Communications-related Headlines for 9/8/2000

INTERNET
Assessing Linking Liability (NYT)

INTELLECTUAL PROPERTY
Proposed Ruling Could Limit Tapes Of TV Broadcasts (USA)

DIGITAL DIVIDE
Cisco/Sun Academy Offers 2nd Chance at Tech Career (SJM)

MERGERS
Nextel In Merger Talks With AT&T Unit (WP)

SPEECH
Chairman Kennard On Foreign Investment In The Us Telecommunications
Market (FCC)

INTERNET

Assessing Linking Liability
ACCESSING LINKING LIABILITY
Issue: Internet
Judge Lewis A. Kaplan of the U.S. District Court for the Southern District
ruled that a link can be bad or good -- depending on whether the linker's
intent is laudable or not in his August 17th decision regarding the highly
publicized DeCSS case, which pitted eight movie studios against Eric Corley,
who runs "2600: The Hacker Quarterly." If Judge Kaplan's ruling survives
appeal it could serve as an important guiding light for other judges, said
Dan L. Burk, an Internet law scholar and professor at the University of
Minnesota's law school. In "DeCSS" the movie studios sued Corley to stop him
from posting or linking to hundreds of sites carrying a piece of software -
DeCSS - which the studios claim allows users to decode DVDs. They claimed
the software code opens the door to copying and unauthorized viewing of
movies. In his ruling, Judge Kaplan said there may be no injunction against,
nor liability for, linking to a site containing content considered illegal
under the Digital Millennium Copyright Act unless it can be proven by clear
and convincing evidence that those responsible for the link (1) knew at the
relevant time that the offending material was on the linked-to site; (2)
knew that the offending material may not be legally offered, and (3) created
or maintained the link "for the purpose" of disseminating that illegal
technology. A "strong requirement of that forbidden purpose is an essential
prerequisite to any liability for linking," Judge Kaplan wrote. Kaplan's
views on linking are troubling to at least some experts in Internet law.
Eugene Volokh, a law professor at UCLA's law school, said that the history
of the First Amendment shows that legal rules proscribing speech on the
basis of the speaker's intent may seem promising, but in practice are often
not sufficiently protective of speech. Mark Lemley, an intellectual property
expert who teaches at the University of California at Berkeley's law school,
said another problem with Judge Kaplan's legal standard on linking is that
it is intrusive. It subjects "a whole bunch of people to potential liability
and inquiries about why they did this thing," he said. He added that the
ruling will encourage intellectual property owners to file more cases
against linkers and issue "cease and desist" letters demanding that links be
removed.
[Source: New York Times (Cyber Law Journal), Author: Carl S. Kaplan]
http://www.nytimes.com/2000/09/08/technology/08CYBERLAW.html
(registration required)
INTELLECTUAL PROPERTY

PROPOSED RULING COULD LIMIT TAPES OF TV BROADCASTS
Issue:
Claiming they have little choice than to honor copy-protection rights, the
Federal Communications Commission is expected to make a ruling that would
limit consumers' ability to make copies of cable TV programs in the emerging
digital world. Hollywood has vowed not to release movies over digital cable
TV if it doesn't get safeguards. The ruling could impact at least 230,000
consumers who paid up to $10,000 for digital TV sets with high-definition
pictures. Electronics manufacturers and retailers, however, are opposed to
any constraints on what they consider consumers' time-honored rights, with
some even saying they won't make the boxes if such requirements are adopted.
Over the next decade, more consumers are expected to switch to digital
gadgets to watch and record shows. Today, movie studios have placed few
limits on consumers' freedom to record shows on analog VCRs because the
videocassettes are of mediocre quality and cannot be easily disseminated.
[SOURCE: USAToday (1B), AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20000908/2625446s.htm)

DIGITAL DIVIDE

CISCO/SUN ACADEMY OFFERS 2ND CHANCE AT TECH CAREER
Issue:
A free program of Cisco/Sun Academy, targeted at low-income and out-of-work
residents of Menlo Park and East Palo Alto, is offering 60 adults in Menlo
Park, California a chance at a tech career. The program, targeted at
low-income and out-of-work residents of the two cities, is equipping adults
with the skill needed to navigate the high-tech workplace. Sun Microsystems
Inc. has contributed $50,000 in cash and nearly $115,000 in equipment into
the nine-month program, and Cisco Systems Inc. added $120,000 in cash and
$80,000 in equipment. The first class enrolled in the academy will graduate
in November. The second class started last week, and a third could open as
soon as January. The program condenses 2 1/2 years of college courses into
nine months. Attendance is mandatory, homework is piled on and the course
work is complex. The academy's graduates are on their way to understanding
the computer coding languages and processes that could take college students
and professionals years to master. Graduates are likely to become computer
programmers certified either through Sun or Cisco. "I used to go to college
in Sacramento until I ran out of money and moved back to Silicon Valley,"
said one student who made about $10,000 a year washing windows. "I'll be
making six times more money than before. This program has also given me
direction, focus and a tangible goal." "This is all very difficult
technology," said Larry Hannel, 51, of San Carlos. "I threw myself into this
with no knowledge of programming. It's like learning Japanese with a Korean
accent. But it is exciting."
[SOURCE: San Jose Mercury News, AUTHOR: Eric R. Drudis]
(http://www.mercurycenter.com/svtech/news/front/docs/suncis090800.htm)

MERGERS

NEXTEL IN MERGER TALKS WITH AT&T UNIT
Issue: Merger
Nextel Communications, the national wireless company, is in discussions with
AT&T Wireless about a merger that would create a $100 billion enterprise
with about 18 million customers in markets across the country. Nextel, which
is in danger of exhausting its limited rights to the airwaves, would gain an
enormous partner with the deal. But legal experts said an AT&T-Nextel
combination could encounter resistance at the antitrust division of the
Department of Justice, which has recently shown willingness to challenge
major telecommunications mergers. Nextel and AT&T now compete head to head
in virtually every major market. It raises some fairly obvious horizontal
overlap issues in wireless," said Stephen Axinn, a prominent New York
antitrust expert who was brought in by the Justice Department to review
WorldCom Inc.'s aborted takeover of Sprint Corp Today, Nextel is the last
remaining independent national wireless company.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A32258-2000Sep7.html)

SPEECH

CHAIRMAN KENNARD ON FOREIGN INVESTMENT IN THE US TELECOMMUNICATIONS MARKET
Issue: Mergers/International
(Speech) Yesterday, Federal Communication Commission Chairman William
Kennard spoke before the United States House of Representatives Committee on
Commerce Subcommittee on Telecommunications, Trade and Consumer Protection
about some of the issues raised by foreign investment in the United States
telecommunications market. The Chairman assured congress that the commission
would not prejudge any application that comes before it. He also told the
committee that Commission policies provide for a rigorous case-by-case
review of foreign ownership with sufficient flexibility to address the
particular competitive concerns raised by individual transactions.
[SOURCE: FCC]
(http://www.fcc.gov/Speeches/Kennard/Statements/2000/stwek071.html)

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