Encryption
Industry Praises White House Policy Shift
     The high-tech industry expressed optimism tinged with caution over the Clinton Administration's announcement that it would provide major regulatory relief on the export of encryption products, handing a long-fought victory to U.S. industry. The administration's new policy permits after a one-time technology review the export of any commercial encryption technology, with no limit on strength, to any non-government user around the world. The only limitation is on exports to seven nations declared "state supporters of terrorism." The new rules are accompanied by a proposed law from the administration, the Cyberspace Electronic Security Act of 1999. That would provide for law enforcement access to encryption keys held by third parties with a court order — including notification to the entity whose key was seized — but keep use of such third parties voluntary. The bill would also authorize $80 million over four years to create an encryption Technical Support Center at the FBI.

Campaigns
DeLay To Revive Net Campaign Amendment
     An amendment that would have exempted the Internet from Federal Election Commission laws was defeated in the House of Representatives as opponents argued that it would create a loophole for unlimited amounts of soft money to be spent on candidates using the Internet as a campaign tool. The amendment, sponsored by House Whip Tom DeLay, R-TX, was one of ten offered to the bipartisan campaign finance bill, H.R. 417. DeLay's amendment failed with a vote of 160 for the amendment and 268 opposed. The campaign finance bill, sponsored by Rep. Chris Shays, R-CT, and Rep. Marty Meehan, D-MA, ultimately passed. DeLay staffers said that he intends to revive the amendment as a separate, more comprehensive piece of legislation. Also this week, the Center for Democracy and Technology released a policy report titled "Square Pegs in Round Holes: Applying the Campaign Finance Law to the Internet" that criticizes the Federal Election Commission attempts to regulate campaign activity on the Internet.

Privacy
Bill Would Make Sites Post Privacy Policies
     Rep. Bruce Vento, D-MN, introduced the Internet Consumer Information Protection Act, using legislative language that draws upon privacy protections approved by the House when it passed the landmark Financial Services Modernization Act in July on an overwhelming 343-86 vote. Vento's bill would require Web site operators to post notice of their privacy policies, give consumers an opportunity to opt-out of data sharing with outside companies, and require businesses to provide consumers with a free copy of their personal information and allow them to make any corrections.

Privacy
State AGs Criticize Financial Privacy Protections
     Attorneys general from 21 states and two territories castigated privacy protections included in the major financial modernization bill currently before Congress, criticizing them as inadequate and wrong-headed. In a letter to the House and Senate conferees considering the Financial Services Act of 1999, H.R. 10, the attorneys general said they "strongly oppose provisions that will not provide adequate protection for private financial and medical records" and offered specific legislative suggestions in an attached position statement.

Crime
Gore Calls For Cyberstalking Laws
     With harassment and threats increasing over the Internet, Vice President Al Gore called for tougher federal and state laws to combat "cyberstalking" which is not expressly prohibited in most states. Gore acknowledged at a meeting in San Diego with victims of online stalking that because more and more children are exposed to the Internet, protecting them from such activity is a critical priority. Gore also released a report by the Justice Department demonstrating to what extent cyberstalking has become a problem. Gore had asked Justice to produce the report in February to get a better gauge of the prevalence of cyberstalking.

On The Hill
Dems Craft Top Ten List For Tech
     Moderate Democrats jockeyed to be the party of technology Monday by releasing "rules of the road" for an information-based economy that call for continued government involvement to ensure investment in research and education. Saying the mismatch between public policy and the economy is unsustainable, the Progressive Policy Institute— the think tank for the Democratic Leadership Council — issued 10 rules it says should guide policymakers.

Business
Robb To Introduce Legislation For New Work Visas
     Sen. Charles Robb, D-VA, is working on legislation that would create a new category of temporary visas for foreigners aimed at filling the high-tech industry's growing demand for skilled workers. The bill likely will be similar to a H.R. 2687, introduced in the House by Rep. Zoe Lofgren, D-CA, though it may have some differences, according Robb spokesman John DiBiase. Robb, who is facing a tough re-election bid next year, may introduce the bill in the next week or so.

Taxes
Net Tax Commission Yields Few Solutions
     A congressionally-appointed commission charged with studying Internet taxes met in New York to discuss its gameplan, but continued to grapple this week with what direction it should take. Few concrete solutions were offered by members of the Advisory Commission on Electronic Commerce beyond a proposal by California Board of Equalization Chairman Dean Andal that would codify a 1992 U.S. Supreme Court decision that says states cannot require retailers to collect sales taxes unless the business has a physical presence in that state's jurisdiction. Andal conceded that he doesn't "have close to two-thirds" support for the plan, but said he has at least proposed something. Also at the meeting, the Information Technology Association of America released a study showing that voters would be less inclined to vote for candidates who support taxes for goods and services sold online.

Telecom
High Powered Legal Team Takes On AT&T
     The new heavy-weight legal team for OpenNET, a corporate coalition fighting to force AT&T to open up its high-speed data services to competition, filed a friend-of-the-court brief in support of a 1998 decision by Portland and Multnomah County, OR, to tie the transfer of its local cable franchise to Internet service provider competition. The team told the 9th Circuit Court of Appeals, which is considering AT&T's appeal of a federal ruling upholding the city and county's decision, that the local governments' resolution to bar discrimination of ISPs that wished to access AT&T's high-speed data services was permitted under the law. The team includes lawyer David Kendall, well-known for defending President Clinton on impeachment charges this year.

Telecom
FCC Nixes DNS Line From Rules
     In a nearly unanimous decision, the Federal Communications Commission attempted to put its "unregulation" approach to broadband into action, excluding a key broadband technology from the rules mandating that local phone companies sell pieces of their services at wholesale prices to competitors. The rules enacted by the commission, which had been expected, carved out so-called Digital Subscriber Line technology from the list of "unbundled network elements" that the major local phone companies must resell.

Campaigns
Bush, Gore Tie In Tech Capital Poll
     As the two leading presidential candidates head back to Silicon Valley this month for another round of fundraisers, a recent poll shows Vice President Al Gore and Texas Governor George W. Bush are in a dead heat in the state. According to the Public Policy Institute of California, Gore and Bush would each garner support of 27 percent of likely voters, with none of the other presidential candidates receiving even double-digit support. Bush appears to have won support away from Gore, who had been leading Bush last year.

Intellectual Property
Daley Calls For Increase In Intellectual Property Protections
     Intellectual property protections on the Internet must be boosted worldwide, Commerce Secretary William Daley told international business leaders and politicians Tuesday during a global e-commerce conference. "The only way the Internet will ever reach its potential is if we strengthen its intellectual property protections," he said during the World Intellectual Property Organization's Conference on Electronic Commerce and Intellectual Property in Geneva. In a symbolic gesture, Daley also delivered ratification for two treaties which strengthen protection for copyrighted works on the Internet. The treaties, the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty, were approved by WIPO in 1996 and implemented by the U.S. Congress in 1998.

Business
GBDe Issues Nine Commandments
     Executives from businesses around the world Monday endorsed a list of principles key to the continued development of electronic commerce on issues such as taxation and intellectual property, emphasizing industry self-regulation and minimal government intervention. During a conference in Paris, the Global Business Dialogue on Electronic Commerce (GBDe) released a series of recommendation on nine issues critical to electronic commerce. The group was formed in January and includes companies such as German media giant Bertelsmann, America Online and Walt Disney.

Privacy
Right To Privacy Means Little To Many, Study Says
     A study of privacy in more than 50 nations reveals that although many countries recognize a right to privacy, it is often abused by governments and corporations. The report, released by the Electronic Privacy Information Center and Privacy International, identifies the Internet and e-mail as tools increasingly employed to violate privacy.

Y2K
No Y2K Travel Warnings From The State Dept.
     After months of data gathering and a three-month international review period, the U.S. State Department issued not a single Y2K-related travel warning to U.S. citizens on Tuesday. While the State Department made much-anticipated updates to its consular information sheets to include country-specific Y2K information, the agency assiduously avoided making any country or regional comparisons or analysis during a press conference Tuesday. The State Department said it updated the information "in the interest of protecting U.S. citizens" and did not intend to "impede travel or hinder tourism."

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