Attachment DIRECTV - req confi

DIRECTV - req confi

REQUEST submitted by DIRECTV

REQUEST

2011-07-28

This document pretains to SAT-AMD-20080114-00014 for Amended Filing on a Satellite Space Stations filing.

IBFS_SATAMD2008011400014_910484

WG                 WILTSHIRE                                                                              _
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                                                                                        NON—PUBLIC        «5
                                                                                     CONFIDENTIAL TREATMENT REQUESTED



                                                             July 28, 2011



BYHAND DELIVERY                                                                               FILED/ACCEPTED
Marlene H. Dortch                                                                                      ‘
Secretary                                                                                        JuL 28 2011

ns Frotil Ahost &W.
Federal Communications Commission

Washington, DC 20554
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          Re:     DIRECTV Enterprises, LLC
                  IBFS File Nos. SAT—LOA—20060908—00100, SAT—AMD—20080114—00014, and
                  SAT—AMD—20080321—00077 (Call Sign $2712)

Dear Ms. Dortch:

        Pursuant to Section 25.164(b) of the Commission‘s rules and Paragraph 37b of the
authorization issued in the above referenced proceedings,‘ DIRECTV Enterprises, LLC
("DIRECTV") hereby submits a non—redacted copy of the package ("CDR Package") prepared as
a result of the critical design review performed pursuant to its contract for construction of the
DIRECTV RB—2 satellite by Space Systems/Loral ("SS/L"), in both hard copy and electronic
form. DIRECTV respectfully requests that, pursuant to Sections 0.457 and 0.459 of the
Commission‘s rules, 47 C.F.R. §§ 0.457 and 0.459, the Commission withhold from public
inspection and accord confidential treatment to the CDR Package, submitted for the International
Bureau‘s consideration in connection with DIRECTV‘s demonstration of milestone compliance.
These materials contain sensitive trade secrets, and commercial and financial information that
fall within Exemption 4 of the Freedom of Information Act (“FOIA”).2

       Exemption 4 of FOIA provides that the public disclosure requirement of the statute "does
not apply to matters that are . . . (4) trade secrets and commercial or financial information
obtained from a person and privileged or confidential."" DIRECTV is voluntarily providing this


!   See DIRECTYV Enterprises, LLC, 24 FCC Red. 9393, 37b (Int‘l Bur. 2009). See also 47 C.F.R.
    §25.164(b).
2   5 U.S.C. § 552(b)(4).
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     1200 18TH STREET, NW | SUITE 1200 | WASHINGTON, DC 20036 | TEL 202—730—1300 | FAX 202—730—1301 | WILTSHIREGRANNIS.COM


 WILTSHIRE & GRANNIS LLP


 Marlene H. Dortch
 July 28, 2011
 Page 2 of 5

 trade secret and commercial and financial information "of a kind that would not customarily be
 released to the public" in order to demonstrate compliance with a regulatory requirement;
 therefore, this information is "confidential" under Exemption 4 of FOIA.* Moreover, DIRECTV
 would suffer substantial competitive harm if the CDR Package were disclosed."

      In support of this request and pursuant to Section 0.459(b) of the Commission‘s rules,"
 DIRECTV hereby states as follows:

 1.       IDENTIFICATION OF THE SPECIFIC INFORMATION FOR WHICH CONFIDENTIAL
          TREATMENT Is SoucHtT‘
         DIRECTV seeks confidential treatment of the entire CDR Package. These materials
reflect key technological attributes of the satellite and therefore should be treated in their entirety
as a trade secret. In the context of FOIA, a trade secret is defined as "as secret, commercially
valuable plan, formula, process, or device that is used for the making, preparing, compounding, or
processing of trade commodities and that can be said to be the end product of either innovation or
substantial effort."* The CDR Package reflects a thorough evaluation of the design of a state—of—
the—art satellite, including the proprietary technology embodied therein.

2.        DESCRIPTION OF CIRCUMSTANCES GIVING RisE To THE SUBMISSION®

        DIRECTV is submitting the CDR Package to the Commission as required by rule and by
licensing condition in order to demonstrate compliance with the second performance milestone,
which would also result in reduction of DIRECTV‘s performance bond.

3.        EXPLANATION OF THE DEGREE TO WHICH THE INFORMATION Is COMMERCIAL OR
          FINANCIAL, OR CONTAINS Aa TRADE SECRET or Is PriviLEcEp"

       The CDR Package contains highly sensitive, confidential, and proprietary commercial
and technical information, including trade secrets regarding the construction of satellite


*     See Critical Mass Energy Project v. NRC, 975 F.2d 871, 879 (D.C. Cir. 1992).

°     See National Parks and Conservation Ass‘n v. Morton, 498 F.2d 765 (D.C. Cir. 1974).
6     47 CFR. § 0.459(b).

7     47 CFR. §0.459(b)(1).
8     Public Citizen Health Research Group v. FDA, 704 F.2d 1280, 1288 (D.C. Cir. 1983); see also AT&T
      Information Systems, Inc. v. GSA, 627 F. Supp. 1396, 1401 n.9 (D.D.C. 1986).

°47 CFR. § 0.459(b)(2).

 ® 47 CFR. §0.459(b)(G).


WILTSHIRE & GRANNIS LLP

Marlene H. Dortch
July 28, 2011
Page 3 of 5

spacecraft. DIRECTV and SS/L treat such information as highly confidential and do not
disclose it to third parties. As such, the information qualifies as material that "would customarily
be guarded from competitors.”11 The information contained in the CDR Package would not
customarily be released by the persons from whom they are obtained and are therefore covered
by Exemption 4 of FOIA when, as here, it is submitted by such persons to the Government.

4.       EXPLANATION OF THE DEGREE TO WHICH THE INFORMATION CONCERNS A SERVICE
         THAT Is SUBJECT TO COMPETITION®‘

        Confidential information in the CDR Package concerns highly competitive markets in
which both DIRECTV and SS/L participate. The CDR Package contains trade secrets and
confidential information that is commercially sensitive within the satellite manufacturing
industry. The satellite manufacturing industry is extremely competitive, with the current global
supply of satellite manufacturing capacity greatly exceeding the actual demand for satellite
construction services. Similarly, DIRECTV competes in the MVPD marketplace and faces
competition from terrestrial and satellite MVPD competitors. U.S. DBS competitors to
DIRECTV with deployed U.S. DBS systems include DISH Network, and a number of foreign
DBS systems have sought or may seek access to U.S. consumers, which will further increase
competition to DIRECTV.">

5.       ExPLANATION OF How DISCLOSURE OF THE INFORMATION COULD RESULT IN
         SUBSTANTIAL COMPETITIVE Harm"*

         SS/L is a major manufacturer of satellite and aerospace systems. SS/L maintains a
competitive edge vis—a—vis other satellite manufactures by offering customers the benefits of its
experience and expert technical design capability. SS/L also competes in the highly competitive
satellite manufacturing market based on the cost advantages of its economies of scale. Release
of the technical and other information contained in the CDR Package could compromise SS/L‘s
competitive edge in the satellite manufacturing market, resulting in substantial competitive harm
to SS/L. Similarly, this information would enable DIRECTV‘s competitors to unfairly benefit
from the time and resources that DIRECTV has expended in designing, negotiating for, and
evaluating construction of advanced satellites.




U    47 CFR. § 0.457.

2 47 CFR. § 0.459(b)(4).

5    See, eg., Spectrum Five LLC, 21 FCC Red. 14023 (Int‘l Bur. 2006) (granting authority to provide
     DBS service in the U.S. from satellites licensed by the Netherlands).

4 47 C.F.R. § 0.459(b)(5).


WILTSHIRE & GRANNIS LLP


Marlene H. Dortch
July 28, 2011
Page 4 of 5

6.       IDENTIFICATION OF AnNY MEAsSURES TAKEN B¥ THE SUBMITTING PARTY To PREVENT
         UnaAUTHORIZED Discuosure"

         DIRECTV and SS/L do not permit the dissemination of the CDR Package to non—
employees without the execution of a confidentiality agreement. Furthermore, SS/L requires its
satellite customers to request confidential treatment as a part of any submission of a satellite
construction CDR Package to government agencies, such as the Commission. In addition, the
CDR Package may contain technical data potentially subject to the U.S. Government‘s
International Traffic in Arms Regulations ("ITAR").‘° As such, its dissemination to non—U.S.
citizens or companies without prior approval may be a violation of federal law.

7.       IDENTIFICATION OF WHETHER THE INFORMATION ISs AVAILABLE TO THE PUBLIC AND
         THE EXTENT OF ANY PREVIOUS DISCLOSURE OF THE INFORMATION TO THIRD
         ParTiEs"

       The CDR Package is not available to the public and, to the best of DIRECTV‘s
knowledge, has not been disseminated to non—DIRECTV or non—SS/L personnel without the
execution of a confidentiality agreement (except for the redacted version being submitted to the
Commission). Accordingly, DIRECTV requests that the Commission accord the information
covered by this Request confidential treatment under Sections 0.457 and 0.459 of the
Commission‘s rules.




5    47 C.FR. § 0.459(b)(6).

6 See 22 CF.R. §120.10.

47 C.F.R. § 0.459(b)(7).


WILTSHIRE & GRANNIS LLP

Marlene H. Dortch
July 28, 2011
Page 5 of 5

8.       JUSTIFICATION OF THE PERIOD DURING WHICH THE SUBMITTING PARTY AsSERTsS
         THAT MATERIAL SHOULD NOT BE AVAILABLE FoR PuBLIC DiscLosurE"}

        DIRECTV requests that the CDR Package be permanently withheld from public
disclosure. Release of this information at any time in the future would cause substantial
competitive harm to DIRECTV and SS/L. This period matches the nondisclosure commitment
of the parties to the agreement,19 which is market evidence of the time period necessary to
protect the confidentiality of competitively sensitive proprietary information contained therein.
Therefore, DIRECTV‘s request for ongoing confidential treatment is reasonable.

                                   *                 #               #




        For the foregoing reasons, DIRECTV respectfully requests that the CDR Package be
granted confidential status and be withheld from public inspection. If confidential treatment is
not granted for all or any part of this confidential material, DIRECTV requests that all copies of
the CDR Package be returned to DIRECTV.

         If you have any questions, please do not hesitate to contact undersigned counsel.

                                                  Respectfully submitted,




                                                    illiam M. Wiltshire
                                                  Counselfor DIRECTYV Enterprises, LLC



Enclosures




8    47 CFR. § 0.459(b)(8).

*    See SS/L Contract at Article 24 (Proprietary Information).



Document Created: 2011-08-04 18:11:09
Document Modified: 2011-08-04 18:11:09

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