Karl Herchenroeder

Tech industry officials praised the Trump administration for defending U.S. interests against France’s digital services tax. France agreed to delay collecting new taxes on tech companies until the end of the year after the administration threatened to levy tariffs on $2.4 billion of French goods (see 1908190043 and 1912030002).

There’s no timeline for reintroducing a Senate bill that would create a legal framework for autonomous vehicles, Sen. Gary Peters, D-Mich., told us Thursday. Members are actively engaged, and the legislation remains a priority for Senate Majority Whip John Thune, R-S.D., a Thune aide said Friday.

House Democrats plan soon to release a draft privacy bill that tables areas of disagreement with Republicans like federal pre-emption and a private right of action, House Consumer Protection Subcommittee Chair Jan Schakowsky, D-Ill., told us. They have “solid agreement” with Republicans on several issues, Schakowsky said. “Some things will be bracketed that clearly aren’t agreed to, and hopefully a few parts that are not bracketed that are more likely to be agreed to.”

Apple and Google need to voluntarily provide better device access, or Congress will force them to alter encryption standards and accommodate lawful police searches, Senate Judiciary Committee members from both parties said Tuesday. The panel and representatives from Apple and Facebook debated end-to-encryption during a Tuesday hearing, at which law enforcement slammed Apple’s decision in 2014 to engineer devices in a way that effectively blocks police access.

The Copyright Office is 95 percent complete with GAO 2015 IT modernization recommendations, Librarian of Congress Carla Hayden told the Senate Intellectual Property Subcommittee Tuesday. Copyright Office Director Karyn Temple, who leaves the CO after eight years for the Motion Picture Association (see personals section, Dec. 10), didn’t testify. Hayden detailed IT initiatives as the CO looks to reach 100 percent “very soon.” The online recordation system will allow users to record information on copyright ownership using a digital platform. The office is launching a new public records system to allow the public to search all copyright records. She said a limited recording pilot is expected in spring 2020, a proof of concept for the public records system in late 2020 and a next-generation registration system is expected to be in “full-scale” development later that year. Congress’ initial investment in copyright modernization was about $12 million for five years, and the CO is entering year two. Monday, Chairman Thom Tillis, R-N.C., and ranking member Chris Coons, D-Del., issued a CO modernization bill draft based on subcommittee roundtables (see 1907300069). Key conclusions from the roundtables, Tillis said, are the need for improved communication and transparency for those who use the copyright system daily. It’s essential there isn’t another prolonged period without a Register of Copyrights, he added. The office is working to reduce registration pendency times, modernize IT systems and implement the Music Modernization Act, he noted. CO acting Chief Financial Officer Jody Harry testified it could staff up quickly to implement the Copyright Alternative in Small-Claims Enforcement Act, if passed (see 1910250047), and associated IT needs are “minimal.” Tillis asked about the pros and cons of potentially updating Title 17, through the legislation, to make the CO statutory and essentially align it with the Congressional Research Service at the Patent and Trademark Office. CO centralization and management is analogous to CRS independence and autonomy, Hayden said. Having the ability to interact directly with Congress is a benefit, she said.

The FTC “effectively removed” Facebook’s independent privacy assessor (see 1912050065), Chairman Joe Simons wrote recently in a congressional letter. We obtained the document in response to a Freedom of Information Act request. Senators reached Thursday were skeptical that the FTC's $5 billion settlement resulted in meaningful structural change at Facebook.

Senate Commerce Committee Chairman Roger Wicker, R-Miss. is “open to discussing” a narrowly tailored private right of action provision in a compromise data privacy bill. He told reporters Monday any discussion of such a provision would be part of broader negotiations “in good faith" to try to win Democrats' support. The committee plans a hearing 10 a.m. Wednesday (see 1911250058).

Google’s decision to limit political advertising microtargeting is a better approach than Facebook’s decision not to fact-check political ads, Sens. Mark Warner, D-Va., and Ed Markey, D-Mass., said in interviews last month. Sens. Brian Schatz, D-Hawaii; Josh Hawley, R-Mo.; and John Kennedy, R-La.; said Google’s updated policy is a mistake.

Qualcomm has monopoly power in two key chip markets, maintained by refusing licenses to rival chipmakers, the FTC argued to the 9th U.S. Circuit Court of Appeals (see 1910100017). Oral argument is set for 9:30 a.m. Feb. 13 in San Francisco. Qualcomm and DOJ said previously that the lawsuit and lower court’s injunction threaten national security, given Qualcomm’s role in leading 5G advancement against Chinese rivals. The FTC called those claims “purely speculative.” Intel supported the commission in the case, also announcing it agrees with the district court’s finding “Qualcomm’s licensing practices have strangled competition in the CDMA and premium LTE modem chip markets for years, and harmed rivals, OEMs and end consumers.” Intel claims it “suffered the brunt of Qualcomm’s anticompetitive behavior, was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm.” Ericsson and Samsung previously argued in favor of Qualcomm, with Samsung saying contract and patent law are “better suited” for settling disputes about fair, reasonable and nondiscriminatory (FRAND) terms. American, Japanese and German automaker groups said prices of cars with 5G will likely increase if Qualcomm wins. The Alliance of Automobile Manufacturers and Denso with Continental Automotive Systems filed briefs. “Automakers have been forced into unnecessary and inefficient [standard-essential patent] licensing negotiations ... even though chip sales that exhaust patent rights ... would negate the need for such negotiations while allowing the patentee to be compensated for its inventions based on the price charged for a chip,” the alliance argued. That will worsen if Qualcomm practices are ratified, it said. The Computer & Communications Industry Association supports the agency, saying Qualcomm has an “antitrust duty” to license competing chip manufacturers on FRAND terms. Open Markets also supported the FTC, saying in a release that Qualcomm practices compel “smartphone and tablet producers to pay exorbitantly high amounts for their chips.” The company didn’t comment Monday. The 9th U.S. Circuit Court of Appeals scheduled Feb. 10 oral argument on challenges of FCC wireless infrastructure orders (see 1912020018).

Led by Senate Commerce Committee ranking member Maria Cantwell, Wash., Senate Democrats Tuesday unveiled federal privacy legislation. It has a provision Chairman Roger Wicker, R-Miss., regards as a nonstarter (see 1911250058).