Notices. Notice

6,115 words·~28 min read·/register/2007/03/21/07-1403

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

BILLING CODE 1610-01-M FEDERAL COMMUNICATIONS COMMISSION Notice of Public Information Collection(s) Being Reviewed by the Federal Communications Commission, Comments Requested March 9, 2007. SUMMARY: The Federal Communications Commission, as part of its continuing effort to reduce paperwork burden invites the general public and other Federal agencies to take this opportunity to comment on the following information collection(s), as required by the Paperwork Reduction Act

(PRA)of 1995, Public Law 104-13. An agency may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the Paperwork Reduction Act that does not display a valid control number. Comments are requested concerning

(a)whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;

(b)the accuracy of the Commission's burden estimate;

(c)ways to enhance the quality, utility, and clarity of the information collected; and

(d)ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology. DATES: Written Paperwork Reduction Act

(PRA)comments should be submitted on or before May 21, 2007. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible. ADDRESSES: You may submit your Paperwork Reduction Act

(PRA)comments by email or U.S. postal mail. To submit your comments by email send them to *PRA@fcc.gov.* To submit your comments by U.S. mail, mark them to the attention of Cathy Williams, Federal Communications Commission, Room 1-C823, 445 12th Street, SW., Washington, DC 20554 and Allison E. Zaleski, Office of Management and Budget (OMB), Room 10236 NEOB, Washington, DC 20503 or via Internet at *Allison_E._Zaleski@omb.eop.gov* or via fax at

(202)395-5167. FOR FURTHER INFORMATION CONTACT: For additional information about the information collection(s) send an e-mail to *PRA@fcc.gov* or contact Cathy Williams at

(202)418-2918. SUPPLEMENTARY INFORMATION: *OMB Control Number:* 3060-XXXX. *Title:* Section 76.41, Franchise Application Process. *Form Number:* Not applicable. *Type of Review:* New collection. *Respondents:* State, local or tribal government. *Number of Respondents:* 5,006. *Estimated Time per Response:* 0.5 hours-4 hours. *Frequency of Response:* On occasion reporting requirement. *Total Annual Burden:* 46,000 hours. *Total Annual Cost:* None. *Privacy Impact Assessment:* No impact(s). *Nature of Response:* Required to obtain or retain benefits. *Confidentiality:* No need for confidentiality required. *Needs and Uses:* The Commission has assessed the effects of the application filing requirements used to calculate the time frame in which a local franchising authority shall make a decision, and find that those requirements will benefit companies with fewer than 25 employees by providing such companies with specific application requirements of a reasonable length. We anticipate this specificity will streamline this process for companies with fewer than 25 employees, and that these requirements will not burden these companies. Federal Communications Commission. Marlene H. Dortch, Secretary. [FR Doc. E7-5069 Filed 3-20-07; 8:45 am] BILLING CODE 6712-10-P FEDERAL COMMUNICATIONS COMMISSION Notice of Public Information Collection(s) Being Submitted for Review to the Office of Management and Budget March 13, 2007. SUMMARY: The Federal Communications Commission, as part of its continuing effort to reduce paperwork burden invites the general public and other Federal agencies to take this opportunity to comment on the following information collection(s), as required by the Paperwork Reduction Act

(PRA)that does not display a valid control number. Comments are requested concerning

(a)Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility;

(b)the accuracy of the Commission's burden estimate;

(c)ways to enhance the quality, utility, and clarity of the information collected; and

(PRA)comments should be submitted on or before April 20, 2007. If you anticipate that you will be submitting PRA comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the FCC contact listed below as soon as possible. ADDRESSES: Direct all PRA comments to Allison E. Zaleski, Office of Management and Budget, Room 10236 NEOB, Washington, DC 20503,

(202)395-6466, or via fax at 202-395-5167 or via internet at *Allison_E._Zaleski@ omb.eop.gov* and to *Judith-B. Herman@fcc.gov* , Federal Communications Commission, Room 1-B441, 445 12th Street, SW., Washington, DC 20554 or an e-mail to *PRA@fcc.gov* . If you would like to obtain or view a copy of this information collection, you may do so by visiting the FCC PRA Web page at: *http://www.fcc.gov/omd/pra.* FOR FURTHER INFORMATION CONTACT: For additional information or copies of the information collection(s), contact Judith B. Herman at 202-418-0214 or via the Internet at *Judith-B.Herman@fcc.gov* . SUPPLEMENTARY INFORMATION: *OMB Control Number:* 3060-0895. *Title:* Numbering Resource Optimization, CC Docket No. 99-200 (47 CFR 52.15, Central Office Code Administration). *Form No.:* N/A. *Type of Review:* Revision of a currently approved collection. *Respondents:* Business or other for-profit. *Number of Respondents:* 2,780 respondents; 7,385 responses. *Estimated Time Per Response:* 1-44.4 hours. *Frequency of Response:* On occasion and semi-annual reporting requirements and recordkeeping requirement. *Obligation to Respond:* Mandatory. *Total Annual Burden:* 131,782 hours. *Total Annual Cost:* $3,462,800. *Privacy Act Impact Assessment:* N/A. *Nature and Extent of Confidentiality:* Disaggregated, carrier specific forecast and utilization data will be treated as confidential and will be exempt from public disclosure under 5 U.S.C. 552(b)(4) of the Privacy Act. *Needs and Uses:* The Commission will submit this information collection to OMB as a revision during this comment period to obtain the full three-year clearance from them. The Commission has revised the burden hours and annual cost since this was last submitted to OMB. For this submission to OMB, the Commission is eliminating a one-time reporting requirement that carriers submit cost support data so that the Commission could determine the cost associated with the thousand-block number pooling. Carriers were required to include an analysis of the differences between the shared industry costs associated with the thousand-block number pooling and the shared industry costs, if any, associated with the current practices that resulted in more frequent area code changes. Because the Commission is revising this collection to eliminate this one-time requirement, we are reporting a −50,108 hourly burden reduction. The Commission is also reporting a −$4,396,200 reduction in annual costs due to an adjustment because industry burden costs have been re-estimated for contract years 2-4 for wages. The data from this information collection is used by the FCC, state regulatory commissions, and the North American Numbering Plan Administrator (NANPA) to monitor numbering resource utilization by all carriers using the resource and to project the dates of area code and North American Numbering Plan

(NANP)exhaust. Federal Communications Commission. Marlene H. Dortch, Secretary. [FR Doc. E7-5168 Filed 3-20-07; 8:45 am] BILLING CODE 6712-01-P FEDERAL COMMUNICATIONS COMMISSION [CC Docket Nos. 96-262, 94-1, 99-249, 96-45; DA 07-1001] Reconsideration of CALLS Order AGENCY: Federal Communications Commission. ACTION: Notice. SUMMARY: This document requests that parties that filed petitions for reconsideration of a 2000 Commission order adopting rules applicable to price cap local exchange carriers file supplemental notices indicating whether they wish to pursue any issues in those petitions. Subsequent court decisions and Commission actions may have mooted the issues in those petitions for reconsideration. DATES: Supplemental notices due April 20, 2007, and comments due May 7, 2007. ADDRESSES: Filings should be mailed to the Commission's Secretary through the Commission's contractor, Natek, Inc., at 236 Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. FOR FURTHER INFORMATION CONTACT: Victoria Goldberg, Wireline Competition Bureau, Pricing Policy Division,

(202)418-1530, *jennifer.mckee@fcc.gov.* SUPPLEMENTARY INFORMATION: Pursuant to the Commission's rules governing petitions for reconsideration, 47 CFR 1.106, the Wireline Competition Bureau (the Bureau) invites interested parties to update the record pertaining to petitions for reconsideration filed with respect to the *CALLS Order* , 65 FR 38684, June 21, 2000. After the Commission released the *CALLS Order* on May 31, 2000, four parties filed petitions for reconsideration of that order. These petitions were filed by the Association for Local Telecommunications Services

(ALTS)and Focal Communications Corp., One Call Communications, Inc., Pathfinder Communications, Inc., and the Texas Office of Public Utility Counsel. The Commission addressed the petition filed by One Call Communications, Inc. in a subsequent order, 68 FR 43327, July 22, 2003, and the Texas Office of Public Utility Counsel withdrew its petition on July 27, 2000. Since these petitions were filed, there has been a court of appeals decision and additional Commission orders addressing the rules adopted in the *CALLS Order* , including a decision by the United States Court of Appeals for the Fifth Circuit, an order on remand, 68 FR 50077, August 20, 2003, and an order on reconsideration, 68 FR 43327, July 22, 2003. Issues raised in the pending petitions for reconsideration may therefore have become moot or outdated. As a result, it is not clear whether issues arising out of the *CALLS Order* , if any, remain in dispute. In addition, the reform proposal adopted in the *CALLS Order* has reached the end of its five-year term and the Commission is developing a record on comprehensive intercarrier compensation reform in CC Docket No. 01-92 and on regulation of special access services in WC Docket No. 05-25. Because the petitions for reconsideration were filed several years ago, the passage of time and intervening developments may have rendered the records developed by those petitions stale. For these reasons, the Bureau requests that parties that filed petitions for reconsideration of the *CALLS Order* now file a supplemental notice indicating those issues that they still wish to be reconsidered. Petitioners may include with the supplemental notices any new information or arguments they believe to be relevant to deciding *only* those issues that they previously raised in their petitions for reconsideration. The refreshed record will enable the Commission to consider what action may be appropriate in this proceeding. Parties may file supplemental notices updating their previously filed petitions for reconsideration no later than April 20, 2007, with the Secretary, FCC, 445 12th Street, SW., Washington, DC 20554. Oppositions or responses to these filings may be filed with the Secretary, FCC, no later than May 7, 2007. All pleadings are to reference CC Docket Nos. 96-262, 94-1, 99-249, 96-45. All pleadings may be filed using the Commission's Electronic Comment Filing System

(ECFS)or by filing paper copies. For ECFS filers, if multiple docket or rulemaking numbers appear in the caption of this proceeding, filers must transmit one electronic copy of the comments for each docket or rulemaking number referenced in the caption. In completing the transmittal screen, filers should include their full name, U.S. Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by Internet e-mail. To get filing instructions, filers should send an e-mail to *ecfs@fcc.gov* , and include the following words in the body of the message, “get form.” A sample form and directions will be sent in response. Parties who choose to file by paper must file an original and four copies of each filing. If more than one docket or rulemaking number appears in the caption of this proceeding, commenters must submit two additional copies for each additional docket or rulemaking number. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail (although we continue to experience delays in receiving U.S. Postal Service mail). Parties are strongly encouraged to file comments electronically using the Commission's ECFS. All filings must be addressed to the Commission's Secretary, Office of the Secretary, Federal Communications Commission. • The Commission's contractor will receive hand-delivered or messenger-delivered paper filings for the Commission's Secretary at 236 Massachusetts Avenue, NE., Suite 110, Washington, DC 20002. The filing hours at this location are 8 a.m. to 7 p.m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be disposed of before entering the building. • Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. • U.S. Postal Service first-class, Express, and Priority mail should be addressed to 445 12th Street, SW., Washington, DC 20554. All filings must be addressed to the Commission's Secretary, Marlene H. Dortch, Office of the Secretary, Federal Communications Commission, Room TW-A325, 445 12th Street, SW., Washington, DC 20554. Parties should also send a copy of their filings to Victoria Goldberg, Pricing Policy Division, Wireline Competition Bureau, Federal Communications Commission, Room 5-A266, 445 12th Street, SW., Washington, DC 20554, or by e-mail to *victoria.goldberg@fcc.gov.* Parties shall also serve one copy with the Commission's copy contractor, Best Copy and Printing, Inc. (BCPI), Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554,

(202)488-5300, or via e-mail to *fcc@bcpiweb.com.* The original petitions for reconsideration filed by the parties in CC Docket Nos. 96-262, 94-1, 99-249, 96-45 are available for public inspection and copying during business hours at the FCC Reference Information Center, Portals II, 445 12th St. SW., Room CY-A257, Washington, DC 20554. The documents may also be purchased from BCPI, telephone

(202)488-5300, facsimile

(202)488-5563, TTY

(202)488-5562, e-mail *fcc@bcpiweb.com.* These documents may also be viewed on the Commission's Web site at *http://www.fcc.gov/cgb/ecfs.* People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to *fcc504@fcc.gov* or call the Consumer & Governmental Affairs Bureau at

(202)418-0530 (voice),

(202)418-0432 (tty). This matter shall be treated as a “permit-but-disclose” proceeding in accordance with the Commission's *ex parte* rules, 47 CFR 1.1200 *et seq.* Persons making oral *ex parte* presentations are reminded that memoranda summarizing the presentations must contain summaries of the substance of the presentations and not merely a listing of the subjects discussed. More than a one- or two-sentence description of the views and arguments presented generally is required. Other requirements pertaining to oral and written presentations are set forth in section 1.1206(b) of the Commission's rules, 47 CFR 1.1206(b). Federal Communications Commission. Kirk S. Burgee, Chief of Staff, Wireline Competition Bureau. [FR Doc. E7-5078 Filed 3-20-07; 8:45 am] BILLING CODE 6712-01-P FEDERAL COMMUNICATIONS COMMISSION [CC Docket No. 92-237; DA 07-1279] Next Meeting of the North American Numbering Council AGENCY: Federal Communications Commission. ACTION: Notice. SUMMARY: On March 14, 2007, the Commission released a public notice announcing the April 17, 2007 meeting and agenda of the North American Numbering Council (NANC). The intended effect of this action is to make the public aware of the NANC's next meeting and agenda. DATES: Tuesday, April 17, 2007, 9 a.m. ADDRESSES: Competition Policy Division, Wireline Competition Bureau, Federal Communications Commission, Portals II, 445 Twelfth Street, SW., Suite 5-C162, Washington, DC 20554. Requests to make an oral statement or provide written comments to the NANC should be sent to Deborah Blue. FOR FURTHER INFORMATION CONTACT: Deborah Blue, Special Assistant to the Designated Federal Officer

(DFO)at

(202)418-1466 or *Deborah.Blue@ fcc.gov.* The fax number is:

(202)418-2345. The TTY number is:

(202)418-0484. SUPPLEMENTARY INFORMATION: Released: March 14, 2007. The North American Numbering Council

(NANC)has scheduled a meeting to be held Tuesday, April 17, 2007, from 9 a.m. until 5 p.m. The meeting will be held at the Federal Communications Commission, Portals II, 445 Twelfth Street, SW., Room TW-C305, Washington, DC. This meeting is open to members of the general public. The FCC will attempt to accommodate as many participants as possible. The public may submit written statements to the NANC, which must be received two business days before the meeting. In addition, oral statements at the meeting by parties or entities not represented on the NANC will be permitted to the extent time permits. Such statements will be limited to five minutes in length by any one party or entity, and requests to make an oral statement must be received two business days before the meeting. *People with Disabilities:* To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an e-mail to *fcc504@fcc.gov* or call the Consumer and Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty). Reasonable accommodations for people with disabilities are available upon request. Include a description of the accommodation you will need, including as much detail as you can. Also include a way we can contact you if we need more information. Please allow at least five days advance notice; last minute requests will be accepted, but may be impossible to fill. *Proposed Agenda:* Tuesday, April 17, 2007, 9 a.m.* 1. Announcements and Recent News 2. Approval of Transcript Meeting of February 13, 2007 3. Report of the North American Numbering Plan Administrator (NANPA) 4. Report of the National Thousands Block Pooling Administrator

(PA)5. Report of the North American Numbering Portability Management

(NAPM)LLC 6. Status of the Industry Numbering Committee

(INC)activities 7. Report of the pANI Issues Management Group *Action Item:* Review and Adopt Recommendation for Permanent pANI Administration Guidelines 8. Report from the North American Numbering Plan Billing and Collection (NANP B&C) Agent 9. Report of the Billing & Collection Working Group (B&C WG) 10. Report of the Numbering Oversight Working Group

(NOWG)11. Report of the Local Number Portability Administration

(LNPA)Working Group *Action Item:* Intermodal Number Portability, Summary of NANC Actions 12. Report of the Future of Numbering Working Group (FoN WG) 13. Special Presentations 14. Update List of the NANC Accomplishments 15. Summary of Action Items 16. Public Comments and Participation (5 minutes per speaker) 17. Other Business Adjourn no later than 5 p.m. * The Agenda may be modified at the discretion of the NANC Chairman with the approval of the DFO. Federal Communications Commission. Marilyn Jones, Attorney, Wireline Competition Bureau. [FR Doc. E7-5075 Filed 3-20-07; 8:45 am] BILLING CODE 6712-01-P FEDERAL MARITIME COMMISSION Notice of Agreements Filed The Commission hereby gives notice of the filing of the following agreements under the Shipping Act of 1984. Interested parties may submit comments on agreements to the Secretary, Federal Maritime Commission, Washington, DC 20573, within ten days of the date this notice appears in the **Federal Register** . Copies of agreements are available through the Commission's Office of Agreements (202-523-5793 or *tradeanalysis@fmc.gov* ). *Agreement No.:* 011223-037. *Title:* Transpacific Stabilization Agreement. *Parties:* APL Co. Pte. Ltd.; American President Lines, Ltd.; COSCO Container Lines Co., Ltd.; Evergreen Marine Corporation (Taiwan) Ltd.; Hanjin Shipping Co., Ltd.; Hapag-Lloyd AG; Hyundai Merchant Marine Co., Ltd.; Kawasaki Kisen Kaisha, Ltd.; Mitsui O.S.K. Lines, Ltd.; Nippon Yusen Kaisha; Orient Overseas Container Line Limited; and Yangming Marine Transport Corp. *Filing Party:* Wayne R. Rohde, Esq.; Sher & Blackwell LLP; 1850 M Street, NW.; Suite 900; Washington, DC 20036. *Synopsis:* The amendment authorizes additional information exchanges with industry and shipper communities, enhances TSA's research capabilities, updates the membership of Evergreen Marine, and reflects that the substitution of COSCO companies will not take place at this time. *Agreement No.:* 011972-001. *Title:* HSDG/Alianca/CMA CGM Space Charter Agreement. *Parties:* Alianca Navegacao e Logistica Ltda e CIA; CMA CGM, S.A.; and Hamburg-Sudamerikanische Dampfschifffahrts-Gesellschaft KG. *Filing Party:* Wayne R. Rohde, Esq.; Sher & Blackwell LLP; 1850 M Street, NW.; Suite 900; Washington, DC 20036. *Synopsis:* The amendment would reduce the number of slots chartered to CMA. The parties request expedited review. *Agreement No.:* 011982-001. *Title:* Evergreen Line Joint Service Agreement. *Parties:* Evergreen Marine Corp. (Taiwan) Ltd., Hatsu Marine Ltd., and Italia Marittima S.p.A. *Filing Party:* Paul M. Keane, Esq.; 61 Broadway; Suite 3000; New York, NY 10006-2802. *Synopsis:* The amendment would add Evergreen Marine (Hong Kong) Ltd. as a party and, effective May 1, 2007, change Hatsu Marine's name to Evergreen Marine

(UK)Ltd. By order of the Federal Maritime Commission. Dated: March 16, 2007. Bryant L. VanBrakle, Secretary. [FR Doc. E7-5171 Filed 3-20-07; 8:45 am] BILLING CODE 6730-01-P FEDERAL RESERVE SYSTEM Formations of, Acquisitions by, and Mergers of Bank Holding Companies The companies listed in this notice have applied to the Board for approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C. 1841 *et seq.* ) (BHC Act), Regulation Y (12 CFR Part 225), and all other applicable statutes and regulations to become a bank holding company and/or to acquire the assets or the ownership of, control of, or the power to vote shares of a bank or bank holding company and all of the banks and nonbanking companies owned by the bank holding company, including the companies listed below. The applications listed below, as well as other related filings required by the Board, are available for immediate inspection at the Federal Reserve Bank indicated. The application also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the standards enumerated in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the acquisition of a nonbanking company, the review also includes whether the acquisition of the nonbanking company complies with the standards in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted, nonbanking activities will be conducted throughout the United States. Additional information on all bank holding companies may be obtained from the National Information Center Web site at *http://www.ffiec.gov/nic/* . Unless otherwise noted, comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than April 16, 2007. **A. Federal Reserve Bank of Cleveland** (Douglas A. Banks, Vice President) 1455 East Sixth Street, Cleveland, Ohio 44101-2566: *1. Waterford Bancorp, Inc.* , Sylvania Township, Ohio; to become a bank holding company by acquiring 100 percent of the voting shares of Waterford Bank, N.A., Sylvania Township, Ohio. **B. Federal Reserve Bank of Chicago** (Patrick M. Wilder, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690-1414: *1. Firstbank Corporation* , Alma, Michigan; to merge with ICNB Financial Corporation, Ionia, Michigan, and thereby indirectly acquire voting shares of Ionia County National Bank of Ionia, Ionia, Michigan. Board of Governors of the Federal Reserve System, March 16, 2007. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. E7-5132 Filed 3-20-07; 8:45 am] BILLING CODE 6210-01-S FEDERAL TRADE COMMISSION [File No. 062 3019] Sony BMG Music Entertainment; Analysis of Proposed Consent Order To Aid Public Comment AGENCY: Federal Trade Commission. ACTION: Proposed consent agreement. SUMMARY: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations. DATES: Comments in response to this notice must be received on or before March 23, 2007. ADDRESSES: Interested parties are invited to submit written comments. Comments should refer to “Sony BMG Music, File No. 062 3019,” to facilitate the organization of comments. A comment filed in paper form should include this reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room 135-H, 600 Pennsylvania Avenue, NW., Washington, DC 20580. Comments containing confidential material must be filed in paper form, must be clearly labeled “Confidential,” and must comply with Commission Rule 4.9(c). 16 CFR 4.9(c) (2005). 1 The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments that do not contain any nonpublic information may instead be filed in electronic form as part of or as an attachment to e-mail messages directed to the following e-mail box: *consentagreement@ftc.gov* . 1 The comment must be accompanied by an explicit request for confidential treatment, including the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. The request will be granted or denied by the Commission's General Counsel, consistent with applicable law and the public interest. *See* Commission Rule 4.9(c), 16 CFR 4.9(c). The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. All timely and responsive public comments, whether filed in paper or electronic form, will be considered by the Commission, and will be available to the public on the FTC Web site, to the extent practicable, at *http://www.ftc.gov* . As a matter of discretion, the FTC makes every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC Web site. More information, including routine uses permitted by the Privacy Act, may be found in the FTC's privacy policy, at *http://www.ftc.gov/ftc/privacy.htm* . FOR FURTHER INFORMATION CONTACT: Matthew Daynard (202/326-3291), Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW., Washington, DC 20580. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 2.34 of the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty

(30)days. The following Analysis to Aid Public Comment describes the terms of the consent agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for January 30, 2007), on the World Wide Web, at *http://www.ftc.gov/os/2007/01/index.htm* . A paper copy can be obtained from the FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW., Washington, DC 20580, either in person or by calling

(202)326-2222. Public comments are invited, and may be filed with the Commission in either paper or electronic form. All comments should be filed as prescribed in the ADDRESSES section above, and must be received on or before the date specified in the DATES section. Analysis of Agreement Containing Consent Order To Aid Public Comment The Federal Trade Commission has accepted, subject to final approval, an agreement containing a consent order from Sony BMG Music Entertainment (“Sony BMG” or “respondent”). The proposed consent order has been placed on the public record for thirty

(30)days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty

(30)days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement or make final the agreement's proposed order. This matter involves respondent's use of content protection software, also known as Digital Rights Management

(DRM)software, embedded on its music CDs and the use of a proprietary media player on many of these CDs that must be used to listen to them. When played on a Windows-based computer, Sony BMG's DRM software is installed on consumers’ computers and restricts the use of the audio files and other digital material on the CDs. In addition, the “XCP” and “MediaMax 5.0” versions of respondent's DRM software create security vulnerabilities on consumers’ computers, and, when consumers’ computers are connected to the Internet, the media player monitors users’ listening habits and sends back relevant advertisements. According to the FTC complaint, Sony BMG engaged in unfair and deceptive practices in distributing its content-protected CDs. The complaint contains two unfairness charges. The first count alleges that it was unfair for respondent to cause its DRM software, which exposed consumers’ to security risks, to be installed on consumers’ computers without adequate notification and consent. As alleged in the complaint, respondent's “XCP” DRM software contains cloaking technology that hides the existence of the software from the Windows Operating System. The cloaking technology creates a security vulnerability because malicious software that enters users’ computers can exploit the cloaking technology to conceal itself from the computers’ security software. In addition, respondent's “MediaMax 5.0” DRM software creates a “privilege escalation vulnerability” that could allow third parties who gain physical access to the computer but who have lower-privilege access to exercise full control over a consumer's computer running the Windows Operating System. Consumers could not reasonably prevent this injury because they did not know of the DRM software's existence or its harmful effects. The complaint therefore alleges that respondent's practices caused, or were likely to cause, substantial consumer injury that consumers could not reasonably avoid and which was not outweighed by countervailing benefits to consumers or competition. The complaint further alleges as unfair respondent's practices in causing its DRM software that made computers insecure to be installed without providing a reasonable means to locate and/or remove it. As alleged in the complaint, Sony BMG's use of cloaking technology and the failure of the “XCP” and “MediaMax 5.0” software to appear in the Windows “Add/Remove” utility hid the existence of the software from consumers and their operating systems. In addition, respondent failed to make an uninstall tool readily available. The complaint alleges that, as a result, consumers incurred substantial costs in locating and removing the DRM software from their computers and in stopping its harmful effects. Thus, the complaint alleges that respondent's practices in failing to provide a reasonable means to locate and remove its DRM software caused, or were likely to cause, substantial consumer injury that could not be reasonably avoided by consumers and did not provide countervailing benefits to consumers or competition. In addition, the complaint challenges, as deceptive, Sony BMG's failure to disclose adequately that its music CDs install onto computers software that materially limits their use by limiting the number of disc-to-disc copies that consumers can make, and by restricting consumers” ability to transfer to and play music on digital playback devices other than Sony BMG and Microsoft devices. Finally, the proposed complaint alleges as deceptive respondent's undisclosed inclusion of its media player, which monitors the artists that consumers listen to on their computers and displays advertising. The proposed consent order contains provisions designed to enhance and expand upon respondent's programs to provide refunds to consumers and includes injunctive relief to protect against future consumer injury from similar acts and practices. Part I of the proposed order requires Sony BMG to include on the front cover of the packaging for any content-protected CD a clear and prominent disclosure that important consumer information regarding limits on copying and use can be found on the rear of the product packaging. This provision also requires respondent to disclose more fully on the back cover that the CD will install software, if that is the case; has copying limits; and can only be used on certain playback devices. Part II bars Sony BMG from installing content protection software from a CD without consumers’ authorization. Specifically, before such software can be installed, respondent must disclose on the consumer's computer screen the information required by Part I and the consumer must have signaled her consent by clicking on a properly labeled button or taking a similar action. Further, in cases where Sony BMG conditions consumers’ use of its CDs on their installing content protection software onto their computers, Part III requires that respondent clearly and prominently disclose this requirement on the product packaging. Regarding “enhanced connectivity” CDs (CDs containing respondent's proprietary media player that transmits non-personally identifiable information from consumers’ computers to respondent and displays promotional messages on consumers’ computers), Part IV of the proposed order, which applies to enhanced connectivity CDs that Sony BMG sells prior to the date that this order becomes final, prohibits respondent from using any information it collects through enhanced connectivity CDs for any marketing purpose and requires respondent to destroy such information within three days of receipt. Part IV also prohibits Sony BMG from using any such information to deliver advertising or marketing messages. Part V, which applies to enhanced connectivity CDs that Sony BMG sells after the order becomes final, requires that if, to use a CD on a computer, consumers must agree to have information collected about them, Sony BMG must disclose this condition clearly and prominently on the product packaging. Further, Part V prohibits Sony BMG from collecting any information using its enhanced connectivity CDs, unless it first discloses that the CD will collect information and/or send back advertising to the computer and obtains consumers’ consent to do so. In connection with the marketing, advertising, or distributing of any CD, Part VI prohibits Sony BMG from installing content protection software that prevents consumers from readily locating or removing the software from the computer. This prohibition includes, but is not limited to, hiding, cloaking, using misleading or random names for, and misrepresenting the purpose or effects of any file, folder, or directory associated with such software. Part VII requires that respondent provide a reasonable and effective means to uninstall its content protection software. Part VII also provides that Sony BMG is not required to uninstall the “counter” file of its software that determines whether the consumer has exceeded the permitted number of copies on the computer, as long as respondent discloses on consumers’ computer screens, prior to installing the content protection software, that this file will not be removed and the file does not impair, hinder, or otherwise adversely affect the computer's operation. Part VII further requires that Sony BMG, for a period of two years from the date that the order becomes final, continue to provide free uninstall tools and patches for XCP and MediaMax 5.0 and to disclose the existence of these tools on its Web site. In addition, Part VII of the order requires that Sony BMG notify consumers of the XCP and MediaMax 5.0 vulnerabilities and how to fix their computers, by extending its existing program of purchasing key words on search engines to one year after the date the order becomes final, and also by publishing a notice through its Web site. Part VIII of the proposed order makes clear that all purchasers, prior to December 31, 2006, of XCP and MediaMax CDs are eligible to participate in its ongoing compensation program. Part VIII also requires Sony BMG to extend the period for accepting exchanges to six months after December 31, 2006. Further, Part VIII of the order requires that Sony BMG reimburse consumers up to $150 of their costs to repair computer damage resulting from their attempts to remove the XCP content protection software before respondent made an uninstall tool readily available. Finally, Part VIII requires Sony BMG to publish notices on its Web site informing consumers about the extended period for exchanging CDs and the “repair reimbursement” program. Part IX of the proposed order requires that, before selling MediaMax CDs from its inventory, Sony BMG must make applicable disclosures about copying and use restrictions on the product packaging. In the case of MediaMax 5.0 CDs, Sony BMG also must disclose on the packaging that, if used on a computer, these CDs will create security vulnerabilities that consumers can eliminate with a patch that they can download, free of charge, from respondent's Web site, and establish an Internet connection through which Sony BMG will collect information from, and send back advertising to, the computer. Also, with respect to MediaMax 5.0 CDs that Sony BMG has sold to retailers, Part IX requires that it offer retailers the same financial incentives to return these CDs as those for XCP CDs. Further, Sony BMG must offer these incentives for two years after the date the order becomes final. Parts X through XIII of the proposed order are record-keeping and reporting provisions. Part XIV provides that the order will terminate after twenty

(20)years under certain circumstances. The purpose of this analysis is to facilitate public comment on the proposed order, and it is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 07-1403 Filed 3-20-07; 8:45 am]

Connectionstraces to 7

Traces to 7 documents

U.S. Code

CFR

7 references not yet in our index