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April 16, 2004
Executive Summary
Week of April 12, 2004
by Sharon McLoone

Lobbying
Top Lobbyists Trade Barbs Over Digital Radio Technology
     Top lobbyists for the recording and consumer electronics industries this week traded harsh words about a proposal to limit consumer ability to copy and store songs broadcast over the radio. The squabble occurred one day before potential FCC action on the subject. "We are disappointed" that the Consumer Electronics Association "has asked the FCC to deny interested parties the opportunity to address" anti-piracy technologies that might be required of digital radio broadcasters, said Cary Sherman, president of the Recording Industry Association of America (RIAA). Shapiro countered in an interview: "I have been involved in [this discussion] for at least 11 years. The RIAA filed not one document in that process. The process is over. They are trying to create new rights that they have not had before." Shapiro said RIAA's proposals for a flag-style mandate would "injure consumers" and added: "I am very unsympathetic to their concerns. They are not only too late, but they are wrong." The FCC decided to seek public comment on the idea.

Lobbying
Retailers Unite To Form Voice In Anti-Piracy Debate
     Five major trade organizations that represent movie, music and videogame retailers formed a coalition to pool resources and advance common policy goals. The Coalition of Entertainment Retail Trade Associations consists of the Digital Media Association, Interactive Entertainment Merchants Association, National Association of Recording Merchandisers, National Association of Theater Owners, and Video Software Dealers Association. The combined membership includes 3,000 retailers who operate more than 50,000 movie theaters; home video, music and videogame stores; online music sites; and other stores. Coalition spokesman Sean Bersell said the group initially will address the piracy of packaged and online goods, as well as consumer awareness of entertainment ratings and labeling systems. While the media conglomerates and software publishers have voiced their piracy concerns in Congress well, he said, the retailers' perspective is "a voice we have not heard as much."

Cyber Security
Funds For Homeland Security R&D May Get Boost
     The Homeland Security Department's science and technology branch is looking to expand its mandate to fund long-term security research and emphasize short-term security technologies. Simon Szykman, the director of cyber-security research and development at the department, told members of the President's Information Technology Advisory Committee that "priorities are being reconsidered" for the Homeland Security Advanced Research Projects Agency. He said the agency's $18 million budget for cyber-security research, out of a total $1 billion fiscal 2004 research budget, might be increased.

Cyber Security
Groups Outline Their Progress Toward Recommendations
     Members of a White House advisory committee focused on protecting cyber and physical infrastructures are on track to finish a handful of reports -- and make recommendations to President Bush -- by the time of the panel's July meeting. The National Infrastructure Advisory Council, which consists of more than 100 chief information officers -- gathered for its quarterly meeting in Washington to hear updates from its working groups on infrastructure protection. The reports included studies on strengthening the Internet against attacks, creating a common system for scoring infrastructure vulnerabilities to disclose risks, prioritizing cyber vulnerabilities, evaluating and enhancing how executives and government officials share and analyze information, and regulations for certain industry sectors.

Telecom
Tech Groups Question Proposed Expansion Of Wiretapping
     Some industry and watchdog groups in technology and telecommunications are calling on the FCC to take a more measured approach to the issue of expanding federal wiretapping laws to the far corners of the Internet. But an FBI staffer speaking on background said the industry has had ample time to ponder the issue of compliance with the surveillance needs of the agency. In addition, the industry has engaged in extensive foot-dragging in complying with current wiretap law, he said. Early in March, the FBI and some other government agencies petitioned the FCC for an expedited rulemaking on outstanding questions regarding the Communications Assistance for Law Enforcement Act, which was enacted in 1994 to protect law enforcement agencies' ability to perform surveillance while still preserving U.S. citizens' privacy. The groups argue that if the FBI gets its way, it may want control over future technologies by demanding the ability to review and approve any new computer and telecom services to ensure that can be wiretapped, too.

E-Commerce
Proposed Anti-Spam Registry Sparks Barrage Of Criticism
     A "do not spam" registry will do little to stop the flow of unsolicited commercial e-mail, several groups told the FTC in public comments submitted last month. Federal anti-spam legislation enacted Jan. 1 gives the FTC six months to deliver to Congress a framework for such a registry and three months after that to implement it. The commission gave the public until March 31 to submit comments on the registry. Critics said a registry would penalize legitimate marketers even as spammers continue business as usual. "Senders of spam do not follow responsible business practices or comply with relevant laws," the Direct Marketing Association said in its comments. The Electronic Retailing Association and Magazine Publishers of America agreed.

Digital Television
FCC Chairman Appears Receptive To New Digital TV Plan
     FCC Chairman Michael Powell appears receptive to a new agency plan to expedite the transition to digital television and reclaim spectrum currently used by TV broadcasters, FCC officials said. The plan would effectively set a national deadline for the transition in 2009, as opposed to current widespread uncertainty about when the transition will be complete. Broadcasters then would stop transmitting analog signals and return at least 108 megahertz of spectrum to the government. The key element of the plan is a rules change that could be accomplished without congressional approval. The change would require cable operators to carry broadcasters' digital TV signals -- and no longer their analog counterparts.

Privacy
Group Blasts Enforcement Of Healthcare Privacy Rules
     A consumers' health group slammed the Bush administration's efforts at enforcing privacy rules promulgated under the Health Insurance Portability and Accountability Act a year after the law took effect. Janlori Goldman, founder of the Health Privacy Project, blasted the Health and Human Services Department (HHS) strategy of encouraging what she called "voluntary compliance" with the rules by the healthcare industry. "They don't take it seriously," she said. "That's what's distressing." HHS enforces civil portions of the law, while the Justice Department enforces criminal penalties. The group issued a report on those efforts. The White House had no comment.




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