International
U.S. Calls For Investment, Optimism To Fight 'Digital Divide'
     A steady stream of governmental and non-governmental representatives took the floor at the U.N. World Summit on the Information Society to offer perspectives on bridging the "digital divide." John Marburger, director of the White House Office of Science and Technology Policy, highlighted the successful U.S. model of technological investment and innovation. "Our ability to seize the opportunities afforded by information and communication technology depends upon a philosophy of shared optimism about the power of individual creativity and entrepreneurship as the ultimate source of economic strength," he said. Wang Xudong, China's minister of information industry, highlighted his nation's adoption of technology. U Mya Than, Burmese ambassador to the United Nations, noted how quickly and deeply technology is changing societies and stressed respect for U.N. principles. And French Prime Minister Jean-Pierre Raffarin said the next summit should address Internet governance in the "broadest sense."

Campaigns
Court OKs Fundraising Law; Decision May Boost Online Ads
     A divided Supreme Court upheld restrictions on candidate-related television and radio advertisements as elections near, and campaign strategists said the decision would significantly boost the prospects of political ads on the Internet. In a 5-4 decision, the court upheld the two key features of a 2002 campaign-finance act: its bans on "soft money" contributions to political parties and on "issue advertisements" run on TV or radio 30 days before primary elections and 60 days before general elections. "This is a victory for the Internet in politics and creates a real unique opportunity" for candidates and others seeking to influence elections, said Jonah Seiger, a visiting fellow at George Washington University's Institute for Politics, Democracy and the Internet. The decision "further empowers the Internet media in practical politics," said Larry Purpuro, managing director of RightClick Strategies, a Republican Web strategist.

Budget
Proposed Cut In Manufacturing Program Infuriates Democrats
     Congressional Democrats are furious that the Manufacturing Extension Partnership (MEP) would lose two-thirds of its funding under the omnibus spending bill now before Congress, and they are warning that the budget cut could mean the end of the program. "When the time came for action, instead of just talk, a Republican Congress and administration killed the very program designed to support small and medium-sized manufacturers they claim to support," said Rep. Mark Udall, D-Colo. The bill, which would cover fiscal 2004 funding for numerous departments and agencies, would allocate $39.6 million for MEP, down from nearly $107 million in fiscal 2003. The White House proposed $12 million and a phase-out of the program in fiscal 2004. The final number reflects the amount approved by House appropriators; Senate appropriators had voted to fully fund MEP at $107 million.

Intellectual Property
Budget Puts Improvement 'In Jeopardy,' Patent Official Says
     The Patent and Trademark Office (PTO) implemented many of the improvements envisioned in its strategic plan by making spending cuts, one of the office's top officers said, but without congressional approval of legislation to raise fees, that progress is in jeopardy. Thanks to spending cuts, PTO hired 300 new examiners for patent applications this year, is ahead of schedule on implementing an electronic filing system, and improved oversight and evaluation of its processes, Deputy Director Jonathan Dudas told the Intellectual Property Owners Association. But he added that the improvements are "all in jeopardy" if Congress does not approve a bill that would let the agency raise its fees and assure that the money goes to PTO. In other news, observers predicted that Dudas eventually will permanently replace PTO Director James Rogan, who announced that he is leaving the Bush administration. Dudas becomes the acting director when Rogan, who is leaving to complete work on his autobiography, resigns Jan. 9.

Cyber Security
Federal Entities' Average For Computer Security Is 'D'
     Federal departments and agencies earned an average grade of "D" in computer security, according to the fourth annual report card on the issue. A House Government Reform subcommittee graded the entities and concluded that many government networks still have substantial weaknesses and vulnerabilities. The grades were assigned based on reports to Congress and the White House Office of Management and Budget (OMB) mandated by a law enacted last year. The report card shows some improvement but highlights glaring failures. Many agencies received a higher grade, with the Nuclear Regulatory Commission and the National Science Foundation receiving "A's." But overall, 14 agencies scored less than "C," and eight failed.

E-Government
Computer Scientist Decries Process For E-Voting Standards
     A computer scientist and fellow at Harvard University's Kennedy School of Government criticized the process for setting e-voting standards as favoring a select group of vendors that have served only to reinforce the status quo of poor security in e-voting machines. Speaking at an e-voting symposium, Rebecca Mercuri charged that after computer scientists uncovered flaws in systems used in Fairfax, Va., and other recent elections in California, Indiana and Texas, they were either ignored or attacked for "demoralizing voters." She called for the adoption of voter-verified paper-ballot systems and praised legislation that would mandate such systems. Mercuri also attacked the Election Technology Council, recently created by the Information Technology Association of America, as an industry effort to control standards and shut out academia. "The American public will not stand for it," she said.

Labor
Experts Anticipate U.S. Job Losses To India, Other Nations
     A new wave of U.S. job losses is expected as companies move more service jobs to India and other countries, experts predicted. At a symposium sponsored by the Information Policy Institute, economists and academics agreed that globalization is causing companies to move jobs in customer-service telephone centers, information technology, insurance, accounting and other service jobs to countries with educated workers and low pay, such as India. Rolf Lundberg, a senior official of the U.S. Chamber of Commerce, said that by 2015, the number of jobs expected to go overseas could reach 3 million to 3.5 million. While analysts agreed that back-office jobs are moving out of the United States, there is disagreement on the exact size and pace and whether such "outsourcing" is a reason for the "jobless recovery." In other news, a new free-trade group called the National Foundation for American Policy singled out Democratic presidential aspirant John Kerry, a senator from Massachusetts, by criticizing his bill that would require foreign-based telephone or Internet service centers to disclose their locations to callers.