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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

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Texas Firm Scores Big In AT&T Patent Spat

By Michael Martinez

(Tuesday, September 18) A Texas-based company has won a $156 million verdict against AT&T in a patent dispute over calling-card technologies.

A federal jury last week delivered a verdict giving TGIP one of the largest patent awards in the history of the district court in eastern Texas, a venue that hosts many intellectual property cases.

TGIP sued AT&T last year, accusing the company of violating a pair of patents it owned for technologies that allow consumers to "recharge" calling cards by purchasing extra time at retail outlets. The court could triple the award at its own discretion because the jury found that AT&T willfully infringed upon TGIP's patents for the card-activation system. The company also is seeking awards for attorneys' fees and future AT&T royalties.

In a telephone interview, Douglas Cawley, an attorney for TGIP, said it is rare for a judge to exercise full discretion to enhance an award in such cases. But he said the fact that the jury found AT&T willfully infringed upon the patents may boost the sum.

U.S. District Judge Ron Clark will make a final determination on the AT&T award later this fall. An AT&T spokesman said via e-mail that the company is prepared to challenge the verdict.

"We are disappointed by this result, which is contrary to the law and evidence in this case," he said. "We will seek to have it corrected by the trial court or on appeal."

Verizon Communications, a co-defendant in the case, reached a confidential settlement with TGIP on the second day of the trial earlier this year.

A small Iowa-based cooperative, meanwhile, did not fare as well this week in a legal dispute against Qwest Communications International.

The Iowa Supreme Court on Friday decided that the state's public utilities board can enjoin the East Buchanan Telephone Cooperative, which serves communities in the eastern part of the state, from blocking wireless signals from outside carriers, including Qwest.

Iowa regulators decided in 2004 that the cooperative should not be allowed to block cellular calls coming to its customers through Qwest. The parties were engaged in a dispute over connection fees that Qwest did not believe it should have to pay.

The cooperative challenged the utility board's decision in a state court, which upheld the regulatory board's ruling. The cooperative then appealed to the state's highest court.

The court agreed that the utilities board has the power to order the cooperative to permanently refrain from blocking the disputed cellular traffic from Qwest.


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