ITI Daily News Roundup

05/07/2013

Key Issues

Workforce

Obama adds Applied Materials to Austin itinerary.  President Barack Obama will visit Applied Materials, a venerable cog in Austin’s high-tech scene, when he comes to town Thursday for the first of his so-called Middle Class Jobs and Opportunity tours. (American Statesman)

Battle over immigration bill starts in Congress.  The Congress this week opens its first debate in six years on a comprehensive immigration reform bill, testing whether business and labor groups can hold together on a delicately crafted deal that already is under attack.  (Reuters)

Tech firms fight hiring rules in immigration bill.  Technology firms, exercising new political clout on Capitol Hill, are lobbying against a measure in the leading Senate immigration bill that would make it harder for them to recruit workers from abroad without first taking steps to hire Americans for highly skilled jobs in programming, engineering and other fields.  (USA Today)

Cybersecurity & Privacy

Pentagon Accuses China of U.S. Cyberspying.  The Chinese military has targeted U.S. government computers with intrusions that seek sensitive data, according to a report in which the Pentagon for the first time directly accuses China of a cyber espionage campaign.  (Bloomberg)

U.S. Turns Up Heat On Costly Commercial Cyber Theft In China.  U.S. official displeasure has grown over the problem of Chinese cyber-espionage. The Obama administration has signaled that it will step up the investigation and prosecution of trade secret theft and has not ruled out punitive measures.  (NPR)

China rejects Pentagon charges of military espionage.  China is using espionage to acquire technology to fuel its military modernization, the Pentagon said on Monday, for the first time accusing the Chinese of trying to break into U.S. defense computer networks and prompting a firm denial from Beijing.  (Reuters)

Hackers Plan 'Day To Remember' With Attacks On Government Agencies.  A collective of hacker groups plans to attack the websites of major government agencies and banks on Tuesday to protest American foreign policy.  (Huffington Post)

DHS urged to hire outsider for new cyber chief.  The Department of Homeland Security is weighing whether to look outside the federal government for a new point person on cybersecurity.  (The Hill)

Google Aims To Patent Policy Violation Checker, Potentially Revolutionizing Email Snooping.  Google has filed a patent for a tool that seems like an evil-checker: a software system that could prevent people from writing out, in electronic correspondence and documents, phrases that run afoul of policies or laws. (Huffington Post)

Tax

Special interests defend breaks in report on tax overhaul.  "Tax the other guy, not me!" was the main message from a variety of special interest groups commenting on tax breaks in a report issued on Monday, underscoring the problems faced by the U.S. Congress as it considers a revamp of the tax code.  (Reuters)

Senate Passes Bill to Widen Tax Collection on the Web.  A bipartisan coalition won a 69-to-27 vote to require online retailers to collect sales taxes for state and local governments. But antitax forces hope the House will kill the measure.  (NYT)

Some Net Retailers Aren't Buying Online Sales Tax Proposal.  Proponents of the bill, currently before Congress, say collecting taxes from online sales should be relatively simple for retailers. But with close to 10,000 tax jurisdictions around the country, some online businesses say collecting the taxes and navigating potential problems will be a costly burden.  (NPR)

Key facts about Mexico's tax system.  Mexico's new government has promised a comprehensive review of its tax system, to be announced in the second half of 2013 along with an overhaul of energy policy.  (Reuters)

UK tax changes 'luring multinationals'.  THE UK chairman of a major international accounting firm says he personally knows of a substantial number of multinationals that are seeking to relocate to Britain due to the country's more competitive corporate tax regime.  (Irish Independent)

Denmark reduces corporate tax.  Lower corporate tax rate, reduced energy taxation and better access to financing are elements of a new Danish growth plan that will improve conditions for doing business in Denmark. (Copenhagen Capacity)

Global Trade

Where Trade Is Free, Powerful Economic Growth Is The Norm.  It’s clear that a global free trade agreement, which includes the first and third largest economies – and all of NAFTA – will truly achieve “game changer” status.  With Japan, the TPP would cover 40 percent of global GDP, and nearly 10 percent of total trade, including one third of U.S. external trade. With these growth prospects in mind, Japan should be welcomed by all parties to the TPP.  (Forbes)

TPP talks key to opening Japan.  The nation's entry into the Trans-Pacific Partnership is essential for trade.  (Politico op-ed/Johanns and Glickman)

Japanese Officials Stress That Japan Will Play Constructive Role In TPP.  Japanese officials last week publicly stressed to Washington-based stakeholders that Tokyo is determined to play a constructive role in the Trans-Pacific Partnership (TPP) negotiations once it joins in late July. They argued that Japan will be ambitious, will not slow down the negotiations, and will avoid the internal hand-wringing that has slowed major policy decisions in Tokyo in recent years.  (Inside US Trade)

Mexico Battles Brazil for Clout Via WTO Top Job as Economy Grows.  Latin America’s two largest nations are vying for economic and diplomatic clout as their candidates face off as finalists to head the World Trade Organization.  (Bloomberg)

European Union Will Support Mexico's Blanco for Top WTO Post: Sources.  The European Union today (May 6) reached agreement to jointly support Herminio Blanco of Mexico to become the next World Trade Organization director-general, according to EU sources. EU officials will inform WTO officials leading the DG selection process of their decision in a private meeting tomorrow (May 7).  (Inside US Trade)

EU data law changes offer opportunities for Asia's datacenter markets.  Destinations such as Singapore, Malaysia or Hong Kong need to seize the opportunity of being deemed an acceptable data transfer partner with the European Union in order to get ahead of the competition.  (ZDNet)

Audi needs clarity on laws before decision on Brazil plant: CEO.  Volkswagen AG's Audi premium brand will not build a vehicle assembly plant in Brazil until the laws governing what exactly is required to ensure a car is considered locally built are clarified.  (Reuters)

Regulation

India shows U.S. path to patent standards.  What the Supreme Court ruling on Gleevec actually demonstrates is that India has set a high bar for determining what is “innovative.” The U.S. could learn a thing or two from India – particularly since its liberal patent system led to a ridiculous spat last year between Samsung and Apple over whether a rectangular cellphone screen with rounded corners was patentable, writes Swaminathan Aiyar.  (Reuters)

Motorola 'abused patent position'.  Motorola "abused its position" when it filed a patent injunction against Apple in Germany, EU officials say.  (BBC)

Did Google flush $12.4 billion down the toilet with Motorola?  An EU warning to Motorola Mobility is just the latest defeat that has some wondering why Google bought the handset and TV set-top box maker.  (CNET)

Patent Quality Improvement Act hits Congress.  New legislation aims to save technology companies "billions of dollars in litigation" with a permanent patent review process.  (CNET)

FTC refuses to delay online privacy rules for kids.  The Federal Trade Commission has refused calls from industry groups to delay the implementation of its regulations aimed at protecting the online privacy of children.  The commission voted unanimously on Monday to move ahead with the planned July 1 implementation date.  (The Hill)

Environment & Sustainability

King Coal Losing Crown as U.S. Gains Energy Independence.  Pain is being felt from Appalachia to Wyoming as the U.S. reduces its dependence on coal to almost the lowest level in 63 years -- the cost of the country becoming more energy self- sufficient through the production of more natural gas and oil.  (Bloomberg)

Mobility

BlackBerry launches low cost plan within 15 circles in India.  The phonemaker has launched a plan offering all its services, such as e-mail, BlackBerry Messenger, social networking, Internet browsing, for 129 rupees (US$2.38) per GB in order to expand its network within India.  (ZDNet)

Tech Business

Online Video-Ad Startups Near IPOs Challenging Google.  Demand for Web commercials played alongside video clips is fueling growth at marketing startups, putting such companies as Tremor Video Inc., YuMe Inc. and Adap.tv Inc. on course for initial public offerings this year.  (Bloomberg)

YouTube Said to Plan Subscription Channels Within Weeks.  Google Inc.’s YouTube will offer paid subscription channels over the next few weeks, people with knowledge of the matter said, expanding the choices for television viewers beyond traditional pay-TV packages.  (Bloomberg)

Chipmakers’ capacity restraint has sharp effect.  Major manufacturers are cutting back on capacity expansion – a move that could have troubling implications for some customers in a smartphone industry that has enjoyed an increasingly abundant supply of memory chips at decreasing cost. (FT)

Huawei revises down enterprise sales, eyes $10B by 2017.  Chinese networking giant is gunning for a sales revenue target of US$10 billion in five years' time, which is less rosy when compared with the US$15-billion-by-2015 projection set last year.  (ZDNet)

Foxconn Tries to Move Past the iPhone.  Foxconn, an electronics contractor in China that was criticized for poor conditions in factories making Apple products, is moving to develop its own goods, like televisions.  (NYT)

More ITI Member News

Microsoft Sells 100 Million Windows 8 Licenses.  Microsoft Corp. (MSFT) said it sold 100 million licenses for its latest operating system, and that it will introduce an update to the company’s flagship product in time for the year-end holiday shopping season.  (Bloomberg)

Microsoft prepares U-turn on Windows 8.  Microsoft is preparing to reverse course over key elements of its Windows 8 operating system, marking one of the most prominent admissions of failure for a new mass-market consumer product since Coca-Cola’s New Coke fiasco nearly 30 years ago.  (FT)

Bill Gates: A lot of iPad users are 'frustrated'.  Microsoft Chairman Bill Gates believes that iPad users should turn to Microsoft's Surface and Surface Pro tablets.  (ZDNet)

Bill Gates on Microsoft's Apple Attack Plan.  Bill Gates tells CNBC that Microsoft is trying to gain market share in the Apple-dominated tablet market by combining "the portability of the tablet" and the richness of a PC.  (CNBC)

Google Glass Picks Up Early Signal: Keep Out.  The wearable computer is prompting questions of whether it will distract drivers, upend relationships and strip people of what little privacy they still have in public.  (NYT)

Israel: Google's Palestine page 'very problematic'.  Deputy foreign minister tells Army Radio Google's change of home-page name from 'Palestinian territories' to 'Palestine' is damaging to peace prospects.  (The Guardian)

Adobe Systems Goes All In on the Cloud.  Adobe Systems placed a big bet on the cloud, saying all new versions of its flagship creative software will be delivered by subscription only.  (CNBC)

Nokia CEO says remains focused on Windows Phone software.  Nokia Chief Executive Stephen Elop said the company would remain focused on using Microsoft's Windows Phone software to compete with smartphone rivals such as Samsung.  (Reuters)

Qualcomm Names Veteran Rubinstein to Board.  Qualcomm Inc. (QCOM), the largest seller of semiconductors for mobile phones, named former Hewlett-Packard Co. (HPQ) and Apple Inc. executive Jonathan Rubinstein to its board.  (Bloomberg)

Intel revamps Atom chips in bid to find mobile footing.  Intel Corp on Monday unveiled the most extensive overhaul of its Atom mobile processors, with improved performance that the PC chipmaker expects will help it challenge Qualcomm in smartphones and tablets.  (Reuters)

1600 Penn.

Trade and security top the agenda for today’s White House meetings between President Obama and President Park Geun-hye of the Republic of Korea.  Starting at 11:15 a.m. ET, the two leaders will hold meetings to discuss those issues, followed by a joint news conference at 1:30 p.m.  Tonight at 5:30 p.m., President Obama will attend a DNC event at the St. Regis Hotel in Washington, D.C.  

Today on the Hill

Senate:  The Senate convenes at 10 a.m. ET and will take up a measure to authorize Army Corps of Engineers projects.  Senators also are expected to hold a 12 p.m. vote on the nomination of David Medine to be chairman of the Privacy and Civil Liberties Oversight Board.

House:  The House convenes at 12 p.m. ET and begins debating legislation allowing private employers to give time off instead of premium pay to employees who work overtime.  The White House on Monday threatened to veto the legislation if it were sent to the President.

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