SEN. HANK BROWN (R-CO)

• On September 25, 1991, Sen. Brown purchased between 15,000 and 50,000 dollars worth of stock in Tandy. He later sold this stock on December 31, 1991.

At the time of his purchase, Sen. Brown's Senate Judiciary Subcommittee on Patents, Copyrights and Trademarks was considering a bill of great interest to Tandy. The bill was S. 1623: AUDIO HOME RECORDING ACT...To amend title 17 United States Code, to implement a royalty payment system and a serial copy management system for digital audio recording, to prohibit certain copyright infringement actions (Introduced August 1, 1991; Referred to Senate Judiciary Committee; Became P.L. 102-563).

On October 1, 1991, Communications Daily featured an article about S. 1623. In this article, Tandy Chairman John Roach was noted feeling optimistic about S. 1623's chances in 1991. Mr. Roach is quoted as saying, 'There are a number of reasons to believe there's still an excellent chance for success this year...we'll keep gently applying support in that direction.'

On October 29, 1991, Sen. Brown's Senate Judiciary Subcommittee on Patents, Copyrights and Trademarks held a hearing on S. 1623. Tandy Chairman John Roach testified at this hearing. On October 30, 1991, the Daily Report for Executives summarized the testimony of this hearing. Here is a selection from the article concerning the testimony of Mr. Roach:

Tandy Corp. Chairman John Roach testified that in the last decade sales have been flat for U.S. audio equipment manufacturers, retailers and record companies alike. The legal ambiguity surrounding DAT recorders has made their sale on the U.S. market a risky business, he related, adding that Tandy itself has been reluctant to introduce its new 'digital compact cassett' in the face of this uncertainty. However, S. 1623 will break this 'digital deadlock,' according to Roach by providing immunity from copyright infringement for home taping, thereby allowing Tandy and other manufacturers and retailers to market new products without fear of legal challenge. While he acknowledged that paying royalties to the music industry is 'not something I particularly relish,' Roach quipped that 'Tandy is willing in this case to pay their bill to pass your bill.'

NOTES: Sen. Brown is # 6 on the Senate Judiciary Committee, and was # 4 on the Senate Judiciary Subcommittee on PATENTS, Copyrights and Trademarks.

• On April 23, 1993, Sen. Brown purchased between 50,000 and 100,000 dollars worth of stock in Merrimac Industries. On July 23, 1993, Sen. Brown again purchased between 50,000 and 100,000 dollars worth of stock in Merrimac. He later sold this stock on October 27, 1993 and on November 11, 1993. On his Financial Disclosure Report, Sen. Brown notes receiving between 15,000 and 50,000 dollars worth of dividend income from Merrimac, and between 15,000 and 50,000 dollars in capital gains from the sale.

Merrimac Industries manufactures high-performance electronics components and systems for defense and aerospace applications. Their major product categories include quadrature coupler, phase-shifters, power dividers/combiners, beamformers, I & Q networks, RF converters, and vector modulators. Their products are used in applications that include electronic warfare and countermeasures, missile and space communications, radar, navigation, and instrument landing systems. One of Merrimac's leading customers is TRW Electronic Systems Group.

Sen. Brown's purchases of Merrimac Industries coincide with Congressional work on defense authorization bills. On June 14, 1993, the House introduced H.R. 2401: DEFENSE DEPARTMENT AUTHORIZATION ACT FOR FY94. On July 27, 1993 (four days after Sen. Brown's 2nd purchase), the Senate introduced S. 1298: NATIONAL DEFENSE AUTHORIZATION ACT FOR FY94. As a member of the Senate Budget Committee, Sen. Brown would have been actively working on budget/authorization details before these bills were introduced.

PERSONAL NOTES: Sen. Brown served in the Navy from 1962-1966, and served as a forward air controller in Vietnam (thus, very much aware of how important Merrimac's products are to the military).

NOTES: Sen. Brown is # 7 on the Senate Budget Committee; he is # 4 on the Senate Foreign Relations Committee; he is # 3 on the Senate Foreign Relations Subcommittee on International Operations; he is # 3 on the Senate Foreign Relations Subcommittee on European Affairs; he is # 1 on the Senate Foreign Relations Subcommittee on Near Eastern and South Asian Affairs; he is # 6 on the Senate Veterans' Affairs Committee.