The Information Technology and Innovation Foundation (ITIF) filed an amicus brief in late April -- released Thursday -- supporting Google’s March petition to the Supreme Court, which asked the court to rule on whether the U.S. District Court in San Francisco was incorrect in finding Wi-Fi communications don’t fall under the Wiretap Act (CD April 3 p20). “The court of appeals erred, and absent review of its decision, information technology ('IT') professionals across the country will be left in legal limbo, uncertain whether standard practices they use every day to secure and optimize wireless infrastructure violate the Wiretap Act,” ITIF said (http://bit.ly/1mKhNVL). The petition stemmed from a number of lawsuits against Google relating to its practice of gathering data from unencrypted Wi-Fi networks, known as the “Wi-Spy” case. Google paid a $7 million settlement in March 2013 with dozens of states over the issue (http://1.usa.gov/ZjOI7I), but was later cleared by the Justice Department and FCC, according to Google’s petition (http://bit.ly/1gOObX4). “The Court should grant the petition and hold that an unsecured Wi-Fi communication is readily accessible to the general public,” ITIF said. “This conclusion would harmonize the Act’s treatment of old-world, traditional radio communications with its treatment of modern electronic communications."

Netflix was on the low end of the subscription hike increase it promised last month, which it said at the time would be in the $1-$2 range. Rates for existing members will remain intact for two years, it said. The company told subscribers in an email Friday, with the subject line “Important Membership Information,” that it was raising the subscription price for new members from $7.99 to $8.99 “to continue adding more movies and TV shows.” It promised existing members “your plan and price will not change for two years."

The federal government is wasting money on information technology investments, said Senate Appropriations Committee Chairwoman Barbara Mikulski, D-Md., during a Senate Appropriations Subcommittee on Financial Services and General Government hearing (http://1.usa.gov/1mD8MC7). “These techno boondoggles are technology projects that should in theory make the government more effective and efficient in providing services, but instead turn out to be complete ‘flops.'” Mikulski pointed to GAO reports indicating $600 billion has been spent in the last decade on IT and technology. “Unfortunately, I don’t think we have gotten a good return on this investment,” she said. GAO Director-Information Technology Issues David Powner testified Wednesday, presenting a new GAO report showing government agencies have improved accuracy in recording their IT acquisitions, but have removed a number of major investments from an IT dashboard meant to bring transparency and accountability to IT purchasing, which is “troubling” (http://1.usa.gov/1isGn9r). Office of Management and Budget Chief Information Officer Steve VanRoekel presented the administration’s IT requests in its 2015 budget request during the hearing (http://1.usa.gov/1kYBCJ9). The request included a $20 million ask for the Information Technology Oversight and Reform fund, which “will use data, analytics and digital services to improve the efficiency, effectiveness and security of government operations and programs,” VanRoekel said, according to prepared statements.

There are 201 U.S. Internet million users, a Millennial Media report found. Mobile-only users have grown at a much higher rate than among all ‘Net users, “while PC-only users have decreased 45 percent during the same period,” from April 2013, it said in the report Cross-Screen Consumer Behavior Decoded. The study analyzed cross-screen behaviors and content consumption among 18-24 year-olds, men aged 25-49, women aged 25-49 and people over 50, it said in a news release Wednesday (http://bit.ly/1uBVCGK). Users spent 61 percent of online time for weather content and social media content on a smartphone, it said. For streaming radio content and games, users spent 79 percent of online time searching for such content on a smartphone, it said. The information for the study was gathered through measurement platforms by Millennial Media and comScore, it said.

The White House FY 2015 budget request is committed to improving broadband connections to schools and libraries, Secretary of Education Arne Duncan told the Senate Budget Committee in an opening statement Tuesday (http://1.usa.gov/1kJsN4h). “A key request in this area is $200 million that would help educators transition to using technology and data to personalize learning and improve instruction, in support of the FCC’s ConnectED initiative to equip our nation’s schools and libraries with high-speed connectivity,” Duncan said. “The program would benefit educators and students by creating high-quality, open digital learning resources aligned to CCR [college and career-readiness] standards; using digital tools to personalize learning and implement new assessments; analyzing real-time data to improve student outcomes; using technology to increase student engagement; and providing remote access to effective educators.” The budget also includes $300 million for what the White House is calling its ConnectEDucators initiative.

There will be almost 3 billion Internet users by the end of 2014, with almost two-thirds of users coming from the developing world, the International Telecommunications Union said Monday. There will be about 7 billion mobile subscriptions by the end of the year, including 3.6 billion from the Asia-Pacific region, the ITU said. There will also be about 2.3 billion mobile broadband subscriptions by the end of the year, the ITU said (http://bit.ly/1rWtHgw).

Effectively handling the transition to a “21st century digital economy” should be a “top priority for policymakers,” the Brookings Institution said in a research paper Friday (http://bit.ly/1mmatiS). With the explosive growth of video streaming, FCC leaders need to promote innovation that maximizes the benefits of new developments, said the paper, written by Darrell West, director-governance studies. “We need to make sure that populations such as the elderly, disabled, and those living in rural areas are able to reap the benefits of the technology revolution,” he wrote. “Having an infrastructure that supports innovation in commerce, health care, education, transportation, and energy makes it possible to bring the benefits of the technology revolution to a broad set of people.” Brookings Friday hosted a panel on how companies are dealing with new technology. (See separate report above in this issue.)

The FCC can’t use Section 706 of the Communications Act to pre-empt state laws prohibiting municipal broadband, Phoenix Center President Larry Spiwak said Thursday in a blog post (http://bit.ly/1miLam2). The agency plans to announce an approach by mid-May on how best to challenge bans on community broadband (CD April 29 p3). “Basic lawyering reveals three glaring infirmities” in the argument that Section 706 gives the FCC legal authority to pre-empt state laws, Spiwak said: First, Section 706 applies only to forbearance, not pre-emption -- and there’s a “big legal difference between the two concepts.” Second, Section 706’s forbearance authority relates to Section 10 of the Communications Act, Spiwak said, and “there is absolutely nothing in Section 10 which permits the FCC to preempt any state law or regulation.” It’s limited to the FCC exercising forbearance only over its own implementation of portions of the Communications Act, he said. Finally, the Verizon v. FCC case that struck down the agency’s net neutrality rules not only gives the agency power to oversee broadband ISPs, but also gives state public utility commissions “the same ability to regulate broadband service providers,” Spiwak said. “Let’s assume arguendo the FCC attempts to use Section 706 to preempt a state law restricting municipal broadband but the local state PUC (exercising the same authority) says ‘go to hell.’ Who wins? My money is on the state PUC: if the FCC can’t preempt using its direct authority under Section 253, then the chances of using its indirect authority under Section 706 are slim to none."

HBO’s deal providing Amazon’s Prime Instant Video exclusive streaming rights for select original series sets “a stake in the ground” for subscription video-on-demand (SVOD) agreements with premium channel suppliers, Starz CEO Christopher Albrecht said Thursday on an earnings call. The HBO/Amazon agreement, which starts May 21, covers HBO series, including The Sopranos and The Wire, which will be available to Amazon Prime customers at no additional charge to their membership fee. “It sets a precedent for monetizing programming on SVOD,” Albrecht said. The HBO pact is “good news” for Starz, which also pursued SVOD deals for its original series, including Spartacus, Black Sails, Magic City and The White Queen, Albrecht said. Meanwhile, Starz will feature 65 to 75 hours of original programming by 2018, partly funded by recent rate reductions it secured with Sony and Disney, company officials said. Starz expects to increase its original programming to 55 hours this year from 37 hours in 2013, as it launches new series, including rapper 50 Cent’s Power in July and The Outlander in August, analysts said. Starz’s Q1 net income improved to $64.9 million from $57.9 million a year earlier as revenue jumped to $420 million from $399.3 million. Programming networks and other service revenue increased to $363.3 million from $349.5 million, while home video net sales improved to $56.7 million from $49.8 million. Starz’s Q1 programming expenses rose to $156.2 million from $146 million a year ago, driving an increase in total costs to $306.5 million from $294.5 million, the company said.

Supreme Court justices spent much of Wednesday’s oral argument on Limelight Networks’ appeal of a patent infringement case brought by Akamai Technologies discussing whether their own ruling would have any real finality. The U.S. Court of Appeals for the Federal Circuit had ruled in favor of Akamai and the Massachusetts Institute of Technology (MIT) in August 2012. The appeals court said Akamai could argue that Limelight’s and its customers’ collective use of Akamai’s business method patent constituted “divided” or “inducing infringement,” meaning a company could infringe a patent by inducing a third party to take the final step that leads to infringement (CD Sept 4/12 p16). Limelight’s appeal of the case drew support from the Obama administration, along with technology companies like Cisco, which say the induced infringement argument would open them up to more lawsuits from patent assertion entities. The U.S. government believes the appeals court was wrong to find induced infringement because neither Limelight nor its customers’ actions alone constituted direct infringement, and incorrectly applied existing Supreme Court precedent in its ruling on Akamai’s induced infringement argument, said Ginger Anders, assistant to the solicitor general, during oral argument. Limelight’s appeal argues that “two or more people can divide up and perform the steps of any method claim, however drafted, without liability,” said Akamai counsel Seth Waxman of WilmerHale. Whether a ruling in the case would stick, since the appeals court had not ruled on Akamai’s alternate argument that the Limelight actions constituted direct infringement, was the question for several justices Wednesday. Justice Elena Kagan argued that the appeals court could later decide the case on the direct infringement argument, rendering the Supreme Court’s ruling on this appeal “a nullity” and that she was unsure its ruling “would be relevant for any case.” Justice Samuel Alito also questioned what the court’s role should be in the case. There is always “a potential that the prior rule might later be disturbed,” said Limelight counsel Aaron Panner of Kellogg Huber. Justice Stephen Breyer can “think of so many different kinds of situations with so many different steps in method patents where so many rights and wrongs of it are differently at play that I become worried about setting forth any rule,” he said.