July 2013

House Judiciary Committee approves cellphone unlocking bill

The House Judiciary Committee approved a bill sponsored by Rep. Bob Goodlatte (R-VA) that lets people unlock their cellphones.

Goodlatte's bill, which the committee approved by a voice vote, would allow people to switch wireless carriers without having to purchase a new phone. Under the measure, people would be able to access another mobile carrier's wireless network on their cellphone without having to get permission from their original wireless provider first.

Before the vote, Judiciary Committee members sparred over an amendment from Reps. Jason Chaffetz (R-UT) and Zoe Lofgren (D-CA) that proposed to let certain third parties—such as family members or people not affiliated with the wireless network provider—help a cellphone owner unlock their phone. Reps. Mel Watt (D-NC), John Conyers (D-MI) and Jerrold Nadler (D-NY) voiced concern with the amendment, arguing that it strayed from the original scope of the bill. The Democratic lawmakers said the committee had not done enough study on the amendment and needed to take more time to understand whether it would result in negative implications. The Chaffetz-Lofgren amendment was ultimately adopted to the manager's amendment. The only two Democrats that supported it were Lofgren and Rep. Suzan DelBene (R-WA). The Judiciary panel also adopted Goodlatte's manager's amendment to the bill. It includes a provision that directs the Librarian of Congress to determine whether the cellphone unlocking exception should be applied to other wireless devices.

Department of Commerce's Internet Policy Task Force Releases Report on Digital Copyright Policy

The Department of Commerce released a green paper on Copyright Policy, Creativity, and Innovation in the Digital Economy to advance discussion on a set of policy issues critical to economic growth.

The Green Paper discusses the goals of maintaining an appropriate balance between rights and exceptions as the law continues to be updated; ensuring that copyright can be meaningfully enforced on the Internet; and furthering the development of an efficient online marketplace. The green paper is the most thorough and comprehensive analysis of digital copyright policy issued by any administration since 1995. The report is a product of the Department of Commerce’s Internet Policy Task Force (IPTF) with input from the U.S. Patent and Trademark Office (USPTO) and the National Telecommunications and Information Administration (NTIA). Through the IPTF, the USPTO and NTIA will solicit further public comments and convene roundtables and forums on a number of key policy issues.

In the Green Paper, the IPTF proposes the following actions:

  • Establishing a multistakeholder dialogue on improving the operation of the notice and takedown system under the Digital Millennium Copyright Act (DMCA).
  • Soliciting public comment and convening roundtables on:
    • The legal framework for the creation of remixes;
    • The relevance and scope of the first sale doctrine in the digital environment;
    • The application of statutory damages in the context of individual file-sharers and secondary liability for large-scale online infringement;
    • The appropriate role for the government, if any, to help improve the online licensing environment, including access to comprehensive public and private databases of rights information.

Commerce Takes Some Flak Over Copyright Green Paper

The Commerce Department's new "green paper" on balancing copyright protection and online innovation does not get that balance right, according to the Computer & Communications Industry Association (CCIA), whose members include Google, eBay, Dish, Microsoft and Sprint.

Fair use fan Public Knowledge also suggested there was more emphasis on enforcement than on protecting fair use limitations and exceptions. Public Knowledge VP of legal affairs Sherwin Siy commended the Administration for recognizing the need for copyright reform and raising some important issues. But it also said that the report "fails to recognize fully the negative effects of certain copyright enforcement policies on the public" and "focuses in more detail, more frequently, on updating exclusive rights and enforcement measures than on preserving essential limitations and exceptions..." Siy suggested the paper leaned toward rights holders. He said it does not "adequately" discuss network level content-filtering and "will commonly refer to the need to address concerns of creators, rights holders, and services, without addressing the interests of the public-the audiences and consumers who are the ultimate beneficiaries of copyright law."

Senators Caution White House Over ITC’s Looming iPhone Ban

On August 5 an International Trade Commission import ban on older iPhones and iPads found to infringe one of Samsung’s standards-essential patents will go into effect — unless the White House overturns it. Will it? We’ll find out for certain come August 2, the deadline for the Obama Administration to weigh in on the matter.

But in the meantime, the chorus of voices urging the White House to take particular care with this decision is growing. A bipartisan group of senators has sent a letter to United States Trade Representative Michael Froman — the guy in charge of the presidential review of the ITC order — urging him to carefully consider the public interest as he weighs whether or not to veto the ITC’s order blocking the U.S. sale of AT&T iPhones prior to the iPhone 4S and the iPad 2. The letter, which takes no position on the merits of the case, cautions Froman to be wary of companies that use so-called standards-essential patents that are to be freely licensed at a “fair, reasonable, and nondiscriminatory rate” (FRAND) as anticompetitive weapons. And it urges him not to set a precedent that might encourage such behavior. Signing the letter, Sen. Amy Klobuchar (D-MN), chairwoman of the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights; Sen. Mike Lee (R-UT), ranking member of the Senate Judiciary Committee’s Subcommittee on Antitrust; Sen. Barbara Boxer (D-CA); and Sen. Jim Risch (R-ID).

FCC Opens Docket on Gannett/Belo

The Federal Communications Commission has opened a public docket (No. 13-189) on Gannett's proposed $2.2 billion purchase of Belo Corp. TV stations. That followed two petitions to deny/condition the deal filed last week by various parties including the American Cable Association, DirecTV and Time Warner Cable and Free Press and other public advocacy groups and unions.

FCC Announces Filing of Applications to Transfer Control of Local TV Holdings to Tribune Broadcasting

On July 15, 2013, Local TV Holdings, LLC, and its subsidiaries (“Local TV”), Tribune Broadcasting Company II, LLC (“Tribune”), and Dreamcatcher Broadcasting, LLC (“Dreamcatcher”) filed transfer of control applications to facilitate the acquisition of Local TV by Tribune.

The stations and application file numbers are listed in the Appendix to this Press Release. The Parties are seeking the Commission’s consent to implement the Securities Purchase Agreement, as Amended, between Oak Hill Capital Partners II, L.P. (“Oak Hill”), as the Seller Representative, Local TV, Tribune, and the Tribune Company. In two markets, because of the Commission’s cross-ownership Rule, the newly merged company would not be allowed to hold both the TV station licenses that are currently held by Local TV and the local daily newspapers that are currently owned by Tribune. In those markets, the parties propose to transfer the TV licenses to Dreamcatcher pursuant to an Asset Purchase Agreement between Tribune, Dreamcatcher, and Oak Hill. Tribune also proposes to enter into a combination of agreements with Dreamcatcher that will include an Option Contract and a Shared Services Agreement regarding the stations that Dreamcatcher would acquire. Finally, Tribune seeks a continuing failing station waiver in Eureka Springs, Arkansas and a continuing satellite television waiver in Ft. Collins, Colorado.

House Commerce Committee Approves FCC Report Consolidation Bill

The House Commerce Committee voted to approve a bill that would consolidate eight Federal Communications Commission annual reports to Congress, including the video competition and cable price reports, into a single biennial report.

It also repeals the annual telegraph report still on the books, which became a symbol of the need for reform of the congressional reports. That unanimous voice vote followed the approval, also unanimous, of a bipartisan amendment added to address concerns by some FCC staffers. The amendment would give FCC chairmen installed in the last quarter of even years (when the biennial reports are due) a little more time to complete their portions of the report, and would also clarify that the bill does not impair the FCC's ability to issue other reports.

Google Fiber, network neutrality & the regulatory challenges in the age of gigabit broadband

Google Fiber, the gigabit network that is live in Provo Utah and parts of Kansas City, is facing its first big debate over network neutrality — it’s like a rite of passage for Internet service providers.

A Lawrence (KS) resident filed a complaint with the Federal Communications Commission over Google’s terms of service, arguing that because Google prevented people from attaching servers to their fiber lines, Google was violating network neutrality rules. This tempest in a teapot could best be used to start two serious debates over broadband policy. The first is about the archaic definition of server in a world is replete with them. The second is a debate about what constitutes business broadband as the lines between businesses and home users blur.

Starbucks will get speedier, Google-powered free Wi-Fi

Google will be boosting the Wi-Fi in all 7,000 company-operated Starbucks stores over the next 18 months. Google promises connection speeds up to 10 times faster than what they are now, and 100 times faster in Google Fiber cities across America. Starting in August, each free Wi-Fi connection will be available under the same name “Google Starbucks.”

E-book price wars start anew in the U.K. When are super-low prices coming to the U.S.?

Across the Atlantic, consumers are getting better deals on new e-books: Barnes & Noble’s Nook is running a “Hot Summer Deals” promotion that sells some new titles for just £0.99 (USD $1.51). And Amazon U.K. is matching those prices, too.

Nook U.K.’s promotion includes 114 titles, ranging in price from £0.30 to £9.99. Thirty-three of the e-books are £0.99, including Khaled Hosseini’s And the Mountains Echoed, Colum McCann’s TransAtlantic, Lionel Shriver’s Big Brother and David Baldacci’s The Hit. Amazon is matching Kindle prices on most of those titles. Many people expected U.S. retailers, especially Amazon, to start discounting large groups of e-books steeply right away. So far, though, it hasn’t happened. This has led some in the industry to think that Amazon is biding its time, perhaps waiting for the holiday season to slash e-book prices to lows like the ones we’re seeing in the U.K.