Legislation that would renew for five years a law governing transmission of broadcast television signals via satellite services such as DirecTV and EchoStar moved a step closer to enactment Thursday when the Senate Commerce Committee approved its version of a reauthorization bill. The Satellite Home Viewer Act, which sets the copyright royalty fees for "local-into-local" service and the delivery of distant network signals to customers who can't receive over-the-air broadcasts, needs to be renewed before the law expires Dec. 31. Under "local into local," TV signals are redelivered to their respective markets via satellite. The Commerce and Judiciary committees in both the House and Senate have now approved four bills reauthorizing the law. Floor action is the next step. For further information on the Senate Commerce Committee's action, go to www.congressdaily.com and click on "The Latest Markup Reports" (subscription required).
The Senate Commerce Committee backed legislation Thursday intended to eliminate restrictions on the operation of low-power FM stations. The bill (S. 592), which passed on a voice vote, calls for scuttling a requirement that low-power stations be located more then three clicks away on both sides of the FM dial from commercial broadcasters. As a part of the 2000 legislation authorizing low-power FM, Congress imposed the limitation to assuage fears on the part of larger broadcasters that the newly authorized community stations -- which generate signals of less than 100 watts -- would cause interference over the FM airways. For further information on the Senate Commerce Committee's action, go to www.congressdaily.com and click on "The Latest Markup Reports" (subscription required).
Sen. Dianne Feinstein, D-Calif., wants the federal government to follow her state's lead in cutting the energy usage of power-hungry high-definition television sets. The California Energy Commission earlier this week approved a plan to cut the energy consumption of new televisions sold in the state by one-third beginning in 2011 and by one-half starting in 2013.
In a Thursday letter to Energy Secretary Steven Chu, Feinstein urged the Energy Department to take a "serious look" at crafting national standards for TVs that are as rigorous as the ones adopted in California. But the Consumer Electronics Association, which represents major TV set manufacturers, wants to pull the plug on both the California requirements and Feinstein's proposal. "It will result in higher prices for consumers, job losses for Californians and lost tax revenue for the state," the CEA said.
President Obama has nominated Walter Isaacson, who headed CNN from 2001-2003, to be the next chairman of the Broadcasting Board of Governors - an independent agency that oversees non-military international broadcasts by the federal government, including the Voice of America. Isaacson is currently president and chief executive officer of the Aspen Institute, a non-partisan educational and policy studies organization based in Washington, D.C. Among those nominated to other slots on the board are Michael Lynton, chairman and chief executive of Sony Pictures Entertainment.
By law, the Broadcasting Board of Governors must be bipartisan, and members are subject to Senate confirmation. Other nominees announced by the White House include Dana Perino, former President George W. Bush's fourth and final press secretary, who was named to the slot formerly held by now-Sen. Ted Kaufman, D-Del.; Victor Ashe, a former ambassador to Poland and former Republican mayor of Knoxville, Tenn.; Susan McCue, a former top aide to Senate Majority Leader Harry Reid and a founding president of poverty-fighting The ONE Campaign; Michael Meehan, a Democratic strategist who has been a senior adviser to a number of U.S. senators, including Massachusetts Sen. John Kerry, the 2004 Democratic presidential nominee; Dennis Mulhaupt, founder and managing director of Commonwealth Partners, Inc., which provides philanthropic advice; and S. Enders Wimbush, senior vice president for international programs and policy at the Hudson Institute, a Washington-based think tank.
The Senate Judiciary Committee Thursday approved by voice vote the nomination of Victoria Espinel to be the White House intellectual property enforcement coordinator. She most recently served as the founder and president of Bridging the Innovation Divide, a nonprofit foundation focused on empowering Americans to obtain the full benefit of their creativity. She also has served as a visiting professor at George Mason University Law School, focusing on intellectual and international trade, and has served as an intellectual property adviser to the Senate Judiciary and Finance committees and the House Judiciary and Ways and Means committees. During the Bush administration, Espinel was tapped to serve as the first ever assistant U.S. trade representative for intellectual property and innovation.
The move was praised by intellectual property groups. "This is an encouraging step forward in a process that we are confident will lead to even better performance at the federal level of intellectual property rights enforcement," Copyright Alliance Executive Director Patrick Ross said in a statement. National Music Publishers' Association President David Israelite said Espinel "is an excellent choice for this role, which requires working with agencies across the government to improve efficiency and effectiveness." Her nomination must still be approved by the full Senate.
FCC Chairman Julius Genachowski sits down with C-SPAN later this week to tape an interview for the network's "Communicators" series, with the segment airing on Saturday at 6:30 p.m. EST. The taping is planned for 3 p.m. Friday at the commission in the main meeting room. C-SPAN is expected to ask about several controversial regulatory matters, including the creation of a national broadband plan to be presented to Congress in February, Genachowski's push to toughen network neutrality rules governing the Internet's openness and the level of his commitment to running a transparent agency. As they discussed the logistics of the interview Wednesday, an FCC spokesman urged a C-SPAN producer not to ask about planned changes to the agency's media ownership rules, insisting that Genachowski is still formulating his positions. Our suggestion to C-SPAN: ask about it anyway. Stay tuned!
The House passed two small business bills by voice vote Wednesday that may spur technological innovation. The first, H.R. 3738, would create a new early-stage investment program and authorize equity investment financing for small businesses. The bill calls for participating financiers to invest at least half of the funds in early-stage small firms. "This proposal is very well targeted toward companies that drive American innovation and are working to help solve some of our nation's greatest challenges," said TechAmerica President Phil Bond. The second small business bill, H.R. 3014, would authorize $10 billion in loans to be guaranteed to small healthcare practices for access to health IT.
Information technology lobbying group TechNet has hired Rey Ramsey as the organization's new president and chief executive officer. Ramsey currently is chief executive officer of One Economy Corp., a global nonprofit that leverages the power of technology to improve the lives of low-income people. He co-founded the group in 2000. One Economy brings unserved and underserved communities into the economic mainstream through facilitating affordable at-home broadband access, producing public-purpose media, and training and employing "Digital Connectors," youth aged 14-21, to enhance their communities' technology capacity, according to the group's Web site.
At TechNet, Ramsey will be based in Washington, D.C. where he will oversee the Silicon Valley organization's day-to-day operations, strategic planning and implementation of its public policy and political agenda. Separately, TechNet also announced that Paul Otellini, president and CEO of Intel, and Eric Schmidt, chairman and CEO of Google, will join the organization's executive committee.
The House Science and Technology Committee approved legislation Wednesday that would reauthorize and expand federal cybersecurity research programs. The bill (H.R. 4061) would require federal agencies to develop, update, and implement a strategic plan for cybersecurity research and development. The bill, which combined two different bills, would require the National Institute of Standards and Technology to develop and implement a plan to ensure coordination on the development of international cybersecurity technical standards within the federal government.
"This bill will help to ensure an overall vision for the federal cybersecurity R&D portfolio, will help train the next generation of cybersecurity professionals, will improve cybersecurity technical standards and will strengthen public-private partnerships in cybersecurity," said the bill's sponsor, Rep. Daniel Lipinski, D-Ill., chairman of the Research and Science Education Subcommittee, in a statement.
The fourth annual Internet Governance Forum wrapped up Wednesday in Sharm El Sheikh, Egypt. Among the major issues that the forum must tackle at its fifth meeting next year is whether to continue the forum, which was created following the United Nation's World Summit on the Information Society in 2005. Sha Zukang, the United Nations undersecretary general for economic and social affairs, sought feedback on whether to continue the forum. After obtaining feedback, the U.N. secretary general will make his recommendations in his annual report to the General Assembly next year on whether to continue the forum.
In a summary of the event from the forum, Sha described the IGF as fostering dialogue by giving voice to a wide range of views and bringing together diverse cultures. Many of the speakers favored continuing the forum, but some would like to see more focus on international public policy issues, increased participation by developing countries, greater transparency, and more focus on the outcomes and the ability to make recommendations on the issues discussed at the forum.
"There is no other forum where governments, civil society groups, and industry can meet and work together on equal footing on the important issues we have been discussing here in Egypt this week," TechAmerica Vice President Liesyl Franz said in a statement. Egyptian Minister of Communications and Information Technology Tarek Kamel said "with opportunities there were rights and also responsibilities, and in tomorrow's cyberspace the IGF should address important issues such as cross-border security, youth experience, multilingual content, and enhanced broadband capacity in developing countries, among others," according to the forum summary.
The FTC Tuesday released its agenda for its upcoming privacy roundtable scheduled for Dec. 7. The December roundtable is the first of three such events aimed at examining the privacy challenges posed by technology and business practices that collect and use consumer data. The Washington event will include discussion of online brokers, online behavioral advertising, consumer expectations and disclosures, and the "benefits and risks of collecting, using and retaining consumer data." Nearly three dozen companies, groups and individuals have filed comments on the upcoming workshop.
Don't kill off over-the-air television just yet. That's the central message in a terse letter that Rep. John Dingell, D-Mich., fired off to FCC Chairman Julius Genachowski Monday urging him not to go rummaging for wireless spectrum among the frequencies allocated to TV broadcasters for their digital signals. Citing a major spectrum scarcity, the FCC needs to identify more wireless airwaves to accomplish the sweeping goals to be outlined in its upcoming national broadband plan -- and is salivating over the juicy frequencies broadcasters received. "I believe that a further loss of spectrum by broadcasters may have an adverse effect upon consumers by limiting their choice in available broadcast television," warned the lawmaker, who was born in 1926, one year before the first long-distance transmission of a live image with sound. He insisted that the agency can accomplish its broadband goals while still preserving free over-the-air television.
Senate Commerce Chairman John D. (Jay) Rockefeller, D-W.V., said Tuesday that he may pursue legislation to crack down on some controversial online marketing tactics that result in consumers paying for products and services they did not realize they signed up for or used. During a hearing on these aggressive online marketing methods, Rockefeller detailed the results of a committee investigation into the marketing tactics of three firms: Affinion, Vertrue and Webloyalty. "Tricking consumers into buying goods and services they do not want ... It's not ethical. It's not right and it's not the way business should be done," Rockefeller said.
The problematic transactions, detailed in a committee report, take place when a consumer is ready to finish buying a good or service online from a trusted retailer. Consumers are asked if they want a discount or reward and if they agree, they are often automatically signed up for the services offered by the three firms and charged a monthly fee. "For a few extra bucks in profits, these merchants pass their customers' personal billing information on to mysterious companies," Rockefeller said. Among the online retailers that have partnered with Affinion, Vertrue and Webloyalty or others include major companies such as US Airways, Continental airlines, Pizza Hut and Travelocity. The marketing firms and their online retail partners have made more than $1.4 billion from these tactics and have charged more than 30 million Americans, he added.
Ray France of Florida, a military veteran who served in Iraq and Afghanistan, was one of two consumers who testified at the hearing. He said he was unaware he had signed up for one of the services until he got a call saying his bank account was overdrawn. France was told one of these marketing firms had been withdrawing a monthly fee for a service he did not know he had signed up for when he used the Internet search services of a firm called Intelius.
Other senators at the hearing agreed with Rockefeller that legislation may be needed to address the problem. University of Minnesota Law School professor Prentiss Cox said there is an easy legislative fix: "Shut down the selling of access to consumers accounts" to other firms. As a result of the panel's probe, Affinion and Webloyalty have announced changes to their marketing practices.
Music industry officials and broadcasting representatives were expected to meet Tuesday afternoon to begin negotiations called for by key members of Congress over legislation that would require AM and FM radio stations to pay a new fee to performers and record labels. House Judiciary Chairman John Conyers, D-Mich., and Senate Judiciary Chairman Patrick Leahy, D-Vt., and other key lawmakers have requested that music and broadcasting executives come together on Capitol Hill to begin two weeks of negotiations on the issue.
Music industry representatives expected at the talks included Mitch Bainwol, president of the Recording Industry Association of America as well as officials from the American Federation of Musicians, the American Association of Independent Music, American Federation of Television and Radio Artists and the Rhythm and Blues Foundation, according to Martin Machowsky, a spokesman for the MusicFIRST coalition, which supports the radio royalty legislation. "We're pleased the discussion is happening," Machowsky said. "We're hopeful that they will be productive but that remains to be seen." He said he also expected some lawmakers and congressional staff to attend the talks.
National Association of Broadcasters spokesman Dennis Wharton said NAB Board Chairman Steve Newberry and NAB Radio Board Chairman Charles Warfield attended the talks for the broadcasters along with officials from the National Association of Black Owned Broadcasters and the Hispanic Broadcasters Association. "We are not characterizing (the talks) as negotiations," Wharton said, saying NAB officials agreed to attend the meeting out of deference to the lawmakers. "We hope to explain the devastating consequences of the legislation if passed." Meanwhile, NAB ran ads in two Capitol Hill publications Tuesday thanking the 252 House lawmakers and 27 U.S. senators for signing on to the Local Radio Freedom Act, a resolution opposing the radio royalty legislation.
Senate Commerce Chairman John (Jay) Rockefeller, D-W.V., has quietly urged the FCC to closely scrutinize Verizon's plan to unload its rural assets in 14 states -- including his own -- to Frontier Communications, a deal that critics insist would leave customers without the latest broadband technologies, Congress Daily's AM edition reported Tuesday. Rockefeller is reportedly so worried about the impact on his home state of West Virginia that he met late last month with Verizon Chairman and CEO Ivan Seidenberg and over the summer with Frontier Chairman and CEO Maggie Wilderotter to convey his concerns.
Rockefeller and other critics worry the pending $8.6 billion sale to the much smaller Frontier might play out as did two similar Verizon divestitures that resulted in the sale of rural telecom lines in Hawaii and northern New England to companies that went bankrupt. Rural carriers often lack the resources to deploy the sort of cutting-edge technologies the Obama administration sees as the backbone of a sweeping national broadband plan now being crafted by the FCC. "I am deeply concerned about the transaction and urge you to closely review the applications," Rockefeller told FCC Chairman Julius Genachowski in an Oct. 6 letter, obtained by CongressDaily. "Roughly one-fifth of West Virginia households presently lack access to broadband," the senator wrote, adding that a review of the deal should "consider how to remedy this situation."
The deal, approved so far by the Justice Department and regulators in California, Nevada and South Carolina, requires the backing of six more states and the FCC, which could issue its decision in the first quarter of 2010. To read more, click here. (Subscription required)
The latest comments to be filed on a study conducted for the FCC by Harvard University's Berkman Center for Internet and Society panned the study and urged the commission to give it little consideration. The comment period closed Monday for those wishing to provide input on the study by Berkman, which was charged with providing an expert review of existing literature and studies about broadband deployment policies pursued by other countries. The study is part of the FCC's efforts to craft a national broadband plan by early next year, as required by the economic stimulus plan. The Berkman study concluded that open-access policies, which require existing carriers to lease access to their broadband networks to competitors, have helped foster competition and innovation in broadband markets in other countries.
The National Cable and Telecommunications Association argued in its comments Monday that the commission should reject the Berkman report, saying it is biased in favor of the author's personal views. "A comprehensive, objective study of the existing literature regarding broadband deployment and adoption in other countries is something that could be valuable to the commission as it develops the National Broadband Plan requested by Congress," NCTA said. "Unfortunately, the report prepared by the Berkman Center is neither comprehensive nor objective."
In comments filed late last week, George S. Ford, the chief economist for the Phoenix Center think tank, said the economic analysis does not support the Berkman study's chief findings and is "embarrassingly bad." He added, that the study "claims that 'open access' stimulates broadband consumption, but the correct interpretation of its own evidence is that unbundling reduces broadband consumption."
A Senate Commerce Committee report released Monday on the eve of a Senate hearing on aggressive online marketing tactics claimed three firms knowingly charged millions of consumers for services they did not use or did not realize they had signed up for. The report is the result of a probe into the marketing tactics of three firms: Affinion, Vertrue and Webloyalty. The probe was launched after thousands of consumers complained to state attorneys general, the Better Business Bureau and consumer advocates about an enrollment process viewed as "misleading and deceptive," the committee said.
The practices at the heart of the report come into play when consumers are ready to buy a service or product online from reputable online Web sites and retailers, which have agreements with Affinion, Vertrue and Webloyalty. The three companies insert their sales offers when consumers have made their purchase but before the confirmation process is completed, according to the report. "These offers generally promise cash back rewards and appear to be related to the transaction the consumer is in the process of completing" and include misleading "yes" or "continue" buttons that may cause consumers to think they are completing their original transaction. Instead, they enter into a new transaction with Affinion, Vertrue, or Webloyalty, which charge a monthly fee after a free trial period unless consumers cancel, the report said.
The committee's report said internal documents show the firms know most consumers are unaware they have signed up for the firms' services and most cancel them after discovering the charges on their credit or debit cards. "One Webloyalty employee candidly commented in an e-mail that, 'at least 90% of our members don't know anything about the membership,'" the report said. The committee probe also claimed that some of the e-commerce sites that partner with the three firms know consumers are being deceived. The report said one company official acknowledged, "to generate more revenue through Webloyalty, it seems we must be more aggressive (and deceptive) in our marketing techniques." Some of the three firms' partners, however, have ended their relationships with Webloyalty Affinion and Vertrue or called on them to change their tactics, the report noted.
These aggressive sales tactics have been profitable, earning the three firms and their e-commerce partners a total of $1.4 billion, according to the report. Among the e-commerce retailers cited in the report as having partnered with the firms include 1-800-flowers.com, movietickets.com and restaurants.com.
In response to the report, James Hart, a senior vice president at Affinion, which announced new marketing guidelines Friday, said in a statement that his firm has "always complied with the highest standards and guidelines set for online marketers and are committed to continuously reviewing and updating those industry-best standards to ensure that our customers are always making fully informed decisions." A Webloyalty spokeswoman said the firm no longer uses many of the tactics described in the committee report. "We believe the changes we have made over the years and continue to make show that we are committed to learning from our experience and continuously improving the way we engage with consumers," Webloyalty CEO Rick Fernandes said in a statement.
A group of artists organized by the Copyright Alliance delivered a letter to the White House Monday urging the Obama administration to back policies supportive of artists' rights. "Our rights to control the distribution, use, and reproduction of our works in our vibrant digital age are dismissed by many who do not understand the value we bring to society," according to the letter signed by 11,000 artists, including authors, photographers, songwriters, graphic designers, filmmakers, musicians, Web designers, playwrights and others. "They tell us to work harder, create better, and give our works away."
The letter called on President Obama and Vice President Biden to "pursue policies supportive of the rights of artists and the encouragement of our creative efforts." It comes a day before the Copyright Alliance's third annual EXPOnential on Capitol Hill, a conference that will explore a range of copyright issues.
In other copyright news, the Electronic Frontier Foundation and Electronic Information for Libraries announced the launch Monday of Copyright Watch, a new Web site that aims to provide a comprehensive and up-to-date online repository of national and regional copyright laws. In citing the need to track copyright law changes, EFF International Policy Director Gwen Hinze said in a statement that, "Small shifts in the balance between the rights of copyright owners and the limitations and exceptions relied on by those who use copyrighted content can destroy or enable business models, criminalize or liberate free expression and everyday behavior, and support the development of new technologies that facilitate access to knowledge for all the world's citizens."
Intel and Newsweek released a joint survey Monday that examined public attitudes toward technology's role in the world's economy and found that many, including those polled in the United States, believe technological innovation is key to economic prosperity. The survey, conducted online between Sept. 28-Oct. 13, of 4,800 adults in Britain, China, Germany and the United States found that many doubt the United States can maintain its current technological leadership. In fact, 63 percent of Chinese believe China will overtake the U.S. lead in technology in the next three decades. At the same time, three out of four Americans surveyed agreed that technological innovation will be more important in the next 30 years but many doubt that Americans can maintain its technological edge. The survey found that 82 percent said the United States is lagging behind other countries in the quality of K-12 math and science education.
When asked how U.S. policymakers should translate these concerns into action, Intel Vice President of Global Public Policy Peter Cleveland said in an interview that "I think were trying to make a case for innovation." Among the policies that can help the United States maintain its innovation edge include permanently extending and increasing the research and development tax credit, he said. "We've fallen behind other countries," Cleveland said. "If the tax laws are not as beneficial here than that R and D will go elsewhere." In addition, he cited the need for increased investment in science, technology, engineering and math education, also known as STEM, and immigration laws that allow talented foreign nationals who graduate from U.S. universities to stay here. Many of these issues will be discussed at an innovation economy conference Intel is hosting in Washington Nov. 30-Dec. 1 featuring key Obama administration and congressional officials as well as business representatives.
In Monday's CongressDaily AM edition, reporter David Hatch outlines the problems with the Obama administration's grant program to increase broadband access and interest as part of the $787 billion economic stimulus plan enacted in February. Critics say extraneous fees and red tape are indicative of a larger set of flaws with the broadband stimulus program, which has drawn close scrutiny from Congress. The initiative is run by the Agriculture Department's Rural Utilities Service and Commerce's National Telecommunications and Information Administration.
Problems are considered most acute at the RUS, which sources said was included at the insistence of Sen. Tom Harkin, D-Iowa, then-chairman of the Senate Agriculture Committee who wanted to ensure the panel would have jurisdiction. The RUS, which for the past nine years has overseen an annual portfolio of broadband loans averaging nearly $700 million, is now doling out broadband grants and loans totaling $2.5 billion, raising questions about whether it is overwhelmed. A top aide to RUS Administrator Jonathan Adelstein insisted the agency is not in over its head, emphasizing its 60 years of experience in handling applications for federal assistance. Nevertheless, sources said political vultures already are circling, just waiting for the agencies to slip up.
The broadband funds are supposed to help extend high-speed Internet connectivity to areas that lack service, competition or the latest technology. Working under a rushed schedule, rules were crafted that critics view as unnecessarily complex, forcing applicants to first apply to the RUS, even if they'd rather deal only with the NTIA. After being inundated with 2,200 applications seeking $28 billion -- seven times the $4 billion available in the first round -- both agencies fell a month behind in announcing recipients and plan to begin the process in mid-December. Among the harshest critics are Democrats, including Senate Commerce Chairman John (Jay) Rockefeller, who are angry the Agriculture agency specified that only "remote" areas -- defined as beyond 50 miles from a city or town with a population of at least 20,000 -- are eligible for its most generous grants. To read more click here. (Subscription required)
House Speaker Nancy Pelosi is scheduled to appear at an event Tuesday to highlight the research and other scientific activities funded by the economic stimulus package enacted earlier this year to help jump start the economy. Pelosi will be on hand as the Association of American Universities, the Association of Public and Land-grant Universities, and the Science Coalition launch a new initiative called ScienceWorksForUs and Web site (www.scienceworksforus.org) that beginning Tuesday will highlight research in all 50 states that is being funded by the stimulus package. The stimulus included more than $21 billion for scientific research and development, the purchase of scientific equipment, and science-related construction, according to the groups. Rep. Rush Holt, D-N.J., a physics researcher before being elected to Congress, and several academic officials also will be at the Capitol Hill event, according to a news release.
The revised settlement between Google, the Authors Guild and the Association of American Publishers appears to have done little to quell critics concerns with Google's efforts to create the world's largest digital library and bookstore. The Open Book Alliance said the deal fails to address its members' underlying concerns. Google announced the changes late Friday, which it said would address some of the concerns about the settlement by limiting the agreement's international scope, "while at the same time preserving the core benefits of the original agreement: opening access to millions of books while providing rights holders with ways to sell and control their work online."
But the Open Book Alliance's Peter Brantley argued that the revised settlement "remains a set-piece designed to serve the private commercial interests of Google and its partners." The alliance is made up of companies such as Amazon, Microsoft and Yahoo! as well as groups such as the National Writers Union and the New York Library Association. Brantley added that "Google, the AAP, and the AG are attempting to distract people from their continued efforts to establish a monopoly over digital content access and distribution."
There are several tech and telecom-related events this week. Here are some of the highlights:
Tuesday, Nov. 17
Broadcasters and music executives will begin congressional-led negotiations over performers and record labels' demands for royalties for music played on radio stations.
The Senate Commerce, Science and Technology Committee will hold a hearing at 2:30 p.m. on aggressive sales tactics on the Internet and their impact on consumers.
The Senate Judiciary Subcommittee on Terrorism and Homeland Security will hold a hearing at 10 a.m. on preventing terrorist attacks in cyber space and protecting privacy.
The House Energy and Commerce Communications, Technology, and the Internet Subcommittee will hold a hearing at 9:30 am on the Universal Service Reform Act of 2009,
The Copyright Alliance holds its EXPOnential conference with a discussion on copyright and innovation from 12-2 p.m., featuring House Judiciary ranking member Lamar Smith, R-Texas. A discussion on copyright and the local economy from 5-7 p.m. will feature House Judiciary Chairman John Conyers, D-Mich.
Wednesday, Nov. 18
The House Science and Technology Committee will meet to markup the Cybersecurity Enhancement Act of 2009.
The FCC will hold an open meeting at 10 a.m. to consider a petition for a declaratory ruling to establish timeframes for state and local zoning authorities to consider wireless facilities siting applications and will hear an update on the status of the national broadband plan, being crafted by the FCC.
Thursday, Nov. 19
The House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection will hold a hearing at 10 a.m. on the collection of information both online and offline.
In anticipation of a Senate hearing Tuesday to examine aggresive sales practices on the Internet, marketing firm Affinion announced Friday it is implementing new marketing standards after coming under scrutiny for allegedly charging consumers for services they said they didn't ask seek. The Senate Commerce, Science and Transportation Committee has been investigating Affinion and two other marketing companies, Vertrue and Webloyalty, for charging consumers monthly membership fees as part of agreements with major online retailers.
In a July letter to Affinion, Senate Commerce Chairman John (Jay) Rockefeller, D-W.V., said "consumers regularly complain that your company charges their credit card or debit card on a monthly basis for services they are not aware they have purchased." The letter noted that consumers are automatically signed up for an Affinion service if they click on an offer for a cash-back award on their next purchase after they have purchased an item online from an Affinion partner, which provides Affinion with a consumers' credit or debit card information. Rockefeller sought information from Affinion about its marketing practices and its agreements with its partners.
Affinion announced Friday that it would take several steps to address concerns raised by the committee and others including providing "enhanced clear and conspicuous disclosure of all material terms of every offer," obtaining "express informed consent" from consumers before billing them for a service, requiring consumers to provide some credit card information before signing up for a service, clearly identifying itself in its solicitations and other steps that will be implemented in coming months. "While our marketing has always incorporated clear, prominent and unambiguous terms, we continually re-evaluate our offers to make certain consumers are able to make fully informed decisions," Affinion Senior Vice President James Hart said in a statement.
The top Swiss privacy official said Friday that he is suing Google for failing to include adequate privacy safeguards in its Street View service, which allows people to get street-level pictures of locations plugged into Google Maps. Swiss Data Protection and Information Commissioner Hanspeter Thür announced in a statement that he has decided to take legal action after Google refused to take various measures suggested by his office to protect personal privacy on its Street View service.
The statement noted that faces and vehicle number plates on Street View are not "sufficiently unrecognizable from the point of view of data protection, especially where the persons concerned are shown in sensitive locations, e.g. outside hospitals, prisons or schools." The commissioner's office added that even when faces are blurred by Google, the zoom function enables a user to enlarge images of individuals. In addition, Thür's office also noted that the zoom function allows users to see into private areas such as over fences and walls. "This means that privacy in enclosed areas (gardens, yards) is no longer guaranteed," the statement said. Google Global Privacy Counsel Peter Fleischer said in a statement that the firm "met with the DPA before and after the launch [of the Swiss version of Street View], explaining our technology and, where requested, proposing steps that would reinforce Street View's privacy-protection technology and assuage any concerns." He said the firm believes "Street View is completely legal" and plans to vigorously defend it in court.
Electronics makers and public interest groups are intensifying their opposition to a request from the Motion Picture Association of America for a waiver from an FCC ban on using technology to shut off streams of on-demand-movies to cable set-top boxes deemed as insecure. In a post Thursday on the Huffington Post, Consumer Electronics Association President Gary Shapiro argued that the MPAA is not really trying to combat piracy but to gain "control of your TV" by asking to use "selectable output control" (SOC) technology. "If the FCC grants Hollywood the power to turn off analog inputs soon they will return asking for permission to unilaterally disable other features and functions," Shapiro wrote.
In a filing last week, the MPAA responded to arguments from such critics by claiming its request for a waiver for the use of the SOC technology "would be an incredibly pro-consumer development." The group argued that by using the technology to ensure the highest-level of security, the MPAA studios would feel free to stream "high-value, high-definition theatrical films during an early release window that is not available today."
Joining CEA's side are groups like Public Knowledge and the Independent Film and Television Alliance, both of which filed a fresh set of comments this week with the FCC in opposition to MPAA's request. Public Knowledge argued in its latest filing that the MPAA has not met the FCC's guidelines for a waiver nor has it adequately shown that using the SOC technology would provide the protection from piracy that it is seeking. The group noted that many non-MPAA studios already provide on-demand access to movies before they are released on DVD.
A watchdog group is calling on seven senators not to attend an event at Google's headquarters that the organization says is a fundraiser masquerading as a policy conference. Consumer Watchdog sent a letter Wednesday to the seven Democratic senators set to participate in the National Innovation Conference Friday and Saturday sponsored by the Democratic Senatorial Campaign Committee (DSCC) at Google's headquarters in Mountain View, Calif. Those listed as attending include: Sens. Mark Begich, D-Alaska, Jeff Bingaman, D-N.M., Barbara Boxer, D-Calif., Tom Carper, D-Del., Dianne Feinstein, D-Calif., Jeff Merkley, D-Ore., and Mark Warner, D-Va., as well as President Obama's pollster, Joel Benenson, according to a DSCC brochure obtained by Consumer Watchdog.
The DSCC asks those wishing to participate as "hosts" to pay $30,400, which will include tickets to several events related to the conference, while "sponsors" are asked to contribute $10,000 for access to some of the events and for $5,000 "guests" will be able to attend the panel sessions and receive breakfast and lunch. Consumer Watchdog said there will be three panel sessions where the senators are scheduled to speak on such issues as innovation and technology, health care and technology, and energy and the environment.
"This fundraising forum raises the specter of pay-to-play politics when so many issues of concern to Google and the rest of the Silicon Valley technology community are on the table," said the letter signed by Consumer Watchdog President Jamie Court and the group's consumer advocate, John Simpson. Noting that Democrats passed the "strongest ethics and lobbying reform" rules when they came to power, DSCC spokesman Eric Schultz said "all of our fundraising is fully transparent and follows the law."
The Democrats are not alone in mixing policy and politics. The National Republican Senatorial Committee will be hosting a similar fundraising event in Washington later this month featuring several Republican senators to discuss key policy issues. It also is scheduled to include officials from Google and Facebook to discuss technology matters. Simpson, who was unaware of the NRSC event, said his group opposes all events like this that "give special access to people making policy."
Two FCC members Thursday touted the urgent need for the creation of a national broadband public safety network that would enable emergency first responders to better communicate with each other. During an FCC field hearing on the issue, Commissioner Michael Copps said while it's "a problem crying out for a solution," he does not see a grand solution on the horizon. His call for urgent action on the issue was echoed by his Republican colleague, Meredith Attwell Baker. Calling it one of the most important items on the FCC's agenda, she said, "We must get this done."
While lamenting the failure of past efforts, Copps cited some progress on the issue such as the creation of the agency's Public Safety and Homeland Security bureau, which is aimed at ensuring the operation of communication systems during and after an emergency. He said he is hopeful the national broadband plan the FCC is crafting, as mandated by the economic stimulus plan, will provide some direction on the issue. "It's time for us to pull together, united by a common goal, to enhance the safety of the American people," Copps said.
He said his first choice would be to use public funds to build such a network but that opportunity passed in the aftermath of the Sept. 11, 2001, terrorist attacks. A 2008 effort to create a public-private partnership to build a national network also failed. He acknowledged that the economic downturn has added new challenges. Another issue that must be addressed, he said, is ensuring that those jurisdictions that are moving ahead to build their own public safety broadband networks will be able to communicate with a yet-to-be-built national public network.
Broadband for America announced Thursday the creation of a new Economic Growth Advisory Board to tout the economic benefits of high-speed Internet access. The group, a coalition of businesses and groups that favor improving Americans' access to broadband, claims that broadband providers have helped boost the economy in the last few years by adding jobs through the investment of $100 billion into their networks. "We want to communicate the vitally important role broadband plays in our economy - in everything from healthcare to education; and from the environment to improving the economic outlook for low income and disadvantaged communities," board member Rob Atkinson, president of the Information Technology and Innovation Foundation (ITIF), said in a statement. The board is made up of officials from such groups as the National Black Chamber of Commerce, American Consumer Institute and the Latino Coalition.
As pressure grows on the Obama administration to do more to spur job growth, the Agriculture and Commerce departments announced earlier this week steps to streamline the $7.2 billion broadband stimulus program. One of the changes included combining the remaining second and third rounds of funding into one in an effort to get the funding into the economy faster and spur job growth.
Computer chip makers Intel and AMD announced Thursday that they have reached an agreement that will result in Intel paying AMD $1.25 billion to settle an antitrust lawsuit filed by AMD. "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development," the firms said in a joint statement.
AMD filed an antitrust lawsuit against Intel in June 2005 claiming that Intel "unlawfully maintained its monopoly in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD." AMD claimed that Intel had made exclusive deals with computer makers such as Dell, Sony and Toshiba "in return for cash payments, discriminatory pricing or market subsidies conditioned" on agreeing not to use AMD products.
Under the settlement, AMD agreed to drop its lawsuit and its complaints with regulators around the world. Intel has agreed to abide by a set of business practices. In addition, AMD and Intel will "obtain patent rights from a new five-year cross license agreement," and will give up any claims of breach from a previous license agreement, the firms said. Intel has faced a host of legal problems. The FTC is investigating the firm. In May, the European Union imposed a $1.5 billion antitrust fine against Intel. And last week New York Attorney General Andrew Cuomo sued Intel for violating antitrust laws by pressuring computer makers to use its chips. Intel CEO Paul S. Otellini said in a conference call that his firm will continue to fight Cuomo's lawsuit and the EU fine. He added that he believes Intel's "discounts are lawful and in the best interest of consumers and the market place."
The Electronic Frontier Foundation said Wednesday that it will represent the Yes Men in fighting a lawsuit filed by the U.S. Chamber of Commerce against the activists for staging a fake news conference claiming the business association had changed its stance on climate change legislation. The chamber's lawsuit, filed in October, claimed the Yes Men unlawfully used the group's trademark and other intellectual property by using the chamber's logo in a press release and at the fake news conference.
At the October event, the Yes Men, who describe themselves as targeting "leaders and big corporations who put profits ahead of everything else," announced the chamber had reversed its position on climate change legislation and pledged not to lobby against a strong bill. The staged event was interrupted by a chamber official who notified those gathered that it was a fake news conference and that the chamber had not change its position on the issue.
EFF argued that the Yes Men, which will also be represented by the Davis Wright Tremaine law firm, engaged in political theater that is protected by the First Amendment. "Trademark rights do not encompass the right to silence criticism," said EFF senior staff attorney Matt Zimmerman. The chamber, in announcing its lawsuit, said that while it supports free speech, the Yes Men deliberately broke the law to sell their books, movies and other merchandise.
A coalition of civil liberties groups and others Wednesday ratcheted up pressure on the White House to move to appoint members to the Privacy and Civil Liberties Oversight Board. In a letter to President Obama, the groups voiced "growing concern over the lack of nominations" to the board, which has no members nor staff. The board was first created as part of a 2004 intelligence reform bill but was housed under the White House and criticized for lacking independence. It was recreated in 2007 as an independent panel.
"The Board is one of the few safeguards put into place to protect privacy and civil liberties following the major legal and policy changes put in place to help fight terrorism and strengthen law enforcement," according to the letter signed by the American Civil Liberties Union, the Arab American Institute, the Center for Democracy and Technology, the Electronic Frontier Foundation, and several other groups. "As your own cybersecurity review found in May, it is important to reconstitute [the board], accelerate the selection for its board members and consider to seek legislative amendments to broaden its scope to include cybersecurity-related issues." The groups called on the president to appoint the board's members before the end of the year so they can be seated by early 2010. The ACLU expressed similar concern in a report released Tuesday that called for expanding the board's power and scope.
A group of Nobel Prize-winning scientists are urging Congress to pass legislation that would provide the public with free online access to federally funded research. In a letter to members of Congress sent earlier this week, 41 Nobel Prize-winning scientists in medicine, physics, and chemistry called on lawmakers to pass the Federal Research Public Access Act, offered by Senate Homeland Security and Governmental Affairs Chairman Joseph Lieberman, I-Conn., and Sen. John Cornyn, R-Texas., which would require online public access to the published results of research funded through 11 U.S. agencies and departments. Peer-reviewed journal articles stemming from publicly funded research also would have to be made available online within six months of publication, under the bill.
"For America to obtain an optimal return on our investment in science, publicly funded research must be shared as broadly as possible," wrote the scientists, who are part of the Alliance for Taxpayer Access coalition. "Yet, too often, research results are not available to researchers, scientists, or members of the public." The bill has been referred to Lieberman's committee, but the panel has yet to act on the measure.
U.S. Patent and Trademark Office Director David Kappos launched a new blog Tuesday to "provide an open channel for sustained dialogue and the exchange of ideas." Kappos' first blog post focused on the agency's annual independent investors conference, which he recently attended. He also called on Congress to pass a patent reform bill and addressed concerns raised about the legislation. "I know that many independent inventors, like most segments of the [intellectual property] community, have concerns about some of the provisions in the bill, and I had the opportunity to address some of these concerns at last week's conference," Kappos wrote, adding that the legislation is "a vast improvement over what we have now - and there is a strong consensus that the status quo is simply unsustainable."
The U.S. Department of Agriculture's Rural Utilities Service and the Commerce Department's National Telecommunications and Information Administration said Tuesday that the remaining broadband funds from the economic stimulus package would be given out in one more round instead of two, as originally planned. The change is aimed at increasing efficiency, better accommodating applicants and moving the money into the economy faster as part of the Obama administration's goal to create more jobs, NTIA and RUS officials said in a statement.
The stimulus included $7.2 billion, split between the two agencies, to expand broadband access and adoption. Officials are currently reviewing applications for the first round of broadband funding and expect to announce funding awards in December totaling up to $4 billion. The agencies received 2,000 applications during the first round requesting nearly $28 billion for broadband projects across the nation.
"Based on our experience with the first funding round, including the overwhelming response we've seen from applicants nationwide, we believe this consolidated approach brings a number of benefits," NTIA Administrator Lawrence E. Strickling said. The agencies also said they are seeking public comment on how best to administer the second round of funding in order to improve the applicant experience and better meet the program's goals of creating jobs and stimulating long-term economic growth.
The American Civil Liberties Union urged the Obama administration Tuesday to move quickly to fill seats on the Privacy and Civil Liberties Oversight Board. The group issued a new report with recommendations on privacy oversight it said were "desperately needed" to counter new technologies and expanded government powers. "The United States needs stronger privacy institutions to protect us at a time when new technology and new government powers are threatening our privacy in truly unprecedented ways," said Michael Macleod-Ball, acting director of the ACLU Washington Legislative Office.
The report recommends building on the existing PCLOB by expanding its scope and powers. The ACLU also called for enhancing the powers of the FTC to make it a full-fledged private-sector privacy regulator. Rep. Jane Harman, D-Calif., and Senate Homeland Security and Governmental Affairs ranking member Susan Collins, R-Maine, wrote President Obama last month urging him to appoint members to the PCLOB. The board was first created in 2004, but it was criticized by the ACLU and others for not being independent because it was part of the White House. A new more independent board was created in 2007, but former President George W. Bush never appointed members to the panel.
The Justice Department Tuesday announced the indictment of four people allegedly involved in an international hacking ring that broke into the computer network of an Atlanta-based credit card processing company. Sergei Tsurikov of Estonia; Viktor Pleshchuk of Russia; Oleg Covelin of Moldova; and a person known only as "Hacker 3" were indicted by a federal grand jury in Atlanta on charges they allegedly hacked into RBS WorldPay, part of the Royal Bank of Scotland, FBI and Justice officials said in a statement. Four others from Estonia also were indicted for access device fraud.
The 16-count indictment alleges that Tsurikov, Pleshchuk, Covelin and Hacker 3 used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards, which are used by some companies to pay their employees. The ring allegedly raised the account limits on compromised accounts, and then provided a network of "cashers" with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from more than 2,100 ATMs in at least 280 cities worldwide, the news release said. The accomplices were allowed to keep up to 50 percent of the money and sent the rest back to Tsurikov, Pleshchuk and others, the officials said.
A coalition of public interest groups are calling on FCC Chairman Julius Genachowski to clarify the agency's position on network neutrality. In a letter sent Monday to Genachowski, the Media Access Project, Free Press, Consumers Union and the New America Foundation voiced concern with recent comments from an FCC official that seemed to indicate that network management may include priority treatment of high-bandwidth applications, the groups said in a news release. The groups said they want to be assured that some FCC officials are not pre-judging the outcome of the FCC's rulemaking on the issue of network neutrality, which is aimed at preserving the Internet's openness.
The letter noted that a recent news report indicated that "the official had concluded that voice and video 'have special requirements' and that prioritization of such traffic is reasonable network management. The same report also cites the official as saying that the commission will be focusing on 'different treatment of comparable applications,' a policy that would not seem to prohibit either deliberate prioritization or degradation of any broad class or category of applications," the groups wrote. An FCC spokesman declined to comment on the letter.
The Supreme Court heard arguments Monday in a patent law case examining whether a business method can be patented. CongressDaily's David Hatch reported that a decision in the case could have sweeping ramifications for a wide array of industries, including the high-technology sector. During oral arguments in Bilski v. Kappos, some justices expressed concern about the impact of awarding patents for innovations that are not related to manufacturing or technology. Justice Ruth Bader Ginsburg suggested that under the petitioners' argument, something as abstract as a strategy for resisting a corporate takeover could be patentable.
The litigation centers on efforts by inventors Bernie Bilski and Rand Warsaw, beginning in 1997, to patent a method for businesses to better manage their energy bills by factoring in weather-related price fluctuations. When the U.S. Patent and Trademark Office rejected their request, they took the case to the Court of Appeals for the Federal Circuit, which upheld the USPTO. Experts said the case could provide the most substantial update on which inventions deserve patent protection since a 1981 high court decision that defined what constitutes a patentable process. Read more in CongressDaily here. (Subscription required)
U.S. Deputy Assistant Attorney General Molly Boast Monday reiterated the Justice Department's view that Oracle's proposed purchase of Sun Microsystems is unlikely to be anticompetitive even though the European Commission has objected to the deal. "After conducting a careful investigation of the proposed transaction between Oracle and Sun, the department's antitrust division concluded that the merger is unlikely to be anticompetitive," Boast said in a statement. "At this point in its process, it appears that the EC holds a different view. We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the commission's jurisdiction."
Oracle acknowledged in a news release that the commission, the European Union's regulatory arm, has objected to the deal and is seeking more information regarding the acquisition. The commission is apparently concerned that combining Sun's MySQL database product with Oracle's products could harm competition in the database market, according to Oracle and various news sources. The Justice Department approved the Oracle-Sun deal without conditions in August. Boast said her department's approval of the deal was based on several factors. "The division concluded, based on the specific facts at issue in the transaction, that consumer harm is unlikely because customers would continue to have choices from a variety of well established and widely accepted database products," she said.
Noting that there are at least eight "strong players" in the database market, Oracle said "there is no basis in European law for objecting to a merger of two among eight firms selling differentiated products." The business software maker said it plans to "vigorously oppose" the commission's statement of objections and predicted its merger with Sun will ultimately be approved without conditions.
A coalition of communications companies that compete with the old Bell companies filed a petition Monday calling on the FCC to adopt rules that supporters say is aimed at boosting competition in the telecom and broadband markets. The coalition maintains that the FCC has been too lax in enforcing rules put in place by the 1996 telecommunications act requiring the Bell operating companies to open their networks to competitors. At the same time, they say the federal courts have barred the states from addressing the problem. The Bells "have taken advantage of this vacuum," said Genevieve Morelli, a partner at the Kelley Drye & Warren law firm who spoke on behalf of the coalition. She said the Bells have essentially ignored their obligations in recent years to provide competitors with access to the Bells' networks at just and reasonable rates. The petition provides "a framework to remedy the situation."
While the Obama administration has been working to increase broadband deployment, the coalition argued that their members' ability to offer broadband is being hampered by their limited access to the Bells' networks. Morelli noted that a recent draft study on broadband from Harvard's Berkman Center for Internet and Society found that access to unbundled elements "is critical to first generation and next generation broadband deployment."
Section 251of the telecom act required the Bells to provide access to unbundled elements of their network to competitors who couldn't adequately compete without such access, while section 271 imposed additional unbundling obligations on the Bells in exchange for allowing them to provide long-distance and information services in their markets, Morelli noted. The coalition's petition calls on the FCC to craft rules that propose "clear requirements for access to each network element specified in Section 271" of the 1996 telecom act and provide "a clearer definition for the 'just and reasonable' rate standard the FCC has previously determined applies to these elements," according to a news release.
In response to the petition, Jon Banks of the U.S. Telecom Association, which represents the Bells, said "given that the FCC and state commissions have put in place extremely detailed requirements about compliance through hundreds of thousands of pages of orders, it's hard to believe that any additional regulation could be required. Consumers, the FCC and the communications industry's efforts to invest in building the broadband networks of the future and creating the jobs that go with it would all best be served by looking forward and not re-fighting what are now long irrelevant battles."
Two consumer watchdog groups are raising new concerns with a draft anti-counterfeiting treaty. In a letter sent Monday to key members of Congress, Public Knowledge and Knowledge Ecology International complained that the Anti-Counterfeiting Trade Agreement (ACTA), being negotiated by the United States and several other countries, includes provisions from prior agreements that are more favorable to intellectual property owners, while leaving out provisions that favor consumers. "Current revelations about ACTA suggest that its provisions are overwhelmingly selected to advantage a narrow set of interests, failing to take into account its effects on the overall economy, the civil and economic rights of the public, and other elements of the public good," according to the letter sent to the leaders of the House and Senate Judiciary committees, the Senate Finance Committee, the House Ways and Means Committee and the House Energy and Commerce Committee.
The groups, which relied on press reports and "credible leaked documents" since no public text is available, said it appears ACTA is seeking to expand upon certain elements from the World Trade Organization's Trade Related Aspects of Intellectual Property agreement (TRIPS). "The result is an agreement that is therefore unbalanced. ACTA would appear to be an expanded version of the TRIPS enforcement sections, but without the balance and safeguards that have given TRIPS such legitimacy," the letter said.
Public Knowledge, Knowledge Ecology International and other groups have raised concerns in the past about the transparency of the ACTA negotiating process. In their Monday letter, the two groups urged lawmakers to press the Obama administration to release the "actual text" of ACTA so the public can provide input. "We urge you to end this exercise in unbalanced, opaque policymaking. The ACTA negotiations should be made open, or they should be stopped," according to the letter signed by Public Knowledge President Gigi Sohn and Knowledge Ecology International Director James Love.
The Office of the U.S. Trade Representative did not have immediate comment on the letter. USTR has resumed negotiations on ACTA this month in South Korea. U.S. Trade Representative Ron Kirk and his team have indicated in the past that while they value transparency, keeping the details of the trade deal under wraps is essential. The USTR allowed some industry and advocacy groups to view documents as negotiators prepared for the latest meeting but notable watchdog groups were left out and took issue with the mandate that those privy to the text had to sign non-disclosure agreements.
TechAmerica announced Monday that it has hired Kim Allman to head its state lobbying operations. Allman has many years of lobbying experience on state issues. She spent eight years at the Recording Industry Association of America where she launched and managed the group's state government affairs operation. "Kim has forged one of the private sector's strongest state advocacy networks, making her the perfect choice to bring ours to the next level," TechAmerica President Phil Bond said in a news release.
In addition to working for the RIAA, Allman also has run her own government affairs consulting firm, has worked on state government relations for MCI-WorldCom and was a former press secretary to Rep. Louise Slaughter, D-N.Y. Allman is replacing Roxanne Gould, who left TechAmerica for a public policy job at Dell. Allman, whose formal title is senior vice president for state government affairs, started Monday but won't come on board full time until Jan. 1 and will work out of TechAmerica's Washington and Sacramento, Calif., offices. "Technology is fundamental to America's competitiveness and drives growth and productivity in nearly every other segment of the economy. This is a rare opportunity to contribute to an important cause," Allman said in the statement announcing her new job.
Excerpted from the Oct. 31 issue of National Journal magazine:
Andrew Noyes is moving to Facebook's lobbying shop as manager of public policy communications. He has covered the technology beat for National Journal Group's CongressDaily since 2006 and launched the Tech Daily Dose blog the same year. He knows that making the leap to private industry is a definite role reversal. Tech lobbyists he once called for quotes are already welcoming him to the "dark side," while fellow reporters tease that they'll want exclusive scoops.
Although Silicon Valley heavyweights Google and Microsoft have sprawling D.C. lobby shops, the social-networking website is just establishing its K Street operations. Noyes, 29, will divide his time between putting out public-relations fires and drawing on his extensive Rolodex to help the company get established in Washington. Facebook hired its first lobbyist in April, and Noyes will become just the third employee in the office.
* Effective Nov. 7, Noyes can be reached at andrew{at}andrewnoyes.net.
Senate Homeland Security and Government Affairs ranking member Susan Collins and Sen. Tom Carper, D-Del., on Friday said a Government Accountability Office report showing that 16 critical federal information technology projects will cost $3 billion more than originally estimated is proof of lax oversight and underscores the need for immediate corrective action. Carper chairs the Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security.
The GAO report also notes that the IT investments will likely need an additional $1 billion to be completed on time. Two investments in particular are especially egregious, Carper and Collins said. NASA's James Webb Space Telescope and the Veteran's Affairs Health Information System Modernization will collectively overrun their original budgets by more than $798 million.
Earlier this year, Carper asked the GAO to study whether the Office of Management and Budget was providing Congress with the true cost of IT investments based on several hearings that revealed agencies often under-report the price tag for federal projects. "At a time when our country faces record deficits and dramatic budget cuts, it is unacceptable that agencies are not telling Congress and the taxpayers the true costs for these large-scale technology investments," Carper said in a statement.
National Association of Broadcasters President Gordon Smith wrote to House Judiciary Chairman John Conyers, Senate Judiciary Chairman Patrick Leahy and others on Thursday in response to an Oct. 30 letter that sought a meeting to discuss legislation that would force AM and FM stations to pay a new fee to performers and record labels. In the letter, the former Republican senator for Oregon writes that he appreciates their interest "in gaining a greater understanding of the impact that this legislation will have on your local radio stations and the local communities they serve."
Due to laws prohibiting him from lobbying Congress for two years after leaving office, Smith said he requires an ethics waiver that indicates his participation in their planned Nov. 17 meeting is legally and ethically permissible. Smith was defeated by Democrat Jeff Merkley in 2008 after two terms in office and was named head of NAB in September. He said there may be an exception for communications made in congressional testimony and needs confirmation from the Senate that his involvement falls within that, or another exception.
Read more in Tech Daily Dose here and in CongressDaily here (subscription required).
Google launched an application Thursday that allows users to see what data is stored in their accounts, but at least one group says the effort doesn't go far enough. The Google Dashboard is "designed to be simple and useful" and summarizes data for a range of products from e-mail and calendar applications to social networking and video sharing platforms. Consumer Watchdog, a group that has repeatedly thrashed Google for its advertising and privacy protection practices, said the Internet giant should let users opt out of tracking and delete information associated with their computer's IP address from Google's servers.
"If Google really wanted to give users control over their privacy it would give consumers the ability to be anonymous from the company and its advertisers in crucial areas such as search data and online behavior," Consumer Watchdog's John Simpson said in a press release. "The Dashboard gives the appearance of control without the actual ability to prevent Google from tracking you and delivering you to its marketers." That function is Google's "black box and data mine," he said.
Consumer Watchdog said Google should offer a simple "make-me-anonymous" or "don't track" button or icon on its home page, or at the very least in its dashboard, that would prevent search information from being logged at the choice of the user. The group also said that the dashboard, though useful, is not easy to find. Read more about dashboard here.
The Center for Democracy and Technology, Electronic Frontier Foundation, Electronic Privacy Information Center, New America Foundation and other advocacy groups urged the Obama administration on Thursday to open up negotiations pertaining to a proposed Anti-Counterfeiting Trade Agreement. The groups wrote to President Obama expressing "deep concerns about the lack of transparency" surrounding the pact, which is the focus of a meeting in Seoul, South Korea this week.
In their letter, they reference Obama's day one memo pledging increased openness and participation in executive decision-making and directing agencies to "take affirmative steps to make information public." The continuing Open Government Initiative indicates a strong commitment to applying the principles in practice but multiple aspects of ACTA fail to meet those standards, they said. Read the text of the letter here (PDF).
Senate Judiciary Chairman Patrick Leahy said members of his committee have their work cut out for them as winter recess nears. His panel made a big stride Thursday when it passed a pair of data security bills (see CongressDaily's PM Edition for details) and several measures that have cleared the committee and await floor action. Leahy said the Senate needs to take up a bill that would modify and reauthorize expiring provisions of the USA PATRIOT Act and the Satellite Home Viewer Act before they expire Dec. 31.
He noted he has been working with Senate Minority Whip Jon Kyl and other leaders from both parties to help make that happen. Leahy said last month that he wants to work with Majority Leader Harry Reid to schedule, before the end of the year, floor debate on legislation that would overhaul the U.S. patent system. The Obama administration has thrown its support behind the bill. Patent and Trademark Office Director David Kappos recently told a group of IP attorneys that a legislative fix is needed immediately.
A dozen senators, including Sens. Sam Brownback, R-Kan., Tom Coburn, R-Okla., and Senate Finance ranking member Charles Grassley, sent a letter to Reid and Minority Leader Mitch McConnell stating the bill needs more work before it is brought to the floor. Judiciary ranking member Jeff Sessions and Kyl have questioned the bill's approach to challenging a patent after it is granted.
House Administration Elections Subcommittee ranking member Kevin McCarthy, R-Calif., and Rep. Gregg Harper, R-Miss., unveiled draft legislation Thursday [see PDF here] designed to increase online voter registration services while preserving safeguards to protect against fraudulent registration tactics witnessed in past elections.
"Americans are increasingly enjoying the convenience of online services provided by both private and government entities and voter registration shouldn't be an exception," they said in a statement, acknowledging the bill is still a work in progress. "Providing states with incentives to implement online programs would not only assist registrants, but would also help state election administrators reduce costs, save time and increase accuracy," they said.
The draft bill would direct the Election Assistance Commission to reimburse states for the cost of creating Web-based voter registration programs. In order to qualify, a program would have to be operated through the Web site of the chief state election official. The state agency would also have to ensure the accuracy, integrity, and security of the information provided by an applicant. That includes flagging registration attempts originating from an automated source or multiple attempts by the same individual.
Senate Minority Whip Jon Kyl and Financial Services Committee ranking member Spencer Bachus wrote to Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke this week opposing calls to delay by a year the implementation of a 2006 law that banned Internet gambling in the United States. The Unlawful Internet Gambling Enforcement Act directed the Treasury and Federal Reserve to issue regulations by July 2007. After a lengthy process, the final rules are set to take effect on Dec. 1.
"There is no justification for delaying the compliance date for the long-overdue regulations implementing UIGEA," Bachus and Kyl wrote. If the final rule represented an "unreasonable burden on regulators and the financial services industry," as some lawmakers have claimed, the Treasury and Federal Reserve could have reconsidered the regulations early in the new administration and before the industry began taking steps to comply. This did not happen and the financial services sector did not petition to have the rule amended, they wrote.
Kyl and Bachus said the Treasury and Federal Reserve should carefully monitor the law's effectiveness after they go into effect and consider modifications if necessary. "Delaying the compliance date serves no interest except that of the Internet gambling enterprises that have long evaded American gambling laws and will continue to do so until effective enforcement is in place," they wrote. Read the letter here (PDF).
A high-tech trade group on Thursday is releasing a paper that explains the depth of IT problems that are preventing the Social Security Administration from making data more interoperable and easier to manage. The report from the Computer and Communications Industry Association comes as the SSA's tech advisory board begins a two day meeting to develop a roadmap for systems technology and electronic services to better carry out the agency's mission over the next five to 10 years.
More baby boomers are heading into a system, which is relying on technology that was cutting edge --- back when this generation was putting their children through college, CCIA said in a press release. The SSA has faced criticism from Congress and its inspector general about the accessibility and security of vital data and the agency was granted $500 million under the economic stimulus package to fix its aging IT infrastructure.
In the CCIA paper, "The Promise of Open IT at Social Security," industry analyst Jeffrey Gould recommends that SSA switch to open standards for citizens' data, and that critical citizens' data be stored in standardized data tables that can easily be read and used by any widely used relational database. He also writes that new versions of all critical applications should be translated to modern computer languages that are not tied to a particular hardware platform or operating system. Read more about the paper here.
Texas Reps. Gene Green, a Democrat, and Mike Conaway, a Republican, wrote to House Judiciary Chairman John Conyers on Wednesday asking to be included in any discussions regarding legislation that would force AM and FM radio stations to pay a new fee to performers and record labels. Conyers and Senate Judiciary Chairman Patrick Leahy have requested that music and broadcasting executives come together on Capitol Hill Nov. 17 to begin two weeks of negotiations.
Green and Conaway sponsored a resolution opposing the bill and it has garnered more than 250 backers. Sen. Blanche Lincoln, D-Ark., introduced an identical proposal. "We have serious concerns that legislation imposing a new royalty on local radio stations, particularly in this economic climate, will be tremendously harmful to radio stations and their employees, local communities that rely on radio, and recipients, such as charities and non-profits, that receive free airtime for their causes," Green and Conaway wrote.
Former Hewlett-Packard CEO Carly Fiorina made her candidacy for one of California's Senate seats official on Wednesday at an event in Orange County. Fiorina, who was an advisor to Sen. John McCain, R-Ariz., during his run for the White House last year, was also the first woman to lead a Fortune 500 company. Prior to joining HP, she served as an executive vice president at AT&T and helped coordinate Lucent's spin-off. She was ousted by HP's board in 2005.
Fiorina made her announcement at Earth Friendly Products in Garden Grove, Calif., where she discussed her top priorities including job creation, economic recovery and restoring fiscal accountability in Washington. "Throughout my career I've brought people together and solved problems and that is what I plan to do in government - set aside ego and partisanship and work to develop solutions to our problems," she said in a statement.
"I believe big change is not impossible, but it does require leadership, innovative thinking, teamwork and tackling the most obvious and pressing problems first," Fiorina said. "My campaign is going to be about solutions that work for the people of California and about holding Barbara Boxer accountable for her failed record over her last 18 years in the Senate, her utter failure to lead and her track record of bitter and ineffective partisanship."
She will face off in the GOP primary against California Assemblyman Chuck DeVore. For more information visit CarlyforCalifornia.com.
The stage is set for a potentially raucous day in the House Judiciary Committee Wednesday as Democrats try to push legislation to modify and reauthorize expiring portions of the USA PATRIOT Act, CongressDaily's AM Edition reported. They are also scheduled to mark up a separate bill to provide courts with specific standards for handling state-secrets claims by the government in civil lawsuits.
House Judiciary ranking member Lamar Smith and other Republicans have unsuccessfully argued that the PATRIOT Act bill introduced two weeks ago by Chairman John Conyers with House Judiciary Constitution Subcommittee Chairman Jerrold Nadler, D-N.Y., and Crime, Terrorism and Homeland Security Subcommittee Chairman Bobby Scott, D-Va., deserves a hearing before it is teed up for a vote.
Smith called the lack of a hearing an "unwarranted departure" from the regular committee process. He chaired a GOP briefing on the bill Tuesday. Smith said Democrats insist on making unnecessary changes to the law that could undermine law enforcement. The Obama administration backed a full reauthorization of the expiring provisions but said it remained open to suggestions for modifications.
Read the full CongressDaily story here (subscription required) and read more coverage in Thursday's AM Edition.
[Updated 4:10 p.m.] New York Attorney General Andrew Cuomo on Wednesday filed a federal lawsuit against microchip giant Intel Corp. making his the first formal antitrust action against Intel by any U.S. agency in more than a decade. The FTC launched an examination into Intel in 2008 but has not made its probe official. Cuomo's complaint charges that Intel violated state and federal laws by engaging in "a worldwide, systematic campaign of illegal conduct" to maintain its dominance in the microprocessor sector.
"Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market," said Cuomo, who served Intel with a wide-ranging subpoena in January 2008. "Intel's actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices," he added. Intel has repeatedly denied antitrust allegations and filed an appeal against a recent European Commission ruling.
More than 20 lawmakers recently urged Justice Department antitrust chief Christine Varney and FTC Chairman Jon Leibowitz to view the European antitrust ruling with a critical eye and weigh its impact on U.S. high-tech firms. The Sept. 18 letters to Varney and Leibowitz, spearheaded by Oregon Reps. Earl Blumenauer, a Democrat, and Greg Walden, a Republican, argued the Intel ruling "is the latest evidence of a troublesome trend in Europe toward regulatory protectionism."
Transportation Secretary Ray LaHood and FCC Chairman Julius Genachowski announced Wednesday that they are launching a campaign to evaluate technologies that may help curb the dangerous epidemic of distracted driving. Their news came at a joint hearing of two House Energy and Commerce Committee panels where both Obama administration officials testified.
The DOT-FCC partnership will also include outreach efforts to educate the public about the dangers of texting and taking on cell phones while driving and other behavior that can lead to accidents, according to a press release. LaHood told lawmakers distracted driving "is costing lives and inflicting injuries across the nation's roads and railways. Genachowski said combining the resources of both agencies "can have a major impact on this problem."
Other witnesses included CTIA - The Wireless Association President Steve Largent; David Teater of Transportation Strategic Initiatives; Center for Auto Safety Executive Director Clarence Ditlow; Robert Strassburger of the Alliance of Automobile Manufacturers; Tom Dingus of the Virginia Tech Transportation Institute; and Anne McCartt of the Insurance Institute for Highway and Auto Safety.
Craiglist.org founder Craig Newmark has agreed to serve on a Veterans Affairs Department panel that will review ideas to improve disability claims processing times and provide greater transparency to vets, the agency announced Wednesday. Newmark told a high-tech conference in June that he was contemplating whether to "dedicate a big chunk of my life" to those who are driving change in Washington. He also said he wanted to spend more time practicing his own brand of public service.
"Transforming VA into an organization that is veteran-centric, results-oriented and forward-looking is my top priority," Veterans Affairs Secretary Eric Shinseki said in a press release. "Leveraging the talent, innovation and creativity of stakeholders, like Craig Newmark, is just one of the many ways VA can think outside of the box to help deliver tangible results to our nation's veterans."
VA officials from each of the agency's 57 regional offices across the country have submitted more than 3,000 ideas, which will be reviewed by Newmark and other panel members. Newmark said he looked forward to working with VA's leadership team to "bring tangible results" to veterans. He added that he is encouraged by the fact that VA is "embracing new ways to look at old problems."
G. Edward DeSeve, who is coordinating efforts at the Office of Management and Budget to implement the economic stimulus package, refuted what he argued are false reports of fiscal misuse and wasteful spending in a Tuesday evening blog post. His list of "10 Recovery Act Myths" came on the heels of last week's unprecedented release of information on Recovery.gov and increased interest in the specific types of projects being funded.
Among the myths is a report that $11 million in stimulus funds are being used to build a bridge connecting two Microsoft campuses in Redmond, Wash. DeSeve argues that only about half of that amount is being used for this project, which he called "a vital transportation project strongly supported by both state and local officials in an area that supports over 44,000 jobs." It emerged as the region's top priority after a rigorous, competitive review, he said.
Here are the rest of DeSeve's favorite half-truths and falsehoods:
• Funds are being used to renovate a train station that hasn't been used in 30 years.
• Funds are being used for a snow-making facility in Duluth, Minnesota.
• Funds are being used to install a guardrail for a dry lake bed in Oklahoma.
• Funds are being used by the U.S. Forest Service to breed bugs in Connecticut.
• Funds are being used to purchase a freezer for fish sperm in South Dakota.
• Funds are being used to weatherize eight pickup trucks in Illinois.
• Funds are being used to purchase 22 toilets for use in the Mark Twain National Forest.
• Funds are being used to study how children perceive foreign accents.
• Funds are being to provide a tax credit for golf carts.
Read his detailed explanations here.
The latest round of negotiations on the proposed Anti-Counterfeiting Trade Agreement has begun in Seoul, South Korea with little light shed on where the talks are headed. U.S. Trade Representative Ron Kirk and his team have tried to communicate the message that while they value transparency, keeping the details of the trade deal under wraps is essential. The USTR allowed some industry and advocacy groups to view documents as negotiators prepared for this meeting but notable watchdog groups were left out and took issue with the mandate that those privy to the text had to sign non-disclosure agreements.
One such group, Knowledge Ecology International, slammed the USTR for allegedly handpicking those who reviewed the draft and filed a Freedom of Information Act request asking for "all records at USTR on the topic of the policy and practice of USTR regard the transparency of trade negotiations, including but not limited to [ACTA]." This week KEI spearheaded a letter to President Obama calling on the process to be opened up for public debate. A number of individuals and international advocacy groups signed the petition, which was circulated online.
The ACTA effort began nearly two years ago, and negotiators initially wanted to finalize the deal before the end of former President George W. Bush's term. Kirk told a crowd at the U.S. Chamber of Commerce in September that he couldn't put a firm date on when the pact would be complete. Internet piracy will be "a very strong part of our dialogue," Kirk said, noting that it would be helpful if industry stakeholders could arrive at "a more harmonious position" on the topic.
Former U.S. Assistant Trade Representative Victoria Espinel who was tapped in September by President Obama to serve as the first White House intellectual property enforcement coordinator will appear before the Senate Judiciary Committee on Wednesday. Espinel, who taught at George Mason University after leaving USTR in the Bush administration, is expected to easily win approval of the panel, which is considering an appeals court judge and several district judges the same day.
Senate Judiciary Chairman Patrick Leahy received letters in support of Espinel's nomination from a range of stakeholders including the Copyright Alliance, National Music Publishers' Association, American Intellectual Property Law Association, International Trademark Association, Motion Picture Association of America, U.S. Chamber of Commerce and others.
The Chamber called Espinel's confirmation "an important step towards fulfilling the promise of the PRO-IP Act," an IP enforcement bill that Congress passed and Bush signed into law last year. MPAA Chairman Dan Glickman called her an "excellent choice" for the office and said his experience with her at USTR was top notch. AIPLA hailed her "impressive and substantive background."
The FTC on Dec. 10 will unveil the results of its congressionally mandated examination of online virtual worlds like the popular platform Second Life, an agency official told a Commerce Department Internet safety working group Tuesday. Commission attorney Phyllis Hurwitz Marcus said the report will include recommendations for best practices for industry, parents and youth. The examination was required under the 2009 omnibus appropriations bill but Congress didn't give the FTC much guidance other than asking them to zero in on "explicit content," Marcus said.
The agency first had to decide what constituted "explicit content" and investigators decided to fold sexually explicit and violent material into the 90-day probe. The study targeted virtual worlds populated by those under age 13; those popular among older youth; and sites that are populated mainly by adults, she said. FTC employees traversed a sampling of virtual worlds in search of explicit content, which Marcus said was "really outside of our comfort zone."
House Republicans have launched an online offensive geared to take down the Democratic healthcare reform package. Minority Leader John Boehner announced the Web crusade Tuesday morning, which employs Amplify.com to start a section-by-section dialogue with the American public. As members review the 1,990 page bill and uncover what they believe are harmful provisions, Amplify allows them to clip specific portions and explain what they mean in plain English, according to Nick Schaper, Boehner's new media director.
Additionally, when visitors arrive at healthcaretruth.amplify.com they will be able to easily leave their own comments on any portion, or share the content using Twitter, Facebook, Digg and other popular social tools.
The founder of large illegal offshore sports wagering business BetonSports was sentenced to 51 months in prison on multiple charges, Acting U.S. Attorney Michael Reap announced Monday night. Gary Stephen Kaplan, 50, entered a guilty plea to charges of conspiracy to violate the racketeering statute, conspiring to violate the Wire Wager Act and violating the Wire Wager Act. He was sentenced by a federal judge in St. Louis, Mo.
As part of the plea, Kaplan forfeited to the U.S. government more than $43 million in proceeds and an additional $7 million in related earnings. Kaplan admitted that he launched an enterprise in Aruba, Antigua and eventually Costa Rica to provide sportsbook services to U.S. residents through Internet sites and toll-free phone numbers. Technologically, BetonSports phone lines terminated in Houston, Texas or Miami, Florida and were forwarded to Costa Rica by satellite transmitter or fiber-optic cable.
Kaplan's business became successful over several years and by 2004, BetonSports's principal base of operations in Costa Rica employed approximately 1,700 people. That year, BetOnSports had close to one million registered customers, accepted over 10 million sports bets in a cumulative gross amount that exceeded $1 billion. In mid-2004, Kaplan made a successful public offering of the stock of BetOnSports in the U.K. that netted him over $100 million.
"This case should serve as a warning to others who might choose to defy the laws of the United States on such a grand scale," Reap said. "Kaplan's business model itself was built on a wager that the U.S. could not and would not enforce its anti-sports book laws to reach Kaplan. Today, Kaplan lost that wager."
The House Energy and Commerce Committee will take its turn Wednesday at hearing perspectives on the dangers of using handheld devices while driving. The joint session of the Subcommittees on Commerce, Trade, and Consumer Protection and Communications, Technology and the Internet comes a week after the Senate Commerce Committee staged a similar event. At the Senate hearing, FCC Chairman Julius Genachowski said his agency wants to play an active role in encouraging technologies that can reduce injuries and loss of life due to distracted driving.
Genachowski has been invited to the witness table once again. He is expected to be joined by Transportation Secretary Ray LaHood; CTIA - The Wireless Association President Steve Largent; David Teater of Transportation Strategic Initiatives; Center for Auto Safety Executive Director Clarence Ditlow; Robert Strassburger of the Alliance of Automobile Manufacturers; Tom Dingus of the Virginia Tech Transportation Institute; and Anne McCartt of the Insurance Institute for Highway and Auto Safety.
Read coverage of last week's Senate Commerce hearing here.
Hollywood studios are asking the FCC to make protecting creative content online a core principal of its national broadband plan. In a late Friday filing, the Motion Picture Association of America wrote that if the plan -- due to Congress in February -- is to serve as a roadmap for high-speed Internet service for all Americans, the government must recognize the role content plays in driving adoption of new technologies. The filing came on the heels a September FCC workshop that featured testimony from MPAA Chairman Dan Glickman and Paramount Pictures Chief Operating Officer Frederick Huntsberry.
"Compelling content is an essential ingredient in the consumer Internet experience and a key driver of broadband adoption. Inadequate respect for creative rights online will impede the rollout of creative new content offerings, undermining the Commission's, Congress' and the administration's goal of ubiquitous national broadband," the MPAA said in its filing. "The government cannot let the anonymity of the Internet become a cloak behind which people think that unlawful conduct can continue unabated."
Read the MPAA's full filing here.
User-centric, federated identity systems have the potential to improve the security and privacy of authentication and services, but if improperly designed, the systems can negatively impact users and become a burden, according to a new report from the Center for Democracy and Technology. The paper by CDT policy analyst Heather West comes as the U.S. government begins a series of pilot programs through the Center for Information Technology, the National Institutes of Health, and the Department of Health and Human Services that will use third-party user credentials to authenticate users of federal Web sites.
The term "user-centric identity" refers to systems where users, rather than service providers, control their identity credentials, CDT said in a Monday press release. A similar concept in the offline world would be using various forms of identification for whichever transaction one chooses. The white paper discusses key components of a user-generated identity system (such as trust frameworks, users and identity providers) as well as the benefits and liabilities of federated identity management. A copy of the CDT document can be found here (PDF).
The high-tech sector is growing restless as it awaits President Obama's appointment of a White House cybersecurity coordinator. In one of the most recent displays of that frustration, the trade group TechAmerica wrote to Obama urging him to name "a qualified, credible, senior level official... at the earliest possible opportunity." While he tends to other priorities, bad actors around the world are not sitting idly by, the Friday letter stated. "Those that would seek to harm America by exploiting our digital infrastructure continue to increase their efforts," the group said.
Ideally, the cyber czar would have relevant experience in both government and industry in order to truly reflect the shared roles and responsibilities in cybersecurity, TechAmerica President Phil Bond wrote. The letter came on the heels of a series of meetings in Washington in which industry executives sought to impress upon members of Congress and administration officials the importance of strong cooperation between industry and governments at the national and international levels in securing cyberspace.
Also on Friday, Senate Homeland Security and Governmental Affairs Chairman Joseph Lieberman outlined his plans for cybersecurity legislation, which will support the naming of a White House coordinator. Lieberman's backing for the adviser, which some have called a cybersecurity "czar," puts him at odds with the top Republican on his committee, Sen. Susan Collins, R-Maine. But he said he is in talks with Collins over the legislation and hopes to get her support for a bill they can introduce as co-sponsors by December.
Read more about Lieberman's speech at the U.S. Chamber of Commerce in CongressDaily here (subscription required).
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