Representatives of consumer and privacy advocacy groups on Tuesday will unveil recommendations they are making to Congress for new legislation that is intended to protect Internet users' privacy. Citing growing threats from the increasingly common practice of online behavioral tracking and targeting, the groups will make detailed recommendations for updated fair information practices that they believe would offer adequate consumer privacy for the 21st century.

House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., is crafting legislation that policy watchers believe will be introduced soon. "Today, electronic information from consumers is collected, compiled, sold secretly and without reasonable safeguards," the groups said in a media advisory. "Tracking people's every move online is an invasion of privacy. It's like being followed by an invisible stalker." Among those pressing Boucher and others for action include the Center for Digital Democracy, Consumer Federation of America, Consumers Union, Electronic Frontier Foundation and the U.S. Public Interest Research Group.

Boucher told CongressDaily earlier this year that he envisioned language that would give Internet users greater confidence in how information collected about them online is used and would offer some consumer control over that use. "That will encourage people to engage in electronic commerce more readily," he said. Boucher and Communications Subcommittee ranking member Cliff Stearns, R-Fla., introduced legislation four years ago that would have required consumer notification and prominent privacy policies that explain what is being collected and how it could be used, sold or otherwise disclosed.

Senate Commerce Chairman John (Jay) Rockefeller said Monday's release of an FCC report on existing technologies that block television content deemed inappropriate for children was a welcome step but more must be done by the agency and Congress. Government and the private sector must go beyond simply offering information, he said in a statement. They must provide "simple ways for families to control and monitor their children's screen time [and] must offer the tools and policies that make it easy for people to be good parents and oversee the viewing that goes on in their homes."

Rockefeller said he looked forward to the FCC's next action in this area, noting that his interest in the topic has long been high as are his expectations. He vowed to "continue fighting for these important protections" and said he looked forward to working with Consumer Protection Subcommittee Chairman Mark Pryor, D-Ark., and other Commerce Committee colleagues on the issue. The FCC report was required under the 2007 Child Safe Viewing Act and over the past six months, the agency has compiled a record on parental control technologies in use as well as those still in development.

FCC Chairman Julius Genachowski said the report "contains some important information for parents [but] also raises important questions and exposes the need for further study of this essential issue." The Commission will soon unveil a notice of inquiry seeking more information on the topic as well as others related to children and media in the digital age. "We recognize that technology has created profound new challenges for parents by vastly expanding the scope and quantity of media available to our children. But technology also can -- and must -- be part of the solution," Genachowski said in a statement.

The FCC's staff workshops on the national broadband plan continue this week with a Tuesday afternoon discussion about state and local government issues; benchmarks for evaluating dimensions of broadband across geographic areas and across time on Wednesday; and a Thursday focus on "big ideas" that have the potential to change the Internet, according to a notice released Monday. The Commission is holding a series of sessions throughout August and September to promote an open dialogue between the FCC and its constituents. The agency has a Feb. 17, 2010 deadline to submit its broadband plan to Congress.

Here's the speaker line up for this week:

State & Local Government

- Oregon Public Utilities Commissioner Ray Baum
- Colorado Deputy Chief Information Officer John Conley
- Florida Division of Telecommunications Director Charles Ghini
- Virginia Deputy Secretary of Technology Karen Jackson
- Mississippi Information Technology Director Craig Orgeron
- Jane Patterson, Executive Director, e-NC Authority, State of North Carolina
- Chicago Chief Information Officer Hardik Bhatt
- New York City IT Commissioner Paul Cosgrave
- Lafayette, La. City-Parish President Joey Durel
- El Paso, Texas Chief Information Officer Gary Gordier
- Howard County, Md., Cable Administrator Lori Sherwood
- San Francisco Chief Information Officer Chris Vein

Continue reading Broadband Benchmarks & Big Ideas

The U.S. Court of Appeals for the District of Columbia Circuit on Friday sided with Comcast Corp., in the cable television giant's appeal of the FCC's 30 percent horizontal ownership cap for cable operators. According to the court, the FCC failed to fully weigh competition from satellite TV providers such as Dish Network and DirecTV. The court called the FCC's action "arbitrary and capricious" and vacated the rule. "This important decision affirms that rules must reflect the changing realities of the dynamic video marketplace where today consumers have more choice in video providers and channels than ever before," Comcast spokeswoman Sena Fitzmaurice said.

Randolph May, a former FCC associate general counsel and head of the Free State Foundation, said the ruling was not unexpected. "There are commissioners who have persisted in wanting to take an overly constrained view of competition in the communications marketplace," he said, noting this is the second time in recent months the court has reversed an FCC policy. Progress and Freedom Foundation President Ken Ferree said he was glad the D.C. Circuit is there to serve "as a backstop of rationality when the administrative agencies run amok."

Media Access Project President Andrew Jay Schwartzman said he was disappointed but surprised with the ruling. "Although Congress directed the FCC to establish limits on cable ownership in 1992, the D.C. Circuit Court of Appeals has been disinclined to approve such regulations. It is hard to imagine that any rule the FCC could devise would ever withstand review under the standards established in today's decision," he said.

Continue reading Court Rejects FCC's Cable Market Share Cap

Almost $2 million in grants for criminal intellectual property enforcement will be sent to law enforcement agencies around the country to improve their ability to investigate, prosecute and prevent intellectual property infringement, the Justice Department announced Thursday. The $1.9 million in grants represent the first wave of funding resulting from the federal Prioritizing Resources and Organization for Intellectual Property Act, which passed Congress and was enacted last year.

"This funding is important in identifying and stopping criminal activity associated with intellectual property piracy. These criminal activities are a threat to our national well being and insult to those who create and develop products, goods and services for the benefit of the general public," said Laurie Robinson, acting assistant attorney general for the Office of Justice Programs.

The grantees include:

Attorney General's Office, Mississippi ($200,000)
Bronx County District Attorney, New York ($43,718)
Chesterfield County, Virginia ($199,919)
City of Los Angeles, California ($199,995)
Los Angeles County Sheriff's Department, California ($200,000)
New York City, New York ($200,000)
North Carolina Department of the Secretary of State ($44,485)
National Association of Attorneys General, D.C. ($450,000)
National White Collar Crime Center, Virginia ($450,000)

House Homeland Security Chairman Bennie Thompson on Thursday commended Homeland Security Secretary Janet Napolitano's announcement of new directives for border laptop searches. "With the change in administrations, there was an opportunity to bring greater accountability and transparency to the practices surrounding searches of electronic devices at the border," he said in a statement. He noted the DHS action, which was announced the same day, seems to reflect provisions in legislation he has been working on with Rep. Loretta Sanchez, D-Calif.

The new DHS directives, available at DHS.gov, address the circumstances under which U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement can conduct border searches of electronic media -- consistent with the department's constitutional authority to search other sensitive non-electronic materials, such as briefcases and backpacks. The DHS Privacy Office also released a privacy impact assessment in connection with the directives to enhance public understanding of the authorities, policies, procedures and controls employed by DHS during border searches.

The DHS Office for Civil Rights and Civil Liberties will also conduct a civil liberties impact assessment within 120 days. The agency said it conducts border searches of computers and other electronic media on a small percentage of international travelers seeking to enter the United States. Between Oct. 1, 2008, and Aug. 11, 2009, CBP encountered more than 221 million travelers at U.S. ports of entry. Approximately 1,000 laptop searches were performed in these instances -- of those, just 46 were in-depth.

Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., on Thursday welcomed the announcement by the FCC that it will open an investigation into the wireless industry. The five-member Commission unanimously approved a sweeping examination into the sector intended to better understand factors that encourage innovation and investment and identify concrete steps it should take. The FCC also wants to gauge the adequacy of consumer protection policies through "truth in billing" rules for communications services. See CongressDaily's coverage here (subscription required).

In June, Kohl's subcommittee held a hearing to examine competition in the wireless space and the senator subsequently contacted the FCC Chairman Julius Genachowski and the Justice Department's Assistant Attorney General for Antitrust Christine Varney, urging the agencies to take action to ensure that the cell phone industry is fully open to competition and that barriers to entry and expansion by new competitors be removed. "Strong competition in this market is the only way to ensure that consumers in all parts of the country have access to innovative produces and services at fair prices," Kohl said.

The FCC is taking major strides to keep pace with the popularity of social networking Web sites like MySpace and Facebook by offering its employees an internal electronic forum for communicating about the Commission's priorities and activities. FCC Managing Director Steven VanRoekel, an ex-Microsoft executive, told commissioners at a Thursday meeting that a site -- reboot.fcc.gov -- is allowing hundreds of staffers engage in discussions about how to improve the agency and connect in "an organic way." The announcement came on the heels of the FCC's launch of a broadband blog and feed on the micro-blogging platform Twitter last week.

Working groups and task forces have been formed through the closed site to help find solutions to a range of challenges faced by the FCC without instructions or a directive from their superiors, he said. For example, employees last week formed an online committee to help the Commission become more eco-friendly. VanRoekel said the Web site will be opened up so external stakeholders can join in the conversations "in the very near future." "We want to ensure the experience the public has with the agency is consistent, innovative and evokes trust," he said.

For more news from the FCC's August meeting, read CongressDaily's article: "FCC Opens Investigation Into Wireless Issues" here (subscription required).

The FCC held its first meeting as a full five-member commission under Chairman Julius Genachowski on Thursday. Democratic Commissioner Mignon Clyburn and Republican Meredith Baker joined colleagues Michael Copps, a Democrat, and Robert McDowell, a Republican, on the dais. Before digging into the meat of the meeting, members began with some humorous remarks. Some highlights:

• Genachowski, who chaired his first meeting (with only Copps and McDowell) last month, banged the gavel and said it "wasn't as exciting as last time." He added that now that the FCC has five commissioners his statements will be 40 percent shorter.

• McDowell noted that Clyburn, a former South Carolina Public Service Commissioner "doesn't even have to change the title on her business card." He joked that the FCC could save money by simply scratching out the old address.

• McDowell also said that Baker, who sits at the end of the dais, will routinely speak last. That means she'll be editing her remarks on the fly because the other commissioners will steal all of her talking points. The push to improvise will "drive all your legal advisers crazy," he said.

• Clyburn said she was impressed with the FCC's "first class southern hospitality" since she came on board -- from the lobby welcome banner and prompt thermostat adjustments to the security guard who waved her into the right garage during her first week.

• On a final note, Genachowski's spokeswoman Jen Howard baked the press corps chocolate chip and peanut butter cookies -- a delicious bribe.

The Homeland Security Department's third large-scale cybersecurity drill in September 2010 will test the national cyber response plan currently being developed by the Obama administration, said industry and government participants in the simulation exercise during a conference on Tuesday. Cyber Storm III will build upon the lessons learned in the two previous exercises that took place in February 2006 and March 2008, and provide the first opportunity to assess the White House strategy for responding to a cyberattack with nationwide impact, according to NextGov.

"The national cyber response plan will be an offshoot of a lot of the findings that came out of Cyber Storm I and II that will formalize the roles and responsibilities," said Brett Lambo, director of the cyber exercises program in DHS' national cybersecurity division. He participated on an afternoon panel at the GFirst conference in Atlanta hosted by the department's U.S. Computer Emergency Readiness Team. "It's not a direct cause-and-effect relationship, but a lot of questions bubbled up [from the exercises]," followed by the announcement along with President Obama's 60-day cyber review that a response plan should be developed. Read the full story here.

An Internet tribute to Sen. Edward Kennedy, D-Mass., launched Wednesday hours after the legendary lawmaker's death at age 77 on Tuesday night. TedKennedy.org allows the public to share thoughts and memories about the senator who had been battling brain cancer since a May 2008 diagnosis. A schedule of memorial events and media logistics will be released as soon as they are available on the site. In the meantime, tribute areas honoring Kennedy are being set up at the John F. Kennedy Presidential Library & Museum in Boston, the JFK Museum in Hyannis, Mass. and Kennedy's Washington Office in the Russell Senate Building in Washington. Read complete Kennedy coverage at NationalJournal.com and CongressDaily.com.

The American Civil Liberties Union wants federal government records pertaining to the U.S. Customs and Border Protection's policy of searching travelers' laptops without suspicion of wrongdoing. The watchdog group filed a Freedom of Information Act lawsuit Wednesday in a New York federal court to learn how the agency's policy, issued last year, has impacted the civil liberties of travelers during the first year of its implementation. The ACLU made an initial FOIA request for CBP records in June.

"Traveling with a laptop shouldn't mean the government gets a free pass to rifle through your personal papers," ACLU staff attorney Catherine Crump said. "This sort of broad and invasive search is exactly what the Fourth Amendment's protections against unreasonable searches are designed to prevent." According to the ACLU, the CBP policy permits agents to read the information on travelers' laptops "absent individualized suspicion" including personal financial information, photographs and lists of Web sites travelers visited.

CBP's policy extends to suspicionless searches of "documents, books, pamphlets and other printed material, as well as computers, disks, hard drives and other electronic or digital storage devices," the ACLU said. The policy covers all persons, whether or not they are U.S. citizens, crossing the border. Homeland Security Secretary Janet Napolitano announced in January that she was reviewing a range of immigration and border security policies and in May said clarification is needed with respect to the laptop issue. She said a team at DHS will "issue pretty firm guidance and protocol for how you conduct a laptop search."

Sweeping cybersecurity legislation introduced by Senate Commerce Chairman John (Jay) Rockefeller and Sen. Olympia Snowe, R-Maine, in April has undergone major changes during the August recess and now features a more prominent focus on ensuring that the U.S. government and private sector have a properly trained workforce to thwart high-tech threats.

A revised version of the bill sent to Commerce and Intelligence committee aides late last week "captures a lot of the input we've received since its introduction" but is still a draft and has not been approved at the member level, Rockefeller aide Chan Lieu said in an e-mail to colleagues obtained by CongressDaily. A separate e-mail from Commerce Committee General Counsel Bruce Andrews said the panel is aiming for a hearing and a markup in September or October.

High up in the reworked document are provisions instructing the Commerce secretary to work with the White House Office of Personnel Management to train and certify government cyber professionals. Under the proposal, uncertified individuals could not represent themselves as such nor could uncertified service providers handle critical infrastructure information systems or networks. A new section would require the head of each federal department to develop an annual workforce plan that includes hiring projections, short- and long-term planning to address skill deficiencies, recruitment strategies and an analysis of barriers to recruitment.

Read the full story on CongressDaily's Web site here (subscription required).

The FCC has granted a new round of set-top box waivers, which backers of the plan say would make it far less expensive for customers of small cable operators to watch digital television and more cost-effective for cable providers to reclaim analog bandwidth and become all-digital platforms. Motorola, Cisco, Pace and Thomson were the recipients of three-year waivers for "low-cost, limited capacity" boxes, according to an order from the FCC Media Bureau. The boxes covered by the waivers allow consumers to watch digital programming on analog receivers but do not support HD programming, DVR functionality or broadband access.

The American Cable Association, which represents small cable companies, urged the Commission to go a step further by granting waivers for low-cost digital set-tops that can process HD programming. The approved boxes also would not include CableCards, which perform signal security operations on set-tops supplied both by cable operators and third-party vendors. Prior to its new waiver policy, the FCC required cable operators to rely on set-top boxes with the separate security CableCard.

Public Knowledge President Gigi Sohn issued a statement saying she was disappointed with the FCC action. The waivers "lock in advantages the cable companies already have while offering consumers set-top boxes with fewer features than they might otherwise get in an open market," she said. The larger issue, according to Sohn, is whether the Commission is doing what Congress required in 1996 when the Telecom Act promised an open, competitive market for full-featured set-top boxes.

FCC Chairman Julius Genachowski on Monday expressed concerns about Americans' access to new wireless offerings ahead of a Thursday commission meeting that some believe will put telecommunications giants like AT&T and Verizon in the hot seat for engaging in business practices that could be viewed as harmful to competition and consumer choice. "I am awed by the innovation we've seen," he said in an interview with CongressDaily. "[But] if you live in some parts of the country where you don't have access to a company that has an exclusive relationship with a smart-phone provider, you just can't get one."

Genachowski said the "complete lack of access" is a critical issue for the FCC to explore. At Thursday's meeting, the five-member panel is expected to vote on whether to launch an expansive inquiry into the wireless industry, which he said stems from the need to "make sure we have a set of policies in place that create the greatest possible climate for investment and that protect and empower consumers. It's essential that we have vibrant competition that produces services, fair prices and clear information for consumers." Read the full story on CongressDaily's Web site here (subscription required).

FCC Chairman Julius Genachowski sat down with CongressDaily and National Journal magazine on Monday for a wide-ranging interview on his agency's broadband deployment plan, the importance of competition in the mobile marketplace and a host of other issues. Afterward, he agreed to answer some lighter, rapid-fire questions about his relationship with technology. For more, read CongressDaily's story "Genachowski Concerned By Wireless Access" here (subscription required).

The FTC and Justice Department have given their blessings for Sprint-Nextel's planned $483 million merger with Virgin Mobile USA, officials confirmed Monday. Because Virgin, and its recent acquisition Helio are both MVNOs (mobile virtual network operators), analysts did not expect the deal to raise serious antitrust issues and thus believed regulators would approve the pairing. The deal could still be subject to review by the FCC, which has yet to issue a public notice on the matter. Virgin Mobile holds a small number of international licenses, which need to be transferred and require approval by the FCC, analysts at Stifel Nicolaus said in an e-mail. In its orders approving Verizon's combination with Alltel and Sprint's purchase of Clearwire last November, the FCC reaffirmed its view that MVNOs and resellers should be excluded from its analysis of the competitive impact of a wireless merger, they wrote.

A Washington watchdog group that promotes ethics and accountability in government and public life is setting its sights on computer manufacturer Dell. Citizens For Responsibility and Ethics in Washington filed a complaint with District of Columbia Attorney General Peter Nickles on Monday asking for an investigation into why the Austin, Texas-based Fortune 500 company reportedly refused to honor its next-day service warranty, which guarantees on-site response. The victim of the alleged breach of contract: CREW Executive Director Melanie Sloan.

"Honoring a warranty is a matter of ethics and at CREW, we take action when confronted with unethical conduct," the group said in an e-mail. "If Dell promises next day service, Dell should deliver next day service." In a January 2009 settlement with 34 state attorneys general (not including D.C.), Dell agreed to pay $3.35 million to resolve allegations of deceptive advertising and its failure to honor its warranties. CREW also launched DELLception.org, a Web site where consumers can submit stories about similar experiences with the firm.

A Dell spokesman was unaware of Sloan's individual case and could not comment on her situation. Regarding CREW's referenced settlements with attorneys general, the number of actual complaints reflected represented a small percentage of the millions of transactions Dell had in those states. "Many of the customer issues were resolved satisfactorily before the settlements were negotiated," the Dell official said. "Settling with the AGs let us avoid long-term litigation and focus our efforts on providing customers a great experience."

From NationalJournal.com's Under The Influence blog:

After individuals went on Fox News and took to the Internet last week complaining they'd received unsolicited e-mails from the White House, the administration said it would change how it collects addresses. That's a good idea, e-mail experts say, because the White House has plenty of room for improvement. "I would grade their e-mail collection process as an F," said Marco Marini, CEO of ClickMail Marketing, citing privacy and e-mail campaign effectiveness concerns.

The box at the top of WhiteHouse.gov allows anyone to subscribe by simply typing in an e-mail address and ZIP code. What's stopping my friend, or political opponent, from signing me up, Marini wondered? Adding an e-mail confirmation step would be "very easy to implement and would save a lot of headaches," he said. Most sites that users must register for -- from newspapers to banks to stores -- send a confirmation to the e-mail addresses provided before beginning to use the address to communicate with the user. Though the White House said it was changing its e-mail collection process, Marini's basic suggestion is not among the changes made.

"We are implementing measures to make subscribing to e-mails clearer, including preventing advocacy organizations from signing people up to our lists without permission when they deliver petition signatures and other messages on individual's behalf," White House spokesman Nick Shapiro said in a statement last week. The White House's online director, Macon Phillips, followed that up with a blog post reiterating their suspicion that outside groups were signing up individuals without their permission and saying that changes had been made.

Continue reading Advocates Blamed For WhiteHouse.gov Goof

A diverse coalition including retailers, real estate firms and state governments this fall is set to renew its decade-long push to require collection of online sales tax on out-of-state purchases, CongressDaily reported Friday. Aides to Sen. Michael Enzi, R-Wyo., and Rep. William Delahunt, D-Mass., said they are working on revamped versions of measures they introduced in the 110th and previous Congresses, although there is no timeline for introduction. Sources said they expect the "Main Street Fairness Act" to be unveiled as early as September.

Under a 1992 Supreme Court decision, retailers are not required to collect sales tax on online purchases in states where they do not have a physical presence, such as a warehouse, store or distribution center, although some states have passed laws requiring online collections. Supporters claim that leaves brick-and-mortar stores victimized by online retailers like Amazon and eBay that generally do not have to collect the tax and deprives states of billions of dollars in tax receipts annually.

Earlier this year, the jewelry stores' trade association wrote Enzi and Delahunt urging them to move quickly. Jewelers said they have been hurt by consumers browsing to get a sense of what they wanted, and then heading home to buy at online vendors like Blue Nile to avoid sales tax. "Internet retailers should not receive a tax advantage at the expense of traditional retailers and state and local governments," say August talking points from the International Council of Shopping Centers. Read the full story here (subscription required).

Contrary to published reports, Apple has not rejected the Google Voice application for inclusion in its App Store and continues to study it, the computer and software company told the FCC in a Friday filing (see earlier Tech Daily Dose post). "The application has not been approved because, as submitted for review, it appears to alter the iPhone's distinctive user experience by replacing the iPhone's core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail," Apple wrote to FCC Wireless Bureau Acting Chief James Schlichting. "Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone."

The company further noted that Apple has acted alone and has not consulted with AT&T, its exclusive wireless carrier for iPhone, about whether or not to approve the Google Voice application. "Apple alone makes the final decisions to approve or not approve iPhone applications. There is a provision in Apple's agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T's cellular network service to originate or terminate a VoIP session without obtaining AT&T's permission," the firm told Schlichting. From time to time, AT&T has expressed concerns regarding network efficiency and potential congestion associated with certain app and such concerns are taken into consideration, Apple said.

Apple also provided the FCC with a list of apps that have been rejected as originally submitted and their current status. The company said more than 40 full-time trained reviewers examine would-be iPhone applications and an executive review board determines procedures and sets policy for the review process. In little more than a year, Apple have reviewed more than 200,000 apps and updates. Apple said 95 percent of apps are approved within 14 days of being submitted. About 8,500 new applications and updates are filed weekly and roughly 20 percent are not approved as originally submitted. Read the Apple's full response here.

AT&T on Friday insisted that it had no role in any decision by Apple to not accept the Google Voice application for inclusion in company's iPhone App Store. The wireless company, which is the exclusive iPhone service provider, was not asked about the matter by Apple nor did AT&T offer any view one way or the other, AT&T Senior Executive Vice President Jim Cicconi said. His statement came as the telecom giant -- along with Apple and Google -- were set to respond to a July request for information by FCC Wireless Bureau Acting Chief James Schlichting.

Schlichting wanted details about reports that the Google Voice app had been blocked and previously approved third-party applications were removed from the iPhone App Store. In light of pending FCC proceedings regarding wireless open access and handset exclusivity, the Commission wanted a more complete understanding of this situation, he wrote, setting an Aug. 21 deadline for responses. Cicconi added that any AT&T customer could access Google Voice on any Web-enabled device operating on AT&T's network, including the iPhone, by launching the app through a Web browser without the need to use the App Store.

Google provided a redacted version of its letter to Schlichting, which leaves unanswered the question of what explanation (if any) was given for Apple's rejection of the Google Voice application. Google Telecom and Media Counsel Richard Whitt wrote that Apple has approved Google Earth and Google Mobile apps for iPhone and that Google does not have any other proposed applications pending with Apple. Apple's letter to the FCC was not immediately available and multiple e-mails to Apple officials were not returned. Tech Daily Dose will update this post as more details emerge.

GovernmentExecutive.com reports that it's unclear whether President Obama's campaign proposal to post copies of all government contracts online has the support of Congress or is even logistically viable. Kenneth Baer, communications director for the Office of Management and Budget, said Wednesday that Obama continues to support the principles of a bill he introduced while in the Senate that would have added vastly more information to USASpending.gov.

In June 2008, then-Sen. Obama and Sen. Tom Coburn, R-Okla., introduced a follow-up to their 2006 Transparency and Accountability in Federal Spending Act, which created USASpending.gov. The 2008 legislation -- ballyhooed at the time because it was co-sponsored by Obama's Republican rival for the presidency, Sen. John McCain, R-Ariz. -- received high-level support but never moved out of the Senate Homeland Security and Governmental Affairs Committee. An identical bill in the House also floundered.

A Senate Democratic source familiar with the legislation said in an e-mail that the bill failed to move because "OMB and others questioned whether it was possible to do everything that the bill tried to do, and Sens. Obama and Coburn didn't [or] couldn't address the concerns that were raised in time. "While many of the original sponsors continue to support the legislation's intentions, "there is no plan to reintroduce the bill," the source said.
Read the full story here.

The Justice Department has approved Oracle Corporation's acquisition of Sun Microsystems and terminated the waiting period under the Hart-Scott-Rodino Act, the companies announced Thursday. Sun's stockholders approved the transaction on July 16 and the transaction's closing is subject to certain conditions, including clearance by the European Commission. In April, Oracle announced its intention to buy Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun's cash and debt. IBM previously abandoned its bid for the iconic software company, in part, analysts believe because of perceived risk that antitrust authorities, either in the United States or the EU, would reject the deal.

The FCC will hold its first meeting next Thursday since July's Senate confirmation of Commissioners Mignon Clyburn and Meredith Baker.

Agenda items include:

• Consideration of a notice of inquiry to seek to understand better the factors that encourage innovation and investment in wireless and to identify concrete steps the FCC can take to support and encourage further innovation and investment in this area.

• Consider a notice of inquiry soliciting information for the next annual report to Congress on the status of competition in the mobile wireless market, including commercial mobile services.

• Consideration of a notice of inquiry that seeks comment on whether there are opportunities to protect and empower American consumers by ensuring sufficient access to relevant information about communications services.

Days after visiting with South Korean leaders and praising them for their progress on the intellectual property enforcement front, House Foreign Affairs Chairman Howard Berman admonished the Chinese government for its failure to provide adequate protections for IP rights. Berman and others met Thursday with the National People's Congress Standing Committee Chairman Wu Bangguo, Vice Premier Wang Qishan, NPC Foreign Affairs Chairman Li Zhaoxing, Foreign Affairs Minister Yang Jiechi and Commerce Minister Chen Deming in Beijing.

"China's efforts to stop intellectual property theft have been weak and ineffective - heavy on tough talk but light on implementation," said Berman, whose congressional district houses a number of TV and movie studios. "Hundreds of Web sites provide downloads and links to pirated movies, recordings and games. And sales of 'hard goods' such as illegally duplicated CDs and DVDs continue at close to ninety percent of what they were before China launched its vaunted anti-piracy campaign. It's time for more serious action."

Optical disc plants in China produce and export millions of CDs, DVDs, software and videogames in violation of Chinese law, his office said, while Web services such as Baidu provide direct links to recordings and video games without paying the people who produced them. The country's infamous track record for IP infringement costs U.S. creative communities anywhere from $2.2 to $3.5 billion in each of the past four years, Berman said, urging Chinese authorities to impose stiff fines and meaningful criminal penalties. The country routinely ranks among the world's top offenders in evaluations of global IP like the Office of the U.S. Trade Representative's annual "Special 301" report.

Continue reading Berman Bashes China's IP Regime

Carole Jett, deputy chief of staff for the Department of Agriculture, on Wednesday became the first current Obama administration official to guest post on one of Google's corporate blogs. Jett's memo, which was featured on Google's enterprise blog and was cross-posted to its public policy blog, highlighted her department's use of an interactive Google map that provides detailed state-by-state information about economic stimulus package spending. The map makes it easy for people to find information about stimulus projects in their part of the country by department, program, or dollar amount.

A spokesman for Google, which has substantial ties to the Obama team, said there were no plans for a formal series of guest blog posts from administration officials but the company occasionally provides a platform for politicians and policy experts to speak their mind. New York Mayor Michael Bloomberg and Robert Kennedy Jr., have recently written content for Google blogs. Similar to Wednesday's post by Jett, Bloomberg highlighted how a Google map can be used to explore the Big Apple. Kennedy, an environmental crusader, wrote about mountaintop removal in 2008.

The National Telecommunications and Information Administration transmitted its second quarterly status report to Congress this week highlighting steps being taken to effectively advance the Broadband Technology Opportunities Program that was created as part of the economic stimulus package. The paper, which is dated Aug. 17 but was released publicly Wednesday, focuses on the release of the first notice of funds available; public outreach initiatives; preparations to accept and evaluate applications; and other steps to improve NTIA's organizational readiness.

Up to $1.6 billion in BTOP funds will be available in the first grant round and NTIA is authorized to spend up to $141 million for administrative expenses through Sept. 30, 2010. The agency has hired approximately 80 percent of the federal staff planned for the program, the report stated. To assist with acquisition support, NTIA also entered into an interagency agreement with a division of the Interior Department and on Aug. 3 issued a contract to Booz Allen Hamilton for program development and administrative services. NTIA will provide its next quarterly report to Congress no later than Nov. 16.

Read more about BTOP here.

The Obama administration's open government crusade appears to be contagious. San Francisco Mayor Gavin Newsom on Wednesday announced the launch of DataSF.org, a Web site that will offer convenient access to city data that is relevant to the community. Much like Data.gov, a site spearheaded by federal CIO Vivek Kundra, the service provides the public raw feeds of government information. Newsom, who is also running for governor of California in the 2010 election, made the announcement about DataSF.org in a guest post on the popular technology blog TechCrunch.

"We imagine creative developers taking apartment listings and city crime data and mashing it up to help renters find their next home or an iPhone application that shows restaurant ratings based on health code violations," Newsom wrote. "The idea behind the site is to open up San Francisco government and tap into the creative expertise of our greatest resource - our residents." He said he hoped DataSF.org will "create a torrent of innovation similar to when the developer community was given access to the platforms behind popular technologies and devices like Facebook and Apple's iPhone."

Read Newsom's full blog post here.

John Miller, a broadcast journalist who parlayed his expertise on terrorism into a career with local law enforcement and later the FBI, plans to leave the bureau to help lead reform efforts for the intelligence community. According to sources familiar with Miller's plans, he would move to the Office of the Director of National Intelligence, where he'd head up a team devoted to "analytic transformation." It was established in the wake of the 9/11 terrorist attacks to improve the ability of analysts to share information across bureaucratic boundaries and to encourage them to use new technologies, such as social networking. Since 2005, Miller has been the FBI's assistant director for public affairs, the bureau's top spokesman. Miller did not respond to e-mails or messages left with his office seeking comment. A spokesman for the Director of National Intelligence said the office had "no personnel announcements to make at this time."

Over the course of his career, Miller has alternated between covering terrorism as a reporter and joining ranks to fight it as a law enforcement official. In the early 1990s, he was one of a few reporters closely following the then nascent Al Qaeda network and its ties to the first World Trade Center attack in 1993. Miller became friends with agents in the FBI's New York field office, particularly John O'Neill, whose career in the bureau was the subject of a PBS Frontline documentary titled "The Man Who Knew," a reference to O'Neill's dogged pursuit of Al Qaeda and its shadowy leader, Osama bin Laden. In 1998, Miller became one of the few western journalists to interview bin Laden in person when he and a cameraman sat down with the terrorist leader in Afghanistan.

Continue reading Former TV Newsman To Lead U.S. Intel Tech

The FCC ventured into new tech territory on Tuesday by launching a blog called "Blogband" that is intended to stimulate public dialogue over the development of a national broadband plan. "Blogband will keep people up-to-date about the work the FCC is doing and the progress we're making. But we want it to be a two-way conversation. The feedback, ideas, and discussions generated on this blog will be critical in developing the best possible national broadband plan," FCC Chairman Julius Genachowski wrote in his first post. The Commission also started a Twitter feed for agency news and updates on the broadband plan.

Blair Levin, who is coordinating the plan for the agency, posted his own item on the blog explaining the challenges he confronts as his the Commission works to meet Congress's Feb. 17, 2010 deadline "to reboot broadband deployment and usage in the U.S." "Our broadband team is leading an assault of sustained thinking by the entire FCC on the stubborn problem of bringing broadband to unserved and underserved areas, increasing the number of Americans using broadband, and maximizing how broadband can be used to help address significant national issues," he wrote. "Expect the unexpected."

Read related coverage about the FCC's broadband plan in CongressDaily's PM Edition on Tuesday here (subscription required).

Electronic commerce trade group NetChoice on Tuesday unveiled an updated version of what its backers believe are the worst proposed Internet-focused laws in America. A Maine proposal to require Web sites to obtain "verifiable parental consent" before collecting personal information from teens has taken over the top spot on iAWFUL (The Internet Advocates' Watchlist for Ugly Laws). NetChoice says the statute would negatively impact online communities because sites have no means to confirm consent.

Several other new measures also debuted in the iAWFUL Top 10 in its first update since the list's June launch. Those include: a New York City ordinance slated to take effect in September that the group says would "slam Internet users with an unfair extra tax on hotel rooms;" new taxes on digital downloads in Colorado and Washington; a bill that would restrict Internet advertising in Massachusetts; and a North Carolina bill that would hamper commission-based online advertising.

"The Internet is increasingly under attack as lawmakers seek to mandate technological behaviors, impose new taxes and otherwise restrict the free flow of information and commerce online," NetChoice Executive Director Steve DelBianco said in a press release. "While we were pleased to see some measures fall off the iAWFUL list, thanks to the efforts of Internet advocates, new attacks on innovation and online freedom have arisen to take their place." Read more at www.iAWFUL.com.

GovernmentExecutive.com reports that the Defense Department on Monday unveiled a fresh look for its Web site, focused on increasing two-way communication. The redesigned site is hosted on the new URL Defense.gov and highlights social networking tools such as Facebook and Twitter. The primary goal of the makeover, Pentagon officials said, is to engage the public, particularly 18 to 24 year olds. "If we just stick to the traditional ways of communicating, we leave out a huge portion of society," Price Floyd, principal deputy assistant secretary of Defense for public affairs, told the American Forces Press Service, the Defense Department's news service. Read the full story here.

House Foreign Affairs Chairman Howard Berman praised key government officials in South Korea on Tuesday for their efforts to protect U.S. content creators' intellectual property rights. In meetings about the proposed U.S.-South Korea free trade agreement with President Lee Myung-bak, Foreign Minister Yu Myung-hwan and Trade Minister Kim Jong-hoon, Berman emphasized the deal would bolster IP safeguards but said he remains concerned about its potential impact on the American automotive industry.

The trade deal would set penalties for those who abet piracy, including the seizure and destruction of pirated and counterfeit products; protect copyrighted performances on the Internet; and ensure the right of authors, performers and producers of recordings to determine use of copyrighted products. Earlier this year, Korea amended its copyright law to give producers and performers the right to remuneration for the public performance of their sound recordings and to impose obligations on Internet service providers to suspend the accounts of serial copyright abusers.

"South Korean authorities refuse to let the copyright pirates win," said Berman, whose California district is home to a number of major television and movie studios. "Through tightened legislation and international commitments, this country is taking important steps to protect the rights of the creative community, which in turn will safeguard U.S. businesses and jobs." Berman, however, noted that Internet music piracy remains a problem in Korea and urged police and prosecutors to coordinate more closely on enforcement actions.

The FTC on Monday issued a final rule requiring certain Web-based businesses to notify consumers when the security of their electronic health information is breached. Congress directed the consumer protection agency to issue the rule as part of the economic stimulus package and it applies to both vendors of personal health records - which provide online repositories that people can use to keep track of their health information - and entities that offer third-party applications for personal health records. Such applications include devices such as blood pressure cuffs or pedometers whose readings consumers can upload into their personal health records, the FTC said.

Many existing health IT services are not subject to the privacy and security requirements of the Health Insurance Portability and Accountability Act, which applies to healthcare providers such as doctors' offices, hospitals, and insurance companies. The stimulus package required the Health and Human Services Department to conduct a study and report by February 2010, in consultation with the FTC, on potential privacy and security requirements for vendors. In the meantime, the law required the FTC to issue a breach notification rule. Read details about the rule at www.ftc.gov/healthbreach.

On a related note, security expert Christopher Soghoian is leaving Harvard University's Berkman Center for Internet & Society to work as a technical consultant to FTC's Division of Privacy and Identity Protection in the Bureau of Consumer Protection. On his personal blog, Soghoian noted "the FTC has a lot of really smart lawyers, but they (currently) lack geek skills." He's an interesting hire given his self-admitted penchant for "railing against the oppressive surveillance state and the numerous privacy invasions committed by the law enforcement and intelligence agencies."

C-SPAN asks the mainstream media: "Do you tweet?" (hat tip, Micah Sifry)

FederalReporting.gov, a Web site that works in conjunction with Recovery.gov to provide a comprehensive solution for stimulus money recipient reporting and transparency launched Monday. Prime recipients and first-tier sub recipients of Recovery Act funds can begin reporting on their use of those funds. Reports entered into FederalReporting.gov will be replicated on Recovery.gov and available for viewing and downloading on Oct. 11, one day after the first round recipient reports are due.

Two Russians and a Florida man were charged Monday in what the Justice Department said was the largest alleged credit card and debit card breach ever. The indictment names 28-year-old Albert Gonzalez of Miami, Fla., and two unnamed co-conspirators based in Russia with hacking New Jersey-based Heartland Payment Systems, Texas-based 7-Eleven, and the Maine-based Hannaford Brothers supermarket chain. They allegedly stole data pertaining to more than 130 million credit and debit cards, officials said.

In the two-count indictment alleging conspiracy and conspiracy to engage in wire fraud, Gonzalez, AKA "segvec," "soupnazi" and "j4guar17" and the two others are charged with using a sophisticated hacking technique called an "SQL injection attack," which seeks to exploit computer networks by finding a way around the network's firewall to steal sensitive information. Gonzalez had previously been charged with swiping data related to 40 million credit cards from retailers including TJ Maxx.

The indictment alleges that beginning in October 2006, Gonzalez and his co-conspirators researched the credit and debit card systems used by their victims; devised a sophisticated attack to penetrate their networks and steal credit and debit card data; and sent that data to computer servers they operated in California, Illinois, Latvia, the Netherlands and Ukraine. If convicted, Gonzalez could face up to 20 years in prison for wire fraud conspiracy and an additional five years on the conspiracy charge, as well as a hefty fine. Gonzalez is currently in federal custody, DOJ said.

White House New Media Director Macon Phillips provided an update late Monday on the White House's "Reality Check" Web site, saying the offering -- meant to provide facts about health reform -- has itself become "the target of fear-mongering and online rumors that are the tactics of choice for the defenders of the status quo." In a post on the official White House blog, Phillips provided an update on e-mail distribution issues and made a pitch for citizens to suggest new topics to be covered on the Reality Check site.

"It has come to our attention that some people may have been subscribed to our e-mail lists without their knowledge - likely as a result of efforts by outside groups of all political stripes- and we regret any inconvenience caused by receiving an unexpected message," he wrote, emphasizing the administration has not and will not add names from a commercial or political list to the White House list. Phillips pointed out there's a link to unsubscribe from e-mails at the bottom of each message and WhiteHouse.gov has boosted the security of its mailing list and will continue to safeguard users' information.

With respect to suggestions for topics to cover on the Reality Check site, Phillips said the administration has seen an "incredible response" from visitors who are using the tools provided on the site to share videos and other content. The e-mail address set up last week to solicit ideas is now closed (see earlier Tech Daily Dose post) and all feedback should be sent through: whitehouse.gov/realitycheck/contact. Read more of Phillips's blog post here.

The White House has closed down a short-lived electronic tip box -- flag@whitehouse.gov -- that was created to collect "fishy" claims about President Obama's healthcare plan after privacy concerns were raised. E-mails to that address now bounce back with an error message that reads: "The e-mail address you just sent a message to is no longer in service. We are now accepting your feedback about health insurance reform via http://www.whitehouse.gov/realitycheck." Sen. John Cornyn, R-Texas, challenged the effort shortly after it was launched in early August even though the administration claimed it was not collecting any of the tipsters' names. He argued the White House had not made clear what steps were being taken to purge names, email addresses and other personal data.

NextGov's Bob Brewin reports that:

The top federal panel that sets policies for electronic health records so that a national system can be adopted made recommendations on Friday that would allow multiple organizations to certify electronic record products instead of the one certifying body that exists today. Doctors and hospitals are slated to receive up to $17 billion in stimulus funds to help pay for health information technology systems. But the payments are dependent on doctors using systems that meet "meaningful use" criteria, standards the Health Information Technology Policy Committee is developing.

The stimulus package, included in the 2009 American Recovery and Reinvestment Act, required the committee to recommend a policy framework for the development and adoption of a nationwide health information infrastructure -- including standards for the exchange of patient medical information and certifications criteria -- to the Office of the National Coordinator for Health Information Technology at the Health and Human Services Department. Currently, only the Certification Commission for Healthcare Information Technology (CCHIT) certifies electronic health records systems.

Read his full post here.

The World Trade Organization has delivered a victory to the United States in its two-year-old case against Chinese restrictions on importation and distribution of copyright-protected movies, music, books and other entertainment products, CongressDaily reported Wednesday (subscription required). The decision found that the limits on sales of U.S. entertainment wares violated global trade rules. In a statement, Trade Representative Ron Kirk said it would "level the playing field for American companies" and represented a "clear win" for the United States, whose trade relations with China have been increasingly testy.

Motion Picture Association of America Chairman Dan Glickman said the WTO decision "points a way forward that will begin to even the playing field" in an important market. He noted that the Chinese system for distributing U.S. films to Chinese audiences is among the most restrictive and burdensome in the world and the ruling, coupled with a recent announcement that the Chinese government intends to lower market access thresholds for the cultural industry, may be an opening movie studios have been seeking.

Recording Industry Association of America Executive Vice President Neil Turkewitz said the fact that the United States has prevailed does not mean that China has lost. "The adoption of rules that enhance the operation of legitimate markets will inure greatly to the benefit of the Chinese creative community and to Chinese society," he said. Chinese and U.S. creators alike face illicit enterprises that claim at least 80 percent of the physical market and an estimated 99 percent of the online market.

Continue reading WTO Rules Against China On Copyrights

The Obama administration established a strong position on intellectual property in connection with the United Nations Framework Convention on Climate Change at an international working group meeting in Bonn, Germany this week, according to Mark Esper, executive vice president of the U.S. Chamber of Commerce's Global IP Center. Officials affirmed that "no treaty will be agreed upon that undermines or weakens intellectual property rights," Esper wrote on the Chamber's blog.

Nations are preparing for the UN convention in Copenhagen, Denmark, in December where negotiators will try to reach agreement on how to reduce greenhouse gas emissions. Some worry that countries like China and India will push for carve-outs that could diminish the IP rights of U.S. companies like General Electric that manufacture solar and other energy alternatives. "America's position was urgently needed to counteract the anti-IP rhetoric of developing nations," Esper wrote.

Read more on the Chamber's blog here and the latest coverage in CongressDaily here (subscription required).

Intellectual property think tank Knowledge Ecology International has asked the Office of the U.S. Trade Representative to clarify whether the pending Anti-Counterfeiting Trade Agreement will cover patents. "There is considerable confusion on this point," KEI Executive Director James Love wrote Wednesday on the micro-blogging site Twitter. "If the ACTA text was not declared a national security secret by the White House, we could read the text on injunctions and damages," he added.

Officials from the United States, Canada, the European Union, Japan, Mexico and other countries have resumed discussions so they can finalize the pact in 2010, according to Trade Representative Ron Kirk, whose team has been reviewing ACTA and other trade deals. He has vowed to move forward as transparently as possible. Watchdog groups have routinely called for more openness and public participation in negotiations that began under former President George W. Bush.

"This is big government and big business at its worst, creating rules without input or sensitivity to the concerns of consumers, overriding civil rights, undermining privacy, increasing prices to consumers," KEI said in a June statement. "The topics under review are not simple technical issues or directed at organized crime, they are big sweeping changes in our basic freedoms, and underhanded attempts to give lobbyists rules they can't get in a normal democratic setting."

The current White House policy on persistent Internet tracking cookies continues to apply to all federal agencies and to those agencies' use of third-party applications, whenever personal information is collected on the agency's behalf, two administration officials reaffirmed Tuesday in a blog post. OMB Office of Information and Regulatory Affairs Associate Director Michael Fitzpatrick and White House CIO Vivek Kundra used the White House's official blog to address the issue after some articles hinted the government is creating special exemptions for third-parties from existing privacy rules.

The administration is revisiting the ban on using persistent cookies on federal Web sites and has asked for feedback on the issue. "The policy won't change until we've read the public comments that have been submitted to ensure that we're considering all sides of the issue and are addressing privacy concerns appropriately," they wrote. "It is clear that protecting the privacy of citizens who visit government Web sites must be one of the top considerations in any new policy." Read the full blog post here.

High-tech industry giants such as Hewlett-Packard, IBM, Microsoft and Oracle will intensify their opposition this fall to an Obama administration proposal aimed at limiting what critics insist are offshore tax breaks, according to CongressDaily's PM Edition. This showdown over the tax deferral on corporate revenue derived from overseas operations is a major lobbying battle that will stretch well into 2010.

"This is the linchpin in American competitiveness," Phil Bond, president of TechAmerica, the nation's largest high-technology advocacy group, said at a news briefing Tuesday. "The tax provisions around overseas income are critical to allowing our companies to go overseas to compete and succeed." With the United States representing only 5 percent of the world's population, domestic companies need to reach global markets, he emphasized, adding: "We do not think that it is a good trade to sacrifice long-term jobs for short-term revenue. And we'll be making that point on the Hill."

Read the full story here (subscription required).

The Corporation for Public Broadcasting will pay digital music royalty collector SoundExchange $ 2.4 million for the term 2011-2015 under a deal made public Tuesday. The agreement, which was completed in late July, is one of several similar arrangements made under the Webcaster Settlement Act, which gave SoundExchange the authority to negotiate alternative rates and terms to the prevailing royalty rates set by the Copyright Royalty Board in 2007.

The deal covers CPB qualified stations, National Public Radio member stations and National Federation of Community Broadcasters participant member stations (along with NPR, American Public Media, Public Radio International and the Public Radio Exchange). "This continuing partnership allows music fans to experience a greater diversity of music, while allowing artists and rights holders the ability to share in revenues generated from music lovers who tune in to hear great recordings," SoundExchange Executive Director John Simson said.

SoundExchange announced recently that it had also made agreements with college broadcasters, SIRIUS-XM and with the National Religious Broadcasters Music License Committee. Terms and rates for each will be published in the Federal Register.

The White House launched a new Web page Monday that "focuses on what reform really means for you and your family" and "debunks some common myths along the way," President Obama's New Media Director Macon Phillips wrote on the official White House blog. Click here to read more.

The FCC is seeking comments on a petition filed by the Music First Coalition that claims radio stations across the country have refused to air their advertisements in support of legislation that would overturn a decades-long royalty exemption afforded to AM and FM stations. The music group also argues that the stations are running misleading ads produced by the National Association of Broadcasters. The Commission wants comments on the actions and, according to the FCC notice, "whether and to what extent broadcasters are engaging in a media campaign [coordinated by NAB] which disseminates falsities" about the Performance Rights Act.

"Corporate radio's spokespersons have not only confirmed the charges made in the petition, but boasted that they will continue to use the public airwaves to misinform policy makers and the public and punish artists and musicians for speaking out in support of a fair performance right," Music First Executive Director Jennifer Bendall said. "NAB will be commenting on the distortions raised in the Music First petition at the appropriate time," NAB Executive Vice President Dennis Wharton said in a statement. "Contrary to suggestions in the petition, broadcasters are under no obligation to carry everything that is offered or suggested to them."

The U.S. government's contracts with Internet companies for video, photo sharing and other Web 2.0 services may have ignored key privacy obligations of federal agencies, according the Electronic Privacy Information Center. Documents obtained through a Freedom of Information Act request by the group show that the General Services Administration moved ahead with the agreements even as guidance for President Obama's January open government and transparency directive was delayed.

Google, even after addressing privacy problems associated with the White House's use of embedded YouTube videos, is "still calling the shots on federal privacy policy," EPIC argued in an email. GSA's Google contract asserts that the "provider acknowledges that except as expressly set forth in this agreement Google uses persistent cookies in connection with the YouTube video player." It goes on to state: "To the extent any rules or guidelines exist prohibiting the use of persistent cookies in connection with provider content applies to Google, provider expressly waives those rules or guidelines as they may apply to Google."

In the GSA's contract with Yahoo, which owns photo sharing site Flickr, Yahoo acknowledged that the agency was obligated to follow various "laws and regulations," but there is nothing to indicate that Yahoo would be bound by those same laws and regulations, EPIC said. A review of the documents by EPIC's Lillie Coney, who pursued the FOIA request, also revealed a statement on federal policy banning Internet tracking cookies that mentions a waiver and adds that "policy may change." Further, it is unclear whether contracts signed by the GSA complied with the guidance prepared by the agency's general counsel on "GSA's ventures with social media tools," EPIC said.

Continue reading Red Flags Raised By Web 2.0 Contracts

The Justice Department under the Obama administration believes that a digital download of a sound recording does not constitute a performance or a public performance, and thus does not justify the imposition of public performance royalties. The government asserted its position in a federal appeals court's review of a 2007 district court decision that rejected the royalty claim by performance rights organization ASCAP.

Digital Media Association Executive Director Jonathan Potter issued a statement Monday saying he was pleased that DOJ has sided with his group, which represents online entertianment services. He argued that PROs have long sought "to stretch current law by asserting that every transmission of a copyrighted musical work is a 'public performance' under the Copyright Act, regardless of whether that work is ever publicly, or even physically, performed."

The court activity comes as PROs along with composers and songwriters urge Congress to legislate the application of public performance rights to downloads of audiovisual works. The groups recently wrote to lawmakers asking for the change as they consider separate proposals to reauthorize expiring provisions of the Satellite Home Viewer Act and bring AM and FM radio in line with Internet, cable and satellite music platforms that pay performers. Read CongressDaily's recent coverage of this topic here (subscription required).

Oregon Reps. Earl Blumenauer, a Democrat, and Greg Walden, a Republican, want Justice Department antitrust chief Christine Varney to view recent European antitrust rulings with a critical eye and weigh the impact of those decisions on U.S. high-tech firms such as Intel, Google, Microsoft, IBM and Qualcomm, CongressDaily's PM Edition reported Friday. Their effort comes on the heels of the European Commission's $1.45 billion judgment against Intel for excluding competitors from the market for chips known as x86 central processing units.

"That ruling is the latest evidence of a troublesome trend in Europe toward regulatory protectionism," they wrote in a draft letter circulating on Capitol Hill. Other successful U.S. companies have faced hefty fines, are under investigation, or possibly facing scrutiny from the Commission's competition directorate, they said. The Intel ruling "ignores the reality of a highly competitive marketplace," said the draft, noting that microprocessor prices have dropped drastically in the last decade. "The significant decrease in prices, together with the unprecedented increase in quality, speed, functionality and choice of microprocessors, reflects that market's robust health."

Read the full story here (subscription required).

The full Senate late today confirmed IBM Assistant General Counsel David Kappos as the next director of the Patent and Trademark Office, following Kappos' approval Thursday by the Senate Judiciary Committee on a voice vote. The Senate's action came as it wrapped up business prior to a month-long August recess. Kappos will also hold the title of undersecretary for intellectual property at the Commerce Department. In a written statement following the Judiciary Committee's action, Chairman Patrick Leahy emphasized the importance of getting a PTO director in place quickly. "The PTO needs strong and accountable leadership," he said, pointing to the agency's growing backlog of patent applications and economic woes - which required recent passage of emergency legislation, due to a drop in user fees that fund PTO operations. Leahy said he also looked forward to working with Kappos on a bill the senator introduced that would overhaul the U.S. patent system.

Sen. Robert Menendez, D-N.J., introduced legislation Thursday that would allow federally-regulated online poker and other games of skill. The bill is designed to raise revenue while protecting families through a crackdown on predatory Internet gaming sites that target minors and fleece their customers. A 2006 law banned most forms of Internet gambling in the United States and some members have been trying to get the statute repealed or significantly modified.

Under the Menendez bill, gaming companies would have to undergo a thorough review by the Treasury Department including an analysis of the financial condition of the applicant, business record, and background checks. In addition, an applicant must submit a full financial statement, corporate structure documentation, and a certification that the applicant agrees to be subject to U.S. gambling laws. The Treasury could deny licenses for any firm believed to not meet the criteria set by the government. The measure proposes a license term of five years and renewal would be subject to the same requirements.

The Treasury would be directed to develop guidelines for ensuring age verification and that bettors are physically located in a jurisdiction where gambling is legal. The agency would also have to ensure all taxes due are collected. Further, there are requirements to combat fraud, money laundering and compulsive gambling and to ensure games are fair and bettors' privacy is protected. Licensed sites would have to pay a 10 percent tax on all deposits into playing accounts, the proceeds of which would be split evenly between the federal government and the government of the state where the player is located.

Continue reading Sen. Menendez Unveils Online Poker Bill

A bipartisan panel of scientific and regulatory experts called on the White House and federal agencies Wednesday to make specific changes to clearly distinguish scientific questions from policy disputes. The report from the Science for Policy Project, which is co-chaired former Rep. Sherwood Boehlert, R-N.Y., and former Science editor Donald Kennedy, was released on the eve of the first meeting for the Obama administration of the President's Council of Advisors on Science and Technology.

The report recommends requiring new information when regulations are proposed by agencies such as the Environmental Protection Agency and the Food and Drug Administration, and enhancing the credibility of federal advisory committees to ensure the integrity of science in regulatory policymaking. Many recommendations are relevant to ongoing efforts by agencies to implement President Obama's March memorandum on scientific integrity. The White House has reviewed an interim version of the report to inform forthcoming guidelines on scientific integrity and regulatory reform.

"The fundamental theme of the report is that the administration needs to put in place procedures to try to distinguish science questions from policy questions," Boehlert said in a press release. "Often, policy disputes are cast as fights over science. This damages the credibility of science and obscures the real issues that ought to be debated." The SPP paper coincided with the release of a memo from OMB Director Peter Orszag and Obama's science adviser John Holdren asking agencies to build on federal science and technology priorities reflected in the stimulus package and the FY10 budget in their planning for the next fiscal year.

Read more about the Orszag-Holdren memo in CongressDaily's AM Edition here (subscription required).

Legislation that would ban inmates in some prisons from using smuggled cellular phones took a step toward the Senate floor Wednesday when the Commerce Committee approved the measure sponsored by ranking member Kay Bailey Hutchison. Her bill would allow the Federal Bureau of Prisons, a governor or a governor's designee to petition the FCC for a wireless jamming device for a correctional facility. Hutchison's bill includes safeguards to ensure that jamming does not impair the ability of public safety officials or legitimate commercial mobile radio services outside a prison's walls.

"Imprisoned convicts are using contraband cell phones to coordinate murders, plot extortion schemes, and run drug trafficking, credit card fraud, and identity theft enterprises," Hutchison said in a statement. "Prisons are meant to stop the commission of crimes, but cell phones inside prisons mean business as usual for dangerous felons. With innocent lives on the line, Congress has a responsibility to make available all technologies that can prevent the illicit use of cell phones in prisons."

Wireless industry association CTIA said its members believe policy should favor non-interfering technologies but appreciate Hutchison's willingness to redraft her bill to protect commercial and emergency services from interference. AT&T Executive Vice President Tim McKone said his company supports Hutchison's effort and urged the full Senate to act. Rep. Kevin Brady, R-Texas, has introduced a companion bill in the House. Consumer groups and think tanks have warned the bills could cause more problems then they would solve. Read more here.

President Obama's Chief Technology Officer Aneesh Chopra was on the West Coast on Tuesday speaking to the Churchill Club, Silicon Valley's premier business and technology forum. The event was hosted by the Center for Democracy and Technology and TechNet. Watch a video of his speech above.

Grammy Award nominee Sheila E. faced off against Commonwealth Broadcasting Corp. CEO and NAB Radio Board Chairman Steve Newberry on Tuesday afternoon at a Senate Judiciary Committee hearing on legislation that would end a fee exemption afforded to AM and FM radio. Judiciary Chairman Patrick Leahy issued a warning to Newberry and broadcasters at large: "This is legislation that's going to move," Leahy said. "The time to sit down and talk is now." The House Judiciary Committee has already passed its version of the bill. Read the full story in CongressDaily's AM Edition here (subscription required).

President Obama on Wednesday traveled to Elkhart, Ind., to unveil $2.4 billion in competitive grants to spur manufacturing and deployment of next-generation batteries and electric vehicles. During his remarks, he emphasized the historic commitment to innovation made as part of the $787 billion stimulus package. He said the stimulus creates jobs by "doubling [the nation's] capacity to generate renewable energy; building a new smart grid that carry electricity from coast to coast; laying down broadband lines and high-speed rail lines; and providing the largest boost in basic research in history."

His goal is to ensure the continuation of America's leadership position in the breakthrough discoveries of the 21st century. "That's what we do best in America -- we turn ideas into inventions, and inventions into industries," Obama said. The United States led the world in the 20th century because of its innovation leadership, he said. "Today, the competition is keener; the challenge is tougher; and that's why innovation is more important than ever." Obama added that the United States has lagged behind China and Japan for too long in the production of next generation of clean-energy vehicles.

House Energy and Commerce Chairman Henry Waxman joined Communications Subcommittee Chairman Rick Boucher, D-Va., late Tuesday in calling for the creation of a permanent relationship between the Internet Corporation for Assigned Names and Numbers, which administers the world's Web addresses, and the Commerce Department. A memo formally joining the two entities is slated to expire late next month amid concerns on Capitol Hill and within industry that ICANN faces problems with transparency and accountability. ICANN leaders have claimed that after 10 years in business, the California nonprofit is ready for its independence.

A letter to Commerce Secretary Gary Locke from Boucher, Waxman and eight other Democratic lawmakers said a set of enduring principles "will place beyond doubt the value of the current model for managing" the domain name system and will prevent any one entity from controlling the underpinnings of the Internet. Their proposal would provide for periodic reviews of ICANN performance and create a mechanism for implementing ICANN's proposed broad expansion of top-level domains like .com and .biz. Republicans on the Energy and Commerce Committee are said to be preparing their own letter to Locke with recommendations for ICANN's path forward.

House Energy and Commerce Communications Subcommittee members at a June hearing called for an extension of the U.S. government's formal oversight agreement with ICANN. At the time, Rep. John Dingell, D-Mich., said ICANN remains "far from a model of effective and sustainable self-governance" and it would be unwise to shrink the federal government's role amid increased cyber attacks and rapid Internet innovation. Subcommittee ranking member Cliff Stearns, R-Fla., and Reps. Mike Doyle, D-Pa., John Shimkus, R-Ill., and Lee Terry, R-Neb., each backed extending the oversight agreement between ICANN and Commerce.

Read the full story from CongressDaily here (subscription required).

House Cybersecurity Caucus co-chairs Jim Langevin, D-R.I., and Michael McCaul, R-Texas, pressed the Obama administration on Tuesday to move quickly in appointing a high-level White House official to coordinate agencies' efforts to identify and guard against attacks on public and private sector information technology networks. Their separate statements came on the heels of the news that Melissa Hathaway, acting senior director for cyberspace for the National Security and Homeland Security Councils, was resigning effective Aug. 21.

"I greatly appreciate Melissa Hathaway's service and her dedication to ensuring the security of our nation's cyber infrastructure," Langevin said. "She has helped us make significant progress towards that goal, and I wish her the best in the future." He added that several months have passed since Hathaway completed the administration's cybersecurity review and he is hopeful President Obama will appoint a cyber coordinator soon. In May, Obama vowed to handpick such an official who would report to the National Security Council and National Economic Council.

McCaul called Hathaway's departure "a loss to our efforts to better protect our nation's cyber networks." "I hope the administration will proceed with deliberate speed to fill this important position," he said. Langevin and McCaul also served as co-chairs of the Center for Strategic and International Studies' Commission on Cybersecurity for the 44th Presidency. That panel's report informed much of Hathaway's deliberations and spurred several hearings on Capitol Hill. Read more congressional reaction to Hathaway's resignation in CongressDaily's PM Edition here (subscription required).

Music and broadcasting industry lobbyists have ramped up their rhetoric ahead of Tuesday afternoon's Senate Judiciary Committee hearing on legislation that would end a royalty exemption extended to AM and FM radio, according to CongressDaily's AM Edition (subscription required). The bills Senate Judiciary Chairman Patrick Leahy and House Judiciary Chairman John Conyers introduced in February would bring over-the-air radio in line with cable, Internet and satellite services, which pay performers -- but broadcasters warn some stations could go out of business.

On Monday, the MusicFirst Coalition drew attention to a July CBO report that the group insists puts to rest the National Association of Broadcasters' refrain that the legislation is a "tax" on local radio. The CBO's analysis of the bill that passed Conyers' committee in May found the measure would not cost taxpayers money to implement nor result in federal revenue. A Monday release from the NAB highlighted a Senate resolution that opposes "any new performance fee, tax, royalty, or other charge" on AM and FM stations, which has attracted 23 co-sponsors. A group of 246 lawmakers signed onto a similar House measure. Additionally, 22 House Democrats wrote to Speaker Nancy Pelosi late Friday urging her not to bring the bill to the floor for a vote.

Read complete overage of the Senate Judiciary Committee hearing in Wednesday's CongressDaily AM Edition.

Internet greeting card company someecards.com unveiled a batch of new sendables in honor of President Obama's 48th birthday on Tuesday. The card above may resonate with the Tech Daily Dose audience and someecards.com was kind enough to allow us to post. Click here to send the e-card yourself.

President Obama's pick to head the Patent and Trademark Office could be confirmed before the August recess, CongressDaily's AM Edition reported on Tuesday. Senate Judiciary Chairman Patrick Leahy has scheduled a Thursday morning business meeting for his panel to vote on IBM Assistant General Counsel David Kappos, tapped by Obama in June to become PTO director and undersecretary for intellectual property at the Commerce Department. The committee, which held Kappos' confirmation hearing Wednesday, is also scheduled to consider three other nominees. If the nomination is approved by the Judiciary Committee, Leahy would have to work with Senate leaders to find time for a floor vote before they leave town Friday.

The first FCC staff workshop for the development of a national broadband plan takes place Thursday and will focus on civic engagement and e-government. The workshop will conclude with an open mike session providing an opportunity for public participation, the Commission said Monday. The FCC's aim is to deliver its broadband plan to Congress in February with workshops being held in August and September.

Panel 1: A View from Government
• White House Chief Information Officer Vivek Kundra will discuss the how his IT dashboard and Apps for Democracy projects increased civic participation and increased government efficiency.
• Graham Richard, former Mayor of Ft. Wayne, Ind., will discuss how his city used broadband to improve performance.
• Beth Noveck, President Obama's deputy chief technology officer for open government, will discuss new opportunities for governments to engage citizens.

Panel 2: A View from the Non-Profit Sector
• The Chicago Committee for the 2016 Olympic Games will provide a view of how that organization is using a broadband platform to rally support.
• The Sunlight Foundation will discuss best practices for government engaging citizens.
• Norm Ornstein of the American Enterprise Institute will discuss how broadband can affect campaigns and elections.
• Andrew Reseij of the Personal Democracy Forum will discuss innovative uses of broadband that enhance democracy.
• Ellen Goodman of Rutgers School of Law, will discuss how broadband could create new opportunities for civic engagement through public media.

Melissa Hathaway, top cybersecurity adviser to the director of national intelligence and the principal author of the Obama administration's 60-day review of the U.S. government's cybersecurity posture has resigned, a National Security Council spokesman told Tech Daily Dose late Monday. Hathaway, who was senior adviser to former Director of National Intelligence Mike McConnell in the Bush administration and held the same post under Dennis Blair in the current White House, will depart effective Aug. 21. "We are grateful for her dedicated service and for the significant progress she and her team have made on our national cyber security strategy," the NSC official said.

Cybersecurity has been touted as a major priority for President Obama, which is why shortly after taking office he directed the NSC and Homeland Security Council to conduct the top-to-bottom review of federal cyber efforts and to recommend the best way to secure critical networks. In late May, the White House released the report and announced the creation of a cyber security coordinator who will have direct access to the president. "The president is personally committed to finding the right person for this job, and a rigorous selection process is well underway," the NSC spokesman said. Hathaway was initially thought to be a top contender for the job.

CongressDaily recently reported that two frontrunners to become cyber czar are Howard Schmidt, former White House special adviser for cyberspace security, and Frank Kramer, an assistant Defense secretary under President Bill Clinton. Other names floated included Microsoft Vice President Scott Charney; Obama transition team technology adviser Paul Kurtz; and former Rep. Tom Davis, R-Va. Davis said in June he was neither interested in returning to government nor being a candidate for the position. Read more here (subscription required).

FTC Competition Bureau Director Richard Feinstein said Monday the Commission will continue to investigate remaining interlocking directorates between Apple and Google despite the fact that Google CEO Eric Schmidt has stepped down from the computer manufacturer's board. The FTC has been examining the Google-Apple connection for some time and Feinstein commended the companies for recognizing that sharing directors raises competitive issues as Google and Apple increasingly compete with each other. Schmidt has served on Apple's board since 2006 and since that time has entered the Web browser and operating system business with Google's Android and Chrome products.

"Eric has been an excellent board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," Apple CEO Steve Jobs said in a press release. "Unfortunately, as Google enters more of Apple's core businesses... Eric's effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest," Jobs said. Arthur Levinson, the former CEO of Genentech also sits on the boards of both companies. Read more here and here.

With heightened international pressure facing Iran, some lawmakers are hoping to advance legislation that would crack down on foreign technology firms that do business there. Sen. Charles Schumer, D-N.Y., and Rep. Brad Sherman, D-Calif., introduced identical bills in late July that would punish companies selling equipment to aid the Iranian government in monitoring or blocking Internet and cellular phone communications. In particular, the bills would ban such firms from applying for U.S. government contracts or renewing expiring ones unless their ties with Iran were severed.

Electronics giant Siemens, for example, has thousands of federal contracts worth more than $250 million in 2009, and a joint venture with Nokia holds about $5 million worth of U.S. government contracts, Schumer's office said. Both have been implicated in Tehran's efforts to spy on its citizens and stifle communications, especially after the country's post-election unrest. Officials involved in the Siemens-Nokia joint venture have denied any wrongdoing. Nokia Siemens Networks Head of Corporate Affairs Robert Weisberg told Tech Daily Dose Monday afternoon that his firm has a stringent code of conduct and its work in Iran and other countries is done with an eye toward export control requirements and international human rights conventions. He added that the presence of companies like his are "a good thing" in Iran and have helped the world learn more about what is going on inside the country than ever before.

Read the full story in CongressDaily's PM Edition here (subscription required).

Government transparency gurus at the Sunlight Foundation have embarked on a project to show what the FCC's Internet presence should look like in the Web 2.0 world. According to Archive.org, the FCC site last received a facelift in fall 2001. The watchdog will release a mock up of a re-imagined FCC.gov but unlike its previous redesign projects -- USA.gov, the EPA, the FEC, and the Supreme Court -- the group is asking for public input before putting pen to paper. Sunlight wants to know: What kinds of information are missing from the FCC's site? How should information be organized? How should it be presented? How should it be accessed and downloaded? To what extent should the site incorporate social media and how should it be used? The dialogue will take place online through open government discussion groups and at Sunlight Labs site. Click here for more information.

It's August, and the House is already in its summer recess -- with several legislators heading for the Other Coast. On Wednesday, House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., and Rep. Bob Goodlatte, R-Va. -- both of whom are also co-chairmen of the Congressional Internet Caucus -- will be in Silicon Valley at the third annual State of the Net West conference at Santa Clara University. They'll be joined by Rep. Zoe Lofgren, D-Calif., and Aneesh Chopra, the Obama administration's chief technology officer.

The event, which draws a range of scholars, public interest advocates and industry executives, is organized by the Congressional Internet Caucus Advisory Committee and is an offshoot of a similar conference held annually in Washington. The conference begins a couple of days after a visit to Stanford University by newly installed FCC Chairman Julius Genachowski, who will discuss telemedicine and health information technology along with Rep. Anna Eshoo, D-Calif. Read more about this week's tech policy events at CongressDaily's TechCentral site here (subscription required).

Senate Commerce Chairman John (Jay) Rockefeller and Sen. Olympia Snowe, R-Maine, plan to circulate after the August recess a retooled version of sweeping cybersecurity legislation they introduced in April, CongressDaily's PM Edition reported on Friday. The bill will likely be the subject of a September hearing, with a markup scheduled shortly thereafter. They had been aiming for July committee action but the healthcare debate "put everything on simmer," said one staffer.

One of the bill's most controversial provisions, which high-tech policy watchers say would give the president the power to effectively shut off the Internet during a cyber crisis, has been a critical component of discussions with stakeholders. It is uncertain how the measure may change in light of the White House's roadmap for fighting high-tech attacks, which was released in May. The original bill would establish an Office of the National Cybersecurity Adviser within the Executive Office of the President. But under the administration's plan, the cyber czar will report to the National Security Council and the National Economic Council.

Read the full story here (subscription required).