Press Release

The Federal Communications Commission imposed a penalty of $975,000 against Advanced Tel, Inc. (ATI or Company) for violating its federal regulatory obligations as a telecommunications service provider for several years by failing to file required data and make required contributions to important federal programs.

In ATI’s response to our Notice of Apparent Liability for Forfeiture (NAL), in which we proposed a forfeiture penalty of $1,588,988, ATI asserted an inability to pay the proposed forfeiture, and argued that its penalty should be reduced or cancelled because of the statute of limitations. ATI, however, did not dispute the facts underlying the violations identified in the NAL. For the reasons discussed below, we reduce the proposed forfeiture penalty and assess a forfeiture of $975,000 against the Company.

The Subcommittee on Oversight and Investigations, chaired by Rep Tim Murphy (R-PA), held a hearing examining the Department of Health and Human Services’ (HHS) role in cybersecurity efforts within the health care sector. Discussed during the hearing were two reports that HHS was required to submit to Congress, following the implementation of the Cybersecurity Information Sharing Act (CISA), which became law in 2015. The reports outline the department’s internal cybersecurity processes and industry recommendations for what the federal government and industry can do to improve cybersecurity efforts in the health care sector.

US Secretary of Commerce Wilbur Ross has named US Patent and Trademark Office (USPTO) Associate Solicitor Joseph Matal to perform the functions and duties of the Under Secretary of Commerce for Intellectual Property and Director of the USPTO. The position is effective June 7, 2017 and follows the resignation of Michelle K. Lee.

Matal will serve in this role during the nomination and confirmation process for a new director. As an Associate Solicitor in the USPTO’s Office of Solicitor, Matal has briefed and argued appeals of patent and trademark decisions before the US Court of Appeals for the Federal Circuit and the US District Court, and assisted in the development of legal positions taken by the US Solicitor General in patent and copyright cases before the US Supreme Court. Matal recently served as acting Chief of Staff for the agency, and has advised the director on legislative matters. Matal previously served as the General Counsel of the Judiciary Committee for former Sen Jeff Sessions (R-AL), and as a Judiciary Committee Counsel to former Sen Jon Kyl (R-AZ). In that role, he was the principal staff drafter and negotiator of legislation that became the Leahy-Smith America Invents Act, the first comprehensive patent law overhaul since 1952. Matal has a bachelor’s degree from Stanford University, and a law degree from the University of California at Berkeley.

Building on the success of its two previous PrivacyCon events, the Federal Trade Commission is announcing a call for presentations for its third PrivacyCon, which will take place on February 28, 2018.

The call for presentations seeks research and input on a wide range of issues and questions to build on previously presented research and promote discussion, including:
What are the greatest threats to consumer privacy today? What are the costs of mitigating these threats? How are the threats evolving? How does the evolving nature of the threats impact consumer welfare and the costs of mitigation?
How can companies weigh the costs and benefits of security-by-design techniques and privacy-protective technologies and behaviors? How can companies weigh the costs and benefits of individual tools or practices?
How can companies assess consumers’ privacy preferences?
Are there market failures (e.g. information asymmetries, externalities) in the area of privacy and data security? If so, what tools and strategies can businesses or consumers use to overcome or mitigate those failures? How can policymakers address those failures?

Submissions for PrivacyCon must be made by November 17, 2017.

Federal Communications Commission Chairman Ajit Pai announced that the agency has chosen Sanford Williams to serve as director of the FCC’s Office of Communications Business Opportunities, continuing the work he has been doing as acting director. Williams has worked in various roles at the Federal Communications Commission since 1999. Williams also worked as an attorney for Womble, Carlyle, Sandridge & Rice, and taught at Augusta State University in Augusta, Georgia. Williams attended Cornell University where he earned an undergraduate degree in operations research & industrial engineering and a Master’s in Business Administration from the Johnson School of Management. He earned his law degree from the University of Virginia School of Law where he was a member of the Virginia Law Review.

Reality Winner is accused of serving as a journalistic source for a leading American news outlet about a matter of critical public importance. For this act, she has been charged with violating the Espionage Act—a World War I era law meant for spies—which explicitly forbids the jury from hearing why the defendant acted, and bars them from deciding whether the outcome was to the public's benefit. This often-condemned law provides no space to distinguish the extraordinary disclosure of inappropriately classified information in the public interest—whistleblowing—from the malicious disclosure of secrets to foreign governments by those motivated by a specific intent to harm to their countrymen.

The prosecution of any journalistic source without due consideration by the jury as to the harm or benefit of the journalistic activity is a fundamental threat to the free press. As long as a law like this remains on the books in a country that values fair trials, it must be resisted. No matter one's opinions on the propriety of the charges against her, we should all agree Winner should be released on bail pending trial. Even if you take all the government allegations as true, it's clear she is neither a threat to public safety nor a flight risk. To hold a citizen incommunicado and indefinitely while awaiting trial for the alleged crime of serving as a journalistic source should outrage us all.

In a letter sent to President Donald Trump, the Knight First Amendment Institute asked the President to unblock the Twitter accounts of individuals denied access to his account after they criticized or disagreed with him, or face legal action to protect the First Amendment rights of the blocked individuals. The President’s Twitter account, @realDonaldTrump, is a “designated public forum” subject to the First Amendment, according to the Knight Institute. The First Amendment bars the government from excluding individuals from a designated public forum because of their views. The Knight Institute asked the President to unblock its clients, or to direct his subordinates to do so.

The “Customer is Always Right” maxim was perpetuated because it reflected a truth: in a competitive market, the seller that gives the customer what the customer wants will succeed and others will fail. But there is not enough competition in cable broadband markets to force cable companies to focus on satisfying customer needs as a path to beating the competition and “winning” the customer.

Public policies are critical in narrowing the digital divide for older adults and ensuring more accessible broadband access. As the current Federal Communications Commission attempts to change the Lifeline program, policy makers should be reminded that older adults constitute a large number of the program’s beneficiaries, requiring access to essential communications with 911 and other emergency service providers, healthcare practitioners, family and friends and other caregivers. Policies and programs addressing privacy and security also are important for this cohort. Broadband access must be viewed as one of many fundamental civil rights. Guaranteeing that all older adults have unfettered internet access will maintain the vibrancy of these alternatives and others, while ensuring that they aren’t further disadvantaged in the technology revolution.

Free Press and Free Press Action Fund sent a letter to the Federal Communications Commission’s general counsel calling on the agency to address its crackdowns against First Amendment freedoms during recent FCC meetings. “We write to express grave concerns about recent actions that call into serious question the Federal Communications Commission’s commitment to fostering free expression,” reads the letter authored by Free Press and Free Press Action Fund Deputy Director and Senior Counsel Jessica J. González and Policy Director Matt Wood. “In particular, the actions of FCC security and other FCC staff have chilled free speech and public participation in FCC decision-making processes that are supposed to be open to the public, and they have violated the due-process rights of Free Press and Free Press Action Fund staff and members.”

The letter details a series of incidents in which the federal agency and members of its security staff have silenced dissenting voices, manhandled a reporter and barred members of the public from attending the agency’s monthly open meeting without due process. During one incident, on the morning of March 23, 2017, two Free Press Action Fund members, Joe DeGeorge and David Combs, attempted to attend the FCC’s open meeting wearing plain white T-shirts that read “Protect Net Neutrality” in black letters. FCC security personnel informed the two that they would not be allowed to enter the public meeting room unless they removed the T-shirts or flipped them inside out to conceal their message.