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White House
Bush Presents Modest Agenda In State Of The Union
In his final State of the Union address, President Bush on Monday presented a modest agenda, offering initiatives designed to tempt bipartisan support while picking a few fights that a lame-duck president in his last year might win. CongressDaily, The Washington Post, The Washington Times, The Boston Globe, The New York Times, The Politico and Bloomberg News report that Bush was interrupted by applause 70 times during the 53-minute speech. But emasculated by low poll numbers and the approaching end of his presidency, he skipped the grand plans of years past, urging but not seeking to force progress on issues such as entitlements and immigration. Bush instead vowed to veto appropriations bills if Congress does not reduce earmarks for special projects. He also pressed lawmakers to agree "as soon as possible" to a stimulus plan of temporary tax cuts costing about $150 billion. In an article that ran last week before the speech, eWeek noted that Bush has a history of not mentioning Internet and technology issues in the annual addresses.
Intelligence
Senate Democrats Block White House's Spying Plan
Senate Democrats united Monday in opposition to a White House-backed bill that would rewrite the nation's surveillance laws and give retroactive legal immunity to telecommunications companies that helped the Bush administration conduct anti-terrorism wiretaps without warrants. CongressDaily, The Washington Post and News.com report that Democrats defeated a motion to close debate on the bill, which was crafted by the Senate Intelligence Committee with input from senior administration officials. The 48-45 vote -- well short of the 60 needed to limit debate -- was a major defeat for President Bush hours before he came to Capitol Hill to give the annual State of the Union speech. He mentioned the issue in his speech and said Congress needs to pass legislation soon. Liberal Democrats said the bill would give the administration too much power to conduct electronic surveillance without enough oversight by the secret foriegn intelligence court while not doing enough to protect citizens' constitutional rights.
Security
Senators Seek Delay In Rules For Border Travel
Six senators from northern New England and New York asked the Homeland Security Department on Monday to delay implementation of stiff, new identification requirements for people entering the United States by land from Canada. AP reports that in a letter to Homeland Security Secretary Michael Chertoff, 19 senators said commerce will be stifled and lives disrupted if federal officials go ahead Thursday with plans to end the practice of allowing people to enter the United States after showing a document, such as a driver's license, and declaring their nationality. But federal officials say the "honor system" must end now. "There is enormous downside and very little upside to the new hoops they want to put everyone through on the Canadian border," said Sen. Patrick Leahy, D-Vt. "These paper padlocks won't make us safer."
Taxes
Senators Craft Broader Bill To Stimulate Economy
Senate Democrats will move to add to a $150 billion economic stimulus package rebates for senior citizens living off Social Security and an extension of unemployment benefits. CongressDaily, AP, The Washington Post, The Wall Street Journal and The New York Times report that the move was in defiance of admonitions from the Bush administration not to risk derailing the deal with changes, and it threatened to slow what was shaping up as an extraordinarily rapid trip through Congress for the stimulus measure. "Rebates for seniors and payroll taxpayers, extended unemployment insurance, and tax relief for struggling businesses will put more cash into the American economy right away," Sen. Max Baucus, D-Mont., said in a statement.
Privacy
European Court Protects Identities Of File-Sharers
A European court ruled Tuesday that European Union countries can refuse to disclose names of Internet file-sharers in civil cases, Reuters reports. Spanish telecommunications operator Telefonica argued that under European Union rules, it only had to disclose the name of an Internet subscriber for criminal actions, not civil ones. the Spanish music-rights holders association Promusicae wanted names of Telefonica clients suspected of sharing copyrighted materials on the Web using Kazaa. In related news, Hollywood Reporter and the International Herald Tribune report that the rock band U2's manager called on Internet service providers to introduce disconnection policies to end illegal music downloads and urged governments to make sure they follow through. AP, Reuters and Agence France-Presse, meanwhile, report that the file-swapping software distributor Qtrax abruptly postponed the launch of its free online music service until it finalizes music-licensing deals with recording companies.
Intellectual Property
Microsoft Wins Patent Spat With Alcatel-Lucent
A U.S. International Trade Commission judge has ruled that an Alcatel-Lucent product infringes on a Microsoft patent for a system that allows electronic communications to be routed to users' telephones and computers, and the judge recommended that the product be barred from the United States. Bloomberg News reports that Judge Paul Luckern said that Alcatel's OmniPCX Enterprise system, which integrates phones and computers for calls, e-mailing and video-conferencing, infringes on one Microsoft patent. He rejected claims that Alcatel violates three other patents and that its OmniPCX Office servers infringes the four patents. The ruling is the latest in an ongoing battle between the two companies. Alcatel is seeking $3.49 billion in a patent dispute in U.S. federal court next month. A federal judge previously overturned a $1.52 billion verdict against Microsoft. Microsoft spokesman Jack Evans said the company hopes "this ruling can provide the catalyst for a resolution of the issues between our two companies."
Crime
Ex-Tech Official Sentenced For Stock-Options Fraud
The former chief financial officer of SafeNet, a maker of computer network security products, was sentenced Monday to six months in prison and fined $1 million for securities fraud in connection with an options backdating case. AP reports that Carole Argo sobbed and apologized as she pleaded guilty to securities fraud, admitting that she backdated millions of dollars' worth of employee stock options at SafeNet so they appeared to have been issued when SafeNet's stock price was at a periodic low point. The district judge said Argo deserved a lenient sentence because of her charitable work and because her crime was less serious than the more spectacular financial frauds of late. Her lawyer said she had already returned $236,000 in profits and that she likely cannot afford the $1 million fine.
Privacy
ChoicePoint Settles With Shareholders Over Breach
The data brokerage ChoicePoint last week announced another settlement stemming from a 2005 breach in which the personal information of 160,000 individuals was exposed, Computerworld reports. The firm will pay $10 million to shareholders in a class-action lawsuit they brought over the breach. ChoicePoint did not admit any wrongdoing in the settlement. This is the last suit filed against the company in connection with the breach that ChoicePoint had to resolve. The company also last week said the Securities and Exchange Commission concluded a probe of its stock-trading practices and did not recommend any enforcement against the firm. In other news, IDG News Service reports that a U.S. district court in Wyoming has barred a company from selling telephone records online without the owners' permission and to relinquish some $200,000 in profits.
E-Commerce
New Yorker Charged With Selling History On EBay
A New York state employee has been arrested on suspicion of stealing hundreds of historic documents and selling many of them on eBay, Reuters reports. Among the missing documents were an 1823 letter by U.S. Vice President John Calhoun and copies of the "Davy Crockett Almanacs," pamphlets written by the frontiersman who died at the Alamo in Texas. Daniel Lorello was charged with grand larceny, possession of stolen property and fraud. He pleaded not guilty. In other news, Reuters reports that research by statisticians from the University of Maryland shows that buyers saved $7 billion in 2003 bidding on eBay auctions and $8.4 billion in 2004, and were projected to save $19 billion during 2007. The Mercury News reports that the Israeli transaction verification service Fraud Sciences is being acquired by PayPal in a $169 million transaction to boost trust on eBay sites. The deal marks the first time eBay and PayPal have acquired a security technology company.
Campaigns
Romney Campaign Criticizes 'Robocalls' About Cuba
The campaign of presidential hopeful Mitt Romney said some of its Miami supporters began receiving automated phone calls Monday accusing the former Massachusetts governor of wanting to re-open relations with Cuba, The New York Times reports. The "robocall" claims increased tensions just before Tuesday's Republican primary, with charges and countercharges being swapped between Romney and his chief rival, Arizona Sen. John McCain. A senior Romney campaign official said he wasn't sure who was behind the calls, which began after some radio advertisements featuring Roger Noriega, a former State Department official and Romney surrogate, were broadcast outlining the opposite stance for Romney. Romney's Florida campaign chairman called the calls "despicable" and noted that only Romney and McCain were making calls in the area. The Romney camp has been doing calls impugning McCain's vote against the Medicare prescription-drug benefit, his campaign finance measure and his role in the immigration debate.
Culture
Web Site Chronicles Catholic Sex-Abuse Scandals
A Massachusetts-based Web site has compiled a database of more than 3,000 Catholic priests who have been accused of abuse. The Boston Globe reports that bishopaccountability.org has posted online 90,000 files, which include court filings and other documents from lawyers, scholars and alleged victims of abuse crimes within the Catholic Church. Terry McKiernan and Anne Barrett Doyle, the founders of the site, said they began posting materials about the scandals online in 2003. "The first and foremost objective would be public education, for parents and victims and reporters and lawyers, and I think they're well along in terms of that. But the second would be to serve as a research mecca for scholars." They said the next step for the site includes revamping its search functions and converting more files to digital form.
Telecom
IPhone Owners Reportedly Are Bypassing AT&T Network
More than 25 percent of people who purchased Apple iPhones are using them on wireless telephone networks other than the one operated by AT&T, according to an industry analyst. Reuters, BBC and Computerworld report that Bernstein Research analyst Toni Sacconaghi has found that more than a quarter of the iPhones that have been purchased have gone "missing in action" because they have been "unlocked" to function on non-AT&T networks. AT&T and Apple are exclusive partners with the iPhone, as customers are required to obtain cellular service through AT&T. "Besides the financial implications, we believe the prevalence of unlocked iPhones presents a significant strategic dilemma to Apple," Sacconaghi said. Spokesmen from AT&T and Apple did not comment.
Intellectual Property
Writers Reach Pact To Work On The Grammy Awards
The striking Hollywood writers union said Monday it will let its members work on the Grammy Awards. AP and Multichannel News report that the decision by the Writers Guild of America's board to grant an interim agreement for the Feb. 10 music industry showcase follows its move last week to withhold pickets from the ceremony to be televised live on CBS. The union said it recognizes that professional musicians face many of the same concerns as writers when it comes to compensation for projects distributed via digital media -- a central issue in the contract dispute between the writers union and the alliance that represents studios. The Los Angeles Times, meanwhile, reports that both parties are closer to reaching a long-term deal. Multichannel News also reports on viewers' shifting television-watching habits since the strike began.
Business
Diller Faces Ouster Attempt At IAC/InterActiveCorp
Liberty Media's John Malone, a longtime business partner of Barry Diller, took action Monday to oust Diller from the board of the IAC/InterActiveCorp Internet conglomerate. AP and The Wall Street Journal report that the move is the latest in dueling lawsuits the two sides have filed in Delaware courts, following IAC's announcement that it would break into five separate publicly traded companies. In other news, AP, The Mercury News, The Wall Street Journal and USA Today report that cable television upstart Current Media plans to go public later this year, giving investors a chance to assess the entrepreneurial skills of its co-founder, former Vice President Al Gore. The Los Angeles Times reports on Yahoo's struggle to keep up with the advertising prowess of Google and the growth of such sites as Facebook. And InfoWorld reports on new "green" initiatives by Intel and Nokia.
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