December 2009

Tech Daily Dose will be on vacation until Monday, Jan. 4 when we will return for a new year of tech and telecom policy news and politics.

President Obama's selection of Howard Schmidt as the nation's first cybersecurity coordinator garnered a generally favorable response Tuesday from lawmakers and industry officials. "Howard Schmidt has an impressive resume, and I look forward to meeting him and discussing the cyber challenges facing our nation," said Rep. James Langevin, D-R.I., co-chairman of the commission that made recommendations to Obama on how to protect U.S. information networks. Robert Holleyman, president of the Business Software Alliance, said Schmidt will be "a first-rate coordinator, with the exact mix of skills that are needed for the job."

Obama declared in May that U.S. information networks are a strategic asset. But finding a cybersecurity czar became an arduous, months-long process, prompting critics to fear the effort had been placed on the backburner. A debate continues to simmer in Congress over whether a White House cyber coordinator is needed, although Schmidt's position does not require Senate confirmation.

Schmidt outlined his priorities for the job in a video posted on the White House Web site Tuesday. He said his top goals are developing a comprehensive strategy to secure U.S. networks; ensuring an organized, unified response to future cyber incidents; strengthening public and private partnerships in the United States, as well as international partnerships; promoting research and development of new technologies; and leading a national campaign to promote cybersecurity awareness and education

Schmidt has 40 years of experience in government, business and law enforcement. He served in the administration of George W. Bush as vice chairman of the critical infrastructure protection board and as special adviser for cybersecurity. He also has served as chief information security officer at eBay and Microsoft.

Updated at 3:23 p.m. on Dec. 23.

During a field hearing in Chicago, FCC Chairman Julius Genachowski sought input Monday on how broadband can benefit small businesses and how to tackle adoption barriers.

Panelists, which included public officials and small business advocates and owners, said broadband benefits small businesses by lowering costs -- particularly start-up costs, increasing service efficiency, fostering collaborative work including between remote locations, enhancing skills training, and providing businesses access to wider markets.

Genachowski called small businesses "the engine of job creation in the United States," but said that 50 percent have nonetheless failed to create Web sites.

Panelists cited cost, lack of education, and bandwidth deficiency as some of the reasons why small businesses have not embraced broadband more widely. Norma Reyes, commissioner of the Chicago Department of Business Affairs and Consumer Protection, said one of the key ways to spur wider adoption is to work closely with organizations in local communities to help combat the "fear" of adoption.

CORRECTION: The original version of this report misstated Genachowski's comment about small businesses. Fifty percent have failed to create Web sites.

Microsoft Chief Financial Officer Chris Liddell has been tapped to take on the same job at General Motors Corp., the car maker announced Monday.

"Chris brings a depth and experience to this job that were unmatched in our search for a new financial leader," GM CEO and Chairman Ed Whitacre, a former AT&T CEO, said in a statement. Liddell, who has served as Microsoft's CFO since 2005, will start his new job after the new year and will officially leave Microsoft on Dec. 31.

The World Trade Organization Monday upheld a ruling that China is illegally restricting imports of U.S. music, films and books, the Associated Press reported. The WTO's appellate body struck down China's appeal of an August ruling against China's policy that forced U.S. media producers to use state-owned companies to distribute foreign entertainment products and imposed other restrictions on such items.

"The appellate body's findings are key to ensuring full market access in China for legitimate, high-quality entertainment products and the exporters and distributors of those products," U.S. Trade Representative Ron Kirk said in a statement. "U.S. companies and workers are at the cutting edge of these industries, and they deserve a full chance to compete under agreed WTO rules. We expect China to respond promptly to these findings and bring its measures into compliance."

According to the USTR's office, U.S. movie, music and publishing firms raised several objections with the Chinese restrictions on the distribution of foreign entertainment products. The restrictions included prohibiting foreign firms from distributing certain reading materials and banning distribution of music electronically.

Among the arguments China made in defending its restrictions before the WTO appellate body was that its importation restrictions of the products at issue "are justified by an exception related to the protection of public morals" and that its commitments related to the distribution of music did not cover electronic distribution of music, the USTR said. If China fails to bring its laws into compliance with WTO rules, the United States can ask the WTO to authorize commercial sanctions against China, the AP reported.

Even though Homeland Security Secretary Janet Napolitano is giving states more time to comply with legislation imposing strict federal standards for state driver's licenses, the American Civil Liberties Union said the repeated delays in implementing the law show it is unfeasible and should be scrapped. Under the law, citizens from states who do not have driver's licenses that comply with REAL I.D. will be subjected to secondary screening at airports.

But with 46 of 56 states and territories indicating they will not meet a Dec. 31 deadline, the Homeland Security Department announced late Friday that it is extending the deadline for complying with the law. States will now have until May 10 to comply with the law. In a statement, a department spokesman urged Congress to "address systemic problems with the REAL I.D. Act to advance our security interests over the long term."

In a statement Saturday, the ACLU noted that many states have rejected REAL I.D., going so far as passing legislation prohibiting them from adhering to the law. "Deadline after deadline passes with no action but [Homeland Security] continues the facade that Real I.D. should be implemented despite the fact that half of our country's states have flat out refused to comply," ACLU Legislative Counsel Christopher Calabrese said. "Congress should listen to its constituents and resist pressure to advance anything resembling Real I.D. Twenty-four states have already rejected Real I.D., citing its high cost, invasiveness and the bureaucratic hassles it creates for citizens.

Both the National Governors Association and the U.S. Travel Association sent letters to the department urging a delay in implementing Real I.D. The department backs alternative legislation known as the PASS I.D. Act, which would require states to issue driver's licenses that are compliant with federal security standards by 2016 and create a $150 million grant program to help states digitize birth records.

The U.S. Postal Service has nothing on the FCC. It appears neither sleet nor snow can stop the FCC. Even though much of the nation's capital is shut down - including the federal government - for a third day after a massive snowstorm Saturday, the FCC issued a news release Monday noting that the agency's Chicago field hearing focusing on how broadband technology can assist small businesses will go on as scheduled.

The hearing, chaired by FCC Chairman Julius Genachowski, will feature small business owners, an Hispanic Chamber of Commerce representative, and officials from the Small Business Administration and the city of Chicago. Those interested in the hearing can view a live Webcast of the event, which starts at 2:30 p.m. EST, at http://www.fcc.gov/live/.

Our industry might be heading south, but some journalists still have a sense of humor about it. In a holiday video, tech PR and lobbying firm 463 Communications had some laughs at the expense of their friends in the Fourth Estate - even recruiting a few current and former reporters to assist in the effort. Portraying a time - gasp - in the future when nearly every reporter has had to move on to a new career, the video shows that once you're a journalist, you're always a journalist.

Verizon Wireless Friday defended its increase in fees for terminating contracts early for some smart phones, saying that its pricing structure allows the wireless provider to offer such devices at a "substantial discount." In a response to a Dec. 4 FCC letter seeking more information on the provider's early termination fees, Verizon Wireless argued that it is benefitting consumers by reducing the up-front costs of smart phones and enabling more users to obtain mobile broadband services. Wireless providers often offer customers discounts on cell phones for signing multi-year contracts for service

"It thus enables many more consumers, including those of more limited means, access to a range of exciting, state-of-the art broadband services and capabilities," Verizon Senior Vice President Kathleen Grillo wrote. "The company's pricing structure therefore promotes the national goal of fostering the greater adoption and use of mobile broadband services." In a detailed letter, she also noted that Verizon provides consumers with detailed disclosure about its fees for terminating contracts early, allows consumers to terminate their service within 30 days after activation without an ETF, and also pro-rates the ETFs depending on when users terminate their service before their contracts expire.

In November, Verizon Wireless boosted the maximum early contract termination fee for smart phones to $350 from $175. Citing Verizon's move, Sen. Amy Klobuchar, D-Minn., and other senators introduced legislation earlier this month that would set limits on the termination fees that wireless providers can charge their customers for cancelling their wireless contracts early.

The Health and Human Services Department's health information technology coordinator announced Friday that his office will be investing $60 million toward research aimed at providing breakthroughs in "critical areas" blocking adoption and use of health IT. "Innovative research and approaches are required to overcome some of the foremost challenges we face in achieving our vision of a transformed health care system enabled through health IT," David Blumenthal said in a statement

The Strategic Health IT Advanced Research Projects initiative will focus on research into four areas: development of security and risk mitigation policies and technology needed to ensure public trust in health IT systems; patient-centered cognitive support research; development of new and improved architectures needed for the secure, private and accurate electronic exchange of health information; and secondary use of electronic health record data research to identify ways to enhance the use of health IT to improve the quality of health care.

The projects will be funded through money provided under the economic stimulus package enacted in February. Applications for the projects are due by Jan. 25 and the awards are expected to be granted by March.

Google's effort to digitize millions of books took a hit Friday in Paris where a French court ruled that the Internet firm violated French copyright law, the Associated Press reported. The court imposed a $14,300-a-day fine against the firm until Google eliminates the books at the heart of the case from its search engine. Google also was ordered to pay $430,000 in damages and interest to the French publisher, La Martiniere, which brought the case on behalf of other French publishers, according to the AP. Google said it planned to appeal the court's decision.

Google's digital books effort has sparked much controversy. Three U.S. library associations sent a letter earlier this week to the Justice Department urging "active supervision" of a revised settlement between Google and the Authors Guild and the Association of American Publishers. Citing concerns about the head start Google will have over potential competitors, executives from the American Library Association, the Association of College and Research Libraries, and the Association of Research Libraries said they "believe that the most effective way to prevent the Registry and Google from abusing the control they will have over the essential research facility enabled by the settlement would be for the court to regulate the parties' conduct under the settlement."

With the Senate days away from leaving for the year and bogged down with healthcare legislation, it looks increasingly unlikely that lawmakers will meet an end-of-the-year deadline for extending the research and development tax credit and other business tax breaks. The House passed the legislation last week but the Senate has yet to act.

TechAmerica made another appeal Thursday to the Senate to act on legislation that includes a one-year extension of the R&D tax credit and other tax breaks before they expire on Dec. 31. "It is a critical incentive for companies that conduct R&D in the United States, and it has a proven history of encouraging additional investments in research and job growth in companies of all sizes," TechAmerica President Phil Bond said in a statement.

The credit has been allowed to lapse a dozen times since its inception in 1981, but Congress has generally passed a retroactive extension of the credit, except for once in the mid-1990s, according to the National Association of Manufacturers' Monica McGuire, executive secretary for the R&D Credit Coalition. Lawmakers may move next year to extend the credit retroactively, but it would require the House to take up the legislation again.

The coalition has been lobbying Congress to not only make the R&D tax credit permanent but to strengthen and update it. "There's a global race for R&D dollars," McGuire said. She noted that on a list of 21 Organization for Economic Cooperation and Development countries that provide incentives for companies to do R&D, the United States now ranks 17th after ranking No. 1 in the mid 1980s. Both McGuire and Bond said more than 70 percent of the claims for the R&D credit in the United States go to pay for wages and salaries of workers. "If Congress is serious about jobs it ought not to treat the credit as a yoyo," she said.

From this morning's Earlybird:

• "Vice President Joe Biden on Thursday announced $2 billion in grants and loans to bring high-speed Internet to rural communities," Politico reports. "Biden said the Recovery Act funds will be handed out on a rolling basis over the next 75 days. An initial $182 million investment -- aiding 18 broadband projects in 17 different states -- has already been matched by more than $46 million in private capital, he said."

• "The State Department is accelerating its push into the Internet, hoping to use web sites, blogs and mobile phones to deliver the U.S. message around the world," Reuters reports. "The State Department itself unveiled a new-look web site on Thursday, including a video clip greeting from Secretary of State Hillary Clinton and one-click 'share' options to deliver the message over Facebook, Twitter, and other sites."

The satirical blog "The Secret Diary of Steve Jobs" raised eyebrows at the FCC this week when the blog encouraged mobile users to "overwhelm the AT&T data network and bring it to its knees" by banding together in a network-halting stunt this Friday.

Labeling the project Operation Chokehold, Newsweek columnist Dan Lyons--who blogs for the site under the name "Steve"--told iPhone users to run data-intensive apps simultaneously on Friday. The aim is to slow the network to a standstill. Lyons said in his post that he wanted to send AT&T the message that "we are sick of their substandard network," and to register ire over signals from the network that pricing plans based on bandwidth use may be on the horizon.

AT&T responded to CultofMac.com, calling Lyons' effort "an irresponsible and pointless scheme to draw attention to a blog." The FCC also condemned the stunt. "To purposely try to disrupt or negatively impact a network with ill-intent is irresponsible and presents a significant public safety concern... [T]hreats of this nature are serious, and we caution the public to use common sense and good judgment," the agency told ABC News.

Lyons' response to landing on the FCC's radar? "Holy crap," he blogged. He largely intended the protest as a joke, but it spun out of his hands, he wrote. Still, he did not call off the protest.

The House easily passed two communications-related bills late Wednesday -- one designed to ensure the accuracy of caller identification information, and the second to pave the way for the licensing of potentially thousands more low-power radio stations. In an effort to curb harassment and criminal activity, the caller ID bill, introduced by Rep. Bobby Scott, D-Va., would make it illegal to falsify identifying information related to a phone call, with violations punishable by a fine or up to five years imprisonment. It now goes to the Senate.

The other bill, sponsored by Rep. Mike Doyle, D-Pa., enables low-power FM radio stations to operate closer on the dial to full-power stations, based on the FCC's 2004 finding that such close proximity does not interfere with full-power signals. A companion bill in the Senate, sponsored by Sen. Maria Cantwell, D-Wash., has been awaiting action by the Senate Commerce Committee.

The Electronic Privacy Information Center and nine other privacy and consumer groups filed a complaint Thursday with the FTC urging the agency to open an investigation against Facebook, saying its new privacy settings violate consumer protection law. Facebook last week formally rolled out what it described as "easy-to-use" tools to help users gain better control of content on their Facebook pages and allow users to control who sees each piece of content they add.

EPIC, joined by the Consumer Federation of America, Privacy Rights Clearinghouse and others, claimed the changes Facebook made such as requiring users to go through a "transition tool" before accessing their account allow for far more user information to become publicly available, including to third-party application developers.

Facebook issued a statement defending its privacy tools, saying it had talked with "dozens of organizations around the world about the recent changes and we're disappointed that EPIC has chosen to share their concerns with the FTC while refusing to talk to us about them. ... We have gone to great lengths to inform users about our platform changes, beginning with our July announcement; founder Mark Zuckerberg's open letter to our 350 million users; our robust press and analyst outreach; the notice-and-comment framework for our new privacy policy; and simple customization tools for users."

Jules Polonetsky, director of the Future of Pirvacy Forum, a data privacy think tank that receives financial support from Facebook and other firms, said in a blog post that it is important for Facebook to respond to user input about the new privacy tools. "The key question is whether users are aware of the settings and whether they are using them," he said. "So far, many users seem to be aware of the changes and are adjusting the privacy controls as they see fit."

The House Judiciary Committee has begun an examination of how to tackle the growing problem of piracy of sports programming via the Internet. During a hearing Wednesday, committee members indicated they are looking for both technological and possible legal remedies to address the issue, CongressDaily reported. "It's clear we need to assess the state of the law and technology and to begin consideration of the steps that ought to be taken, domestically and internationally, to respond to this new and damaging form of piracy," Judiciary ranking member Lamar Smith, R-Texas, said.

Michael Mellis, senior vice president of MLB Advanced Media, Major League Baseball's Internet subsidiary, said it's a vexing problem. "The number of sites and services involved in this phenomenon is significant and has grown rapidly. ... This poses a threat to the globalized televised media sector."

University of Pennsylvania law and communication professor Christopher Yoo proposed some possible legal remedies. He noted that the 1998 Digital Millennium Copyright Act, which updated copyright laws for the digital age, was aimed more at content that has already been made and not live content. He said lawmakers should consider changes to the "notice and takedown" provisions of the law to address ways to better account for the piracy of live programming. In addition, Yoo said lawmakers may want to make sites that provide information on where and when to obtain illegal programming liable for infringement. To read more about the hearing, click here. (Subscription required)

During an event in Dawsonville, Ga., Vice President Biden Thursday will kick off the Obama administration's effort to disburse more than $2 billion in grants to expand broadband access in communities across the country. The funding, included in the economic stimulus package enacted in February, will be rolled out over the next 75 days. Biden will begin the rollout with the announcement of $182 million for 18 broadband projects that the administration said will benefit 17 states and will be matched by more than $46 million in private investment.

"The new broadband access will help underserved - and often hard-hit - communities overcome the distance and technology barrier by expanding connectivity between educational institutions, enabling remote medical consultations and attracting new businesses, as well as the jobs that come with them," according to a statement from the vice president's office. The stimulus package allocated $7.2 billion, to be split between the Commerce and Agriculture Departments and rolled out in two rounds, to expand broadband access and adoption particularly in areas with little or no access to the technology. In the coming days, Commerce Secretary Gary Locke and Agriculture Secretary Tom Vilsack will announce more broadband awards.

The funding will go to help build and improve connections to communities lacking "sufficient" broadband access; connect end users in homes, hospitals, schools and other places to local broadband infrastructure; expand computer and broadband access at libraries, community colleges and other places accessible to the public; and fund projects aimed at spurring broadband demand.

Meanwhile, the White House released a new report from the National Economic Council detailing how the broadband stimulus funding aims to expand broadband access and adoption. For example, the report argues that using federal dollars to build and improve broadband access to communities will bring down the cost of private investment and help attract Internet service providers to new areas.

From this morning's Earlybird:

• The Federal Communications Commission "was criticized Wednesday over the direction of its sweeping national broadband plan from an unlikely source: Consumer advocates worried it has abandoned the idea of curbing the market domination of telecommunications and cable companies," CongressDailyAM (subscription) reports.

• "Counterfeiters in recent years have become increasingly savvy about reproducing holiday lights with logos purporting to be from independent safety-certification laboratories, industry and safety groups say. Such products also may have fake trademarks of reputable manufacturers," the Wall Street Journal reports. "No federal law mandates third-party testing for electrical products, but many retailers require it. The Consumer Product Safety Commission advises consumers to look for safety certification on products like holiday lights and extension cords."

FCC Chairman Julius Genachowski Wednesday called upon broadband service providers to offer inexpensive connectivity to low-income customers -- one of several proposals to be included in an upcoming national broadband plan that will place heavy reliance on industry cooperation, CongressDaily reported. Another proposal is for the communications industry to offer set-top boxes that would serve as Internet gateways for television sets and allow consumers to switch their video and broadband companies without requiring new equipment.

Agency officials signaled that the blueprint, to be presented to Congress Feb. 17, will be sweeping in scope, addressing subjects such as education, health care, job training and smart-grid technology. Nevertheless, it also will emphasize recalibrating existing programs -- such as the federal Universal Service Fund -- to support broadband deployment or adoption. Officials said they envision a plan that requires limited legislation and federal funding for implementation.

A satellite television law set to expire at the end of the month would receive a two-month extension as part of the final fiscal year 2010 Defense appropriations bill passed by the House Wednesday, forcing Congress to go back to the drawing boards next year to craft a five-year reauthorization, CongressDaily reported. After spending much of 2009 on the highly technical and controversial legislation, the effort collapsed at the last minute, forcing the temporary fix. The defense spending bill must still be passed by the Senate.

The satellite law governs the retransmission of broadcast television services via DirecTV and the Dish Network. Lawmakers had sought to require both services to offer packages of local broadcast channels within more markets, particularly rural areas. "There should be no reason the Senate cannot act on this bipartisan, consensus legislation early next year, and I look forward to working with the Senate majority leader to schedule its consideration," Senate Judiciary Chairman Patrick Leahy, D-Vt., said Wednesday in a statement.

Microsoft has tapped Frank Cavaliere as director of government affairs for the Senate. He was previously deputy legislative director to former Sen. George Allen, R-Va., when he chaired the Senate Republican High Technology Task Force and the Congressional Nanotechnology Caucus. Cavaliere most recently worked for the Motion Picture Association of America, where he was vice president and senior counsel of federal affairs. He represented MPAA on Capitol Hill and before the FCC. Before that, he was vice president of federal and regulatory affairs for Internet phone service provider Vonage.

Not sure where your House member stands on net neutrality? An online tool unveiled earlier this week by SavetheInternet.com aims to fix that by mapping lawmakers' views by state and providing a database searchable by zip code.

The database lists members as "for," "against," "undecided," or "unknown" on the issue, and it's based on crowd-sourced data collected by the coalition, which favors net neutrality. The tool doubles as a lobbying device for the net neutrality advocates. Once users locate their lawmakers, the site prompts them to send a standardized letter in favor of net neutrality.

Net neutrality advocates aim to preserve an Internet in which service providers cannot offer varying levels of quality depending on such variables as whether a content provider pays to be placed in a higher service tier.

There are divergent reactions - much of which could be attributed to who they represent - by some Washington-based industry groups to the news Wednesday that the FTC is suing Intel Corp. for anticompetitive behavior.

The Computer & Communications Industry Association lauded the FTC for taking steps to preserve competition. Intel rival Advanced Micro Devices (AMD) is one of CCIA's member companies. "Innovation and products that make technological leaps forward are crucial to our nation's economic recovery," CCIA President Ed Black said in a statement. "The FTC's actions against Intel's alleged bullying behavior shows it understands the dangers of overlooking evidence that a company is using its position to discourage competing products from reaching the marketplace."

Black argued that the FTC is not alone in targeting Intel, noting that antitrust authorities in Europe, Japan and South Korea have launched their own inquiries. The European Commission levied a record $1.5 billion antitrust fine against Intel in May. Last month, Intel settled a lawsuit filed by AMD and agreed to pay the firm $1.25 billion.

The Association of Competitive Technology, which counts Intel as one of its "sponsors," argued that Intel's settlement with AMD should have resolved the matter. "The FTC's complaint is a hasty solution to some hypothetical and imaginary issues," ACT President Jonathan Zuck said in a statement. "Following the settlement between Intel and AMD that resolved the core issues that the FTC has been investigating for more than two years, the FTC has slapped together a completely new set of allegations into this complaint."

On the same day one technology giant finds itself facing new antitrust troubles, another one found itself close to escaping the grip of its decade-long antitrust problems in Europe. The European Commission said Wednesday that it is dropping its antitrust charges against Microsoft Corp. after the software giant agreed to provide users of its Windows operating system with several choices for Web browsers. The European Union's move comes on the same day that the FTC announced it was suing Intel Corp., for anticompetitive behavior (See related story).

The commission said in a news release that Microsoft's "legally binding commitments" to boost competition in the Web browser market addresses its concerns that the firm tied its Web browser, Internet Explorer, to Windows in violation of EU rules barring firms from abusing its dominant position in a market. The commission, the EU's regulatory arm, charged Microsoft in January with abusing its dominant position by tying its browser to its operating system.

"Millions of European consumers will benefit from this decision by having a free choice about which Web browser they use," European Competition Commissioner Neelie Kroes said in a statement. "Such choice will not only serve to improve people's experience of the Internet now but also act as an incentive for Web browser companies to innovate and offer people better browsers in the future."

In particular, Microsoft has agreed, for five years, to provide users in EU countries with a "choice screen" enabling users of Windows XP, Windows Vista, or Windows 7 the choice of installing a Web browser from several options including Internet Explorer. In addition, Microsoft also will allow computer manufacturers to install a competing Web browser as the default browser on computers they sell. If the firm fails to abide by its commitments, the EU can impose a fine of up to 10 percent of Microsoft's annual total turnover, the commission said.

"We are pleased with today's decision by the European Commission, which approves a final resolution of several longstanding competition law issues in Europe," Microsoft General Counsel Brad Smith said in a statement. "We look forward to building on the dialogue and trust that has been established between Microsoft and the commission and to extending our industry leadership on interoperability."

The FTC said Wednesday that it is suing Intel Corp. for using its dominance in the computer chip market to harm competition and strengthen its monopoly. In the complaint, the FTC alleges Intel has "waged a systemic campaign to shut out rivals' competing microchips by cutting off their access to the marketplace."

"Intel has engaged in a deliberate campaign to hamstring competitive threats to its monopoly," Richard A. Feinstein, director of the FTC's Bureau of Competition, said in a statement. "It's been running roughshod over the principles of fair play and the laws protecting competition on the merits. The commission's action today seeks to remedy the damage that Intel has done to competition, innovation, and, ultimately, the American consumer."

The FTC's complaint alleges that Intel used threats and rewards to "coerce" computer manufactures such as Dell, Hewlett-Packard and IBM not to buy rival computer chips and used exclusive or restrictive deals to prevent computer makers from marketing any machines with non-Intel computer chips. In addition, the FTC claims Intel "secretly redesigned" key software known as a compiler to "deliberately" stunt the performance of competitors' central processing unit chips, while telling the public that the software performed better with Intel's CPUs than on their competitors' products. The complaint also alleges the firm is attempting to leverage its power to gain control over the emerging market for graphics processing units.

The commission said Intel's alleged activities violate sections of the FTC Act prohibiting unfair methods of competition and deceptive acts and practices in commerce, and the firm also engaged in illegal monopolization. The FTC is seeking an order that would bar Intel from using threats, bundled prices or other measures to encourage exclusive deals and hamper competition. The commission said it also may seek to bar Intel from "from unreasonably excluding or inhibiting the sale of competitive CPUs or GPUs."

The FTC lawsuit comes a month after Intel reached a settlement with its chief rival, Advanced Micro Devices Inc. However, Intel is still appealing a record $1.5 billion antitrust fine levied against it by the European Commission in May.

"Intel has competed fairly and lawfully," the firm said in a statement. Intel General Counsel Doug Melamed added that the firm tried to reach a settlement but the FTC "insisted on unprecedented remedies - including the restrictions on lawful price competition and enforcement of intellectual property rights set forth in the complaint that would make it impossible for Intel to conduct business." He also said the FTC rushed to file the case without fully investigating some of the facts.

From this morning's Earlybird:

• "The House is planning to ramp up its information and technology security protocols next year based on recommendations made by the Office of the Chief Administrative Officer (CAO) on Tuesday," The Hill reports. "All House staffers who travel outside the territorial United States will be 'required to have their House wireless devices and laptop computers checked by House officials before and after they travel,' according to the CAO."

• "With his industry's fate on the line, National Association of Broadcasters President and CEO Gordon Smith urged Congress Tuesday to preserve free, over-the-air television and not cave to pressure to reallocate the airwaves for broadband connectivity," CongressDailyAM (subscription) reports.

House Oversight and Government Reform Chairman Edolphus Towns, D-N.Y., is giving Arbitron 30 days to work with the media ratings industry's self-regulatory group and minority broadcasters to try to address critics' concerns with Arbitron's electronic radio listening measurement device. During a hearing earlier month before Towns' committee, minority broadcasters complained that the methodology Arbitron uses with its new Portable People Meter undercounts minority radio listeners. Minority radio stations say the dramatic shifts in ratings for their stations that have emerged with the use of the PPM are threatening their viability.

Towns has urged Arbitron to work with the Media Ratings Council and minority broadcasters to develop methodology for use with the PPM that addresses such concerns. The self-regulatory council has so far refused to accredit the PPM for use in 31 of the 33 markets where it has been introduced. Arbitron has defended the technology but said it is working to address critics concerns.

"I am confident that participants at the hearing, with help from the Federal Communications Commission, can develop a solution that creates accurate ratings for all radio stations, including minority targeted broadcasters," Towns wrote in a letter to Arbitron and others last week. "To achieve this, it is critical that all parties, including Arbitron, work together to ensure that the PPM methodology finally meets the high standards set by the Media Ratings Council." Towns warned in a news release Tuesday that he would consider legislation to address the problem if the issue is not resolved within the 30-day timeframe he has set.

The House passed legislation by voice vote Tuesday that would prevent television advertisements from playing at a volume noticeably above programs. Under the measure, advertisers would have one year to adopt industry technology that modulates sound levels. "In my 17 years in the House of Representatives, I've never carried a bill which has been received with so much enthusiasm by people across the country," said Rep. Anna Eshoo, D-Calif., who drafted the legislation. Sen. Sheldon Whitehouse, D-R.I., introduced companion legislation last week.

The Association for Competitive Technology and a group of 37 technology firms are urging the FTC to avoid taking regulatory action against Intel, saying it may hurt innovation and increase prices in the computer chip market. The FTC has been investigating Intel's business practices particularly in relation to its competition with Advanced Micro Devices Inc. (AMD). The European Commission in May levied a record $1.5 billion antitrust fine against Intel, which has appealed the EU's decision. But last month, Intel and AMD announced they had reached a settlement in which Intel agreed to pay its rival $1.25 billion to settle a lawsuit filed by AMD.

In their letter last week to the FTC, ATC and technology firm such as Applied Information Sciences, CriticalSites, and Vergent Software argued that potential regulatory action in the chip market "presents a clear danger to our businesses, and could have the perverse effect of stifling innovation, raising prices, and costing America jobs. ... The chip market is clearly working well for software developers and consumers. We are extremely concerned by the potential of additional government intervention in the chip market."

In a new report released this month, ACT, which lists Intel as one of its "sponsors," found that the price of computer processers has fallen as their performance has increased. "From 2000 to 2008, relative processor performance among high-end chips increased by approximately 28 times while the price was cut in half," according to the report, which cited Bureau of Labor statistics.

Public interest and tech industry advocates voiced disappointment about being left out of a round table discussion Tuesday afternoon being hosted by Vice President Biden and several cabinet officials to discuss enforcing laws against the piracy of intellectual property.

In addition to the vice president, the event will feature a who's who of Obama administration officials who have a role to play in enforcing IP laws. They include Attorney General Eric Holder, Homeland Security Secretary Janet Napolitano, Commerce Secretary Gary Locke, FBI Director Robert Mueller, U.S. Secret Service Director Mark Sullivan, U.S. Patent and Trademark Office Director David Kappos and the White House's new IP enforcement coordinator, Victoria Espinel. The industry participants include executives from the movie studios, record companies, book publishers, television networks and the heads of the Motion Picture Association of America and Recording Industry Association of America, as well as unions representing actors and directors.

Both Public Knowledge and TechAmerica released statements arguing that they have important roles to play in the debate. "Hopefully the administration can avoid this oversight in the future and include all of the stakeholders," said TechAmerica President Phil Bond, who described being left out of the meeting as receiving a "political lump of coal" for the holidays. "The technology and content industries depend upon each other in the digital economy. We will have to work together to protect privacy and to help the government enforce the law."

Public Knowledge President Gigi Sohn noted that the White House touted the meeting as bringing together "all the stakeholders" on ways to combat piracy. But public interest groups, technology companies and Internet service providers were not invited nor was anyone "who questions the need for Draconian governmental policies on behalf of the privileged special interest group for whom this meeting is being held is on the guest list," Sohn said. "If Vice President Biden is truly interested in learning more about intellectual property, we hope he will continue his consultations with a group of people who share a wider range of views than those with whom he will meet today." In response, a White House official said Tuesday's discussion is "the first of what we expect to be several meetings between those who are affected by the theft of intellectual property and the administration."

Teenagers with unlimited text messaging plans are more likely to receive sexually explicit images on their cell phones, according to data released today by Pew Research Center's Internet & American Life Project. This was one of the strongest trends identified in a study that aimed to gauge how frequently minors are "sexting" -- exchanging sexual images of themselves on their mobiles.

The few dimes it takes to send a text, it appears, is a strong disincentive in the exchange of sexual messages. Among minors with unlimited plans, nearly one in five had received such images. That compares with 8% of teens on limited plans and 3% of teens who pay per message.

"Your attitude and whole perspective on texting in your life is different if you have an unlimited plan," said Amanda Lenhart, a Pew senior research specialist and author of the report. "It makes for a very different way of thinking about it when you're sending messages."

Two key stakeholders who have taken opposite stands in the net neutrality debate found some area of agreement Tuesday: Wireless providers should be given more leeway in how they manage their broadband networks given the constraints imposed by their use of spectrum to deliver high-speed Internet services. But when it comes to the overall issue of whether the FCC should impose rules that would ensure that broadband providers cannot prioritize content, Public Knowledge President Gigi Sohn and Chris Guttman-McCabe, vice president of the wireless industry group CTIA, parted company.

During a debate on the FCC's proposed principles, Sohn argued that the issue "comes down to what kind of Internet do we want? Do we want an Internet where control" is with the users or the network operators. "The large carriers want to prioritize content. They want to pick winners and losers," Sohn said. She argued that the FCC's proposed network neutrality principles are "spare, narrow and straight forward" and will ensure that control stays with users. Sohn added that while operators, particularly wireless carriers, should have some flexibility to manage their networks, she said it should be defined. Sohn said she has concerns that the FCC's proposed language providing for "reasonable" network management is to "loosey goosey." She said she would prefer the agency consider language adopted by Canadian authorities.

Guttman-McCabe argued that it is too soon for the FCC to wade into the issue, particularly in the wireless market, where carriers are just beginning to roll out wireless broadband. "The FCC has not made the case [for] why the rules are necessary," he said, noting that there have been only two significant cases of providers blocking content and those issues have been resolved.

He added that in the one case where restrictions requiring open access were attached to the auction of the c-block chunk of spectrum, very few providers bid, compared with the other chunks of spectrum offered. Guttman-McCabe said it shows that such restrictions will provide a disincentive to investment and innovation. Sohn countered that the fact that the spectrum sold for less means consumers will benefit by paying less for the services that come from that spectrum.

From this morning's Earlybird:

• Politico reports on some media consumer advocacy groups' fears over Comcast's attempt to buy NBC Universal from General Electric: "If the $30 billion sale goes through, it will mark the emergence of Comcast as perhaps the country's biggest media empire, while landing it squarely in the center of a raging debate over media consolidation and bias."

• "The Supreme Court agreed on Monday to decide whether a police department violated the constitutional privacy rights of an employee when it inspected personal text messages sent and received on a government pager," the New York Times reports. "The case opens 'a new frontier in Fourth Amendment jurisprudence,' according to a three-judge panel of an appeals court that ruled in favor of the employee, a police sergeant on the Ontario, Calif., SWAT team."

• "Google Inc. is in discussions with Deutsche Telekom AG's T-Mobile USA to sell its upcoming phone at a discounted price for the carrier's customers, according to people familiar with the matter," the Wall Street Journal reports. "Google is talking to other wireless carriers about similar arrangements, these people said. A Google spokeswoman couldn't immediately be reached for comment."

Broadband advocates, civil rights activists, and FCC officials described high-speed Internet service as a "civil right" during an FCC public hearing Monday night in Memphis focused on the digital divide. "Universal access to broadband needs to be seen as a civil right...[even though] not many people have talked about it that way," Commissioner Michael Copps said. The event was one in a series as the FCC works to craft a national broadband plan by February.

Panelists described a digital gap in which rural, minority, and low-income Americans subscribe to broadband at lower rates than the general population. Non-users face educational challenges, difficulty applying for jobs, and limited access to government services in a world where many of these functions have moved online, panelists said.

"Broadband is becoming a basic necessity," Benjamin Hooks, the first black FCC commissioner and a former NAACP executive director, said. Panelists noted that affordability and a lack of education about broadband's benefits are key barriers to universal adoption. Increased access at community centers could serve as a "first step" in informing these groups about the need to adopt broadband, Metropolitan Inter-Faith Association Vice President Dianne Polly said.

Data released earlier this year by the Pew Internet and American Life Project found that broadband adoption was at 35 percent among Americans living in households with annual incomes under $20,000. The survey also found that 46 percent of blacks had broadband at home, while the home adoption rate among the adult population in general was 63 percent.

U.S. Trade Representative Ron Kirk Monday praised the European Union for ratifying two treaties aimed at updating international copyright protections for the Internet age. The World Intellectual Property Organization's Copyright Treaty and the Performance and Phonograms Treaty, known as the "Internet treaties," clarified "exclusive rights and require signatories to provide effective legal remedies against the circumvention of certain technological measures that protect copyrighted works in online environments," according to the USTR. They went into force in 2002.

"We, as a group have shown our attachment to the international system of protection of copyright and related rights," EU Internal Market Commissioner Charlie McCreevy said in a statement. "These two treaties brought protection up to speed with modern technologies. As the technological evolution accelerates, protecting creators and creative industries is more urgent than ever."

The EU and its member states' ratification Monday of the treaties brings the number of countries that have signed on to the Copyright Treaty to 88 and 86 for the Performances and Phonograms Treaty. "The EU's ratification of the WIPO Internet Treaties underscores the broad international commitment to combating piracy on the Internet," Kirk said. "We hope that other U.S. trading partners will also ratify and implement these important treaties."

The Supreme Court Monday agreed to hear a case that will weigh how much privacy employees should have over text messages sent from company accounts, the Associated Press reported. The high court said it would review a federal appeals court ruling in City of Ontario v. Quon.

The 9th U.S. Circuit Court of Appeals in San Francisco ruled in favor of Sgt. Jeff Quon and three others who sued the Ontario, Calif., police department for violating their privacy rights by improperly snooping on their text message exchanges. The city said it was trying to determine if pagers were being used only for work purposes. Quon sent and received hundreds of personal messages, including some that were sexual in nature, according to the AP.

The text messaging service also was faulted by the appeals court for turning over transcripts of text messages to department officials without the permission of those involved, the AP reported. The police department and USA Mobility Wireless, which has since bought the text messaging service involved in the case, both appealed the ruling but the justices only agreed to hear the city's case.

House Science and Technology Committee Chairman Bart Gordon, D-Tenn., announced Monday that he will not seek re-election to the House. He cited family reasons for deciding not to run in 2010 for a 14th term in the House.

"Turning 60 has led me to do some thinking about what's next. I have an eight-year-old daughter and a wonderful wife who has a very demanding job, and I am the only child of my 83-year-old mother Margaret," Gordon said. "They have made sacrifices to allow me to do what I love by serving Congress, and now it's my turn."

Among his accomplishments he cited during his nearly three years as chairman of the Science and Technology Committee is passage of the America Competes Act, signed into law in 2007. The law is aimed at improving U.S. competitiveness by authorizing increased investments in basic research, high-risk energy technology development, and science, technology, engineering and math education. He pledged to work to reauthorize the legislation in his last year in Congress.

Rep. Jerry Costello, D-Ill., is the next Democrat in line on the committee, and he said Monday that he plans to pursue the chairmanship of the panel in the 112th Congress, assuming Democrats maintain control of the House. He praised Gordon as "a very effective leader of the Science and Technology Committee, strongly advocating the important role of science for society, including a great emphasis on math and science education."

The group that manages the Internet's address system inked its first-ever agreement late last week with a U.N. agency to operate the newest top-level generic Internet address. Under the agreement with the Internet Corporation for Assigned Names and Numbers, the Switzerland-based Universal Postal Union will operate the .post Internet domain name. The UPU will be responsible for determining the rules under which postal organizations around the world can obtain the new .post Internet address.

The UPU said in a news release that .post would be used for developing e-commerce and facilitating international trade as well as to better link electronic addresses to physical postal addresses. For example, it could eventually allow a person to send an e-mail and have that message turned into a physical piece of mail that can be sent to a recipient who might not use e-mail, ICANN said. The UPU said it expects .post to be operational by mid-2010. UPU Director General Edouard Dayan said .post "will enable the UPU to reach the full potential of its original mission: to build a worldwide space without borders where personal and business communication is facilitated in a secure environment."

Meanwhile, ICANN also announced that it has signed an agreement with the United Nations Educational, Scientific and Cultural Organization to assist in ICANN's efforts to adopt internationalized domain names, which are non-Latin based characters that can be used in Internet addresses. They are now being used on a limited basis in the top-level domain name portion of an Internet address such as for ".com," ICANN said.

"This agreement with UNESCO will assist the inclusion of as many language groups as possible and in the process it will help ICANN fulfill its mission of global inclusivity by expanding our wide arena of international stakeholders," ICANN CEO Rod Beckstrom said in a statement.

There are several technology and telecom-related events this week. Here are some of the highlights:

Monday, Dec. 14,
The FCC will hold a field hearing at 6 p.m. in Memphis on digital inclusion.

Tuesday, Dec. 15, 2009
The House Energy Commerce Committee's Communications, Technology, and the Internet Subcommittee is holding a hearing at 9:30 a.m. on H.R. 3125, the Radio Spectrum Inventory Act and H.R. 3019, the Spectrum Relocation Improvement Act of 2009.

The Senate Commerce Committee holds a nomination hearing at 2:30 p.m. for two nominees to the FTC, Julie Simone Brill and Edith Ramirez.

Public Knowledge President Gigi Sohn and Chris Guttman-McCabe, vice president of regulatory affairs for the wireless group CTIA, will debate net neutrality at 9:30 a.m.

Wednesday, Dec. 16
The House Judiciary Committee will hold a hearing at 10 a.m. on the piracy of live sports broadcasting over the Internet.

The FCC will hold an open meeting at 11 a.m. to receive a status report on the development of the national broadband plan.

The FCC will hold a staff workshop at 1 p.m. on speech and democratic engagement as part of the agency's open Internet proceeding.

Thursday, Dec. 17
NDN President Simon Rosenberg delivers remarks at 12: 15 p.m. at a presentation of "The Dawn of a New Politics," which examines "how changing media, technology, and demography trends are birthing a new politics here in America and around the world."

From this morning's Earlybird:

• "The telecommunications policy circuit is chock-full this week, with subjects such as network neutrality, the national broadband plan and the looming spectrum crisis the focus of events at the" Federal Communications Commission "and on Capitol Hill," CongressDailyAM (subscription) reports.

• "Google Inc. plans to begin selling a cellphone directly to consumers as soon as next year, people familiar with the matter said, escalating the Internet giant's assault on the traditional business model of the wireless industry," the Wall Street Journal reports.

The FCC's hiring this week of Stuart Benjamin, a telecommunications law professor on leave from Duke University, as a "distinguished scholar in residence" drew sharp criticism Friday from the Parents Television Council, which claims that he's called for long-standing broadcast indecency law to be found unconstitutional, CongressDaily reported. "The appointment of Stuart Benjamin raises significant questions about how seriously the FCC intends to take its job to enforce the well-established broadcast decency law," PTC President Tim Winter said in a prepared statement. He urged FCC Chairman Julius Genachowski to reaffirm his commitments to enforce laws and regulations governing inappropriate radio and television content. To read more click here. (Subscription required)

Senate Commerce Committee Chairman John (Jay) Rockefeller, D-W.Va., introduced legislation Friday that aims to use an existing universal service program to help low-income households gain access to broadband Internet service.

The legislation would create a two-year pilot program expanding the FCC's Lifeline program, which currently subsidizes basic phone service for low-income households, to provide support for the cost of basic broadband service. In addition, the bill also would require the FCC to study expanding the related Link-Up program, which now subsidizes for low-income households the start-up costs of obtaining basic phone service, to include assistance for the costs of obtaining computer equipment needed for broadband service.

"As more aspects of 21st century life become dependent upon Internet access, it is crucial we help to provide all families with the high-tech resources they need to succeed in the workplace and in school - and for the United States to continue to be a competitive, global economic leader," Rockefeller said in a statement.

In a Web chat Friday, former FCC Chairman Michael Powell, who served under GOP President George W. Bush, voiced support for an idea similar to Rockefeller's proposal. "As the government looks to reform universal service, it should examine how it might re-purpose its Lifeline program to help subsidize and offset the cost of broadband service," said Powell, the honorary co-chairman of Broadband for America, a coalition of broadband providers, consumer groups and others that back expanding broadband access nationwide.

The Associated Press is reporting that some Internet users have been lured with the promise of free gifts, such as "virtual" money for use on online games, into sending e-mails to members of Congress opposing President Obama's health care overhaul effort. A Web site called Get Health Reform Right, launched by a coalition of 10 insurance groups, apparently generated the e-mail letters, according to the AP.

Blue Cross/Blue Shield, which leads the coalition, told the AP that it did not know where the ads came from and it did not approve of providing financial incentives to write such letters. A note on the Get Health Reform Right Web site said, "Because of unauthorized use of the Get Health Reform Right name and logo, we have temporarily suspended the Get Health Reform Right website."

The United States has maintained its current ranking of 15th in terms of broadband penetration, according to the latest statistics released by the Organization for Economic Cooperation and Development, but the country is making progress in the amount of fiber-optic lines being installed. The latest OECD statistics, based on data from June 2009, show that while the United States may still lag behind other countries in terms of the number of broadband subscribers per 100 residents, the United States is seventh overall in the rollout of fiber. Fiber enables much faster broadband speeds than are currently available with cable or DSL, according to Taylor Reynolds with the OECD's Science, Technology and Industry division.

The Netherlands, Denmark, Norway, Switzerland and South Korea round out the top five in terms of broadband penetration among the OECD's member countries. However, in terms of fiber penetration, Japan and South Korea are well ahead of most other countries while the United States is making progress. "Nearly one in 10 OECD subscribers currently accesses the Internet over fiber," according to an OECD press release.

While the OECD did not update its statistics on broadband prices, U.S. customers tend to pay more than residents in other countries, Reynolds said. For example, he said the cost of an Internet, phone and video package in Paris, where there are about a half dozen broadband providers, is about half of what it costs in the United States. Reynolds said competition tends to be greater and broadband prices are lower in those OECD countries that require dominant providers to lease elements of their network infrastructure to rivals, a policy known as unbundling. "The markets with the cheapest prices are those that also have unbundling," he added. This view was echoed in a broadband study done for the FCC by Harvard University's Berkman Center for Internet and Society.

It seems even one of the federal government's top technology officials doesn't know when the Obama administration will announce its choice for White House cybersecurity coordinator. Asked Thursday following a Senate Budget Committee hearing when the White House will announce its pick, federal Chief Technology Officer Aneesh Chopra said he did not know when it would happen but is "highly confident that we will see an individual named" to the post. Would it happen before the end of the year? "I hope so," he said.

It's been nearly seven months since President Obama announced his intention to name a high-level adviser - who would report to the president - to help coordinate the federal government's efforts to protect its computer networks and encourage the private sector to do the same. When asked about the status of the post, White House spokesman Nick Shapiro said in an e-mail response that cybersecurity remains "a major priority for the president," adding that the administration is moving forward on some of the key issues identified by the "top-to-bottom" cybersecurity review conducted earlier this year.

As far as when this person will be named, Shapiro would only say that the "president is personally committed to finding the right person for this job" and "a rigorous selection process is well underway." Earlier this fall, speculation had focused on former Clinton administration Defense Department official Frank Kramer. The Center for Strategic and International Studies' James Lewis said it appears Kramer may be out of the running.

From this morning's Earlybird:

• "With a Dec. 31 deadline looming, Congress appears to be making progress on a five-year extension of a satellite television law governing the transmission of broadcast signals to customers of DirecTV and the Dish Network," CongressDailyAM (subscription) reports. "According to congressional and industry sources, the Commerce and Judiciary committees in both chambers are trying to reach agreement on a consensus reauthorization measure that would be added to an appropriations bill next week."

• "Federal regulators receive tens of thousands of customer complaints about wireless services every year, but don't do enough to follow up or protect consumers who have problems with their mobile carriers, government auditors found," AP reports. "In a report released Thursday, the Government Accountability Office said the Federal Communications Commission needs to ramp up oversight of the wireless industry and do a better job of enforcing consumer protection rules."

U.S. technology firms and other business trade groups are voicing strong concerns with a new Chinese government procurement policy that they say would make it nearly impossible for foreign suppliers to sell a wide-range of technology and other products to Chinese government agencies. A group of 34 trade groups from around the world sent a letter to the Chinese minister of science and technology and other Chinese officials raising concerns with the country's new Indigenous Innovation Product Accreditation system, which would require companies that want to sell certain products to Chinese government agencies to ensure the intellectual property used in those products is developed and owned in China.

The affected products include computers, communications products, modernized office equipment, software, energy equipment and highly energy-efficient products, according to the Information Technology Industry Council (ITIC). Firms were given less than a month to try to comply with the new policy.

"Not only is the compressed application deadline of Dec. 10, 2009 unworkable, but the very restrictive and discriminatory program criteria would make it virtually impossible for any non-Chinese supplier to participate--even those non-Chinese companies that have made a substantial and long-term investments in China, employ Chinese citizens, and pay taxes to the Chinese government," according to the letter signed by ITIC and other groups including the National Association of Manufacturers, TechAmerica, TechNet and the U.S. Chamber of Commerce.

Some lawmakers and Business Software Alliance President Robert Holleyman discussed their concerns with China's new policy at a House Oversight and Government Reform hearing Wednesday, CongressDaily reported. The committee's ranking member Darrell Issa, R-Calif., said it appears China is trying to force foreign firms to "transfer technology for the purpose of getting a jump-start on the next generation of products and services." A U.S. Trade Representative official said the Obama administration has serious concerns with the new policy, and the U.S. ambassador to China is moving aggressively to raise those issues with the appropriate Chinese officials. Click here to read more about the hearing. (subscription required)

A Government Accountability Office report released Thursday found that while most wireless phone users are satisfied with their service, it faulted the FCC for not having an adequate oversight system in place to deal with those consumers who do have problems with their wireless carriers. The GAO's survey of adult wireless phone users found that an estimated 84 percent of those polled are "very or somewhat satisfied with their wireless phone service."

At the same time, the report found that the 9 percent to 14 percent of users who said they were "very or somewhat dissatisfied" with their wireless phone service could represent millions of consumers given the widespread use of wireless phones by Americans. Many of these dissatisfied customers cited concerns with providers' fees for terminating their contracts early. The report said the FCC does "limited" oversight of the tens of thousands of complaints it receives each year from consumers about their wireless phone service and forwards them to wireless providers. The FCC "has conducted little other oversight of services provided by wireless phone service carriers because the agency has focused on promoting competition," the GAO said. "Lacking in-depth analysis of its consumer complaints, FCC may not be aware of emerging trends in consumer problems, if specific rules are being violated, or if additional rules are needed to protect consumers."

Steve Largent, president of the wireless industry group CTIA, said his group is "pleased" that the GAO study found most consumers are satisfied with their service. House Energy and Commerce Chairman Henry Waxman, D-Calif., said "the wireless industry deserves credit for serving the majority of its customers well. However, the report also suggests that millions of consumers still experience problems related to billing, fees, and customer service. Although I believe robust competition between wireless carriers is the best way to protect consumers, it is critical that the FCC, Congress, and the wireless industry monitor this situation closely and be prepared to act in the best interests of consumers."

Sen. Mark Warner, D-Va., says he's getting into the spirit of the Obama administration's recently launched open government initiative by introducing a new feature on his Senate Web site inviting federal workers and the public to provide input on how to improve government performance reporting. The Office of Management Budget's open government directive, released earlier this week, outlines how federal agencies should make their operations more transparent and solicit public opinions.

During a hearing on using technology to improve the federal government's performance, Warner, chairman of the Senate Budget Committee's government performance task force, said he is trying to examine current government reporting requirements in an effort to identify those that are unnecessary. He said it's important to focus on "quality over quantity" when it comes to requiring such data. "I hope the new site opens up a dialogue with the public and federal workforce on what we want and need in terms of reporting requirements," Warner said.

FCC Chairman Julius Genachowski Thursday announced some new appointments to his agency. Joel Gurin has been tapped to become chief of the FCC's Consumer and Governmental Affairs Bureau, while Thomas Wyatt will head the Office of Workplace Diversity. The chairman also announced that Stuart Benjamin is joining the FCC as its first "Distinguished Scholar in Residence."

The agency said Gurin has a "diverse background combining nonprofit leadership, print and Web publishing, and expertise in consumer issues." He most recently served as the acting president of NARSAD, a mental health research nonprofit, and prior to that was the acting editor-in-chief of State of the USA, a nonprofit aimed at assembling data and measures assessing the progress of the United States. Gurin, who began his career as a science and medical journalist, also has held senior positions with Rodale Interactive and Consumers Union.

Wyatt has been with the FCC since 1984, holding several posts, most recently as the deputy chief of the Consumer and Governmental Affairs Bureau. Benjamin, who is taking a leave from Duke University law school, will work in the Office of Strategic Planning on such issues as spectrum reform, First Amendment issues, and long-term strategy.

From this morning's Earlybird:

• "Homeland Security and Governmental Affairs Chairman Joseph Lieberman," I/D-Conn., "and ranking member Susan Collins," R-Maine, "charged Wednesday that a federal switchover to new telecommunications services is costing millions of dollars more than anticipated," CongressDailyAM (subscription) reports.

• "The cable industry will try to derail plans by the Democratic-led" Federal Communications Commission "to expand and strengthen the agency's network neutrality rules governing the Internet's openness by opposing the changes on First Amendment grounds," CongressDailyAM (subscription) reports. "That was the message Wednesday from Kyle McSlarrow, president and CEO of the National Cable and Telecommunications Association, during a speech to the Media Institute, a nonprofit research group supported by the communications industry."

Public Knowledge said Wednesday that it will sponsor what it describes as the first World's Fair Use Day on Jan. 12 to examine issues related to the idea of fair use, which allows for some uses of copyrighted materials without obtaining permission from copyright holders. Speakers lined up for the Washington event include Rep. Mike Doyle, D-Pa., and Andrew McLaughlin, the White House deputy chief technology officer for Internet policy. "World's Fair Use Day will shine a spotlight on how crucial fair use is to our culture, our democracy and our economy," Public Knowledge President Gigi Sohn said in a statement.

Commerce Secretary Gary Locke said Wednesday that given the dramatic changes that the Internet has undergone in the 10 years since the Organization for Economic Cooperation and Development first released its e-commerce guidelines, government officials must re-evaluate how they think about policymaking. Locke made the remarks during the second day of an OECD conference at the FTC on consumer protection in the digital age.

The conference is the start of a process launched by the OECD to update the organization's 1999 guidelines to reflect the dramatic technological changes that have occurred in the last decade. OECD Secretary General Angel Gurria - whom FTC Chairman Jon Leibowitz described as having been the Timothy Geithner and Hillary Clinton of Mexico - said the OECD's "robust review" of its guidelines must address many issues. They include an examination of how to fight online fraud more effectively, how to improve online education and awareness campaigns, and how to enhance the protection of personal privacy and information.

In describing some of the changes in the last decade, Locke noted that Google didn't begin providing keyword-based ads until 2000, now "hundreds of thousands of advertisers use Google's AdWords." He added that in 1999 only one company offered a "dedicated" Web service for cell phones, while in 2008 more than 160 million Internet-connected smart phones were sold. Like the OECD, Locke said his department also is working to update its e-commerce policies to a "version 3.0" and "develop policies that foster innovation and grow e-commerce jobs, but also enhance consumer protection." Among the issues he said that must be examined include whether "there are new models for accountability. If there are, we must also ask if sophisticated multinational companies should be held to higher standards than small entrepreneurs or start ups."

More than 5,000 employees from 135 companies sent a letter to House and Senate lawmakers Tuesday urging them to expand and make permanent the research and development tax credit, which is set to expire at the end of the year. The House passed legislation Wednesday that would provide a one-year extension of the R&D tax credit along with extensions of other tax breaks. But House Ways and Means Chairman Charles Rangel, D-N.Y., said this week that the tax breaks included in the bill could expire before the Senate has a chance to act on the legislation, CongressDaily reported.

A wide range of companies including many tech firms are calling on Congress to make permanent the R&D tax credit and to expand it. Companies argue that short-term extensions of the credit fail to provide firms with the certainty they need to invest in long-term research projects. "We applaud any progress in Congress before the credit expires," TechAmerica President Phil Bond said in a statement. "Yet America's economic challenges demand bolder action. The long looming expiration has already undermined the ability to innovate at the many companies that have completed their fiscal year." The R&D Credit Coalition, which organized the letter to Congress, also says that the value of the credit has eroded over time and fallen in relation to what other countries provide.

"The R&D credit fuels innovation and pays the wages of skilled workers in 17,700 companies across all 50 states and is one of the best ways to stimulate future economic growth," the employees wrote in their letter to lawmakers. "As you work to boost the U.S. economy, please quickly strengthen and make permanent the R&D tax credit." Many of the employees who signed the letter work for such companies as the aviation electronics and communications firm Rockwell Collins, drug maker Pfizer, medical researcher Abbott Labs, and semiconductor equipment and services provider Lam Research Corporation.

At least one House lawmaker has raised the issue of whether the United States should adopt a law similar to one approved in France allowing a judge to block an individual's access to the Internet if the person is accused of being a serial Internet copyright infringer. Rep. Diane Watson, D-Calif., chairwoman of the House Oversight and Government Reform's Government Management, Organization and Procurement Subcommittee, asked a panel of U.S. government officials at a hearing Wednesday if "this is a potential legislative remedy to our own significant peer-to-peer file sharing problem."

Officials from both the U.S. Patent and Trademark Office and the Justice Department appeared to reject the idea. PTO Commissioner for Patents Robert Stoll said he didn't think such a measure would be "palatable in the United States." Deputy Assistant Attorney General Jason Weinstein said he agreed with Stoll, saying "it's my view that technology is not the problem, it's the way it's used that creates the problem. This is no exception." He added that while the department is "increasingly concerned about online piracy," law enforcement officials are working aggressively to target those who post or sell pirated content online.

Britain is weighing a measure similar to the French law. The French law has been widely criticized by Internet free speech advocates and others and was initially struck down by France's high court but a new version passed this fall.

Following up on a blog post last week from the firm's founder, Facebook Wednesday announced the roll out of what it describes as "easy-to-use" tools to help users gain better control of their information on their Facebook pages and urged its 350 million users to review and update their privacy settings. "We're actually giving our users control over their data and asking every single one of them to go through the process of deciding how they want to share," Facebook Public Policy Director Tim Sparapani told an International Association of Privacy Professionals summit Wednesday. "I don't know of any other company of our size that has ever attempted something like this."

In particular, the new tools allow users to control who sees each piece of content added to their Facebook pages. The firm's new Publisher Privacy Control tool is the primary way for users to add content such as photos and status updates. "This feature will enable people to easily select a privacy setting for every post they make at the time they create it," Facebook said in a news release.

After announcing last week that it was deleting its regional networks, Facebook said it would replace it with four basic control settings for sharing information: friends, friends of friends, everyone, and customized. In addition, the firm said it had redesigned its privacy settings page to make the controls "easy, intuitive and accessible." Facebook's Transition Tool will require users to review and update their privacy settings. After explaining the changes, users will be provided with a message asking them to choose whether they want to keep their old settings or accept the privacy setting recommendations from Facebook. It also announced new controls for users under 18, which will prevent minors from sharing their information with "everyone."

From this morning's Earlybird:

• "A controversial" Federal Communications Commission "proposal to shift most or all broadcast television stations to cable- or satellite-only distribution so their portion of the communications spectrum can be tapped for next-generation mobile broadband Internet service is expected to be debated at a Tuesday hearing of the House Energy and Commerce Communications Subcommittee," CongressDailyAM (subscription) reports.

The White House Tuesday issued a highly anticipated directive outlining how federal agencies should make operations more open and solicit public opinions, setting an aggressive timeline for them to implement the new practices, Government Executive reported. The guidance, which President Obama announced on his first day in office, is intended to promote an open government, in which the public is more involved in its daily business.

The 11-page document adheres to principles Obama has detailed throughout his first year in office: transparency, in which disclosing government information is the default; participation, which incorporates citizen input in policymaking; and collaboration, which creates partnerships inside the government and with industry. Agencies must deliver on many initiatives in the directive. Depending on the requirement, deadlines are 45, 60, 90 or 120 days. In a nod to complaints about the accuracy of stimulus job-creation data, the directive calls for separate guidance within 120 days that demands agencies report quarterly on their progress in enhancing the quality of spending information.

The American Civil Liberties Union voiced concern with an exception included in the directive for "information whose release would threaten national security." Jameel Jaffer, director of the ACLU's National Security Project, said in a statement, "While the Obama administration should be commended for the issuance of this directive, we remain concerned that executive agencies are invoking national security concerns as a pretext to suppress records that relate to government misconduct." And Association for Competitive Technology Executive Director Morgan Reed questioned the "open formats requirement," saying agencies should have the flexibility to use both open and proprietary formats "in order to meet the needs of all Americans."

The FTC said Tuesday that it has filed suit against three firms for allegedly making "hundreds of thousands or even millions" of robocalls to consumers in violation of the Do Not Call rule and other laws. The three groups targeted allegedly called consumers in a bid to sell "worthless credit-card interest-rate reduction programs for hefty up-front fees of as much as $1,495," the agency said in a statement. The groups have been ordered to stop making the calls pending trial.

Since Sept 1, nearly all robocalls are illegal, unless the recipients have provided written authorization to receive such calls. The FTC alleged that the three firms - Economic Relief Technologies LLC, Dynamic Financial Group (U.S.A.) Inc., and JPM Accelerated Services and related defendants - also violated the FTC Act and the agency's telemarketing sales rule with their "deceptive pitches." Other charges allege the firms called consumers whose phone numbers are listed on the federal Do Not Call Registry and masked their caller identification information.

The FTC on Tuesday also announced the release of its National Do Not Call Registry Data Book for fiscal year 2009. The book contains information about the registry including a breakdown of consumer complaints about those who violated the Do Not Call rule. According to the new book, more than 191 million numbers are listed in the Do Not Call Registry. Click here for more information about the data book and the complaints filed against the three firms.

A new report released Tuesday by the Center for American Progress highlights the importance of high-skilled immigrants to the U.S. economy, but argues that "arbitrary restrictions" keep companies from fully utilizing this talent pool. "Reforming our high-skilled immigration system will stimulate innovation, enhance competitiveness, and help cultivate a flexible, highly-skilled U.S. workforce while protecting U.S. workers from globalization's destabilizing effects," the report said. Among the reforms the report recommends include establishing a market-based mechanism for setting the annual levels of H-1B visas available for skilled foreign workers, raising the green card cap and streamlining the process for obtaining a green card.

The current cap on H-1B visas is set at 65,000 annually with an additional 20,000 available for foreigners who graduate from U.S. schools with master's or doctoral degrees. Unlike past years, the 65,000 cap was not reached this year soon after the fresh batch of visas became available at the start of the new fiscal year on Oct. 1. As of early December, 61,100 of the 65,000 H-1B visas have been applied for, though the cap for the 20,000 supplemental visas has been met, according to the U.S. Citizenship and Immigration Services.

Industry officials who favor a market-based system for allocating H-1B visas say this year's figures indicate that such a system will work because with the economic downturn, companies have shown less of a need to hire foreign workers. "This report accurately highlights the positive benefits of high skilled immigration to America's economy," Information Technology Industry Council President Dean Garfield said in a statement.

The report, however, also addresses a key concern of those who oppose allowing more skilled foreign workers into the United States: bringing in foreign workers, no matter how skilled they are, depresses domestic wages and may hurt Americans' ability to obtain such jobs. "Current enforcement mechanisms are too weak to adequately prevent fraud and gaming of the system," according to the report, which calls for greater focus on targeting employer fraud and abuse, strengthening requirements for companies to seek out U.S. workers before hiring a foreigner and other protections.

The data security firm Imperva released a list of what it sees as the top five data security trends for 2010. Topping the firm's list is what it describes as the "industrialization of hacking" and the emergence of defined roles within the hacking community "forming a supply chain that resembles that of drug cartels."

The firm also predicted an increase in attacks on social networking sites "where vulnerable and less technically savvy groups are susceptible to phishing attacks and malware." In addition, the firm said it expects to see a move from application to data security as cyber criminals look for new ways to bypass current security measures. The list also predicted an increase in attacks aimed at grabbing passwords from users, which may provide thieves with access to online banking or Paypal accounts. And lastly, Imperva said it expects organizations to become more proactive in their efforts to secure their systems instead of waiting to fix holes until a breach occurs.

The Organization for Economic Cooperation and Development kicked off an effort Tuesday that will likely lead to an update of the group's e-commerce consumer protection guidelines to reflect new challenges that have emerged since the guidelines were released a decade ago. Speaking at the start of the OECD's three-day conference in Washington on consumer protection in the Internet age, Michael Jenkin, chairman of the OECD's consumer policy committee, said the conference is the start of a long process aimed at updating the guidelines by 2011.

FTC Chairman Jon Leibowitz said the process launched by the OECD was aimed at exploring "what are the challenges we face and are the 1999 guidelines relevant to the new environment." The e-commerce guidelines included calls for firms operating online to provide: transparent and effective consumer protection; online disclosures about the firms and their business practices; easy to use and secure payment systems; a confirmation process that allows consumers to review the items or services they are purchasing before the transaction is completed; a dispute resolution process; and privacy protections in line with the principles developed by the OECD.

Karen Kornbluh, the U.S. ambassador to the OECD, said the 1999 guidelines helped establish a framework for how companies should deal with their customers on the Internet and have been adopted by many reputable firms. But given how much has changed since 1999, she said the conference must address several key issues as the OECD works to update the e-commerce principles. These include what should be done to address lingering consumer concerns about online fraud and privacy, particularly with the advent of online behavioral advertising; challenges to mobile e-commerce; and what can be done to better facilitate cross-border e-commerce, Kornbluh said. She said while "e-commerce has grown exponentially, cross-border e-commerce has lots of unfilled potential."

The AFL-CIO is urging members of Congress to pass legislation that would require AM and FM radio stations to pay performers and record labels a new fee for playing their music. The legislation has been approved by both the House and Senate Judiciary committees.

In his letter last week to members of Congress, AFL-CIO President Richard Trumka said paying performers for playing their music on radio "is an issue of basic fairness for working families." He added that there is "also a question of fairness in competition. AM/FM radio is the only outlet to get a free ride; satellite radio and Webcasters pay performers for use of their music."

Broadcasters argue that artists benefit greatly from the exposure they get from the airplay their music gets on radio stations and add that a new fee will impose a financial burden on stations already struggling in a tough economy. Those arguments have gained some traction in Congress. More than 250 House members and more than two dozen senators have signed on to resolutions in each chamber opposing the legislation requiring radio stations to pay a new fee. But Trumka also urged those lawmakers that have signed on to the House and Senate resolutions opposing the performance rights legislation to "take a second look" at the legislation, adding there is "no argument to be made about financial hardships for broadcasters."

From this morning's Earlybird:

• "The pitched battle over whether radio broadcasters should compensate performers for airing their recordings is set to extend well into 2010, government and industry sources said, because congressionally brokered negotiations failed to result in a breakthrough," CongressDailyPM (subscription) reports. "At issue is an exemption in copyright law that shelters radio stations from paying royalties to artists for playing their songs on AM and FM radio stations."

• "Open government? There's an app for that. Or so the Obama administration proposes, rolling out a 'transparency, participation and collaboration' directive for all federal departments and agencies at 11 a.m. ET today," USA Today reports. "'We are fundamentally committed to changing the way government works,' says Aneesh Chopra, the federal government's chief technology officer."

The pitched battle over whether radio broadcasters should compensate performers for airing their recordings is set to extend well into 2010, government and industry sources said, because congressionally brokered negotiations have so far failed to result in a breakthrough, CongressDaily reported Monday. At issue is an exemption in copyright law that shelters radio stations from paying royalties to artists for playing their songs on AM and FM radio stations. Groups such as the Recording Industry Association of America and Music First Coalition contend stations should pay for music that attracts listeners and advertisers. Broadcasters counter that musicians benefit considerably from the free promotion they receive when their songs are played on the radio and note they already pay royalties to composers and songwriters.

Performance rights legislation sponsored by Senate Judiciary Chairman Patrick Leahy, D-Vt., and House Judiciary Chairman John Conyers, D-Mich., that would require AM and FM stations to pay royalty payments to performers has passed both committees and is awaiting floor action. Leahy and Conyers and other lawmakers urged both sides to meet last month for congressional-led talks on the issue. Rather than intense horse-trading, sources said the parties instead held cordial discussions in which they outlined their differing positions and dug in their heels. To read more, click here. (Subscription required)

NBC Universal, which claims its pending merger with Comcast would be a boon for consumers, warned of dire consequences nine years ago when Time Warner and AOL wanted to combine. In a July 24, 2000 letter to the FCC, there was this: "Given the size and scope of the proposed merged company, AOL/Time Warner will have both the ability and the incentive to discriminate against unaffiliated content providers such as NBC." The Peacock network also urged the agency "to establish firm principles of non-discrimination in the treatment of unaffiliated content providers in the broadband services marketplace" -- a step that Comcast is now trying to prevent the FCC from taking.

The document, obtained by Tech Daily Dose, is certain to provide ammunition to critics of the proposed Comcast-NBC deal, who will argue that the broadcast network had it right in 2000. The marriage of Time Warner and AOL sputtered, of course, resulting in the spin-off of AOL from its parent, a process set to culminate this week. The letter was signed by NBC Executive Vice President and General Counsel Rick Cotton, who observed during a Friday press briefing that predictions about the dominance of a merged Time Warner-AOL never materialized. Of course, if he and others at NBC had gotten their way, the deal might never have been approved. While his missive back in 2000 didn't explicitly demand the merger be blocked, it implied it. NBC stated at the time that if the transaction was approved, substantial conditions would be required to protect the public interest -- an argument critics of the Comcast-NBC alliance will likely make.

The FCC and the Federal Emergency Management Agency announced Monday that they have adopted design standards for a new emergency alert system that can be received by and delivered over mobile phones. The Commercial Mobile Alert System allows federal, state and local government officials to send 90 character geographically targeted text messages to the public warning of imminent threats to life and property, Amber alerts, and presidential emergency messages, the agencies said.

"Today's announcement brings us one step closer to ensuring that Americans receive critical emergency alerts and warnings to protect themselves on the go, anywhere, anytime," FCC Chairman Julius Genachowski said in a statement. As mandated by the FCC last year, those commercial mobile service providers that have opted to participate in the CMAS effort will have 28 months to develop, test and deploy the system and deliver mobile alerts to the public by 2012.

Steve Largent, president of the wireless industry group CTIA, said in a news release that his industry believes it can beat the timeline set by the FCC. "With today's announcement, wireless carriers and suppliers will seize this opportunity to work on finishing the development, testing, and deployment of the alerting system to benefit American consumers," he said.

FTC Chairman Jon Leibowitz and his colleague, independent member Pamela Jones Harbour, told a privacy workshop Monday that the time is ripe for action to improve consumer data privacy both online and offline. "I'd argue that we're at another watershed moment in privacy, and that the time is ripe for the commission to build on the February behavioral targeting principles and to take a broader look at privacy writ large," Leibowitz said in his written comments at the start of the FTC's workshop.

Both Leibowitz and Harbour noted that the Internet has enabled much broader and deeper collections of personal information. The officials said that posting privacy policies on a Web site and offering consumers the choice to opt out may not be enough since most consumers do not read or understand such notices. "If you don't understand how information is being used, it's impossible to knowingly [provide] consent to disclosure and use," Harbour said. Harbour went much further than Leibowitz in her afternoon remarks, saying "companies are not delivering the privacy protections that consumers prefer" and called for passage of comprehensive privacy legislation. Leibowitz said he does not know what actions the FTC may take to address the problem.

An earlier panel at the workshop made up of industry officials, academics and privacy advocates discussed the risks and benefits of collecting, using and retaining consumer data. During the session, the Consumer Federation of America's Susan Grant argued that if consumers believe their rights are being violated, it may have a "real chilling effect" on their willingness to use the new tools enabled by the Internet and other technologies. But the Cato Institute's Jim Harper argued that government regulation might in some cases make the situation worse.

Energy Secretary Steven Chu Monday announced his department's Advanced Research Projects Agency will use $100 million from the economic stimulus package to accelerate investment in green technology. At the same event, Commerce Secretary Gary Locke also announced that the Patent and Trademark Office will launch a pilot program to accelerate the examination of certain green technology patent applications. "By ensuring that many new products will receive patent protection more quickly, we can encourage our brightest innovators to invest needed resources in developing new technologies and help bring those technologies to market more quickly," Locke said in a statement.

The Energy Department's initiative is the second round of funding aimed at promoting the development of green technologies. It will focus on research into biofuels, carbon capture, and batteries for electric vehicles. The first round of funding announced earlier this year provided money for 37 projects focused on such areas as energy storage, biofuels, carbon capture, renewable power, building efficiency and vehicles.

Facebook announced it is creating a Facebook Safety Advisory Board to provide advice to the firm on online safety issues. The board will be made up of representatives from five Web safety groups: Childnet International, Common Sense Media, ConnectSafely, the Family Online Safety Institute and WiredSafety. The board will meet "regularly" with Facebook to review existing safety resources provided to Facebook users and develop new safety tools. One of the first tasks the board will tackle is an overhaul of the safety content on Facebook's Help Center to provide a more "comprehensive resource with specific educational content for parents, teachers, and teens," Facebook said in a statement released Sunday.

Meanwhile, Broadband for America announced Monday that former FCC Chairman Michael Powell and former Rep. Harold Ford, Jr., D-Tenn., have been named honorary co-chairmen of the group. Broadband for America is made up of Internet service providers, backbone providers, content providers, consumer groups and others, aimed at promoting nationwide access to broadband. "As our country prepares a national broadband plan to bring high-speed Internet to every American, it is critical government and the private sector work together," Powell, who headed the FCC during the Bush administration, said in a statement.

There are several technology and telecom-related events this week. Here are some of the highlights:

Monday, Dec. 7
The FTC holds another in a series of day-long privacy workshops. The sessions will focus on such issues as the benefits and risks of collecting, using, and retaining consumer data and online behavioral advertising.

Commerce Secretary Gary Locke, Energy Secretary Steven Chu and Undersecretary of Commerce for Intellectual Property David Kappos hold a news conference at 10 a.m. to announce new green technology initiatives.

The Federalist Society is hosting a panel discussion at noon on the potential monopolization of the Internet by Google.

Tuesday, Dec. 8
The Organization for Economic Cooperation and Development holds a three-day conference beginning at 9 a.m. at the FTC on protecting consumers in an Internet economy.

Broadband Census hosts a discussion at 8 a.m. on bridging the digital divide.

Wednesday, Dec. 9
The FCC will hold a staff workshop at 9:30 a.m. examining the role local governments can play in helping to bring broadband to underserved communities and increase adoption rates.

The House Oversight and Government Reform Committee's Government Management, Organization and Procurement Subcommittee holds a hearing at 10 a.m. on protecting intellectual property in a global economy.

The OECD's consumer protection on the Internet conference continues at the FTC.

The Information Technology and Innovation Foundation holds a discussion on targeted online advertising at 10 a.m.

Thursday, Dec. 10
The Senate Judiciary holds a business meeting at 10 a.m. and may take up the S. 448, Free Flow of Information Act of 2009.

The OECD's consumer protection on the Internet conference continues at the FTC.

Yahoo Monday announced a new tool aimed at giving consumers more control over Internet ads targeted at their interests. Ad Interest Manager will give visitors to Yahoo a summary of their online activity. In addition, it allows users to view the interests Yahoo believes they have, edit or change those listed interests, and turn off "interest-based ads," the Internet firm said in a statement.

"Yahoo is committed to providing consumers with increased transparency and control when they are online," Yahoo Vice President of Policy and Head of Privacy Anne Toth said. Despite the new tool, she added that the firm believes "ads tailored to users' interests make online experiences more compelling and user-focused, and the new tool Yahoo is launching today will provide transparency into how Yahoo's interest-based advertising works."

The firm's Ad Interest Manager is available now in beta version in the United States and will soon be available to European users. Yahoo said it also plans to add new features to the tool to allow users to add categories of interest that Yahoo did not include. The new privacy tool was released on the same day as the FTC's latest workshop exploring privacy issues.

Top executives with Comcast and NBC Universal told reporters Friday that they're not surprised that prominent lawmakers and regulators have raised concerns about their pending merger, and that opposition is strong from watchdogs, many with close ties to federal agencies that will review the deal. "The traditional opponents of all media acquisitions and mergers issued the statements that we would've expected them to issue," said Comcast Executive Vice President David Cohen, during a press briefing the day after the companies announced plans to combine into a media juggernaut controlling the production and distribution of content across multiple platforms.

FCC member Michael Copps, one of three Democrats on the five-member agency, has expressed strong concerns, warning that the transaction faces a steep upward climb with him. "I've known Commissioner Copps for a long time," Cohen responded. "He's always given us the opportunity to make our case." At least four congressional committees in both chambers are scrambling to schedule oversight hearings. Drawing a comparison to the troubled 2001 marriage of Time Warner and AOL, which now plan to split, NBC Executive Vice President and General Counsel Rick Cotton insisted that many of the dire predictions about that combination failed to materialize. "This is a very dynamic media marketplace," he emphasized.

As the execs serenaded the media, Free Press, Consumers Union and the Consumer Federation of America blasted Comcast for announcing what the watchdogs dismissed as "hollow" public-interest commitments. "None of the measures in the company's nine-point plan would address concerns about higher cable and broadband rates for consumers or the concentration of power in one company across multiple media markets," they wrote in a news release.

The FCC is seeking information from Verizon Wireless about its recent decision to raise fees on some customers for terminating their wireless contracts early. In a letter Friday to Verizon Wireless Vice President Steven Zipperstein, FCC Wireless Telecommunications Bureau Chief Ruth Milkman said the commission would like a "a more complete understanding" of the firm's decision on the fees by Dec. 17.

In November, Verizon Wireless boosted the maximum early contract termination fee for smart phones to $350 from $175, according to the AP. Wireless providers often offer customers discounts on cell phones for signing multi-year contracts for service. Citing Verizon's recent move, Sen. Amy Klobuchar, D-Minn., and other senators introduced legislation Thursday that would set limits on the termination fees that wireless providers can charge their customers for cancelling their wireless contracts early.

Among the questions Milkman wants answers to include what information about the higher early termination fee (ETF) does Verizon Wireless provide to prospective customers, and when does it provide it. In addition, the letter sought information about the carrier's rationale for increasing the ETF for an "advanced device." Milkman also asked for information about reports that the company is charging customers a $1.99 fee for inadvertently accessing Verizon Wireless's Mobile Web, saying "we would like to better understand the terms and conditions of such access."

In a statement, Verizon Wireless said it only raised ETFs for new customers who purchase an advanced device. The statement added that, "They don't pay anything if they fulfill their contract obligations or purchase one of these devices at the unsubsidized price."

Rep. Bart Stupak, D-Mich., is seeking to enhance the ability of FCC members to work together without having to call formal meetings. Stupak, chairman of the House Energy and Commerce Committee's Oversight and Investigation Subcommittee, introduced legislation this week that would amend the Government Sunshine Act to allow more than two FCC commissioners to meet privately to discuss FCC matters as long as a commissioner from each political party is in attendance and a list of the items discussed and those who attended the meeting are made available to the public.

"As the FCC commissioners weigh the complex and contentious issues, it is vital they are able to hold frank conversations, receive the best information possible, and have the opportunity to benefit from one another's expertise and experience," Stupak said in a statement. Current law requires federal agencies to meet in an open public session when there is a quorum present. With just five members on the FCC, three members constitute a quorum. Given the limitations of current law, FCC officials who want to meet with more than one other member must rely on written communications or staff to discuss official business, according to Stupak.

Stupak led an investigation last year that examined the FCC's regulatory processes and management practices and issued a report that included recommendations for improving the agency's transparency and effectiveness. Public Knowledge endorsed the bill. The group's president, Gigi Sohn, said in a news release that current legal restraints have given FCC staff too much influence and have hampered commissioners' ability to discuss important agency issues.

The House passed legislation Thursday that would reauthorize for five years a law governing the transmission of broadcast television signals by DirecTV and EchoStar.
The legislation, which easily cleared the chamber, renews a law set to expire Dec. 31.
The Satellite Home Viewer Act sets the copyright royalty fees for the redelivery of local signals into their respective markets via satellite. It also governs the delivery of distant network signals to customers who can't receive over-the-air broadcasts. Action now moves to the Senate, where the Commerce and Judiciary committees have related bills pending. You can read more in CongressDaily's AM edition (subscription required).

The Senate late Thursday confirmed Victoria Espinel to be the nation's first-ever intellectual property enforcement coordinator, a position that will be housed in the White House.

She most recently served as the founder and president of the nonprofit Bridging the Innovation Divide and also has served as a visiting professor at George Mason University Law School, focusing on intellectual and international trade. In addition, Espinel has worked 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 chosen to be the nation's first assistant U.S. trade representative for intellectual property and innovation.

Mark Esper, executive vice president of the U.S. Chamber of Commerce's Global Intellectual Property Center, praised the Senate's move, saying in a statement that, "Espinel has the opportunity to improve enforcement and promotion of IP rights in the U.S. and abroad. Her extensive background and expertise in these areas will be crucial as she works to protect the creative and innovative industries that help drive our economic growth."

From this morning's Earlybird:

• "A trade association of major defense, telecommunications and financial services businesses wants Congress and the Obama administration to avoid placing mandates on private companies when it comes to cybersecurity, and instead offer incentives that encourage companies to improve their practices," CongressDailyAM (subscription) reports. "The Internet Security Alliance on Thursday issued a 70-page report promoting a partnership between the government and private companies that would encourage businesses to view good cybersecurity practices as being in their economic interest."

Sen. Amy Klobuchar, D-Minn., introduced legislation Thursday that would set limits on the termination fees that wireless providers can charge their customers for cancelling their wireless contracts early. "Forcing consumers to pay outrageous fees bearing little to no relation to the cost of their handset devices is anti-consumer and anti-competitive," Klobuchar, a Senate Commerce Committee member, said in a statement. She introduced the bill with Sens. Russ Feingold, D-Wis., Jim Webb, D-Va., and Mark Begich, D-Alaska.

Under the bill, providers would be barred from charging an early termination fee that is higher than the cell phone discount the wireless company offered a customer to enter into a multiyear contract, required to pro-rate the early termination fees for consumers when they opt out of their contracts early, and required to provide "clear and conspicuous disclosure" of the early termination fee rates. Klobuchar said the legislation was offered two weeks after Verizon Wireless doubled its early termination fee from $175 to $350 for some subscribers. Klobuchar has urged the FCC to examine Verizon's decision.

Steve Largent, president of the wireless industry group CTIA, said in a news release that the bill is "unnecessary" because wireless carriers already pro-rate early termination fees. "That was the response of a highly competitive industry to consumer demand, and this type of prescriptive mandate runs the very real risk of limiting consumer options in the future," he said.

The Center for Democracy and Technology Thursday launched a new campaign to push Congress to pass privacy legislation and to give consumers new tools to take steps on their own to protect their personal data online. CDT's "Take Back Your Privacy" campaign includes information about the latest privacy controls and provides tools such as a privacy complaint mechanism to allow people to register privacy concerns online with the FTC and share those concerns with their social media contacts and a form to allow consumers to send letters to lawmakers about privacy legislation.

"We know that Americans want better privacy protections," CDT President Leslie Harris said in a statement. "Take Back Your Privacy will help them make sure that their voices are heard." CDT and other privacy advocates have long pushed Congress to pass federal legislation that would establish clear rights for consumers and understandable rules for companies that collect personal information. House Energy and Commerce Communications, Technology and the Internet Subcommittee Chairman Rick Boucher, D-Va., is working on data privacy legislation and may unveil a draft bill early next year.

Senate Commerce Committee Chairman John (Jay) Rockefeller, D-W.V., is seeking information from the three major credit card companies about what they know about aggressive online sales tactics used by some firms who are able to charge consumer credit cards for club memberships consumers did not realize they had agreed to. Rockefeller and his committee have been investigating three companies - Affinion, Vertrue and Webloyalty - that partner with trusted online retail sites to get consumers to sign up for discount club memberships as part of a misleading step connected to the online checkout process with the retail sites.

Most consumers are unaware they signed up for the memberships until they see the charges on their credit cards. Rockefeller expressed concern Thursday in letters to Visa, American Express and MasterCard that consumers' credit card information and other billing information is being transferred to the firms that operate these clubs without consumers' knowledge. "It concerns me greatly that the companies we are investigating have been able to acquire the credit and debit card numbers of millions of American consumers and bill them every month for services the consumers do not realize they have purchased," Rockefeller wrote.

He requested information about the transactions the credit card companies have processed from the three firms under investigation and the refunds the credit card firms have provided to consumers. Rockefeller said his committee's probe has revealed that these "scams" have generated more than $1.4 billion and affected more than 30 million Americans. At a hearing last month, he said he may craft legislation to crack down on the aggressive online sales tactics used by the companies under investigation by the panel. Copies of the letters can be found here.

The House Financial Services Committee Thursday held a hearing that was generally friendly toward Chairman Barney Frank's efforts to pass legislation that would regulate Internet gambling rather than banning it entirely. A 2006 law banned Internet gambling and also barred financial institutions from accepting payments from credit cards, checks or electronic fund transfers to settle online gambling bets. Many of the witnesses testified that the best way to control Internet gambling is to legalize it, which will allow officials to license, regulate and tax online gaming.

"If online gambling sites are regulated and licensed, we know who they are," said Parry Aftab of the Web safety group WiredSafety. But Financial Services ranking member Spencer Bachus , who opposes Frank's legislation, said the tax benefits from legalizing online gambling would be undermined by the potential harm to the nation's youth. Noting that online gaming will still occur whether it's legal or not, Aftab said bringing sites under legal scrutiny and encouraging education and parental control provide better approaches to the problem.

Witnesses also discussed the best regulatory regimes to follow if the United States were to enact legislation legalizing Internet gambling. Keith Whyte of the National Council on Problem Gambling, said Britain might offer one model. It has had an Internet gambling regulatory regime in place for several years, adding that addiction rates have not changed significantly there, he said. Other witnesses also said that technology could assist in possibly deterring problem gamblers. Harvard University public management Professor Malcolm Sparrow said some foreign online Web sites offer technical means to help problem gamblers by limiting the amount of time and money users can spend gambling as well as providing links to resources aimed at helping those with gambling problems. Michael Brodsky of YouBet.com, which operates a legal pari-mutuel horse racing wagering site, said his site can lock out those users the firm identifies as problem gamblers.

Consumer watchdogs are raising concerns about Comcast's proposed deal to take control of NBC Universal. Under the deal announced Thursday, Comcast will take a 51 percent take in NBC Universal and pay General Electric, NBC Universal's current owner, about $6.5 billion, "subject to certain adjustments based on various events between signing and closing." Comcast Chairman and CEO Brian Roberts said in a statement that the deal "is a perfect fit for Comcast and will allow us to become a leader in the development and distribution of multiplatform 'anytime, anywhere' media that American consumers are demanding."

The Consumer Federation of America (CFA), Free Press and Public Knowledge are among those groups raising concerns about the deal. Public Knowledge President Gigi Sohn said in a statement her group is concerned that combining the nation's largest cable company with a television network and a movie studio could pose "grave dangers to a free and open Internet." She added that it underscores the need for Net neutrality rules that would ensure the free flow of information over the Internet. "Regulators will have to make certain that Comcast does not give advantage to NBC programs and films over others," Sohn said.

CFA and Free Press released a study Thursday that they said shows that combining Comcast and NBC Universal would hurt competition in traditional video markets and that the new entity could leverage its control over content to charge its rivals more, which could harm consumers. "This merger's potential to foreclose competition and stifle innovation is significant and real," CFA Research Director Mark Cooper said in a news release. The deal must be approved by federal regulators.

House Energy and Commerce Chairman Henry Waxman, D-Calif., said in a statement that the deal "raises questions regarding diversity, competition, and the future of the production and distribution of video content across broadcasting, cable, online, and mobile platforms." He said his committee will hold hearings on the deal and urged the FCC, FTC and Justice Department to "rigorously assess whether this transaction is in the public interest." Senate Commerce Chairman John (Jay) Rockefeller, D-W.V., also voiced concerns, saying regulators need to make sure consumers "are not left with lesser content and higher rates."

Senate Commerce Chairman John (Jay) Rockefeller, D-W.V., also voiced concerns, saying regulators need to make sure consumers "are not left with lesser content and higher rates."

From this morning's Earlybird:

• "Comcast Corp. will likely have to accept substantial conditions if the cable TV provider wants to win regulatory approval for control of NBC Universal's broadcast network, cable channels and movie studios," AP reports. "Although federal regulators probably won't block a deal outright on anticompetitive grounds, they could prohibit Comcast, for instance, from denying rival subscription-TV services such as DirecTV access to NBC channels and other popular programming."

• "After striving to protect the elderly, poor and rural citizens from losing free television broadcasts during this year's transition to digital signals, the" Federal Communications Commission "is now being accused of abandoning those populations under the guise of spurring increased access to broadband," CongressDailyAM (subscription) reports. "Citing a dire spectrum shortage, the agency is pressing broadcasters to relinquish up to half their digital spectrum, to be repurposed for mobile Internet use under a sweeping national broadband plan to be presented to Congress Feb. 17."

The FCC Wednesday announced it is seeking additional information on the use of spectrum currently licensed to broadcast television stations as part of its effort to craft a national broadband plan. The notice of inquiry emerged out of comments submitted about the FCC's broadband plan and the agency's efforts to find more spectrum for wireless broadband. Some commenters have questioned whether there is sufficient spectrum "to meet the demand for wireless broadband services in the near future and have urged the commission to make available more spectrum for commercial uses," the FCC said in its notice.

While pledging to take into account the importance of free, over-the-air television, the inquiry seeks to explore "market-based mechanisms for television broadcasters to contribute to the broadband effort any spectrum in excess of that which they need to meet their public interest obligations and remain financially viable." Among the questions the FCC is seeking comment on is whether broadcasters could share 6 megahertz channels in some markets without significantly disrupting free over-the-air television service.

NAB Executive Vice President Dennis Wharton responded coolly to the inquiry, noting that after spending billions of dollars upgrading to digital signals, broadcasters recently returned "more than a quarter of the spectrum" used for free over-the-air TV service. "Broadband deployment to unserved areas is a worthy goal, and broadcasters believe we can help the FCC accomplish its mission without stifling growth opportunities of free and local TV stations and the millions of viewers that we serve," he said in a statement.

The public interest group Public Knowledge praised the inquiry. "The FCC is displaying significant courage and foresight in asking about the future of the broadcast spectrum," Public Knowledge President Gigi Sohn said in a statement. "This issue traditionally has not been open for public discussion, and we are pleased to see that it is now part of the broadband agenda."

Health and Human Services Secretary Kathleen Sebelius Wednesday announced her department will be providing $235 million to support a new initiative aimed at accelerating and demonstrating the ability of health information technology to improve local health care systems and enhance the performance of their health care providers. The "Beacon Community Program" will provide $220 million in grants to 15 communities to build and strengthen health IT infrastructure, including the inclusion of strong privacy and security measures to protect the exchange of data. In addition, $15 million will be provided to communities for technical assistance and to help them evaluate the program's success. The funding will come from the $19 billion in health IT money included in the economic stimulus package enacted in February.

"The Beacon Community Program is a critical step forward as we work to expand the use of health information technology in hospitals and doctor's offices across the country," Sebelius said in a statement.

Under the program, cooperative agreements will be awarded to 15 qualified nonprofit groups or government entities representing "diverse" geographic areas such as rural and underserved areas. Groups hoping to qualify must build off of existing health IT infrastructure and show how they will produce cost and health care savings; show rates of electronic health record adoptions "significantly higher" than national estimates; and coordinate with the department's Health IT office to "develop and disseminate best practices for adoption and meaningful use of [electronic health records] to support national goals for widespread use of health IT."

FCC member Mignon Clyburn stopped by a House Oversight and Government Reform Committee hearing Wednesday on Arbitron's Portable People Meter - but she was there as an audience member and not a witness. The hearing focused on concerns raised by some minority radio stations and others that the methodology and sampling Arbitron is using with its new electronic radio listening measurement device is under representing minority listeners and failing to accurately capture ratings at minority radio stations.

House Oversight and Government Reform Chairman Edolphus Towns noted that Arbitron has argued that the FCC does not have jurisdiction over the firm. In an interview, Clyburn agreed with Arbitron's assessment. But she noted that the agency does have jurisdiction over minority radio stations, many of which have voiced concerns about the data from Arbitron's PPM. Clyburn said she stopped by the hearing because she's interested in the topic and is in the process of "figuring out more about the issue. ... There are a whole host of issues that have an impact on the bottom line" of radio stations. Noting that the PPM "ratings have had a devastating effect on the [minority] radio industry," Towns warned Arbitron that he may seek a legislative fix to address his concerns unless the firm takes swift action. Towns said he would talk to the FCC and FTC and discuss possibly enhancing their jurisdiction over Arbitron.

Arbitron CEO Michael Skarzynski said he believes the firm has "solid methodology and technology." He did note, however, that the company is working on several initiatives to improve the sampling it uses with the PPM and address other issues raised by critics. Read more about the hearing in CongressDaily (subscription required).

Facebook announced late Tuesday changes to its privacy policies and also unveiled that the social networking site has attracted more than 350 million users. In response to concerns about privacy, Facebook Founder Mark Zuckerberg said in an open letter to users that the site would eliminate its regional networks, saying that "some of these regional networks now have millions of members and we've concluded that this is no longer the best way for you to control your privacy." He added that the site is simplifying its privacy controls by allowing users to limit what content people can see to only users' friends, friends of friends or everyone.

In addition, Zuckerberg said Facebook also will allow users to control who can see each individual piece of content added or uploaded to each user's Facebook page and is also making the "privacy settings page simpler by combining some settings." He added that Facebook has "worked hard to build controls that we think will be better for you, but we also understand that everyone's needs are different. We'll suggest settings for you based on your current level of privacy, but the best way for you to find the right settings is to read through all your options and customize them for yourself."

Center for Democracy and Technology President Leslie Harris praised Facebook for eliminating regional networks, which she said posed privacy and safety concerns in some countries. She also praised Facebook for giving users more "granular" control over their data. But Harris added that firms like Facebook must continue to update privacy protections with every new product cycle. Facebook's privacy changes come ahead of data privacy legislation that House Energy and Commerce Communications, Technology and the Internet Subcommittee Chairman Rick Boucher, D-Va., is expected to unveil early next year.

From this morning's Earlybird:

• "A little-noticed bill aiming to boost oversight of the $700 billion financial bailout could mean big money for the database industry," The Hill reports. "This week, without much fanfare, the House is expected to approve a bill mandating that the Treasury Department create a real-time electronic database of information related to the bailout."

• "If you missed last night's star-studded gala at the Newseum debuting the first annual Tech Wonk Awards -- sponsored generously by AT&T, Facebook, Google, Intel, Verizon and 200 other firms that value schmoozing with federal regulators" -- CongressDailyAM (subscription) offers a recap.

• "A merger between Comcast and NBC Universal, expected to be announced by Thursday, would probably come with concessions aimed at forestalling a drawn-out federal review of the deal, sources close to the negotiations said," the Washington Post reports.

• "Google Inc. said Tuesday it will let publishers set a daily limit on the number of articles readers can view for free through the Internet giant's search engine," the Wall Street Journal reports. "The change, which will let publishers limit readers to five free articles per day, comes as news executives step up their war of words against Google, which they claim is pocketing advertising profits on the back of their free content."

FCC Chairman Julius Genachowski said Tuesday that an overhaul of the multibillion-dollar Universal Service Fund would be part of the agency's national broadband plan that the commission will submit to Congress in February, CongressDaily reported. The fund subsidizes the cost of phone and broadband service in rural and low-income areas. It has long been considered in need of an update. "We need to wring savings out of the system, protect consumers, avoid flashcuts, while ultimately moving USF in the direction it needs to go to support our 21st century platform for innovation," Genachowski said during a speech at an innovation conference sponsored in part by Intel Corp. Reconfiguring the federal USF to subsidize broadband deployment is considered critical to achieving the commission's goals, though the fund's inclusion in the comprehensive plan might spark increased controversy and scrutiny.

The National Cable & Telecommunications Association announced Tuesday it is proposing a nationwide public-private partnership aimed at increasing digital literacy among low-income middle school students and increasing their access to broadband Internet services. The proposed two-year pilot project is targeted at middle school students, those in grades six through eight or seven through nine depending on the school district, who are eligible for free and reduced-price lunches, NCTA President Kyle McSlarrow said in a conference call.

The first step of the three-pronged proposal is to call for schools to implement digital literacy programs to teach students who currently lack broadband at home how to use a computer and how to surf the Web safely. The second step is a call for discounted computers for these students, and the third element would involve NCTA member companies providing a 50 percent discount on the lowest-tier broadband service and an Internet modem along with free installation. McSlarrow said the estimated cost of providing discounted broadband service to the approximately 3.5 million students that would be eligible for the program, about 1.8 million households, would be about $572 million.

Blair Levin, executive director of the FCC's broadband initiative, said to address the nation's digital divide there needs to be many different "targeted solutions," such as the one being proposed by NCTA. "The country cannot afford for millions of kids to fall further behind," Levin said in brief comments on the conference call. NCTA worked with Levin and other FCC officials in developing the program.

McSlarrow said the discounted computers could come from computer manufacturers or from federal subsidies from the broadband funding provided by the federal economic stimulus package. He said NCTA has reached out to computer manufacturers and other broadband providers to participate in the program. When asked if the proposal is a way to get the government to help the cable industry reach new subscribers, McSlarrow acknowledged that "as an industry we have an interest in driving broadband adoption." But he added that the industry has "a long-standing tradition" of community service and funding education programs.

In a statement, FCC Chairman Julius Genachowski said the "cable industry's considerable investment in this program represents an important step in addressing the many broadband adoption challenges we face."

TechAmerica and a coalition of companies and other trade associations are calling on Congress to pass legislation asserting federal jurisdiction over regulation of Internet Protocol (IP)-based services. In a letter Tuesday to the leaders of the House and Senate Commerce committees, the coalition wrote that even though the FCC has ruled that it has exclusive jurisdiction over regulation of IP-based services, "there continue to be proposals that would permit state regulation, ultimately hurting IP-enabled Internet communications providers and their customers."

The coalition noted that their firms are investing in IP-based services, such as voice-over-IP, that are being deployed without regard to state boundaries. "Absent congressional action to confirm exclusive federal jurisdiction, IP services will be subject to a patchwork of 50-plus different regulatory regimes, stifling innovation and the industry's ability to take full advantage of available cost savings" from IP-based services, the coalition, which also includes AT&T, Google, Microsoft, Verizon, the National Association of Manufacturers and others, wrote. They added that, "Congress must ensure that these inherently interstate services are regulated exclusively at the federal level, to the extent these services need to be regulated at all, and reject efforts to apply legacy state telecommunication regulation to the IP world."

The Bill and Melinda Gates Foundation announced Tuesday that it will provide $3.4 million in grants to help libraries in five states improve their Internet connections and also will partner with 14 other states to help public libraries compete for federal broadband stimulus funding.

A September study released by the American Library Association found that while Internet usage at libraries has increased dramatically in the wake of the economic recession, their funding has decreased. It also found that 60 percent of libraries say the current Internet speed they provide users is insufficient, while 81 percent of libraries surveyed said they do not have enough Internet-connected computers to meet demand some or all of the time and also are having trouble finding the money to replace outdated computers.

The Gates foundation grants are going to state libraries in Arkansas, Kansas, Massachusetts, New York and Virginia to implement plans to improve and maintain Internet connections at local libraries. At the same time, the foundation said it will work with Alaska, Arizona, Colorado, Delaware, Idaho, Kentucky, Montana, North Carolina, Nebraska, New Jersey, Oklahoma, Utah, Vermont, and Washington to help them develop proposals to apply for broadband grants, provided by the federal economic stimulus package, for their local libraries. "Federal, state, and local government investments in connecting libraries to broadband are important steps toward realizing the vision of universal broadband access," said Jill Nishi, deputy director of the foundation's U.S. library program.

Northrop Grumman announced Tuesday the launch of a research consortium with three universities aimed at providing new tools and methods for countering cyber threats. The defense and intelligence community contractor will be working on research projects with Purdue University's Center for Education and Research in Information Assurance and Security, the Massachusetts Institute of Technology's Computer Science and Artificial Intelligence Laboratory, and Carnegie Mellon University's Cybersecurity Education and Research Center.

Northrop Grumman's Robert Brammer said his firm is spending "millions of dollars" on the five-year project with the three universities but would not give a specific figure on the company's investment. He said the consortium will combine "outstanding people and the flexibility and visionary style of leading research universities." The initiative, which will likely go beyond the initial five years, will involve 10 projects at the three universities along with complimentary research at Northrop Grumman, Brammer said. Purdue University's Eugene Spafford noted that the projects are aimed at looking ahead to future threats and problems instead of being reactive, which is what usually occurs today, he added.

The specific projects being tackled by the consortium play to each university's strengths. For example, MIT will have three projects including one that aims to make computers better able to identify right and wrong commands so they can identify when they are being asked to perform a malicious function. The three projects at Carnegie Mellon will focus on protection of critical infrastructure. And the four projects being tackled at Purdue will include work on building computer systems that make it easier to identify when a cyber attack has occurred. Brammer said he believes the research will provide his firm with a competitive advantage, but added that any intellectual property that each institution develops on its own will remain theirs while intellectual property developed collaboratively will be dealt with on a case-by-case basis.

From this morning's Earlybird:

• "Draft legislation spearheaded by House Energy and Commerce Communications Subcommittee Chairman Rick Boucher, D-Va., that seeks to fortify online privacy hasn't been released, but that's not stopping critics from complaining that it falls short of protecting Web surfers or clamps down too hard on advertisers," CongressDailyAM (subscription) reports.

• "Last cycle, the on-demand video Web site Hulu.com was only in its infancy, but with a growing audience, it could be difficult to ignore in future elections," Roll Call (subscription) reports. "This year, there has been a trickle of online video advertising on other news Web sites, and Hulu could be next."