A line in the new Republican Party of Arkansas’ platform for 2014-2016 opposing Internet sales taxes by the federal government isn’t keeping Rep. Steve Womack, R-Ark., from supporting the Marketplace Fairness Act (MFA) (HR-684), Womack’s spokeswoman said Wednesday. “We oppose any Internet sales tax imposed by the federal government,” said the platform, which was created July 19, but hasn’t been publicly released, according to the spokeswoman. The MFA allows states to tax remote sellers with annual revenue exceeding $1 million (http://1.usa.gov/1odfGwN). Womack is the original House sponsor of HR-684. Womack “would have a problem with the federal government imposing a sales tax,” but “that’s not what the Marketplace Fairness Act does,” said the spokeswoman. “MFA enables states to enforce existing state sales and use tax laws,” she said. Senate Finance Committee member Mike Enzi, R-Wyo., introduced the Marketplace and Internet Fairness Act July 15, which combines the principles of the MFA and the Internet Tax Freedom Act. Senate Commerce Committee member Kelly Ayotte, R-N.H., criticized the MFA in a Union Leader op-ed (http://1.usa.gov/WrHUcJ) July 20.
The House Judiciary IP Subcommittee hearing on copyright remedies will be at 1:30 p.m. Thursday, instead of the originally scheduled 2 p.m., in 2141 Rayburn, said the committee site (http://1.usa.gov/1mnU4sl) Wednesday. The hearing’s witnesses are David Bitkower, deputy assistant attorney general-criminal division; Matt Schruers, Computer & Communications Industry Association vice president-law and policy; CEO Steven Tepp of Sentinel Worldwide, an intellectual property consulting firm; Sherwin Siy, Public Knowledge vice president-legal affairs; and Nancy Wolff, Cowan DeBaets partner, according to a committee document. “The first duty of a remedies system must surely be to end infringements, or ideally to prevent them from occurring,” said Tepp in prepared testimony he provided us. Tepp was formerly chief IP counsel at the U.S. Chamber of Commerce’s Global Intellectual Property Center. “Equitable, injunctive relief is available for precisely these purposes,” he said. “Consistent with the goal of preventing infringement, section 503 of the Copyright Act grants courts the authority to order the impounding of infringing copies, the means by which those copies are reproduced, and records documenting the manufacture and sale related to the infringement,” Tepp said. “It can scarcely be argued that allowing infringing copies or the implements with which they are produced to remain in the hands of infringers is good policy,” he said. “In some cases the existing remedies are punitive, which discourages innovation,” said Schruers, in prepared testimony he sent to us. “The existing statutory damages framework has created incentives for so-called copyright trolling, or predatory enforcement,” he said. Secondary liability infringement claims can inflict “potential exposure to large damages, often for the acts of customers,” Schruers said. Section 504(c)(2) of the Copyright Act “could limit statutory damages only to cases of direct infringement,” he said. “Alternatively, Congress could forbid aggregation in secondary liability cases,” he said.
The House version of legislation (HR-5161) that would allow CE manufacturers to display electronically the required FCC label of approval instead of physically on the device or product was introduced Tuesday by Rep. Bob Latta, R-Ohio, with bipartisan support. The Senate version (S-2583) of the so-called E-LABEL Act was introduced July 10 and was hailed by CEA as “a commonsense approach for the digital age” (CD July 11 p16). CEA didn’t immediately comment on HR-5161.
Gaps in FCC’s data analysis and reporting limit the commission’s ability to evaluate the USF high-cost program, demonstrate its effectiveness, and help ensure that the data collected will inform current and future reforms, a GAO report (http://1.usa.gov/Umzzpr) said Tuesday. “FCC has not traditionally demonstrated how high-cost funds were spent and the results of that funding because FCC had not collected data to do so,” the report said. Competitive carriers and consumers told the GAO the FCC should increase all carriers’ accountability for their use of high-cost funds by providing information on the results of the funding, the report said. FCC has made improvements to its data collection and presentation that could help it address some of these gaps, the report said, but the agency “has not indicated what information it will make publicly available on a regular basis in the future.” By improving the transparency and accountability of USF’s high-cost spending, “FCC and interested parties could better understand the effects of the reforms; determine those most successful in efficiently enhancing broadband availability, service quality, and capacity; and identify areas for improvement,” the report said. The FCC had no comment, but concurred with the findings, according to the report.
Monday’s congressional briefing on music consent decrees (CD July 22 p9) featured a panel that was “hardly ‘diverse,'” said music industry attorney Chris Castle on his Music Technology Policy blog (http://bit.ly/1pb5HYd) Tuesday. Castle represents artists and musicians, but has also worked with digital music services. The briefing was temporarily disrupted by David Lowery, a songwriter and business lecturer at the University of Georgia, when he threw bags of T-shirts on the panel’s table, saying Broadcast Music Inc. (BMI) paid him $17 for a song he had co-written that had more than 1 million plays. “The Digital Media Association [DiMA] is in the business of selling songwriters music but [DiMA General Counsel Gregory Barnes] is afraid of having a songwriter speak,” said Lowery on The Trichordist blog Monday (http://bit.ly/1qy6WEy), which he edits. Lowery felt some members of the audience didn’t want Barnes to allow him to ask a question of the panel. “I can only assume that the Member of Congress who authorized the use of the [briefing] room was unaware that this censorship was taking place or they would have moved to stop it before it started,” said Castle. “I see people air their laundry before Congress all the time; I've never seen it done literally,” said Matthew Schruers, Computer & Communications vice president-law and policy, by email. Schruers was a panelist at the briefing. “Had Mr. Lowery simply shown some patience instead of storming out (twice), he would have had a chance to comment,” he said. Barnes “eventually handed the floor over” to an American Society of Composers, Authors and Publishers representative, “which rather undermines the dramatic conspiracy theories these gentlemen are weaving,” said Schruers.
Sen. Mark Udall, D-Colo., wants the FCC to make sure more of his constituents have access to local television. “DirecTV subscribers in Grand Junction, Colorado and its surrounding communities do not receive local television programming, which prevents them from viewing the news, weather and emergency information most relevant to them,” Udall told FCC Chairman Tom Wheeler in a letter Monday (http://bit.ly/1pabTQ5). “I ask that you review whether it is economically and technologically feasible for DirecTV to offer local-into-local service in the Grand Junction-Montrose DMA [Designated Market Area] and work with DirecTV to ensure steps are taken to offer this programming.” NAB backed the request.
Senate Commerce Committee member Kelly Ayotte, R-N.H., criticized Senate Majority Leader Harry Reid, D-Nev., and Sen. Dick Durbin, D-Ill., for wanting to “hold the renewal” of the Internet Tax Freedom Forever Act (ITFFA) (S-1431) “hostage in order to pass the onerous and grossly misnamed Marketplace Fairness Act [MFA] [HR-684],” in a Union Leader op-ed (http://1.usa.gov/WrHUcJ) Sunday. Ayotte is one of 51 ITFFA co-sponsors in the Senate (http://1.usa.gov/1jRXTeE). S-1431 calls for a permanent moratorium on Internet access taxes instead of a temporary extension; the MFA would allow states to tax remote sellers with more than $1 million in annual sales. The House passed its version of the Internet access tax moratorium, HR-3086, July 15 (CD July 16 p12). Senate Finance Committee member Mike Enzi, R-Wyo., introduced the Marketplace and Internet Tax Fairness Act (MITFA) (S-2609) July 15. S-2609 combines the MFA with the Internet Tax Freedom Act, which would extend the moratorium on Internet access taxes through Nov. 1, 2024. Durbin is a MITFA co-sponsor. Reid voted for the MFA when it passed the Senate last year (http://1.usa.gov/1gSbJqF). “Enactment of federal online sales tax legislation would have serious consequences for Internet businesses in New Hampshire and across the nation,” said Ayotte in the op-ed. “Passing legislation to extend the prohibition on new Internet access taxes should be approved immediately, and it should be made permanent,” she said. “Senator Durbin is committed to finding any way to pass the bipartisan” MFA “in both the House and Senate and MITFA is just one of the many options available to achieve that goal,” said a spokeswoman.
House Commerce Committee Democrats have “major concerns" about the draft version of the LPTV and Translator Act, one Democratic staffer told us over the weekend. Rep. Joe Barton, R-Texas, authored the bill, unveiled last week to some stakeholder frustration (CD July 21 p2), and expects to include Communications Subcommittee Chairman Greg Walden, R-Ore., as a co-sponsor. Its goal is to protect low-power entities in the FCC’s broadcast TV spectrum incentive auction. The subcommittee plans to consider the bill in a legislative hearing Thursday at 10:15 a.m. in 2322 Rayburn. But Democrats worry about the bill due to possible restraints placed on the FCC’s ability to successfully conduct its incentive auction, the staffer said. One broadcast industry lobbyist told us the bill should not affect the auction, pointing to specific legislative language prioritizing the auction’s success over the low-power interests. “The auction is still primary,” the lobbyist said Monday of the draft bill language, yet also dismissing the bill as simply maintaining “status quo” and ultimately coming across as “a big nothing to me.” Multiple stakeholders outlined those same concerns to us Friday.
Charter Communications spent less on lobbying in Q2 of 2014 than in the same period last year. In the latest quarter, Charter spent $620,000 vs. the $2.59 million it spent in Q2 of 2013. But that difference is largely attributable to a what a Charter spokesman told us was last year’s one-time compensation to an executive. Its lobbying disclosure form named many priorities, emphasizing retransmission consent revamp and satellite TV reauthorization. CEA, meanwhile, spent slightly more -- $1.12 million in Q2 this year compared with $1.1 million in last year’s Q2. So did the Telecommunications Industry Association, spending $70,000 in Q2 of this year compared with $50,000 in Q2 last year. XO Communications also spent more, $140,000 April-June this year compared with $130,000 during the period last year. Q2 lobbying disclosure forms were due Monday, with several companies and associations yet to file at our deadline.
The House will vote this week on the House Commerce Committee’s legislation (HR-4572) to reauthorize the Satellite Television Extension and Localism Act, the committee said Friday. The video revamp provisions that House Commerce inserted in its STELA draft will move forward in the legislation being considered, it said. The House Judiciary Committee had cleared a clean STELA bill earlier this year as well (HR-5036). “The bill the House will vote on will be HR-4572 as passed by the Energy and Commerce Committee, with the language of HR-5036 added as a second title to the bill,” the committee said. Commerce Committee Chairman Fred Upton, R-Mich., and Communications Subcommittee Chairman Greg Walden, R-Ore., released a joint statement saying “the legislation makes targeted reforms to the video marketplace while ensuring that satellite service continues for those who rely on it as their best option to receive broadcast and other programming.”