The writing profession is under threat from state legislators seeking to strengthen public libraries’ hand in negotiations with e-book publishers like Amazon, Sen. Thom Tillis, R-N.C., told us Wednesday. Library advocates said in interviews that e-book laws in Maryland and New York are an important step in ensuring libraries maintain their role in society.
Court of International Trade activity
Congress should investigate Facebook, subpoena its internal research about youths and block the platform’s plans to launch an Instagram for kids, consumer advocates told us Friday. They joined calls from Democrats and Republicans urging Facebook to drop those plans.
Innovators like Sonos “should be able to trust the courts” to protect their intellectual property from companies like Google “that attempt to free-ride” off its “high-quality engineering and hard work,” six Grammy- and Oscar-winning sound engineers and producers told the International Trade Commission Monday in docket 337-TA-1191 (login required). Google violated Section 337 of the 1930 Tariff Act for importing smart speakers and other devices found to infringe five Sonos multiroom audio patents, said a notice of initial determination (ID) signed Aug. 13 by ITC Chief Administrative Law Judge Charles Bullock (see 2108130080). A final ITC determination on Bullock’s recommended import ban of the infringing Google products is due mid-December. Google and Sonos filed petitions for review of Bullock’s decision, with Google alleging the infringement findings were “predicated on misunderstandings of the plain meaning” of the patents, and Sonos arguing the ID could permit Google to “continue importing every single product by making trivial software changes” in the accused goods. Prominent engineers and producers Tom Elmhirst, Nigel Godrich, Noah Goldstein, Chris Jenkins, Emily Lazar and Manny Marroquin “have collectively been working with Sonos to tune its speakers for over five years,” they said. “During our collaboration we have observed Sonos continually pushing the boundaries of home audio and leading in the space,” they said. “Sonos invented multi-room wireless audio, and we appreciate how Sonos listens to our feedback and incorporates it into their products. This is unusual for tech companies, which typically prefer to ‘engineer’ everything in-house, without asking creative professionals like us for our input.”
Amazon threw its weight into Section 301 litigation inundating the U.S. Court of International Trade, alleging in a complaint Monday that the Lists 3 and 4A tariffs are unlawful under the 1974 Trade Act. It said they violate Administrative Procedure Act rules against sloppy rulemakings and are unconstitutional because only Congress, not the executive branch, can levy taxes. Amazon reported 2020 revenue of $386.1 billion and is believed now to be the second largest Section 301 plaintiff behind Walmart, which sued March 8. Walmart reported $559.2 billion in revenue for the fiscal year ended Jan. 31. Both companies are the relatively few among the roughly 6,500 importer plaintiffs to challenge the tariffs on constitutional grounds. Crowell & Moring is representing Amazon. Walmart’s attorneys are from Hogan Lovells. Both law firms sit on the 15-member plaintiffs’ steering committee formed in March to help manage the litigation.
Department of Labor summary denial of displaced worker benefits to AT&T call center employees wasn't supported by evidence, U.S. Court of International Trade Judge Miller Baker ruled Tuesday (docket 20-00075), remanding the case to DOL. He said Labor didn't identify what AT&T evidence it relied on to reject Communications Workers of America claims the call center work was sent overseas. He said Labor's negative determination "simply did not acknowledge, much less discuss, the union’s [contradicting] evidence."
Alpha Media's former CEO and minority shareholder Lawrence Wilson accused board members Noel Strauss, Saif Mansour and current Alpha CEO Bob Proffitt of making false certifications to the FCC, unauthorized transfers of control and “blatant, unlawful self-dealing,” in a petition to deny foreign-ownership filings for the radio broadcaster’s bankruptcy restructuring. The Wednesday filing asks the FCC to deny the petitions or designate the matter for hearing. The petition is “based on inaccurate information and baseless claims,” said an Alpha spokesperson Friday. “We continue to achieve significant progress in our financial restructuring process, which has been confirmed by the Court and best positions Alpha Media with strong financial partners to navigate current market conditions.” Wilson said the restructuring is “a prepackaged bankruptcy plan” that would “erase the obligations owed to secured and unsecured creditors and minority stockholders” and swap out minority shareholders "in favor of proposed foreign-owned lenders and stockholders.” By failing to comply with its corporate governing documents, Alpha bypassed its board on decisions such as station divestitures, and concentrated power within the company to two members of a special committee, Wilson said. That amounts to an unauthorized transfer of control, the petition said. “There is no doubt” that Proffitt “falsely certified to the FCC that he was ‘authorized’ to sign multiple assignment applications selling certain of Alpha’s stations to third parties,” Wilson said. A broadcast attorney told us the FCC historically doesn’t involve itself in licensees' internal disputes, but the filing argues that FCC oversight has “heightened importance” here because Alpha isn’t publicly traded and therefore doesn’t fall under the SEC. Alpha has “fundamental character defects” that “call into question the applicant’s qualifications as a broadcast licensee,” the filing said. The FCC didn't comment.
Facebook, Google and Twitter support Communications Decency Act Section 230 proposals to increase content moderation transparency, their respective CEOs, Mark Zuckerberg, Sundar Pichai and Jack Dorsey, told House Commerce Committee members Thursday during a virtual hearing. Noting Zuckerberg’s support for “thoughtful changes” to 230 (see 2103240076), Communications Subcommittee ranking member Bob Latta, R-Ohio, asked the Facebook chief for specific proposals. Zuckerberg supported two specific changes, saying Congress should be careful about removing protections for smaller companies.
Rep. Jan Schakowsky, D-Ill., will introduce legislation, potentially this week, to amend Communications Decency Act Section 230 liability protections, giving consumers the ability to sue when harmed by illegal online content, she said Monday (see 2009240062). Her Online Consumer Protection Act will be part of the discussion when Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai and Twitter CEO Jack Dorsey testify Thursday before House Commerce Committee members (see 2103190054), said Schakowsky during an event hosted by Common Sense Media and the Real Facebook Oversight Board.
Chief Judge Timothy Stanceu of the U.S. Court of International Trade will assume senior status at the court April 5, said an updated listing Wednesday on the U.S. Courts website. Stanceu, who turns 70 this year, was a 2003 appointee by President George W. Bush. It's speculated that Judge Mark Barnett, the longest-serving active judge on the court, will become chief judge. Barnett sits on the three-judge panel presiding over the massive Section 301 litigation, assigned there by Stanceu last month (see 2102050038).
Open Markets Institute hires include LaRonda Peterson, ex-Rand, as managing editor and Brian Callaci, ex-Data & Society, as chief economist ... Senate confirms Isabella Casillas Guzman 81-17 for administrator, Small Business Administration ... Nominations sent to Senate for the following to be general counsels: Christopher Fonzone at the Office of the Director of National Intelligence, as Jason Klitenic had resigned; Janie Simms Hipp, Department of Agriculture, a job that Stephen Vaden did before becoming Court of International Trade judge; and Leslie Kiernan, Department of Commerce, filling spot previously held by Peter Davidson.