July 2013

Public Knowledge's New Patent Reform Project

I’m excited to announce Public Knowledge’s new Patent Reform Project. The Patent Reform Project will connect with both small and large stakeholders to develop policies that advance innovation and technology. To that end, we want to know what you think of the patent system: what works and what doesn’t work, and how it can be improved.

NAMIC CEO Turner-Lee Resigns

The National Association for Multi-Ethnicity in Communications president and CEO Nicol Turner-Lee is resigning her position less than a week after being cleared of alleged financial and operational improprieties while running the organization.

Turner-Lee, who took over the reins of NAMIC in April 2012, is departing NAMIC “to pursue other opportunities." This past March, Turner-Lee was accused of alleged improprieties in an anonymous e-mail sent to cable trade publications and industry organizations supposedly representing NAMIC members. After conducting an organizational audit, the board last week cleared Turner-Lee of all charges. The organization said a succession plan will be announced at a later date, with the executive committee of the board of directors overseeing the association.

Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies
House Committee on Homeland Security
Thursday, July 18, 2013
10 am
http://homeland.house.gov/hearing/subcommittee-hearing-oversight-executi...

Witnesses
Mr. Robert Kolasky
Director
Implementation Task Force
National Protection and Programs Directorate
U.S. Department of Homeland Security

Charles H. Romine, PhD
Director
Information Technology Laboratory
National Institute of Standards and Technology
U.S. Department of Commerce

Eric A. Fischer, PhD
Senior Specialist
Science and Technology
Congressional Research Service
Library of Congress



House Committee on the Judiciary
Wednesday, July 17, 2013
10 am
http://judiciary.house.gov/hearings/113th/hear_07172013.html

Witness List

Panel I

Mr. James Cole
United States Department of Justice

Mr. John C. Inglis
National Security Agency

Mr. Robert S. Litt
Office of Director of National Intelligence

Ms. Stephanie Douglas
FBI National Security Branch

Panel II

Mr. Stewart Baker
Steptoe & Johnson, LLP

Mr. Steven G. Bradbury
Dechert, LLP

Mr. Jameel Jaffer
American Civil Liberties Union

Ms. Kate Martin
Center for National Security Studies



The Brookings Institution
July 16, 2013
2:00 PM - 3:30 PM EDT
http://www.brookings.edu/events/2013/07/16-mobile-technology-natural-dis...

From Hurricane Sandy to international catastrophes such as the tsunami in Japan, governments are increasingly using mobile technology in natural disaster preparedness and public safety response. With an estimated 6 billion mobile phone users worldwide, mobile communications is fast proving to be the most effective and efficient means of reaching and informing the public when disaster strikes. How is mobile technology being used before, during, and after a crisis situation in the United States and around the world? How has mobile communications’ role in catastrophic situations changed, and how are public safety organizations utilizing this technology to make citizens safer and better prepared? What are the costs and benefits of using mobile technology to ready for and react to a major emergency?

On July 16, as part of the Mobile Economy Project, the Center for Technology Innovation at Brookings will host a discussion on mobile technology and its evolving role in disaster and public safety. A panel of experts will discuss how mobile devices aid in planning for and reacting to a crisis, and how do they empower emergency management agencies and officials, first responders, and the public to tackle a variety of natural disasters and security crises.

After the program, panelists will take audience questions. This event will be live webcast.

Introduction and Moderator
Portrait: Darrell West
Darrell M. West
Vice President and Director, Governance Studies
Founding Director, Center for Technology Innovation

Panelists
Richard Price
President
PulsePoint Foundation

James A. Barnett, Jr.
Co-Chair Telecom/Cybersecurity Practice
Venable LLP

Suzy DeFrancis
Chief Public Affairs Officer
American Red Cross

Anita Stewart
Senior Vice President, Strategic Partnerships and Development
Sesame Workshop



July 15, 2013 (AT&T to Acquire Leap Wireless)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for MONDAY, JULY 15, 2013

This week’s agenda http://benton.org/calendar/2013-07-14--P1W/


WIRELESS/SPECTRUM
   AT&T to Acquire Leap Wireless - press release
   Ownership Consolidation Critics Jump on AT&T Leap Deal
   AT&T agrees to buy Leap Wireless: Will regulators let this one through?
   New Sprint, T-Mobile Plans Threaten AT&T, Verizon Dominance
   Verizon Wireless Has Commitment Issues With Apple - analysis

OWNERSHIP
   Hulu sale is canceled; owners double down on the video site
   How Comcast became the biggest winner in Hulu’s failed sale - analysis
   Cable-TV Boss's Vision: Just Two Industry Players
   The newsonomics of Tribune’s detour - analysis

INTERNET/BROADBAND
   The Key to Social and Economic Development? Broadband Adoption - op-ed
   Bill introduced to legalize online poker [links to web]
   Web industry officials balk at domain expansion plan [links to web]

CONTENT
   Apple Ruling Heaps Doubt on 'MFN' Clauses - analysis [links to web]
   Why Barnes & Noble Is Good for Amazon - analysis [links to web]
   In books, it is the best of times, it is the worst of times - op-ed [links to web]
   Hollywood, or Silicon Valley: Where’s the Money? [links to web]
   Is This Column a Crime? - editorial [links to web]
   Netflix Should Read Amazon's Script - analysis [links to web]
   Google invests in YouTube studio in LA [links to web]

TELEVISION
   Pay-TV Providers Bid to End Sports Networks' Win Streak
   Asiana to sue San Francisco TV station over names

TELECOM
   Sen McCaskill looks to cut Lifeline for Missouri residents - op-ed

CYBERSECURITY
   Five Critical Cyber Questions for Next DHS Chief - op-ed
   Bill targets China cyber-espionage [links to web]

PRIVACY
   Attention, Shoppers: Store Is Tracking Your Cell

GOVERNMENT & COMMUNICATIONS
   Reporters' Groups Offer Cautious Praise For New DOJ Journalism Guidelines
   The Justice Department and a free press - editorial
   Obama must lead debate on surveillance, privacy - editorial

HEALTH
   Report finds telehealth services are cost effective, clinically successful [links to web]

AGENDA
   FCC to Hold Open Commission Meeting, Friday July 19, 2013 - public notice

STORIES FROM ABROAD
   EU Commissioner: We Don’t Want U.S. Reading Our Mail and Listening to Our Phone Calls
   Privacy issues loom over EU-U.S. trade talks
   NSA Leaks Revive Push in Russia to Control Net
   Leaked letter shows ISPs and government at war
   Stop ... India sends its last telegram [links to web]

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WIRELESS/SPECTRUM

AT&T-LEAP
[SOURCE: AT&T, AUTHOR: Press release]
AT&T and prepaid wireless provider Leap Wireless International have entered into an agreement for AT&T to acquire Leap for $15 per share in cash. Under the terms of the agreement, AT&T will acquire all of Leap’s stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of April 15, 2013, Leap had $2.8 billion of net debt. Leap shareholders will also receive a contingent right entitling them to the net proceeds received on the sale of Leap’s 700 Mhz “A Block” spectrum in Chicago, which Leap purchased for $204 million in August 2012. Leap’s network covers approximately 96 million people in 35 U.S. states. Leap currently operates -- under the Cricket brand -- a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas, and has 3,400 employees. AT&T will retain the Cricket brand name, provide Cricket customers with access to AT&T’s award-winning 4G LTE mobile network, utilize Cricket’s distribution channels, and expand Cricket’s presence to additional U.S. cities. The result will be increased competition, better device choices, improved customer care and a significantly enhanced mobile Internet experience for consumers seeking low-cost prepaid wireless plans. The combined company will have the financial resources, scale and spectrum to better compete with other major national providers for customers interested in low-cost prepaid service. Cricket’s employees, operations and distribution will jump start AT&T’s expansion into the highly competitive prepaid segment. The acquisition includes spectrum in the PCS and AWS bands covering 137 million people and is largely complementary to AT&T’s existing spectrum licenses. Immediately after approval of the transaction, AT&T plans to put Leap’s unutilized spectrum – which covers 41 million people – to use in furthering its 4G LTE deployment and providing additional capacity and enhanced network performance for customers’ growing mobile Internet usage. Owners of approximately 29.8% of Leap’s outstanding shares have entered into an agreement to vote in favor of the transaction. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions. AT&T expects the transaction to close in six to nine months.
benton.org/node/155646 | AT&T | WSJ | The Hill | LA Times | CNNMoney | The Verge | USA Today | IDG News Service
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CRITICS OF DEAL
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Ownership consolidation critics were quick to criticize AT&T's announcement that it had struck a deal to buy Leap Wireless and its Cricket pre-paid service. Both Free Press and Public Knowledge immediately called on the Federal Communications Commission and Department of Justice to reject the deal. "After its failed attempt to merge with T-Mobile, AT&T is back again, this time trying to gobble up another competitor in Leap," said Free Press president Craig Aaron. "We urge the Justice Department and the FCC to reject this latest attempt by AT&T to swallow a competitor." Harold Feld, Senior Vice President at Public Knowledge, said, "AT&T already has more wireless capacity than it needs to serve its customers -- if it would focus on using what it has rather than continuing to try to buy out competitors. AT&T needs to stop trying to build market share with mergers and focus on building a better network....The Justice Department and the Federal Communications Commission need to say 'no' to this latest effort by AT&T to buy out its rivals and rebuild 'Ma Cell.'"
benton.org/node/155645 | Broadcasting&Cable
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REGULATORY REVIEW
[SOURCE: GigaOm, AUTHOR: Kevin Fitchard]
US regulators denied AT&T T-Mobile, so now AT&T is trying its luck with a smaller carrier, Leap Wireless. With 5 million customers, Leap is currently the fifth largest mobile carrier in the U.S., having moved up the ranks last spring when T-Mobile merged with MetroPCS. It runs CDMA networks in many small and mid-sized markets in 35 states across the country, along with a few larger cities like Chicago and Houston. The big question is whether regulators will let this deal pass. When the Federal Communications Commission and the U.S. Department of Justice smacked down AT&T-Mo in 2011, they made it clear that they weren’t going to let AT&T and Verizon grow bigger by taking any more viable competitors out of the market. Regulators may not view Leap in the same light, though. It’s hardly nationwide, and it’s struggling. Allowing the acquisition would still maintain the balance between the big 4 operators and only increase AT&T’s customer base by a modicum. But the deal would also put valuable 3G and 4G airwaves into AT&T’s pocket in many regions of the country, giving it the same kind of “surgical” spectrum MetroPCS gave T-Mobile. The DOJ and FCC may choose to look at this deal primarily as a spectrum deal, rather than a merger of competitors. Both agencies let Verizon buy up the cable companies’ massive treasure trove of 4G airwaves, though they secured assurances from Verizon it would sell off other spectrum. We might see the same thing happen in an AT&T-Leap deal. AT&T said in its announcement it already plans to sell off a block of 700 MHz spectrum in Chicago Leap just bought from Verizon. Ultimately AT&T would have to shut down Leap’s networks completely though, since their networks aren’t compatible. That’s fine with AT&T. It doesn’t need any more 2G or 3G service. It’s focused on the LTE prize.
benton.org/node/155644 | GigaOm
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SPRINT, T-MOBILE MAY THREATEN AT&T, VERIZON DOMINANCE
[SOURCE: telecompetitor, AUTHOR: Joan Engebretson]
Before long, people may look back on mid-2013 as the point where the balance of power in the wireless market began to shift. In recent years, AT&T and Verizon Wireless have become increasingly dominant, holding the most spectrum and gaining the first (and sometimes the only) access to some of the hottest devices for periods of as long as a year. But that’s starting to change. T-Mobile’s aggressive discounting already has boosted the company’s prepaid market share and is “poised to do so in post-paid as well,” according to a report issued from influential financial research firm Moffett Research. And now that Sprint has received a cash infusion from Softbank, gained control of Clearwire’s vast spectrum holdings, and begun making aggressive moves such as the Sprint unlimited plan announcement, it’s likely to see similar results. The picture of an industry with two “haves” (Verizon and AT&T) and two “have nots” (Sprint and T-Mobile) “simply doesn’t fit anymore, portending a more competitive future,” wrote Moffett Research.
benton.org/node/155633 | telecompetitor
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VERIZON AND APPLE
[SOURCE: Wall Street Journal, AUTHOR: Miriam Gottfried, Rolfe Winkler]
Is the iPhone becoming the smartphone world's Alex Rodriguez? One data point suggests the aging all-star device may be struggling to put up the sales numbers to justify its gigantic contract. Like some rivals, Verizon Wireless appears to have made a multiyear, multibillion-dollar commitment to buy iPhones in order to get Apple's smartphone onto its network. Now, the No. 1 U.S. carrier by subscribers doesn't appear to be selling as many of the devices as it thought it could. In the short term, any shortfall could mean Verizon Wireless faces some sort of contract penalty. More important will be the likely impact on future contract negotiations with Apple. If the iPhone's sales momentum flags, watch for Verizon Wireless to throw some heat in its matchup with Apple's smartphone slugger.
benton.org/node/155660 | Wall Street Journal
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OWNERSHIP

HULU SALE CANCELED
[SOURCE: Los Angeles Times, AUTHOR: Dawn Chmielewski, Joe Flint]
The Hulu divorce has been called off. After months of fielding offers from would-be buyers for the popular online video site, owners 21st Century Fox, Walt Disney and NBCUniversal decided to cancel the sale. Instead, they said, they will invest $750 million in Hulu so it can better compete against Netflix, Amazon and other Internet streaming services. This is the second time in less than two years that Hulu's owners put it on the block only to take it off again. Although Hulu's parents have not always been on the same strategic page regarding the platform, none was willing to part with it.
benton.org/node/155640 | Los Angeles Times | NY Times
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COMCAST WINNER IN HULU DECISION?
[SOURCE: paidContent.org, AUTHOR: Janko Roettgers]
[Commentary] Hulu’s future seems as murky as ever after the news that the site won’t be sold after all, and it almost looks like there are losers everywhere: Hulu’s co-owners didn’t get the money they wanted for the service, Hulu’s employees and executives are still stuck with a set of co-owners that may have different ideas for its future, and Hulu’s users most certainly can expect more content to go behind the paywall. But there’s one exception: Comcast. The pay TV operator owns one third of Hulu, but it’s not allowed to influence its business, thanks to regulatory conditions put in place when Comcast merged with NBC Universal. These conditions also prevented Comcast from having any say on the aborted sale, but I’d bet that the folks over at Comcast are pretty happy with today’s outcome. That’s because the top three contenders for Hulu included two of Comcast’s biggest rivals: AT&T and DirecTV. Cable companies like Comcast have seen many of their TV service customers flee to satellite and phone company rivals, and are now starting to feel the threat of cord cutters as well. The common narrative around AT&T’s and DirecTV’s bids for Hulu, which are said to have been around $1 billion, is that the companies were looking to use the site to power their TV Everywhere services, allowing their subscribers even easier access to complimentary catch-up programming online.
benton.org/node/155639 | paidContent.org
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TOM RUTLEDGE
[SOURCE: Wall Street Journal, AUTHOR: Shalini Ramachandran]
Tom Rutledge, the chief executive of cable operator Charter Communications and Liberty Media chief John Malone are leading an effort to spark consolidation in the nearly $100 billion U.S. cable industry. Persuading rivals to join forces won't be easy. In recent weeks, Rutledge met with Glenn Britt, chief executive of No. 2 cable operator Time Warner Cable to make a case for the benefits of a merger between the companies, people familiar with the matter say. But Britt showed little interest after the meeting, one of the people said. That followed a previous unsuccessful overture to Britt by Liberty Chief Executive Greg Maffei, the people say. Rutledge is a big believer that size matters. He sees plenty of scope for mergers in a U.S. cable industry with one giant—Comcast—and many smaller players, including Charter, the fourth-largest cable operator. Rutledge and Malone have in recent weeks taken their message to investors, touting the benefits of consolidation.
benton.org/node/155641 | Wall Street Journal
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TRIBUNE’S DETOUR
[SOURCE: Nieman Journalism Lab, AUTHOR: Ken Doctor]
[Commentary] Was the announced Tribune split into broadcast and newspaper companies a way to avoid the Koch brothers, a way to harvest tax savings, or something else? The big question is why Tribune would go through the time, money, and bother to split the companies when it doesn’t want to be in the newspaper business and has would-be buyers waiting for company data. First, expect that the papers will still be sold. They may go as a whole of individually, but they’ll go, and they may go before a spin-off is spun.
benton.org/node/155642 | Nieman Journalism Lab
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INTERNET/BROADBAND

BROADBAND ADOPTION AND ECONOMIC DEVELOPMENT
[SOURCE: The Huffington Post, AUTHOR: Robert Pepper]
[Commentary] Two Asian nations -- Korea and Singapore -- have managed to leapfrog multiple stages of economic development and have transformed into economic miracles. This comes as no accident, in part, because both have taken a planned approach to technological development, starting with national broadband plans, which has led to increased broadband adoption, and successive waves of economic growth. A new report by the UN Broadband Commission and Cisco shows that Korea and Singapore are the most notable examples of a statistically significant trend; Countries that embrace national broadband plans have increased broadband adoption. The data show that the introduction of a broadband plan accounts for 2.5 percent higher fixed broadband penetration and 7.4 percent higher mobile broadband penetration. This is based on a thorough examination of broadband adoption data from 2001 through 2011. For policymakers thinking about how to jumpstart their economies, there are 5 basic takeaways:
Develop a national broadband plan to set a strategic vision for how information technology will drive your country's knowledge economy;
Get buy in from both public and private constituencies;
Ensure the plan is balanced between the supply of high-speed Internet and demand driving adoption;
Implement rules and regulations that ensure a competitive broadband market;
Finally, regularly monitor progress toward broadband targets and ensure implementation and follow through.
benton.org/node/155636 | Huffington Post, The | read the report
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TELEVISION

SPORTS PROGRAMMING
[SOURCE: Wall Street Journal, AUTHOR: Matthew Futterman]
Cable and satellite-TV providers have complained for years about the rising cost of sports programming. Now, armed with detailed new viewing data that they claim show most subscribers aren't big fans, they are beginning to fight back. Houston, the 10th-largest television market in the nation, is the latest battlefield. It is a well-kept secret of sports on television: Aside from the National Football League and the biggest games of the year in a handful of other sports, such as Tuesday night's Major League Baseball All-Star Game, the TV audience for sports is tiny, amounting to about 4% or less of households on average, according to media-research firm Nielsen's data provided by a major media company. Less than 3% of households with television in any given market, on average, will tune in to watch their hometown National Basketball Association teams play, and less than 2% will watch their National Hockey League teams. Yet in the average market, sports channels such as ESPN and regional sports networks account for 19.5% of fees paid by cable and satellite operators, according to media-research firm SNL Kagan. The average monthly cable bill in the U.S., before taxes, is now $73.44, Kagan estimates. Some industry veterans contend the rising cost of sports programming is throwing the entire TV ecosystem out of whack.
benton.org/node/155664 | Wall Street Journal
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ASIANA TO SUE TV STATION
[SOURCE: San Francisco Chronicle, AUTHOR: ]
Asiana said that it will sue a San Francisco television station that it said damaged the airline's reputation by using bogus and racially offensive names for four pilots on a plane that crashed earlier this month in San Francisco. An anchor for KTVU-TV read the names on the air July 12 and then apologized after a break. The report was accompanied by a graphic with the phony names listed alongside a photo of the burned-out plane that had crashed at San Francisco International Airport on July 6, killing three and injuring dozens. Video of the report has spread widely across the Internet since it was broadcast. The National Transportation Safety Board has also apologized, saying a summer intern erroneously confirmed the names of the flight crew. Asiana has decided to sue KTVU-TV to "strongly respond to its racially discriminatory report" that disparaged Asians, Asiana spokeswoman Lee Hyomin said. She said the airline will likely file suit in U.S. courts.
benton.org/node/155656 | San Francisco Chronicle
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TELECOM

MCCASKILL AND LIFELINE
[SOURCE: St Louis Post-Dispatch, AUTHOR: Chancellar Williams]
[Commentary] Sen. Claire McCaskill (D-MO) has made a considerable effort to address two communications issues in recent months. How much these issues matter for your ability to connect and communicate likely depends on how wealthy you are. Do you regularly fly cross-country? Well, Sen McCaskill has your back: She understands how painful it is when you have to turn your iPad off before takeoff. Are you unable to afford a phone, let alone a fancy tablet? Sorry, you’re out of luck: Sen McCaskill isn’t in your corner on this one. If the Lifeline program is eliminated, it will be more difficult for seniors to maintain contact with their physicians, for veterans to reach potential employers and for parents to stay in touch with their children’s schools. In contrast, it’s a minor inconvenience at best when air travelers can’t use their tablets for 15 minutes during a flight. We need universal access to communications, not communications for just a privileged few. Poor people in Missouri — and all over the United States — are looking for a way out of poverty. In almost every case a phone is essential to that process.
[Chancellar Williams is the associate policy director for Free Press]
benton.org/node/155643 | St Louis Post-Dispatch
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CYBERSECURITY

FIVE CRITICAL CYBER QUESTIONS FOR THE NEXT DHS CHIEF
[SOURCE: nextgov, AUTHOR: Jessica Herrera-Flanigan]
[Commentary] Homeland Security Secretary Janet Napolitano's announcement that she plans to leave the department raises interesting questions for what is next for the government's cybersecurity efforts. She, along with recently-departed Deputy Secretary Jane Hall Lute, dedicated a significant amount of resources and time to making cybersecurity a priority for DHS. So what should the next candidate for Secretary be considering?
China. What role does DHS have in international efforts to combat cyberthreats from China that are affecting our domestic systems? Does this role change if the threat is mostly on the economic side (e.g. cyber espionage and IP theft) rather than national security, i.e. critical infrastructure? What about the department's role in looking at supply chain threats and foreign investment issues in U.S. cyber assets?
Beyond critical infrastructure protection. What role does DHS have in helping the increasing number of businesses and companies impacted by cyberattacks? We know of the debates among voluntary standards for critical infrastructure but what about everyone else?
Privacy and surveillance. Not just Edward Snowden, but increased information sharing. In discussions regarding government privacy, the focus has been on Justice and the intelligence agencies. Will attention now focus more on DHS?
The future. Mobile, cloud and emerging technologies are changing how people use technology and creating new cybersecurity challenges. Is DHS in front of these changes or focused on nuts-and-bolts critical infrastructure protection?
Big data. The sheer volume of information that can be gathered on individuals is staggering and growing. What is DHS doing to address new challenges in this area?
benton.org/node/155635 | nextgov
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PRIVACY

RETAILERS TRACKING CUSTOMERS
[SOURCE: New York Times, AUTHOR: Stephanie Clifford and Quentin Hardy]
A look at a movement by retailers to gather data about in-store shoppers’ behavior and moods, using video surveillance and signals from their cellphones and apps to learn information as varied as their sex, how many minutes they spend in the candy aisle and how long they look at merchandise before buying it. All sorts of retailers — including national chains, like Family Dollar, Cabela’s and Mothercare, a British company, and specialty stores like Benetton and Warby Parker — are testing these technologies and using them to decide on matters like changing store layouts and offering customized coupons. But while consumers seem to have no problem with cookies, profiles and other online tools that let e-commerce sites know who they are and how they shop, some bristle at the physical version, at a time when government surveillance — of telephone calls, Internet activity and Postal Service deliveries — is front and center because of the leaks by Edward J. Snowden.
benton.org/node/155666 | New York Times
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GOVERNMENT & COMMUNICATIONS

JOURNALISM GUIDELINES
[SOURCE: Reuters, AUTHOR: Lawrence Hurley]
The Justice Department proposed curbing the ability of prosecutors to seize reporters' records while investigating leaks to the media, after complaints that journalists' rights were violated in recent high-profile cases. A revised set of guidelines proposed by the department said that search warrants would not be sought against journalists carrying out "ordinary news-gathering activities." In another change, the department would in most instances notify news organizations in advance if a subpoena is being sought to obtain phone records. The changes were contained in a report which the department prepared at the request of President Barack Obama and which was given to the president by Attorney General Eric Holder on July 12. The Reporters Committee for Freedom of the Press and the Newspaper Association of America praised the changes but both said that they fell short of what was needed.
benton.org/node/155638 | Reuters | Broadcasting&Cable
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JUSTICE AND A FREE PRESS
[SOURCE: Los Angeles Times, AUTHOR: Editorial staff]
[Commentary] The Obama Administration stumbled badly in recent months as it repeatedly overstepped its authority in seeking information from news organizations. Prosecutors swept up phone records tracking calls by reporters and editors of the Associated Press, suggested that a Fox News reporter might be criminally prosecuted and continued their vigorous pursuit of information held by reporters in ferreting out alleged leaks. For that, the administration has been properly excoriated. On July 12, however, Atty. Gen Eric H. Holder Jr. unveiled new guidelines to govern the department's behavior in cases involving news organizations. Those guidelines represent a historic step toward restraining the reach of government and affirming the rights of a free press. The administration got to this place only because of the outrage it brought on itself, but it got to the right place anyway.
benton.org/node/155655 | Los Angeles Times
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PRIVACY DEBATE?
[SOURCE: San Jose Mercury News, AUTHOR: Editorial staff]
[Commentary] Silicon Valley has backed President Barack Obama with votes and dollars. It's time the President said thanks. He can begin by supporting Yahoo's wish to disclose its efforts to protect consumers from government surveillance. Peoples' trust in Google, Facebook, Yahoo and other companies that collect user data depends largely on the belief that privacy is reasonably protected. President Obama should support letting the public see arguments they made showing this concern before the Foreign Intelligence Surveillance Court. Yahoo told Mercury News reporter Brandon Bailey last week it had "objected strenuously" in a 2008 case that led tech companies to cooperate with controversial data-gathering. Americans should know if Yahoo tried to protect consumers' interests. Today, the impression is that tech companies simply caved to government demands. If President Obama believes the surveillance programs he supports are critical to Americans' safety, he needs to be the Educator in Chief. He needs to help people understand what they accomplish. Having said in San Jose on June 7 that he welcomes a debate on this, he needs to lead it.
benton.org/node/155654 | San Jose Mercury News
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AGENDA

FCC MEETING AGENDA
[SOURCE: Federal Communications Commission, AUTHOR: Public Notice]
Here’s the agenda for the Federal Communications Commission’s July 19 open meeting. The FCC will consider:
A Fifteenth Report on the status of competition in the market for the delivery of video programming.
A Notice of Proposed Rulemaking to modernize the Schools and Libraries Universal Service Support mechanism (the E-rate program) to support high-speed broadband for digital learning technologies and ensure all students, teachers, and library patrons have the tools they need to succeed in the 21st century.
A Report and Order addressing mandatory minimum standards applicable to the Speech-to-Speech Relay program and a Further Notice of Proposed Rulemaking seeking input on ways to improve the efficiency and effectiveness of this program.
In addition, the FCC will receive two presentations:
Margaret Spellings, former Secretary of Education, and Jim Steyer, Founder and CEO of Common Sense Media, will present on the bipartisan Leading Education by Advancing Digital (LEAD) Commission’s Five Point Blueprint recommending a national initiative to expand digital learning in K-12 education. Dr. John Word, principal of Kenmore Middle School in Arlington, VA, will present on how students and teachers at Kenmore are using digital technologies and broadband connectivity to expand learning opportunities.
In recognition of the 23rd anniversary of the Americans with Disabilities Act, the FCC’s Consumer & Governmental Affairs Bureau, together with the Wireless Telecommunications Bureau and the Media Bureau, will provide a report on the Commission's implementation of the CVAA since its passage in 2010.
benton.org/node/155637 | Federal Communications Commission
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STORIES FROM ABROAD

EUROPE AND THE NSA
[SOURCE: Wall Street Journal, AUTHOR: Ina Fried]
While it is not yet clear that the NSA spying revelations will lead to any substantive change in the United States, the growing scandal is poised to spark even stronger data protection laws in Europe. European Union Vice President and Commissioner Viviane Reding said that efforts to strengthen existing privacy laws have gotten a boost from attention to the PRISM and other NSA data gathering efforts. “It was a wake-up call, thanks to the Americans,” Reding said, speaking at the DLDwomen conference in Munich. We do not want the U.S. government to listen to every phone call we make and read every e-mail, Reding said. “Data protection in Europe is a fundamental right,” Reding said. “Strong rules allow trust and, in the Internet world, without trust you cannot go ahead.”
benton.org/node/155653 | Wall Street Journal
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PRIVACY AND TRADE TALKS
[SOURCE: Politico, AUTHOR: Jessica Meyers]
Technology has complicated the very trade deal meant to revolutionize it. Disclosures about the National Security Agency’s surveillance of European diplomats shrouded opening talks last week on a massive agreement between the European Union and United States that would redefine digital trade. While the revelations’ effects remain unclear, they have magnified privacy concerns and further politicized an already tense debate over information access and ownership. Negotiators now face an even knottier battle to reconcile the tech industry’s push for digital freedom with European desires for individual protections.
benton.org/node/155652 | Politico
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RUSSIA REVIVES PUSH TO CONTROL THE NET
[SOURCE: New York Times, AUTHOR: Andrew Kramer]
Edward J. Snowden, the former National Security Agency contractor, fled the United States saying he did not want to live in a surveillance state. But now the Russians are using his very presence in Moscow — on July 12 Snowden said he intended to remain in Russia for some time while seeking asylum elsewhere — to push for tighter controls over the Internet. Two members of Russia’s Parliament have cited Snowden’s leaks about NSA spying as arguments to compel global Internet companies like Google and Microsoft to comply more closely with Russian rules on personal data storage. These rules, rights groups say, might help safeguard personal data but also would open a back door for Russian law enforcement into services like Gmail.
benton.org/node/155651 | New York Times
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ISPs AND THE UK
[SOURCE: BBC, AUTHOR: Rory Cellan-Jones]
A letter sent to the UK's four leading Internet service providers from the government has made them very cross indeed. The letter comes from the UK Department for Education but it sets out a list of demands from Downing Street, with the stated aim of allowing the prime minister to make an announcement shortly. The companies are asked, among other things, for a commitment to fund an "awareness campaign" for parents. They're not particularly happy about promising cash for what the letter concedes is an "unknown campaign" but it's the next item on the menu which is the source of most of their anger. This asks them to change the language they are using to describe the net safety filters they will be offering to internet users. Instead of talking of "active choice +", they are urged to use the term default-on. The letter says this can be done "without changing what you're offering." A person at one ISP told me the request was "staggering - asking us to market active choice as default-on is both misleading and potentially harmful."
benton.org/node/155650 | BBC
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Hollywood, or Silicon Valley: Where’s the Money?

Last year, “The Dark Knight Rises” was one of the top-grossing films of 2012, racking up $1 billion in worldwide box-office sales. That same year, Instagram, the photo-sharing site based in Silicon Valley, was also one of the top-grossing commercial tech deals of the year; Facebook bought it for $1 billion. So which was a better return on investment, the Hollywood hit or the Silicon Valley wonder? If you really want a sure bet, the answer is neither, said Ilya A. Strebulaev, a professor of finance at Stanford University’s Graduate School of Business, who advised caution before whipping out your checkbook to finance either the next movie or start-up. Both industries, he pointed out, are unpredictable and unstable, and not the ideal way to make money.

Attention, Shoppers: Store Is Tracking Your Cell

A look at a movement by retailers to gather data about in-store shoppers’ behavior and moods, using video surveillance and signals from their cellphones and apps to learn information as varied as their sex, how many minutes they spend in the candy aisle and how long they look at merchandise before buying it.

All sorts of retailers — including national chains, like Family Dollar, Cabela’s and Mothercare, a British company, and specialty stores like Benetton and Warby Parker — are testing these technologies and using them to decide on matters like changing store layouts and offering customized coupons. But while consumers seem to have no problem with cookies, profiles and other online tools that let e-commerce sites know who they are and how they shop, some bristle at the physical version, at a time when government surveillance — of telephone calls, Internet activity and Postal Service deliveries — is front and center because of the leaks by Edward J. Snowden.

Why Barnes & Noble Is Good for Amazon

[Commentary] E-book sales boomed last year, including a 42 percent rise in sales of fiction. Net revenue for publishers also climbed more than $1 billion in 2012, to $15 billion, according to BookStats, an annual survey of the book business. But while publishers revel in the robust margins provided by e-books — no manufacturing, no shipping and no remaindering — the growth of Amazon leaves them as secondary characters in a business they used to control.

Apple may be the one that was found guilty of setting prices, but Amazon has the kind of market power that allows it to set prices unilaterally. The company is already pulling back on discounts on scholarly and small-press books. Barnes & Noble tried to keep up with the technological shift, but the company’s earnings were perforated by a $177 million loss from its Nook division, and that news took out William Lynch Jr., the chief executive, and threw a deep scare into publishers. In my view, Barnes & Noble is a company that did the right thing, and got clobbered anyway. When most media companies get into the device business, what pops out is clunky and useless, but the Nook is an excellent reading device that drew critical praise and, initially, buyers. At a time when legacy media companies are derided for letting the future overtake them, Barnes & Noble aggressively innovated.

Pay-TV Providers Bid to End Sports Networks' Win Streak

Cable and satellite-TV providers have complained for years about the rising cost of sports programming. Now, armed with detailed new viewing data that they claim show most subscribers aren't big fans, they are beginning to fight back.

Houston, the 10th-largest television market in the nation, is the latest battlefield. It is a well-kept secret of sports on television: Aside from the National Football League and the biggest games of the year in a handful of other sports, such as Tuesday night's Major League Baseball All-Star Game, the TV audience for sports is tiny, amounting to about 4% or less of households on average, according to media-research firm Nielsen's data provided by a major media company. Less than 3% of households with television in any given market, on average, will tune in to watch their hometown National Basketball Association teams play, and less than 2% will watch their National Hockey League teams. Yet in the average market, sports channels such as ESPN and regional sports networks account for 19.5% of fees paid by cable and satellite operators, according to media-research firm SNL Kagan. The average monthly cable bill in the U.S., before taxes, is now $73.44, Kagan estimates. Some industry veterans contend the rising cost of sports programming is throwing the entire TV ecosystem out of whack.