E-Commerce
Senate Panel OKs Anti-Spam Bill, Strengthens Its Penalties
     The Senate Commerce Committee approved a bill that would make many types of unsolicited commercial e-mail illegal. Before approving the anti-spam measure, the panel adopted language that strengthens the proposed penalties, and lawmakers said the measure eventually will call for even tougher action against spammers. As approved, the bill would impose maximum fines of up to $1 million. A section on "aggravated violations" addresses practices such as "dictionary spamming," which involves technology that automatically creates e-mail lists, and the hijacking of unsuspecting users' computers to send spam. Damages could be tripled for people convicted of such activities. At the same committee session, the lawmakers approved separate bills that would reauthorize funding for FTC programs and authorize funding for nanotechnology research.

E-Commerce
Microsoft Sues Alleged Spammers In United States, Abroad
     Microsoft announced that it has filed 15 civil lawsuits aimed at curbing the activities of parties who have sent unsolicited commercial e-mail, or spam. Two of the suits were filed in the United Kingdom, 12 in Washington state and one in federal court. Brad Smith, Microsoft's senior vice president and general counsel, said in a teleconference that the company is using "expertise gained by fighting counterfeiting and piracy ... to [ramp] up our efforts to combat spam around the world." The suits in Washington will fall under that state's anti-spam statute, which has been used successfully to combat four other spam cases, said state Attorney General Christine Gregoire. "It has become obvious that our 'delete button' will not solve this problem," she said.

Antitrust
Panel Votes For Partial Overturn Of Media-Ownership Changes
     The Senate Commerce Committee approved by voice vote legislation that would prohibit any single company from owning broadcast stations that reach more than 35 percent of the national audience. That bill would overturn part of a recent FCC decision expanding the ability of media outlets to reach 45 percent of the nation. Committee members also voted to reverse the FCC's new rules on media cross-ownership but only after approving an exemption for some publishers and broadcasters in the smallest markets. The language would permit television and newspaper cross-ownership in small markets following approval by a state's public-utility commission and the FCC. Just how far the bill will progress in the legislative process is uncertain, especially because House Energy and Commerce Chairman W.J. (Billy) Tauzin, R-La., has announced his support for the changes made by the FCC.

Civil Liberties
House Panel Votes To Order Study On Passenger Screening
     The House Appropriations Committee voted to withhold fiscal 2004 funds for plans to update a computer system that screens airline passengers pending a review of the system's potential effectiveness, accuracy and impact on travelers' civil liberties. "This is a very complicated new system," Minnesota Democrat Martin Olav Sabo said of the Computer Assisted Passenger Pre-screening System II (CAPPS II), which would screen airline passengers' data from various sources and check it against a "no fly" list of suspected terrorists. Sabo said the system could be overly intrusive and mistakenly "red flag" law-abiding travelers. Under a bill that also would more broadly fund the Homeland Security Department, the General Accounting Office would have to extensively review CAPPS II before any money could be spent on it next year.

Security
Merging Customs, Border Patrol A Tall Order, Official Says
     The official in charge of the merger of four border-related agencies into a unified bureau at the Homeland Security Department said the difficulty of the transition is unprecedented. "The private sector hasn't gotten through a merger this complex," said Andrew Maner, an official with the Bureau of Customs and Border Protection. "I don't think there's a paradigm out there." The merger involves a divestiture from the Treasury Department, the move into the new parent department and the consolidation of the four agencies. In related news, Asa Hutchinson, the Homeland Security Department's undersecretary for border and transportation security, denied a charge that the department is not receiving the highest-level intelligence. And a key Senate budget aide said the fight over how much money to allocate for homeland security in fiscal 2004 probably will continue until the budget crunch time of September.

Intellectual Property
Lawmakers Vet Concerns Over Security Of P2P File Sharing
     The makers of software for peer-to-peer (P2P) networks came under attack as legislators claimed that the software exposes users to privacy and security risks and to child pornography. Although Senate Judiciary Committee Chairman Orrin Hatch, R-Utah, said he believes "peer-to-peer file sharing networks are here to stay," he added that unless software companies can minimize their weaknesses, "network administrators and others may ultimately conclude that the risks of this technology outweigh its advantages." Sen. Dianne Feinstein, D-Calif., urged Hatch to join her call for federal department heads to ban P2P software on government networks because of security risks. In other news, the Senate Commerce Committee included within a bill to reauthorize FTC programs language that would direct the agency to educate consumers about the risks of P2P networks.

On The Hill
Driving Force Behind Intellectual Property Caucus Unclear
     The entertainment industry's concern about intellectual property legislation is likely the force behind the launch of the Congressional Intellectual Property Caucus, one key lawmaker said, although caucus founders disagree. Rep. Rick Boucher, a Virginia Democrat who co-chairs the Congressional Internet Caucus, said he strongly suspects that the recording and movie communities are behind the creation of the bipartisan caucus. Several high-tech industry sources also said they believe those communities helped spur the idea for the caucus. Boucher said his "suspicion" is that content owners concerned about the popularity of the push for "fair use" of intellectual property in the digital age pushed for creation of the caucus. The recording industry denied being that motivation, and officials for three of the four initial leaders of the caucus also denied that the content industry was behind its development.