FREE ELECTRONIC LIBRARY - Dissertations, online materials

Pages:     | 1 |   ...   | 43 | 44 || 46 | 47 |   ...   | 49 |

«JOURNAL OF LAW, ECONOMICS & POLICY VOLUME 10 SPRING 2014 NUMBER 2 EDITORIAL BOARD 2013-2014 Steve Dunn Editor-in-Chief Crystal Yi Meagan Dziura Sarah ...»

-- [ Page 45 ] --

Thus, to facilitate those criminal proceedings and sanctions that are already available, perhaps Congress should adopt a means of enforcement, such as those delineated in the Federal Rules of Civil Procedure, to the ever-advancing world of criminal behavior. After all, the question in the relevant pending cases is not necessarily of jurisdiction, but whether the service requirements, specifically the mailing requirement, can be effectuated. The United States can already establish jurisdiction in most cases where there are minimum contacts with the forum state.181 This “effects doctrine,” provides that a foreign state shall not be immune from the jurisdiction of courts of the United States or of the States in any case... in which the action is based upon a commercial activity carried on in the United States by the foreign state; or upon an act performed in the United States in connection with a commercial activity of the foreign state elsewhere; or upon an act outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere and that causes a direct effect in the United States.182 What bars the prosecution of known criminal copyright infringers such as Dotcom is the seemingly administrative matter of serving the corporation with a copy of the summons.

Therefore, perhaps the Legislature should explicitly provide for the effectuation of service through internationally agreed means of service or the alter-ego doctrine as it does in the Federal Rules of Civil Procedure. This would alleviate the effect of the strict “in the United States” language of the mailing requirement in Rule 4(c)(3)(C) of the Federal Rules of Criminal Procedure. Of course, removing the “in the United States” language completely would provide another solution. This way, it might at least be possible to surpass the administrative hurdle of sending a copy of the summons where the United States already has jurisdiction over the defendant. Because these methods of using letters rogatory, MLATs, and MOUs are already available in the civil context, it would not be a much further step to extend them to the criminal context. After all, even the civil means require an agreement between countries, so the change would not be attempting to impose any further obligations on foreign countries that they would not agree to impose on themselves.

These changes would merely open doors to facilitate the prosecution of a growing international problem that already causes vast economic losses all over the world.183 The alternative means of service may not provide a practically easy solution in each case, but the current “in the United States” 181 See supra Part I.C.1.

182 Laura H. Bak–Boychuk, supra note 172, at 372 (quoting 18 U.S.C. § 1605 (2006)).

183 For example, in 1995 alone, China experienced losses of at least $1.8 billion due to online piracy. Butterton, supra note 165, at 1093.

–  –  –

language precludes all possible alternatives. Thus, although it is not a full solution, modifying the text of Rule 4(c)(3)(C) would act to combat criminal opportunism abroad and promote international cooperation against copyright infringement.

CONCLUSION In an era in which individuals can be connected instantaneously and simultaneously with millions of other individuals around the world, the implications of even this seemingly minor loophole in the Federal Rules of Criminal Procedure can be devastating. The drafters of the Federal Rules of Criminal Procedure may not have anticipated such innovation in the criminal sphere through the use of cyberspace, but especially in recent years, the effects have been catastrophic. In the face of international criminal copyright infringement, policymakers must open new avenues to prevent administrative requirements from becoming insurmountable hurdles to criminal prosecution. As it currently stands, Rule 4(c)(3)(C) acts as an administrative obstacle that may prevent obtaining justice against criminal corporations and their executives. Criminal copyright infringement has already cost the United States economy billions of dollars and promises only to further devastate music and entertainment industries worldwide.

2014] 515

–  –  –


Prior to August 9, 2013, Winston Holloway could only make two or three phone calls per month.1 Each fifteen-minute collect call cost his family $10.70.2 In contrast, Natalie Bolds pays $3.50 for each fifteen-minute collect call to her fiancé.3 Holloway is an inmate in an Arkansas state prison, while Bolds’s fiancé resides in a California state prison. The difference in phone rates results from the unique pricing policies in state and federal prison payphone services.

Security concerns inherent in penal facilities necessitate reliance on expensive call monitoring and blocking systems, differentiating inmate payphone systems from standard public carriers.4 In addition, several states require monetary commissions from telephone providers.5 Site commissions are payments from the service provider back to the state, usually a set percentage of the provider’s revenues from the facilities.6 Before the Federal Communications Commission (“FCC”) intervened, the costs of providing commissions to states were incorporated into consumer pricing, resulting in higher costs for recipients of collect calls made from prison.7 * Maxwell Slackman is a George Mason University School of Law Juris Doctor Candidate for May 2014. He received a B.S. in Biology from the College of William and Mary, graduating cum laude in 2010. Special thanks for ideas, mentorship, and editing go to Pamela Arluk, Esq., Professor Lisa Sockett, Esq., Emma Morris, Esq., Mark Stevens, Molly Wilcox, and Allison Walsh.

1 Peter R. Shults, Calling the Supreme Court: Prisoners’ Constitutional Right to Telephone Use, 92 B.U. L. REV. 369, 369 (2012).

2 Brief of Appellant at 4–5, Holloway v. Magness, 666 F.3d 1076 (8th Cir. 2012) (No. 11-1455), 2011 WL 1554810.

3 Letter from Natalie Bolds, to Marlene H. Dortch, Sec’y, FCC, CC Docket No. 96-128 at 1 (Filed June 3, 2009).

4 In re Implementation of the Pay Telephone Reclassification and Compensation Provisions of the Telecommunications Act of 1996, 17 F.C.C.R. 3248, 3252 (Feb. 21, 2002) [hereinafter 2002 Order and NPRM] (“[I]nmate calling services, largely for security reasons, are quite different from the public payphone services that non-incarcerated individuals use.”).



(2011) [hereinafter GAO Report].

6 Paul R. Zimmerman & Susan M.V. Flaherty, Location Monopolies and Prison Phone Rates, 47 Q. REV. OF ECON. & FIN. 261, 262 (2007).

7 Justin Carver, An Efficiency Analysis of Contracts for the Provision of Telephone Services to Prisons, 54 FED. COMM. L. J. 391, 398 (2002) (written prior to the FCC intervention and noting that

–  –  –

Many inmates believe that these commissions and resulting prices were unreasonable, unjust, and violated their First Amendment rights.8 However, the Supreme Court granted deference to correctional institutions due to the expertise, planning, and commitment of resources required to administer these facilities.9 Prison payphones arguably represent the purest form of statecontrolled “captive customer”10 markets. Inmates claim that exorbitant state commissions unduly increase prices, tax the poorest segments of the population, and reduce inmate connection with the outside world, resulting in higher incidence of recidivism.11 In contrast, state governments and telecommunications companies contend that monetary commissions support the prison infrastructure and reduce recidivism by providing better facilities, education, and reintegration assistance.12 On August 9, 2013, the FCC passed an order that sets maximum rates at $0.21 per minute for calls placed using a debit system and $0.25 per minute for collect calls.13 By greatly reducing these per minute rates, this order promises to make prisoner calling more affordable and, through this, to reduce recidivism.

However, this article argues that the FCC, via the powers granted to it through the Telecommunications Act of 1996,14 should revisit its ruling and instead mandate a tiered pricing system for inmate payphone rates based on facility size and commission payouts. While the current order takes needed steps to limit rates and increase inmate communication with the outside world, these rate caps15 do not reflect operation costs and may discourage most “admit that the kickbacks they receive from the service provider do increase the cost of the calls for the consumer”).

8 Holloway v. Magness, 666 F.3d 1076, 1078 (8th Cir. 2012), cert. denied, 133 S. Ct. 130 (U.S.


9 Turner v. Safely, 482 U.S. 78, 84–85 (1987).

10 A captive customer is reluctant or unable to “substitute one product or vendor with another,

–  –  –

SANCTIONED MONOPOLIZATION IN THE PRISON PHONE INDUSTRY 1–2 (2012), available at http://www.prisonpolicy.org/phones/report.html.

12 Letter from Cherie R. Kiser, Counsel to Global Tel*Link Corp., to Marlene H. Dortch, Sec’y, FCC, CC Docket No. 96-128, attach.1, at 8 (filed on Oct. 3, 2012) [hereinafter Global Tel*Link Oct. 3 Ex Parte Letter].

13 Press Release, FCC, FCC Bars High Rates for Long Distance Phone Calls in Jails and Prisons Nationwide (Aug. 9, 2013) [hereinafter FCC Press Release] available at http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0809/DOC-322749A1.pdf.

14 Verizon Commc’ns Inc. v. Trinko, 540 U.S. 398, 405–07 (2004).

15 The term “price cap” is colloquial for “price ceiling,” a “legally established maximum price that sellers may charge.” HENRY N. BUTLER & CHRISTOPHER R. DRAHOZAL, ECONOMIC ANALYSIS FOR LAWYERS 513 (2d ed. 2006). The FCC and inmate payphone stakeholders use the term “cap” when 2014] CALLING FROM PRISON 517 service provision to small, high-cost facilities. Low rate caps may also disincentivize heightened security precautions and create large administrative burdens on the FCC as facilities individually petition for cost-based relief from the caps. The FCC must review its single rate caps in light of the various economic and legal arguments for and against the current system.

Part I of this Comment will investigate and analyze the technical, economic, and social background of inmate payphones and facility commissions. Part II of this Comment will analyze the FCC’s power to regulate payphone rates and corresponding state commissions under 47 U.S.C.

§ 201(b) and caselaw. Court precedent and the Telecommunications Act of 1996 empower the FCC to directly regulate commissions or set benchmark price caps on consumer rates.16 Finally, Part III will analyze the FCC’s price cap order and investigate the most effective regulatory policy that incentivizes efficient pricing and proper use of potential percentage commissions.


The United States prison population has rapidly increased in the last thirty years, expanding from 320,000 inmates in 1980 to 2.27 million in

2010.17 This expansion necessitated larger investments in the country’s penal infrastructure.18 Today, the United States invests more than $60 billion per year in state and federal penal systems and operates more than 5,000 adult prisons and jails.19 These investments also expanded the market for prison services.20 The prison telephone industry benefited from these investments and has grown into a $1.2 billion industry.21 As the prison telephone industry matured, its effects on inmate recidivism expanded.

describing possible price ceilings of inmate payphone rates. This article follows the industry standard and uses “price cap” in place of “price ceiling.” 16 Trinko, 540 U.S. at 406–07.

17 Steven J. Jackson, Ex-Communication: Competition and Collusion in the U.S. Prison Telephone Industry, 22 CRITICAL STUD. IN MEDIA COMM. 263, 266 (2005); LAUREN E. GLAZE, BUREAU OF JUSTICE STATISTICS, CORRECTIONAL POPULATION IN THE UNITED STATES, 2011, 8 (2012), http://bjs.ojp.usdoj.gov/content/pub/pdf/cpus11.pdf.

18 Carver, supra note 7, at 392.


OF THE COMMISSION ON SAFETY AND ABUSE IN AMERICA'S PRISONS 11 (2006), available at http://www.vera.org/download?file=2845/Confronting_Confinement.pdf. This data combines both federal and state penal systems.

20 Carver, supra note 7, at 392.

21 Todd Shields, Prison Phones Prove Captive Market for Private Equity, BLOOMBERG (Oct. 4, 2012), available at http://www.bloomberg.com/news/2012-10-04/prison-phones-prove-captive-marketfor-private-equity.html.

–  –  –

Pages:     | 1 |   ...   | 43 | 44 || 46 | 47 |   ...   | 49 |

Similar works:

«PECC Finance Forum Conference Issues and Prospects for Regional Cooperation for Financial Stability and Development Hilton Hawaiian Village, Honolulu August 11-13, 2002 Day One: Scope for Regional Financial Cooperation among PECC Economies Session I: An Overview – What are the issues? Whither Monetary and Financial Cooperation in Asia?1 Barry Eichengreen University of California, Berkeley 1 Prepared for the PECC Finance Forum Meeting, Honolulu, August 2002. This presentation is based on a...»

«CONFÉRENCE DES NATIONS UNIES SUR UNITED NATIONS CONFERENCE LE COMMERCE ET LE DÉVELOPPEMENT ON TRADE AND DEVELOPMENT Multi-year Expert Meeting on Commodities and Development 9–10 April 2014 Geneva, Palais des Nations, Room XXVI Bios of the speakers and moderators Samuel K. Gayi, Head of the Special Unit on Commodities, UNCTAD, Geneva Samuel Gayi started at UNCTAD in 1994 as an Economic Affairs Officer in the Office of the Special Coordinator for Least Developed Countries. He is currently...»

«DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT A: ECONOMIC AND SCIENTIFIC POLICY Influence of EU Law on Taxation in the EU Member States' Overseas Territories and Crown Dependencies IN-DEPTH ANALYSIS Abstract This legal study researches the influence on tax law and practice in the overseas areas of the Member States by state aid rules, secondary EU tax law and the Overseas Association Decision. The state aid rules and secondary EU tax law apply to the outermost Regions, Gibraltar...»

«International Journal of Educational Planning & Administration. ISSN 2249-3093 Volume 4, Number 1 (2014), pp. 67-77 © Research India Publications http://www.ripublication.com Excellence through Equity: Challenges before Higher Education in India Dr. S.N. Misra* and Dr. Monalisa Bal** * Prof. Economics & Law, KIIT University **Chairperson, KIIT International School Abstract: The Twelfth Plan has highlighted expansion, equity and excellence as the major concerns in higher education. India has...»

«Advertisement Follow ABA myABA | Log In JOIN THE ABA SHOP ABA CALENDAR Membership ABA Groups Resources for Lawyers Publishing CLE Advocacy News About Us MEMBER DIRECTORY Home Membership Events & CLE Committees Initiatives & Awards Publications About Us Contact Us Business Law Today Volume 17, Number 2 November/December 2007 Cybercrime Havens Challenges and Solutions By Susan W. Brenner and Joseph J. Schwerha IV In May 2000, the Love Bug virus raced around the world, shutting down business and...»

«Curriculum Vitae (December 2014) Dr Divine Ikenwilo Health Economics Research Unit Division of Applied Health Sciences School of Medicine and Dentistry University of Aberdeen Room 1:053 Polwarth Building, Foresterhill Aberdeen, AB25 2ZD Tel: +44(0)1224 437178 Fax: +44(0)1224 437195 E-mail: d.ikenwilo@abdn.ac.uk Education Ph.D Health Economics, University of Aberdeen, 2010. Thesis: Studies of the job satisfaction and labour supply of hospital consultants MSosSc Health Economics, University of...»

«Prospect Theory and Stock Returns: An Empirical Test Nicholas Barberis, Abhiroop Mukherjee, and Baolian Wang November 2014∗ Abstract We test the hypothesis that, when thinking about allocating money to a stock, investors mentally represent the stock by the distribution of its past returns and then evaluate this distribution in the way described by prospect theory. In a simple model of asset prices where some investors think in this way, a stock whose past return distribution has a high (low)...»

«August Edition 2012 twitter.com/psfoundation facebook.com/Sampoerna Foundation www.sampoernafoundation.org UPDATES FROM THE PUTERA SAMPOERNA FOUNDATION NEWS FROM OUR 4 PILLARS 1. Sampoerna Academy 2. Sampoerna School of Education 3. Sampoerna School of Business 4. Koperasi Siswa Bangsa 5. PSF-School Development Outreach 6. Sahabat Wanita 7. MEKAR Entrepreneur Network 8. Bait Al-Kamil A WORD FROM THE EDITOR OUR SYNERGY 1. Opening Access to Education Friends of PSF, in East Java 2. Targeting the...»

«Investors’ perspectives on barriers to renewables deployment in Chile Shahriyar Nasirov1, Carlos Silva 1 and Claudio A. Agostini2 1 Facultad de Ingeniería y Ciencias, Universidad Adolfo Ibáñez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile; E-Mails: c.silva@uai.cl (C.S.); 2 School of Government, Universidad Adolfo Ibañez, Avenida Diagonal Las Torres 2640, Peñalolén, Santiago 7941169, Chile; Email: claudio.agostini@uai.cl * Author to whom correspondence should be...»

«Wages and Currency: Global and Historical Comparisons Symposium in Amsterdam/Leiden, 24-25 May 2002 Abstracts The South-Chinese currency zone: China, Japan and insular Southeast-Asia from 12th-18th centuries Arjan van AELST (Erasmus Universiteit Rotterdam) vanaelst@ubib.eur.nl From the 12th century on a trading zone based on the use of a cast base-metal currency developed in the region stretching southward from China. China, Japan and Java used the same type of currency but knew different...»

«PEER-TO-PEER CROWDFUNDING: INFORMATION AND THE POTENTIAL FOR DISRUPTION IN CONSUMER LENDING ADAIR MORSE1 HAAS SCHOOL OF BUSINESS, UNIVERSITY OF CALIFORNIA AT BERKELEY AND NBER First Draft, January, 2015 Abstract Can peer-to-peer lending (P2P) crowdfunding disintermediate and mitigate information frictions in lending such that choices and outcomes for at least some borrowers and investors are improved? I offer a framing of issues and survey the nascent literature on P2P. On the investor side,...»

«DOCTORAL (PhD) THESIS UNIVERSITY OF KAPOSVÁR FACULTY OF ECONOMIC SCIENCES Doctoral School of Economic and Management Sciences Head of Doctoral School: DR. GYULA VARGA Doctor of the Hungarian Academy of Sciences Consultant: DR. LÁSZLÓ BALOGH, PhD ECONOMIC STUDY OF WIND AND HYDRO POWER AS RENEWABLE ENERGY SOURCES Author: DÁNIEL PÁLOSI KAPOSVÁR 2007 1 PRECEDENTS OF THE RESEARCH, SETTING UP THE OBJECTIVES The intensifying and more and more frequent global catastrophe due to the destruction of...»

<<  HOME   |    CONTACTS
2016 www.dissertation.xlibx.info - Dissertations, online materials

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.