Security
Defense To 'Influence' Tech Industry At Venture-Capital Level
     Retired Vice Adm. Arthur Cebrowski, head of the Defense Department's office for modernizing the military, said he will seek to influence commercial technology development at the earliest stages to encourage more appropriate military technologies. The idea to influence technology development further upstream came from research that his office conducted recently. Most of the transformation proposals received from industry were from large, traditional defense contractors, but a "not insignificant" portion came from very small firms, he said. Often, small firms' technologies eventually will be bought by the larger firms and then shared with the military, but Cebrowski said it might be possible to influence technology development before it reaches that buyout stage.

Privacy
Sen. Shelby Favors States' Rights On Financial Privacy
     Incoming Senate Banking Committee Chairman Richard Shelby said that federal pre-emption of state consumer privacy laws is not likely to occur on his watch. "I don't think that's going to happen," Shelby, R-Ala., said in response to questions at a Consumer Federation of America conference. Qualifying his remark, he said pre-emption is unlikely "unless it's to make the law tougher ... to make information sharing an opt in." "But I can't see taking away states' rights to [enact] stronger consumer privacy laws," he said. "I would never do that." Shelby is among those in Congress who have led the fight for tougher privacy standards that would require financial institutions to gain consumers' permission before sharing their information with affiliates. A 1999 banking reform law, which encourages resource sharing among affiliates, permits information sharing unless a customer asks to "opt out."

Intellectual Property
Anti-Piracy Debate May Be Tech Industry's 'Biggest Issue'
     Legislation that could mandate technologies to manage digital rights is going to be "the biggest issue" the technology industry faces at the Senate Judiciary Committee and one that is on a "fast track," said the chief counsel to incoming Chairman Orrin Hatch, R-Utah. Speaking about Hollywood's desire to mandate technologies that could thwart consumers' ability to copy or resend digital content, chief counsel Makan Delraheim said, "We would like to engage in a discussion, and have the proper legislative solution, if there should be one, and that will be on the fast track here." The issue, which pits the entertainment industry against the high-tech sector, came to a head in March when Senate Commerce Committee Chairman Ernest (Fritz) Hollings, D-S.C., introduced legislation that would require the two industries to agree to a uniform content-protection technology or have it set by the Federal Communications Commission.

Intellectual Property
Groups Question FCC's Right To Approve 'Broadcast Flag'
     The FCC lacks the legal authority to implement a copyright-control technology dubbed the "broadcast flag," 15 consumer groups argued in a filing submitted to the agency. In a separate filing, music publishers said the FCC should consult with the Copyright Office before implementing any mandate. The two comments were among the first of an anticipated avalanche of reactions to a proposal that the FCC regulate consumer electronic devices that can receive digital television signals. In its filing one day before Friday's deadline for comments, the Consumer Federation of America and 14 other consumer groups, including the California Public Interest Research Group, excoriated the FCC for "trying to enter into the digital copyright issue through a back door" by proposing the regulation as a way to speed the adoption of digital TV. Under the proposal, digital TVs would scan programs for a broadcast flag and block the users from resending broadcasts over the Internet.

Cyber Security
European Cyber-Security Plan Is Snagged On Procedure
     The European Commission's proposal for a new cyber-security body is snagged on a procedural matter, a commission spokesman said, and the target date for releasing the plan has been moved to mid-January. The proposal, which was expected next week, must await commission adoption of modified general rules on governance of European Union agencies, according to Per Haugaard, the spokesman for European Information Society Commissioner Erkki Liikanen. The commission official who has headed the cyber-security initiative departed from his position this week. Detlef Eckert, the former head of policy planning for the enterprise and information society directorate, headed for Microsoft on Dec. 1 to work on computer-security projects. He has a temporary replacement.

Telecom
Oversight Body Issues Guidelines On E-Rate Applications
     The organization that distributes money to wire schools and libraries for technology access has found a pattern of rules violations in applications for the funds. The problems will result in denials of funds in 2002, so the Universal Service Administrative Company (USAC) has issued guidelines to help applicants avoid those problems when seeking funding in 2003. USAC "noticed a pattern with some applications violating some program rules," said Mel Blackwell, the body's vice president of external communications. So he said the group decided to issue a warning to let schools know, "If you are filling out your applications using some of these methods, it will get you toasted." Blackwell cited a "cookie-cutter approach" to applications, among other problems. He noted that it is improbable that all of the applicants would have the exact same needs and solutions.

E-Commerce
Expert Says Poor Security Hinders E-Commerce Growth
     An international economic expert said that a lack of security in online transactions and technology equipment continues to be the top barrier to global e-commerce growth. Andrew Wyckoff, the head of economic analysis and statistics at the Paris-based Organization for Economic Cooperation and Development (OECD), made that point at a videoconference in Washington that highlighted the findings of a recent OECD study he co-authored. While business-to-business transactions account for most global e-commerce, the weak security and reliability of payment mechanisms tend to hamper the adoption of the enterprise both among businesses and consumers, according to the study, which was released Nov. 12.

Broadband
U.S. Chamber Urges Broadband As Priority
     U.S. Chamber of Commerce President and CEO Thomas Donohue called on Congress to make the high-speed Internet "a priority" in its next session. He criticized "the patchwork of outdated laws and regulations governing data and telecommunications laws that were written before anyone understood how the Internet would evolve -- that stymie the necessary investment in infrastructure." In a statement, Donohue urged Congress to change those laws "by passing comprehensive legislation to allow market dynamics to drive broadband deployment. This legislation should be limited, be predictable and not discriminate based on the type of technology being used."

Contributions
High-Tech Firms Up Their Ranking As Campaign Donors
     As of Oct. 21, computer and Internet companies had donated $19.4 million to federal candidates, ranking them as the 8th-biggest corporate donor, according to a Center for Responsive Politics analysis of Federal Election Commission records. Of the total, Republicans received 50 percent of the funds and Democrats received 49 percent, affirming the industry's traditional bipartisan stance. The top five donors were Propel, Microsoft, Affiliated Computer Services, EDS and Cisco Systems. The top five lawmakers to receive money were Democratic Sens. Maria Cantwell of Washington, John Kerry of Massachusetts, Max Baucus of Montana and Max Cleland of Georgia, and Rep. Jay Inslee, D-Wash. The top five recipients of political action committee money were: Rep. W.J. (Billy) Tauzin, R-La.; Baucus; Rep. Robert Goodlatte, R-Va.; Sen. Gordon Smith, R-Ore.; and Rep. Calvin Dooley, D-Calif.