December 5, 2008
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Executive Briefing: August 20, 1999
Executive Summary
Week Of August 16, 1999

Executive Summary (08/20/1999) In This Week's Technology Daily Features:

In his Politechs column, Rory J. O'Connor writes we should beware of "new tools" in the works to fight cybercrime. People finds out about e-Advocates. The Issue of the Week explains why Virginia is a new domain for high-tech politics. And the State Roundup tells us state lawmakers are flocking to conferences to talk tech issues .

Campaigns
House To Debate Using Net As A Campaign Tool
     The use of the Internet as a campaign tool will be debated for the first time when the House takes up a broad campaign finance bill, H.R. 417, in mid-September. The House Rules Committee agreed on Aug. 5 to include an amendment sponsored by House Whip Tom DeLay, R-TX, to the bipartisan campaign finance bill, sponsored by Rep. Christopher Shays, R-CT, and Rep. Marty Meehan, D-MA. DeLay's amendment would prevent any restrictions on using the Internet to advocate a political position. "This is in response to the Shays-Meehan bill…which places restrictions on what type of communications and advocacy you can put in print 60 days before an election…all (DeLay's) bill does is free the use of chat rooms or e-mail during the blackout period which is proposed by Shays-Meehan," said Mike Scanlon, spokesman for DeLay. The Shays-Meehan bill is aimed at reducing special interest influence on campaigns, but DeLay said he feels the bill goes too far in restricting citizens' free-speech rights. In particular, it would enable special interest groups to use an unlimited amount of soft money to advertise on the Internet, he said. DeLay's amendment would not apply to the solicitation and receipt of campaign contributions through the Internet, which is under consideration by the FEC.

Net Governance
Bliley Bites Back
     A key House lawmaker is again questioning the Internet Corporation for Assigned Names and Numbers, raising concern about the non-profit's financial stability and fundraising activities. House Commerce Committee Chairman Tom Bliley, R-VA, sent a letter to Esther Dyson, ICANN's interim chair, citing concerns over several e-mail messages that "raise significant questions about ICANN's financial viability as well as the propriety of the involvement of White House personnel in ICANN's fundraising activities," according to the letter. One of these e-mails from ICANN Interim President Mike Roberts points to ICANN's financial trouble. "...Unless there is an immediate infusion of $500k to $1 M, there won't be a functioning ICANN by the end of August," Roberts wrote in the June 7 email to Roger Cochetti, IBM's program director for Internet policy and planning, and Vint Cerf, a senior vice president with MCIWorldCom.

Privacy
Congress Cuts It Close
     Congress' failure to enact comprehensive medical privacy legislation by its self-imposed August 21 deadline is not expected to dampen enthusiasm for measures guaranteeing the confidentiality of medical records. However, it may be complicating privacy rules for other government-run health programs, critics charge. "We will come back in September and pick up where we left off," said Joe Karpinski, a spokesman for Sen. James Jeffords, R-VT, Chairman of the Senate Health, Education, Labor and Pensions Committee. That panel has been in a stalemate over whether patients would have the right to sue for breaches of privacy and whether federal privacy protections would preempt stronger state laws. Karpinski called the August 21 date a "trigger" rather a deadline. "All that it indicates is that if Congress had not enacted legislation, the Secretary [of Health and Human Services] is prepared to promulgate regulations dealing with the electronic transmission of information," he said.

Lobbying
Tech Trio Trek To Valley
     A trio of moderate Republicans trekked to Silicon Valley, carrying the baggage of a House-Senate tax compromise that failed to get a permanent extension of the research and development tax credit pushed for by the high-tech industry. Delegates from the Republican Main Street Partnership former Maine Gov.John McKernan, who chairs the partnership, the group's founder Rep. Amory Houghton, R-NY, and Sen. Olympia Snowe, R-ME met with executives from Intel, Hewlett Packard, eBay, and Apple, among others. The Technology Network , (TechNet) which has lobbied for the permanent tax credit, hosted the moderate Republicans. The group has sponsored a number of visits to Silicon Valley by Democrats and Republicans courting the high-tech industry. House and Senate lawmakers agreed to a five-year extension of the research and development tax credit, far short of the permanent extension pushed by the high-tech industry, including TechNet. Senate Republican leaders had pledged to support a permanent extension, but compromised with the five-year plan. Lobbyists will likely get a second shot at trying to secure a longer extension, since President Clinton has repeatedly threatened to veto the 10-year $792 billion tax-cut package,H.R. 2488 The Main Street partnership, which includes 52 members of Congress and a handful of governors, tries to work with business and Democrats to craft bipartisan legislation.

Business
Coalition To Lobby Over Federal Contracts
     The American Electronics Association , the Information Technology Association of America, and the Computer Technology Industries Association have joined a broad coalition of companies and business groups to lobby Congress and the White House in opposition of an administration-proposed rule that could make obtaining federal contracts more difficult. The prospective rule, issued July 9 under the direction of Vice President Al Gore's office, would require government contracting officers to review a firm's compliance with labor, employment, tax, environmental and antitrust laws before awarding a federal contract. If there is "persuasive evidence of substantial noncompliance with a law or regulation," a company could be barred from being considered for a federal contract. High-tech companies, whose largest single purchaser is the federal government, say the way the proposed law is too vaguely written and fear that competitors could politicize the procurement process. For example, Microsoft is embroiled in an antitrust suit with the federal government, should they then be barred from government contracts? asks Nancy Saucier, manager of domestic policy for the AEA.

Crime
Crunching Down On Cyberterrorism, Bit By BITS
     Some of the nation's top banks have joined to establish a software laboratory designed to find security holes in financial software and plug them before hackers can exploit them. Working through the Bankers Industry Technology Secretariat (BITS) of the Financial Services Roundtable, the banks —Citigroup, Chase Manhattan, Mellon, BankAmerica, First Union, Wells Fargo, and Huntington — established the Reston, VA-based financial services security laboratory at the headquarters of a Science Applications International Corporation (SAIC) subsidiary. "Hacks, breaches, and other security problems do take place in the Internet environment — and exacerbate the confusion and concern of the public," said Peter Browne, senior vice president of First Union, and one of two co-chairs of a BITS subcommittee devoted to security and risk assessment. While the laboratory is intended to be a private-sector collaboration between financial institutions and technology companies, the recent opening ceremony was attended by Sen. Robert Bennett, R-UT, and former Sen. Sam Nunn, D-GA, who praised the program as model for a variety of industries, working in collaboration with the government, to follow in guarding against cyber-threats.

Y2K
Complex Wiring Makes Internet A Safe Bet
     The disparate nature of the Internet makes it difficult to tell for sure whether networks are Y2K ready, but that structure also is its greatest protection from glitches caused by the 2000 date change, said the White House's Y2K chief John Koskinen Tuesday. "The basic core of the Internet appears likely, extremely likely, to function without problems," said Koskinen, who chairs the President's Council on Year 2000 Conversion. Koskinen added that since there are thousands of Internet service providers in the United States, it's difficult to determine whether they are all prepared. But redundancy in the system will allow data to bypass areas that face temporary breakdowns. Koskinen recently convened a meeting with ISP representatives to determine the Internet's Y2K readiness.

Courts
Who's Got Mail?
      America Online said it intends to appeal a federal district court's decision that the company has no exclusive right to use or obtain a trademark on the phrases "You Have Mail," "Buddy List," and "IM." Late last week, Judge Claude Hilton in Alexandria, VA, dismissed AOL's trademark infringement lawsuit against AT&T, ruling each of the phrases generic and canceling the on-line service's registered trademark for "Buddy List." The company had trademark applications pending on the other two phrases when AT&T launched a rival instant messaging service in December. "These are phrases that were introduced by AOL nearly 10 years ago, widely promoted, and popularized by AOL," said AOL spokesman Andrew Weinstein. "They are closely linked in the public mind, if not synonymous, with the AOL experience, and legally protected by the trademark laws."

Telecom
AT&T Says U S West Won't Phone
     AT&T and U S West are accusing each other of using diversionary tactics to shift attention from each other's race to capture a piece of the growing high-speed data market. The long distance giant filed formal complaints with regulators in five states alleging "out of control" service problems with U S West's telephone network, while the Baby Bell said the move was merely an attempt to distract attention from AT&T's cable broadband fight." It strikes us as a little bit of litigious mud wrestling," said Mike Fernandez, U S West vice president of public relations. "Are they concerned about service, or is this a competitive play?" An AT&T spokesman dismissed claims by U S West officials, adding that problems with the Baby Bell's basic telephone network started well before the broadband issue.

Internet Access
OpenNet Opens Arms To New Members
     OpenNet, a corporate coalition united to force high-speed cable networks to open up to competing Internet service providers, has quadrupled its membership over the summer as more localities are faced with the decision to impose such a condition on cable franchises. The coalition, spearheaded by America Online, Mindspring Enterprises, U S West and others, has grown to nearly 400 member companies, up from 84 in June. Most of the new members are small to mid-size ISPs from 38 states that fear they could be left off cable high-speed networks.

We welcome your feedback; please e-mail comments to Managing Editor Sharon McLoone at smcloone@nationaljournal.com.




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