to comply with different state tax rules, says David French, senior vice president of government relations for National Retail Federation, which supports the Senate bill and the House's Marketplace Equity Act (MEA). But as e-commerce has boomed and states continue to suffer from recession-era budget cuts, proponents of collecting a tax say it's unfair that brick-and-mortar and online retailers are competing on an "uneven playing field." Now technology makes it easier for merchants to follow the thousands of local tax codes.

Apple, Samsung trial opens with no common ground

Apple and Samsung delivered one common message to a federal court jury on July 31 — when it comes to their competing claims of patent rights in the world of smartphones and tablets, they agree on absolutely nothing.

During nearly a day of opening statements, lawyers for the two warring tech titans offered their conflicting views of what will unfold for the seven-man, two woman jury over the next four weeks. To Apple's lawyer, the case is about Samsung's rampant copying of the iPhone and iPad, which he told jurors has cost the Silicon Valley icon billions of dollars that it will seek in damages. "At its highest corporate levels, Samsung decided to simply copy every element of the iPhone," Apple attorney Harold McElhinny said at one point. "Samsung had two choices -- accept the challenge of the iPhone ... and beat Apple fairly in the marketplace, or it could copy Apple. It is easier to copy than innovate." To Samsung's lawyer, the trial will expose how Apple has overstated its innovation in the hotly competitive smartphone and tablet market. Samsung flatly denies copying Apple, insisting it has merely done what scores of companies have done -- evolve with its own products. "It's not just Samsung," Samsung attorney Charles Verhoeven explained about why smartphones exploded into the marketplace. "The entire industry moved this way. Is that copying? No. It's competition."

London Olympics: To foreign eyes, NBC is all about U-S-A, U-S-A

[Commentary] Aiming for gold, Team USA finished at a frustrating fifth place in men’s gymnastics after struggling in several routines. Morning news in the States was full of questions how that was even possible. But as I watched the analysis, I kept wondering: Which country got the gold medal? Fifteen minutes on CNN – no word on that. Focusing on the national team at the Olympics is the smart move in any country. That’s what viewers are most interested in. In Germany, everyone heard everything about the men’s gymnastics team seventh place performance. But journalists overseas don’t forget to mention the medalists who don’t come from their own country. So they learned that China won the event, followed by Japan and Great Britain. Watching NBC two nights in a row, I can hardly remember any coverage of a discipline that US athletes had no chance of winning. Sure, competitions promising a national medal come first – that is true for the US as well as Germany, where there's huge coverage of swimming, equestrian, or rowing. But stories do not just revolve around Germany’s athletes.

Senate sets up cyber vote for Thursday, lawmakers still working on amendments

Senate Majority Leader Harry Reid (D-NV) filed a motion to end debate and proceed to the cybersecurity bill. The move sets up a key vote August 2, but it looks like Sen Reid won't have the 60 votes necessary to move forward because of a fight with Republicans over amendments to the bill.

The two sides have been trying to reach a deal on what amendments will be considered, and Sen Reid said he was disappointed that an agreement wasn’t reached. “To say I’m disappointed is a tremendous understatement,” said Reid. “I thought we’d all put national security above partisan politics.” He put blame on the U.S. Chamber of Commerce. “I’m terribly disappointed with the Chamber of Commerce,” Sen Reid said. “The Chamber of Commerce has sucked in most Republicans on this bill.”

With time running out for the legislation, Sen. Joe Lieberman (I-CT) said that he is growing pessimistic about the bill's chances. "I hope I’m wrong, normally I'm an optimistic person, but right now I’m a pessimist," Sen Lieberman said in a floor speech. He said he's worried the Senate is "headed in the wrong direction," and urged his colleagues to make the hard decisions necessary to protect national security.

Romney resets media strategy

Mitt Romney’s presidential campaign is promising to become more media-friendly after headlines during the Republican candidate's weeklong foreign trip highlighted an increasingly fractious relationship with the press.

Fewer than 100 days out from the election, the campaign is expected to provide more press briefings and heightened access to the candidate in the coming days, and to make changes to the travel pool that will make it more media friendly. The changes would represent a major shift for the Romney campaign, which so far has offered only extremely limited access to the presumptive Republican nominee, and usually only to favored outlets like Fox News. A senior Romney aide said the campaign would work to find a balance between respecting the role of the press and telling the story it wants the public to hear about Romney.

Implementing Public Safety Broadband Provisions of the Middle Class Tax Relief and Job Creation Act of 2012

In this Order, the Federal Communications Commission adopts an approach to allow limited deployment of public safety broadband services to first responders in the existing public safety broadband spectrum (763-768/793-798 MHz) pursuant to existing Special Temporary Authority (STA) rules.

The FCC expects that this will be the case in very few instances, and only where it can conclude that such deployment clearly serves the public interest and will not be detrimental to the Public Safety Spectrum Act’s goals or likely to jeopardize FirstNet’s mandate to deploy a nationwide interoperable public safety broadband network. The FCC believes that the public interest might be strongly served where, among other things, a project is near completion in terms of development and has been the subject of sustained investment over time, where it will address a significant and specific public-safety need, and where it is consistent with the “recommended minimum technical requirements” for nationwide interoperability recently developed by the Interoperability Board.

Wireless Industry Concerned About Focus on Spectrum Sharing

Wireless industry officials are concerned about a new report from a White House advisory group that encourages companies to share spectrum. They argue it might shift the federal government's focus away from finding new chunks of spectrum that can be cleared for exclusive use by commercial wireless providers.

At an event sponsored by the Information Technology and Innovation Foundation, a wireless industry official and top telecom staffer for the House Commerce Committee voiced concern with the focus on spectrum sharing in a new report issued earlier this month from the President's Council of Advisers on Science and Technology. The report argues that it is too difficult, expensive and time consuming to try to move federal users off of their spectrum and that a better way to address both government and industry's spectrum needs in the short term is to find ways to share spectrum. "The new system for federal spectrum management that this report calls for--a new spectrum architecture and a corresponding shift in the architecture of future radio systems that use it--can multiply the effective capacity of spectrum by a factor of 1,000," according to the PCAST report on Realizing the Full Potential of Government-Held Spectrum to Spur Economic Growth. "The essential element of this new federal spectrum architecture is that the norm for spectrum use should be sharing, not exclusivity."

Chris Guttman-McCabe, vice president of regulatory affairs for the wireless industry group CTIA, noted that while the wireless industry agrees that sharing is one solution, it needs to be coupled with other approaches including identifying swaths of spectrum that can be cleared of federal or other users and re-purposed for use by the wireless industry. In addition, he argued that the report doesn't say how the federal government will reach President Obama's goal of freeing up 500 megahertz of spectrum over the next decade for wireless broadband users.

This view was echoed by House Commerce Committee counsel David Redl, who said the PCAST report fails to lay out a business case for spectrum sharing. "We're not sure there is economic viability to that model," Redl said.

Small Cells and the Future of Wireless

Small cells could play a big part in helping to deal with the demand for wireless spectrum. But what exactly are they?

In a report presented this month, a presidential panel laid out a proposal for how the country could get more out of the radio spectrum that carries wireless communications and data. That would help carriers accommodate the surging number of smartphones and tablets on the market. The report proposed that federal agencies share the spectrum they control with commercial entities like AT&T and Verizon, and it endorsed the use of technologies that will help use the radio waves more efficiently. One technology emphasized in the report, presented on July 20, was small cells. These are essentially base stations that blanket smaller areas with wireless coverage; they can be installed in offices and homes, or mounted on the outside of a building for a public event. Instead of guzzling bandwidth from a cell tower, small cells hook up to a local broadband connection, like the cable Internet in a house or the fiber connection inside an office building. If small cells were deployed heavily throughout a city, they would provide the cell coverage for when you’re at home and in the workplace, which is most of the time. That would free the nearby cell tower to cover larger areas where people move around faster, like roads.

Privacy and Civil Liberties Oversight Board still missing in action

A federal board tasked in the Senate’s cybersecurity bill with ensuring government agencies and tech companies don’t infringe on consumer privacy has been dormant and understaffed for years — and hasn’t had a nominee confirmed since 2007.

As members of Congress consider a new law that would help them exchange data about emerging digital threats, they’ve envisioned that the Privacy and Civil Liberties Oversight Board would make sure consumers aren’t harmed and that their data isn’t caught in the fray. But the PCLOB — created by Congress to protect citizens amid the post-Sept. 11 crackdown on terrorists — has long been paralyzed. It’s possible the Senate could confirm its nominees en bloc before the chamber enters the August recess, but the inaction so far has privacy advocates concerned that a cybersecurity bill could reach the President without a watchdog fully in place. If the confirmations continue to be stalled, “We’ll have information sharing but not the oversight,” said Peter Swire, an Ohio State University professor who served as chief counselor for privacy in the Clinton administration. “Depending on the bill, we might repeal privacy protections and have nothing in place to make up for that.”

FBI Files Go Digital, After Years of Delays

Federal Bureau of Investigation agents have finally ditched paper files for a new computer system, an effort that took 12 years and cost more than $600 million. The system, called Sentinel, includes elements resembling Web browsers, with tabs and movable windows, and forms that are filled out in a question-and-answer format similar to consumer tax software. The FBI announced the completion of the system after testing to work out bugs.