House Democratic Whip Steny Hoyer, D-Md., urged Democrats to oppose the Financial Services and General Government Appropriations Act, HR-5016, according to a message his office circulated Monday. The full House took up that bill Monday and was expected to continue consideration of it Tuesday. Hoyer specifically named the FCC among the agencies the bill would fund and lamented the overall decrease in funding and “controversial policy riders” in the overall bill. The bill would give the FCC $323 million, which is $53 million less than requested, and the FTC $293 million, fitting with that agency’s request. The White House lashed out and outlined strong opposition to the appropriations bill, the Office of Management and Budget said in a message Monday. “The Administration strongly objects to the reduction in funding in the bill for the FCC,” which “would undermine efforts at the FCC to modernize information technology systems, better map and analyze spectrum usage to free up more bandwidth for commercial use, and continue needed reforms to the Universal Service Fund,” OMB said.
Sen. Ed Markey, D-Mass., is leading a letter to the FCC pushing for Title II Communications Act reclassification of broadband, a spokesman for Sen. Bernie Sanders, I-Vt., confirmed to us Monday, saying Sanders signed the letter. Markey will join Sanders plus Sens. Al Franken, D-Minn., and Chuck Schumer, D-N.Y., at a news conference at the Capitol Tuesday at 10 a.m. “on net neutrality and the need to protect the openness of the Internet for future generations,” said a Markey media advisory Monday (http://1.usa.gov/1jIVR0A). A Markey spokeswoman would not confirm that Markey is leading a letter or say whether the news conference is pegged to it. Also present will be Free Press President Craig Aaron, Etsy Policy Director Althea Erickson and Public Knowledge President Gene Kimmelman. Schumer has signed the letter, he wrote Friday in a Facebook update expressing his backing for Title II reclassification (CD July 14 p14). Franken signed the letter, a Senate Democratic aide confirmed to us. Tuesday is the initial comment deadline for the FCC net neutrality rulemaking. (See separate report above in this issue.) Some net neutrality advocates have argued that reclassification, which much of industry and many Republicans oppose, would allow stronger net neutrality rules.
The Institute for Local Self-Reliance sounded the alarm on House legislation that would prevent the FCC from reclassifying broadband as a Title II Communications Act service. It attacked HR-4752, which House Communications Subcommittee Vice Chairman Bob Latta, R-Ohio, introduced earlier this year, much to industry satisfaction. The legislation “will be brought up for a House vote some time within the next few days,” said the Institute for Local Self-Reliance’s Lisa Gonzalez in a blog post Monday (http://bit.ly/1sV1J6U). “There is also some indication that the House will consider an amendment on municipal broadband; constituents need to stop the bill and the amendment from moving forward.” Latta Chief of Staff Ryan Walker denied any movement on the bill is imminent. “That is not the case,” Walker told us when asked about the blog post. “Our bill is not scheduled for floor consideration at this time.” Gonzalez called the legislation “a significant setback” for the municipal network movement and asked people to call their lawmakers to voice opposition.
The witnesses at Tuesday’s House Judiciary IP Subcommittee hearing on moral rights, copyright terms and resale royalties are Associate Register of Copyrights Karyn Claggett; Rick Carnes, Songwriters Guild of America president; Casey Rae, Future of Music Coalition vice president-policy and education; Michael Carroll, law professor at American University; and Tom Sydnor, American Enterprise Institute’s Center for Internet, Communication and Technology Policy visiting fellow (http://1.usa.gov/1zulM0E). “We should join the 70 other countries who provide a resale royalty right in an effort to fairly compensate visual artists,” said House Judiciary IP Subcommittee ranking member Jerrold Nadler, D-N.Y., in a Monday news release on the hearing. “This would ensure that, in addition to resale royalties for works resold in this country, American artists also benefit when their works are sold overseas,” he said. The American Royalties Too Act (HR-4103) (S-2045), introduced by Nadler and Sens. Tammy Baldwin, D-Wis., and Ed Markey, D-Mass., (CD Feb 27 p12) “attempts to correct an existing injustice and would help American artists wherever their works are sold,” he said. HR-4103 “expands copyright owners’ exclusive rights, in the case of a work of visual art, to include the right to collect or authorize the collection of a royalty if the work is sold by a person other than the author for at least $5,000 in an auction,” (http://1.usa.gov/1jIYO1e). The Copyright Office is “pleased” HR-4103 “adopted a number of the Office’s recommendations, including a relatively low price threshold, a royalty rate that is consistent with international practice, a cap on the royalties available from each sale, collective management by private organizations with government oversight, and a request for further study by the Copyright Office,” said Claggett in advance testimony (http://1.usa.gov/1wmXKA6). Discussing the right to reclaim copyrights previously sold, Rae said in advance testimony (http://1.usa.gov/1yiFIlC), “Termination rights allow creators to have another bite at the apple, even if they end up re-granting their rights to a label, publisher or another entity.” “Artists may have more leverage than they did at the time that they first signed, and using that leverage, they can negotiate more favorable deals or recapture ownership for the purpose of licensing directly,” he said. The hearing is at 1 p.m. in 2141 Rayburn.
A Free State Foundation visiting fellow praised Sen. Marco Rubio, R-Fla., for his recent focus on spectrum. His spectrum package, “with some bipartisan support, would serve as a swift kick in the government’s behind to make good on the Administration’s claimed policy goal” of freeing up government spectrum, Greg Vogt wrote in a Monday blog post (http://bit.ly/1rlQ9Bv). Rubio introduced two spectrum bills, one focused on freeing up government spectrum (S-2473) and another focused on spectrum sharing (S-2505). Sen. Cory Booker, D-N.J., co-sponsored the second bill. Vogt is a former FCC official who now represents telcos and advises on telecom, wireless and video issues before the FCC, state regulators and in court.
The House Judiciary IP Subcommittee plans a hearing on “Moral Rights, Termination Rights, Resale Royalty, and Copyright Term” Tuesday at 1 p.m. in 2141 Rayburn, said a committee release (http://1.usa.gov/1zulM0E) Friday.
AT&T, Comcast, Dish and Public Knowledge are slated to testify before the Senate Commerce Committee on the future of video Wednesday, industry officials told us. Commerce announced the hearing, which will involve online video issues and media consolidation, last week but didn’t reveal witnesses. Industry officials say witnesses will include Dish Deputy General Counsel Jeff Blum; Comcast Executive Vice President David Cohen; University of Nebraska College of Law professor Gus Hurwitz, who focuses on telecom and antitrust issues; Public Knowledge President Gene Kimmelman; and AT&T Chief Strategy Officer John Stankey. Writers Guild of America also will have a witness, the officials said. A committee spokeswoman declined to confirm or deny any witnesses. Commerce also invited Netflix, which “declined due to a schedule conflict that pre-dated the hearing,” a Netflix spokeswoman told us Friday. Comcast and AT&T are both in the midst of acquisitions -- of Time Warner Cable and DirecTV, respectively -- and Public Knowledge has advocated against both deals. Dish last week urged regulators to block the Comcast/Time Warner Cable deal and raised concerns about the AT&T/DirecTV deal (CD July 10 p10). The hearing will be at 2:30 p.m. in 253 Russell.
Sen. Chuck Schumer, D-N.Y., backs reclassifying broadband as a Title II telecom service, he said Friday. Schumer wrote a Facebook post, signed with his initials, making the case for reclassifying for the sake of the Internet. “Like a highway, the internet must remain free and open for all; not determined by the highest bidders,” Schumer said (http://on.fb.me/1oLYhbW). “Title II reclassification is the best way to for us to preserve the internet as an unfettered tool for communication and the sharing of ideas ... Protecting net neutrality is one of the most important issues before Congress and FCC Chairman Wheeler should listen to those of us who have voiced our strong support of this approach.” Industry has opposed reclassifying, arguing it would create untenable burdens. Staffers from the Computer & Communications Industry Association, Free Press and Public Knowledge thanked Schumer in the Facebook comments.
USTelecom and CTIA hailed the House’s Friday passage of HR-4718, that would make permanent bonus depreciation. The bonus depreciation provisions had expired in December. “Extending 50% expensing will provide certainty, predictability, and an immediate incentive for businesses to make and plan for additional capital investments well into the future,” USTelecom President Walter McCormick said in a statement. “This Administration’s Treasury Department, as well as prior Administrations, have consistently found that bonus depreciation reduces the cost of capital, encourages businesses to expand, and thereby increases investment, jobs, and wages.” CTIA Vice President-Government Affairs Jot Carpenter hailed the bill as “forward-looking tax policy that promotes the investment and innovation necessary for the United States to maintain its world leadership in the deployment of wireless broadband.” The White House said last week it opposes the bill and that senior officials would recommend a presidential veto (CD July 11 p17).
CTIA backs HR-4718, which would make bonus depreciation permanent and will soon be under consideration on the House floor, CEO Meredith Baker wrote in a letter Wednesday to House leadership (http://bit.ly/1rbLfHt). The bonus depreciation provision of the American Taxpayer Relief Act expired in December, and telecom and media industry groups have backed its reinstatement. Baker cited the “capital intensive” nature of the wireless industry and said passing the bill would help expansion of wireless broadband networks and increase innovation. The White House strongly opposes this bill, the Office of Management and Budget said Thursday. “This provision was enacted in 2009 to provide short-term stimulus to the economy, and it was never intended to be a permanent corporate giveaway,” it said. It said HR-4718 “includes no offsets and would add $287 billion to the deficit over the next 10 years, wiping out more than one third of the deficit reduction achieved by the American Taxpayer Relief Act of 2013.”