MusicFIRST heralded recent endorsements of the Fair Play Fair Pay Act (HR-1733) from the AFL-CIO, Americans for Tax Reform and the Center for Individual Freedom (CFIF) as proof that the bill has bipartisan support in Congress. Terrestrial and digital broadcasters, including NAB, are strongly opposing the bill (see 1504100044). The Free State Foundation endorsed HR-1733 Wednesday, with Senior Fellow Seth Cooper saying in a blog post that Congress should “give this legislation a prompt fair hearing.” The AFL-CIO endorsed the bill shortly after its introduction Monday, saying in a blog post that “a performance right is not a tax.” CFIF said in a blog post that HR-1733 “offers a corrective to years of unfairness in the industry, and it’s something that conservatives, libertarians and anyone who values property rights should support.” MusicFIRST Executive Director Ted Kalo said in a news release that “few issues have the power to unite principled observers from such different viewpoints as the twin pillars of economic fairness and free competition that lie at the core of this bill.”
Free State Foundation President Randolph May urged Congress to hold hearings exploring ways to improve the U.S. Copyright Office, noting the March 31 GAO report on the Library of Congress's IT program, which GAO said needed a “clear direction.” The GAO also said the Library needed to “expeditiously” hire a chief information officer. Copyright stakeholders have used the Library's IT woes as a reason for removing the Copyright Office from its purview (see 1503310046). “The reality is that there appears to be much room for improvement in the functioning of the Copyright Office, especially with respect to implementing digital technologies,” May said in a Tuesday blog post. “In today's digital environment, there is no reason why the office's registration and recording functions -- the guts of a working copyright system -- should not employ up-to-date digital technologies in order to maximize efficiency and effectiveness. It may also be the case that the CO needs more personnel and funds in order to do its job.” Hearings on the Copyright Office should also focus on personnel resources, budget requirements and the overall location of the Copyright Office within the federal government, May said.
House Judiciary IP Subcommittee ranking member Jerrold Nadler, D-N.Y., and Rep. Marsha Blackburn, R-Tenn., said Monday that they were filing the Fair Play Fair Pay Act, as expected (see 1504100044). The bill would require most terrestrial radio stations to begin paying performance royalties and would require digital broadcasters to begin paying royalties for pre-1972 sound recordings. The bill would also require satellite broadcasters to pay royalties at market rates. “The current system is antiquated and broken,” Nadler said during a news conference in New York to announce the bill. “It pits technologies against each other and allows certain services to get away with paying little or even nothing to artists.” The bill contains carve-outs for college radio stations and radio stations that report revenue of less than $1 million per year. Stations with less than $1 million annual revenue would pay a maximum of $500 per year in royalties, while college radio stations would pay a maximum of $100. The carve-outs are meant to prevent major broadcasting companies from using small radio stations as a reason for members of Congress to vote against the bill. MusicFIRST Executive Director Ted Kalo praised the bill’s introduction, saying in a statement that “fair market value for music will encourage creativity by music creators.” The bill will also “promote innovation among music services,” he said. The NAB and the Digital Media Association said Friday that they would oppose the bill.
A Dutch-based owner of several streaming media patents slapped nine prominent smartphone and tablet brands with separate, but nearly identical patent infringement complaints Thursday, seeking in all the cases jury trials, compensatory and punitive damages, and permanent injunctions against the infringing products. Apple, Dell, HTC, Huawei, LG, Microsoft, Motorola Mobility, Samsung and ZTE are guilty of infringing U.S. patent 8,090,862, published in January 2012, said the owner, Nonend Inventions, of Bilthoven, the Netherlands, in each of the complaints. It also alleged LG has infringed a second patent, U.S. 7,590,752, published in September 2009. Both patents were assigned to Nonend and list Marc van Oldenborgh and Marijn Gnirrep as inventors. The 2012 patent describes systems and methods “for streaming content over a network that enables communication between a first consumer node, a second consumer node, and a production node.” The 2009 patent describes the “apparatus” for “playing media content on a media player while streaming the retrieved parts of the media content to other devices.” Representatives of the companies named as defendants didn’t comment. All the complaints were filed in U.S. District Court in Marshall, Texas. It’s part of the Eastern District of Texas that CEA President Gary Shapiro recently blasted as a “notoriously” friendly haven for frivolous patent infringement suits (see 1502270013). For LG, it’s the second patent infringement complaint filed against the company within a week in the same courthouse (see 1504060053).
Six weeks after 145 U.S. universities wrote Congress expressing opposition to the Innovation Act (HR-9) as a measure that goes “well beyond what is needed” to address patent abuse (see 1502250046), CEA wrote those universities urging them to reconsider. CEA views the bill as “fair, common-sense legislation that would curb abusive patent litigation by patent trolls, while protecting inventors, innovative companies, research institutions and licensors such as universities,” it said Wednesday in a statement. “It is disappointing to see universities reject common-sense reform, especially since many universities are licensing publicly funded patents,” said CEA President Gary Shapiro. Contrary to the universities’ concerns, the bill “would create a clear standard for shifting fees in patent cases, which isn’t a significant departure from the fee shifting provision that has existed in U.S. patent law since 1946,” Shapiro said. Litigation fees would be shifted in patent cases only if “the position and conduct of the non-prevailing party or parties” weren't “reasonably justified in law and fact,” he said. It’s also unlikely that any university “would ever be in a position to be affected by the joinder requirements in the Innovation Act,” Shapiro said, addressing another of the schools’ concerns. “This provision will apply only to cases brought by entities that exist for the sole purpose of litigating a patent.”
The Department of Commerce Internet Policy Task Force’s report Tuesday on Digital Millennium Copyright Act (DMCA) notice-and-takedown processes identified a series of good, bad and situational practices to improve the efficiency and handling of the DMCA notices for both senders and recipients. The IPTF said its multistakeholder forum on the DMCA processes, which began meeting in March 2014, considered a broad range of issues that it could solve without the need for new legislation. Good practices include writing DMCA takedown notices in easily understandable “plain English” language and implementing efficient processes, the IPTF said in the report. Bad practices include obfuscating the DMCA takedown process by hiding contact information or DMCA takedown web forms behind multiple click-through ads, the IPTF said. Trusted submitter programs can result in the submission of accurate information while also creating an efficient process, while security measures like CAPTCHA codes can help service providers to offer online DMCA submission mechanisms at the same time they protect websites against attacks, the IPTF said. “The group’s agreement on a set of good and bad practices shows that progress can be made in this area, and should be especially helpful for small businesses and individuals with less experience operating within the system,” Shira Perlmutter, Patent and Trademark Office chief policy officer and director-international affairs, said in a news release.
Congress’ ongoing examination of whether to make the U.S. Copyright Office an agency independent of the Library of Congress continues to raise questions over how the Copyright Office would function, given the potential for the agency to then become a rulemaking body, Wilkinson Barker lawyer David Oxenford said in a blog post Monday. The Copyright Office’s recommendations are currently only recommendations to Congress on changes to copyright law rather than true rulemakings because the Library of Congress “technically reports to Congress, not the President, and thus the arguments are that the Library is not a true executive agency (though the President does appoint the Librarian of Congress),” Oxenford said in the blog post. If the Copyright Office became an independent agency, “Congress would not need to get involved in details of Copyright law changes, but instead could enact a broader statute and let the Copyright Office fill in the details, just as the FCC decides how to enforce the Communications Act,” Oxenford said. Congress is seeking ways to increase its oversight of the FCC, which Oxenford said raises the question, “Is Congress ... ready to give up that same kind of oversight over Copyright policy?”
Biometric authentication company NXT-ID filed provisional patent 62/143028 for a method and system to perform wireless payments via near field communications in a mobile device, it said Monday. The patent covers miniature antenna modules for uses including radio frequency and magnetic stripe communications, energy transfer and charging, and wireless magnetic payments, the company said. The miniature antenna modules are small enough to fit in mobile and wearable devices, including smart watches, but powerful enough to transmit wirelessly to magnetic stripe readers, David Tunnell, NXT-ID chief technology officer, said. Users can position the antenna-equipped devices within a few inches of most magnetic strip readers to transmit magnetic stripe data wirelessly, “at a fraction of the power consumption of other approaches,” Tunnell said. A key challenge with dynamic magnetic stripe technology has been to get it to work across all magnetic stripe readers, not just some, and NXT-ID’s multipurpose antenna technology has overcome that limitation, Tunnel said.
A recently leaked portion of the Trans-Pacific Partnership purports to show provisions that would “enable multinational corporations to undermine public interest rules through an international tribunal process called investor state dispute settlement (ISDS),” the Electronic Frontier Foundation said in a blog post Wednesday. The authenticity of the leaked documents couldn't be independently confirmed. “Under this process, foreign companies can challenge any new law or government action at the federal, state, or local level, in a country that is a signatory to the agreement,” it said. That has implications for intellectual property, EFF said. The leaked text said the provisions don't "apply to copyright and patent rules as long as those rules are 'consistent with' the TPP's Intellectual Property Chapter" and the Trade-Related Aspects of Intellectual Property Rights agreement, said EFF. "This means that the agreement gives the ISDS court the ability to interpret national compliance with the provisions of the TPP, a dangerous proposition given the partisan nature of the ISDS courts."
The Library of Congress lacks “clear direction” for its IT program and needs to “expeditiously” hire a chief information officer (CIO), the Government Accountability Office said in a report released Tuesday. “Although the Library obligated at least $119 million on IT for fiscal year 2014, it is not effectively managing its investments,” it said. After the GAO finished its review in January, LOC officials said the library would draft a “strategic plan” for IT within 90 days and hire a CIO, the report said. “If it follows through on these plans, the Library will be in a stronger position to address its IT management weaknesses and more effectively support its mission,” it said. Copyright stakeholders have pointed to the Copyright Office’s outdated IT procedures as a chief reason for removing the office from the purview of the library (see 1502260057 and 1502200040). The library hired an interim CIO as it searches for a permanent hire, which is expected to be completed by September, Librarian of Congress James Billington said in a letter attached to the report. He said the LOC will complete its strategic plan in April. "The Library appreciates the work of the GAO and believes the report ultimately will be helpful," a spokeswoman said. "Several recommendations are already underway, such as developing a new IT strategic plan, finalizing an enterprise architecture plan and updating regulations and governance regarding IT."