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Crowell & Moring LLP

Technology, Media & Telecommunications Return to Practice Areas & Industries

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Practice/Industry Group Overview

Crowell & Moring LLP's Technology, Media and Telecommunications ("TMT") practice captures the convergence of legal and technology issues affecting clients providing communications, publishing and e-commerce services to industry and consumers. Our TMT attorneys work with clients on matters arising from:

  • contracting for information technology equipment and services;
  • U.S. and European regulation of the telecommunications and media industries;
  • the expanding role of Internet as a place for doing business and eBusiness;
  • the development and protection of intellectual property rights in technology to serve telecommunications, publishing and e-commerce;
  • antitrust regulation, counseling and litigation;
  • the increasingly complex regulation in the United States and Europe of privacy and data collection rights in personal information.

Our TMT practice and European Practice focuses on the regulation, protection, and disposition of rights to technology, information, spectrum, and intellectual property, in the United States and in international trade. Consistent with its focus on these cutting edge issues, we participate in a broad range of legislation, litigation, and corporate transactions that reflect the rapidly changing nature of communications, publishing and commerce in today's society. Our goal is to use our specialized experience and expertise to help our clients shape and reap the advantages of the regulations, policies and commercial environment affecting the way they do business.

Representative Engagements

 

Fiber optic right-of-way class actions. We serve as national coordinating counsel for a major transportation company in a series of class action lawsuits in 30 states against railroads and telecommunications companies seeking damages as the result of the installation of fiber optic cable on railroad right-of-way.

 

Cellular phone late fee class litigation. C&M represents a leading telecommunications company in a series of consumer class actions filed in Maryland state court alleging excessive late fees for billing payments. We have taken the lead in organizing a joint defense group of cable-wireless, and other communications company defendants sued in similar lawsuits.

 

Copper pricing antitrust litigation. C&M is pursuing a major action on behalf of a group of 23 indirect copper buyers, including telecommunications companies, alleging worldwide price manipulation by a copper broker.

 

Achieved dismissal of qui tam case brought by DCAA auditors based on information they obtained in the course of their own audit. Wercinski v. IBM, 982 F.Supp. 449 (S.D. Texas 1997).

 

Successfully represented AOL in first Internet monopolization case involving on-line access and marketing of computer games, and prosecution of counter claims involving theft of proprietary assets.

 

Sex harassment. On behalf of a large telephone operating company, we obtained summary judgment on plaintiff's claims of sexual harassment and various state law claims, in federal court in Virginia.

 

Constitutional challenge to the Federal Communication Act of 1996. We obtained a landmark decision from the Texas District Court holding the provisions of the Act that singled out a named group of Bell Operatings Companies to be unconstitutional under the little-used Bill of Attainder Clause. The Fifth Circuit reversed 2-1, however, over a lengthy dissent.

 

Federal District Court suit to prevent use of infringing domain name. We successfully brought a quick end to use of a name that infringed our client's registered trademark, in a settlement that included payments covering attorneys fees. We represented a coalition of broadcast and telecommunications industry associations in supporting the FCC's successful defense of its radiation hazard rules for radio frequency licensees in the US Second Circuit Court of Appeals.

 

In a six-month arbitration hearing, obtained a $35 million copyright royalty award for a coalition of US commercial television stations, and protected the award on appeal.

 

Obtained an ASBCA decision that government diversion of radios from one foreign customer to another constituted a "constructive change," entitling the contractor to the difference between the contract price and the price for which the radios would have been sold directly. E-Systems, Inc., ASBCA No. 21091, 82-1 BCA 15,774.

 

Defended company and individuals in ten-day jury trial, after which case settled for nuisance value. United States ex rel. Carpenter et al v. Harris Corp. (E.D. Va No. 98-1727A)

 

Grupo Sistemas Interegrales de Telecomunicacion S.A. de C.V. v. AT&T Communications, Inc. 1996 (WL 312535 (S.D.N.Y. June 10, 1996) Successful defense of US company from claims of breach of contract and fraud arising from sale of satellite communications equipment to a foreign corporation.

 


 

Services Available

Technology, Media & Telecommunications - Antitrust
 
The explosive growth of the telecommunications industry has been closely followed by an increase in mergers and acquisitions of telecommunications companies, dot-coms and other industry participants. In addition, the competition authorities in both the US and Europe are increasingly focused on market access and market dominance issues. Technology, Media & Telecommunications practice attorneys have participated extensively in competition reviews before the US Department of Justice, Federal Trade Commission, Federal Communications Commission, Securities & Exchange Commission, as well as the European Commission and European national regulatory authorities. We have acquired substantial expertise in guiding our clients' interests through such reviews, either as participants in the transaction or as interested parties.
 
See our Antitrust practice description.
 
Technology, Media & Telecommunications - Corporate Transactions
 
Our Technology, Media & Telecommunications lawyers combine a broad range of drafting and negotiating skills with knowledge of the telecommunications, media and publishing sectors. In financing, we have extensive experience representing both venture capital companies and companies seeking early stage investment. We are experts in the preparation of both standard-form and bespoke commercial agreements for carriers, operators, resellers, equipment manufacturers, software suppliers and ISPs.
 
See our Corporate practice description.
 
Technology, Media & Telecommunications - eBusiness and Internet Law
 
The development of the Internet has affected the way most companies do business. Telecommunications competitors, including telephone companies and cable operators, have sought to use the regulatory process to their advantage, and several pending regulatory proceedings are addressing Internet issues. Electronic publishing is a burgeoning new medium with its own set of issues involving advertising, contracting, copyright, jurisdictional disputes, liability and sales. Our TMT attorneys are engaged in transactional, contracting, and counseling work on intellectual property, privacy, and liability issues as clients develop and evolve their Internet business methods, including litigation and international matters.
 
Technology, Media & Telecommunications - European Data Protection Directive
 
The European Data Protection Directive imposes wide ranging obligations regarding the collection, storage and use of personal information relating to employees and customers. The measure, which has been implemented in each of the 18 member states of the European Economic Area (EEA) regulates both European business and the European subsidiaries of US and other non-EEA corporations. Such companies are now required:
  • to implement policies and practices that provide adequate protection for the privacy of the personal information held by that company -- both in the EEA and the US or any other non-EEA country to which personal data may be transferred for review or storage;
  • to register with a national data protection authority and provide details of privacy protection practices;
  • to give employees access to their personnel records;
  • to place notices on a range of corporate documentation to give customers, employees and any other person from whom they collect personal information regarding their data practices;
  • to enter into data protection agreements with any third-party with whom employee or customer information may be shared (including, for instance, payroll agencies and marketing firms).
The Directive also imposes an obligation on companies not to transfer personal data from their operations within the EEA to their operations in the United States (and other places outside the EEA) unless the recipient in the non-EEA country provides "an adequate level of protection" for the data. US companies may comply either by participating in the Safe Harbor scheme administered by the US Commerce Department or by the use of an intra-group transborder data flow contract.
 
Crowell & Moring lawyers are assisting a number of corporations to achieve compliance with the European Data Protection Directive, and have collected an extensive database regarding the nature of the national implementing regulations throughout the EEA. Typically, our work covers:
  • Registration with national data protection authorities;
  • Conforming human resource policies and practice to the requirement of the Directive;
  • Preparing data protection notices and conforming employee, customer and other corporate documentation;
  • Implementing third-party data processing policies and contracts;
  • Preparing an intra-group transborder data flow contract.
National Registration
 
Corporations with entities within Europe that collect and use personal information about either their employees or customers (or prospective customers) may be required to register details of their data practices with the national data protection authorities. Failure to register with a national data protection authority in contravention of national law is a criminal offence in most European countries.
 
The first step towards achieving compliance generally, and establishing in which countries registrations may be necessary, is the implementation of an information gathering exercise. This exercise will enable our lawyers to compile an accurate picture of current European data practices on a central level. This central information source will provide the data necessary to enable accurate registrations to be carried out where required, and will also form the basis of our broader compliance efforts, for example, enabling us to implement policies and procedures, and execute data contracts, which are tailored to actual practices.
 
Human Resource Policies and Practice
 
We are experienced in drafting employee policies that comply with the rules governing the collection and use of personal information, and for dealing with employee requests for access to their personnel records. Our lawyers will help to educate the relevant human resource managers as to their responsibilities under the Directive relating particularly to compliance with the data protection principles and respecting the rights of employees.
 
Third Party Transfers and Data Processing Contracts
 
The Directive requires businesses to ensure that personal data are only disclosed to third parties who can guarantee an adequate level of protection for the personal data which they receive. Such third parties will include outside pay-roll agencies, marketing firms, and similar companies to whom functions may be outsourced that require the transfer of personal information.
 
The Directive also requires companies to secure a binding obligation from any third party data processors to whom they disclose personal data to provide an adequate level of protection for that data. This can most readily be achieved through a data transfer contract.
 
Transborder Data Flow Contracts
 
The Directive prohibits transfers of personal data from companies within the EEA to third countries unless an "adequate level of protection" can be ensured for that personal data. US corporations that do not wish to join the US Safe Harbor scheme administered by the US Commerce Department may comply with this requirement through the use of transborder data flow contracts. We are experienced in both advising on achieving compliance with the US Safe Harbor scheme and in the preparation and implementation of tailored transborder data flow contracts.
 
Timeframe
 
The length of time it would take to complete this exercise and achieve compliance will vary according to the scope of the operations to be examined, the nature of the business and the extent to which steps have already been taken to achieve compliance. As a general guide, we would expect to complete a compliance program for a company with operations in, say, five European jurisdictions in around three months.
 
Technology, Media & Telecommunications - Information Technology
 
Legal issues arising from information technology play an increasingly important role in the manufacturing, communications and publishing industries. Besides the regulatory issues flowing from the wave of investment in communications network equipment by carriers as well as private networks, the changing commercial and financial environment and intellectual property issues raised by expanding reliance on Internet-based IT solutions requires a sophisticated understanding of a complex and changing legal landscape. Our TMT attorneys bring such an understanding to bear as they help manufacturers, publishers, service providers and users in the regulatory process, in commercial transactions, and in litigation. And, of course, our Intellectual Property practice is deeply involved in the full range of patent, trademark, copyright, and related legal issues related to information technology.
 
Technology, Media & Telecommunications - Intellectual Property
 
Intellectual property rights - including copyright, trademark, trade secret and database protection - have always been at the core of the broadcasting and publishing sectors, and have become increasingly important in the telecommunications, IT, and e-commerce businesses as software-driven digital applications have come to the fore. The rights to use new content or technology may determine whether a company can enter a market, or may provide the exclusivity that allows it to succeed.
 
Developments in Internet Protocol-based communications have also transformed the nature of the world's telecommunications networks, creating a greater emphasis on intellectual property issues. Electronic publishing has raised new legal issues and inspired new forms of regulation and legislation. Our TMT attorneys work to ensure that our clients are aware of the full extent of their intellectual property rights, and their ability to protect those assets, whether by contract, registration or infringement proceedings.
 
See our Intellectual Property practice description.
 
Technology, Media & Telecommunications - International Trade
 
World Trade Organization agreements have reduced restrictions on alien ownership of telecommunications facilities in the US, Europe and elsewhere. The most successful telecommunications equipment and provider companies now have a global strategic focus. The WTO promises to become an increasingly important forum for the resolution of a range of international market access issues. Our legal expertise in this area is complemented by the trade and economic policy strengths of our consulting affiliate, C&M International.
 
Technology, Media & Telecommunications - Legislation
 
We are regularly involved in projects to influence the legislative processes in both the United States and Europe. In the US, we have assisted clients in legislative work, advising them on positions before Congress and drafting proposed legislation, for example on the Telecommunications Act of 1996 and amendments to the Copyright Act.
 
Through our Brussels office, our legislative team is ideally positioned to participate in the development of a new regulatory framework for digital communications, both within the European Commission, the European Parliament, and at the national level. Legislation is the solution either of choice or of last resort in many situations, and we work with clients to identify those situations, develop strategic plans to present the issues to key legislators and policymakers, and follow through on the legislative process.
 
Technology, Media & Telecommunications - Media Law
 
Our Media Law practice focuses on counseling and litigation for publishers, broadcasters, internet companies, trade organizations, writers and users of content in a digital age. On the counseling side, we have assisted clients in obtaining a wide variety of licenses and authorizations from the FCC, including radio, television, and instructional television licenses, and have handled many types of media transactions that require regulatory approval. Our lawyers have been engaged in advising clients on various electronic publishing ventures, including the acquisition and protection of rights for Internet-based publications. Our media-related litigation practice includes cases arising under the First Amendment, libel, intellectual property, antitrust and Internet-related issues. The firm is a member of the Defense Section of the LibelDefenseResourceCenter.
 
Technology, Media & Telecommunications - Privacy
 
The growth of privacy laws to protect the collection, transfer and use of personal information presents novel and complex compliance challenges for all businesses, particularly in the international context. The adoption of the European Data Protection Directive, and its implementation by each of the EU Member States, has resulted in stringent controls on the management of employee records, personal financial data, and customer data.
 
In the United States, privacy concerns have traditionally focused on medical and financial information, but have increased in scope and extent as businesses acquire electronic information about customers over the Internet. Our TMT lawyers are experienced in the development of privacy policies and compliance programs, data protection registration requirements, employee related privacy issues, privacy procedures and statements for e-commerce, advice on monitoring employee e-mail, regulation of cross-border data transfers, and the US Safe Harbor Scheme for EU/US transfers.
 
Technology, Media & Telecommunications - Telecommunications Regulation
 
Crowell & Moring's Technology, Media & Telecommunications attorneys have years of experience in dealing with regulation and regulators on an array of telecommunications issues in both the United States and Europe. In the US, we have a special focus on wireless and wireline communications technologies that are being developed for an ever broader range of communications applications, including voice, data, and multimedia functions, and using terrestrial and satellite-based facilities, both fixed and mobile. 
 
Our carrier clients continue, despite the deregulatory purposes of the Telecommunications Act of 1996, to work through federal and state regulatory obstacles as they expand the scope and scale of their communications businesses, in the US and abroad. Similarly, because wireless applications make competing demands on an electromagnetic spectrum that is physically limited, there will always be a regulatory component of these commercial activities, centered at the FCC or at the applicable foreign government regulatory body.
 
Within Europe, we are engaged in regulatory proceedings both at the European and national levels on market access issues. We also offer compliance audit services and development of internal audit systems to ensure agency regulations and industry guidelines are followed.