Porn
High Court Ruling Focuses On Filtering Technology
     A divided Supreme Court ruled this week that a 1998 law aimed at protecting children from pornography on the Internet is probably unconstitutional and sent the case back to district court for further fact findings. In a 5-4 opinion, the majority said the government must prove that the law is the least restrictive means of protecting minors on the Web. The justices emphasized the role of computer filters. In particular, they focused on the effectiveness of technical code versus legal code both in protecting minors from online porn and protecting free speech. Citing a congressional study, the court said filters likely would be more effective but said there is nothing precluding a U.S. district court from finding the Child Online Protection Act to be a better choice pending evidence produced by the government in a trial.

Privacy
Banking Groups To Appeal Judge's Ruling On Pre-Emption
     Three major banking associations vowed to appeal a decision made by a U.S. district judge that dismissed the associations' challenge to a California privacy law. The American Bankers Association, Consumer Bankers Association and Financial Services Roundtable claim that the federal Fair Credit Reporting Act (FCRA) pre-empts the California law from taking effect July 1. The state law initially called for financial institutions to get permission before sharing customers' personal information with affiliated organizations or third parties. FCRA eventually pre-empted the provision regarding affiliated organizations, but the judge said the federal act allows the rule on third parties to stand. U.S. District Judge Morrison England ruled that FCRA only covers information regarding credit reports, not financial privacy. But the banks' argument is "weak," said Chris Hoofnagle, associate director of the Electronic Privacy Information Center.

Antitrust
Appeals Court Rejects State, Trade Groups Claims
     A unanimous federal D.C. Circuit Court of Appeals completely rejected the appeals of Massachusetts and two computer trade associations to the Justice Department's antitrust settlement with Microsoft. "We affirm the district court's remedial decree in its entirety," said the decision, authored by Chief Judge Douglas Ginsburg and joined by the five other judges who did not recuse themselves from the case. The court rejected Massachusetts' lone appeal of a district court decision favoring Microsoft in a case originally involving 20 states. It also rejected an effort by the Computer and Communications Industry Association and the Software and Information Industry Association to overturn ratification of the settlement. "We find no merit in any of CCIA's and SIIA's objections, substantive or procedural," Ginsburg wrote. "This clearly shows that our antitrust laws are not effective in protecting consumers," Massachusetts Attorney General Tom Reilly said in reply to the decision. Experts are mixed as to whether the judge's ruling will have an impact on the European Union's case against Microsoft.

Lobbying
Tech Firms Coalesce Against New Approach To Stemming Piracy
     The stalwart alliance of electronics and telecommunications companies that fought against mandatory anti-piracy legislation in 2002 is tentatively coalescing against a different approach to thwarting copyright infringement by Senate Judiciary Committee Chairman Orrin Hatch. Intel, Verizon Communications, the Consumer Electronics Association and the U.S. Telecommunications Association all have begun speaking against the bill, S. 2560, which was introduced last week. But their opposition is complicated by the fact that software companies, including those that belong to the Business Software Alliance (BSA), appear torn on the measure. BSA issued a statement in support of support the bill last week, but industry sources said some BSA members, including Microsoft, are backing away from the bill. Intel is also a BSA member. Hatch, R-Utah, introduced the measure with support Judiciary Committee ranking Democrat Patrick Leahy of Vermont and Majority Leader Bill Frist, R-Tenn. Hatch said his anti-piracy approach differs markedly from that taken two years ago by Sen. Ernest (Fritz) Hollings, D-S.C.

Broadband
Hundreds Of Millions In Broadband Loans Still Available
     An Agriculture Department program devoted to boosting the availability of high-speed Internet access in rural areas by loaning money to technology companies has been awarded $260 million, far short of the $2.1 billion Congress has appropriated. But President Bush and administration officials inside and outside the department have begun aggressively promoting the initiative. In multiple speeches Bush has cited the program, an element of the Agriculture's Rural Utility Service (RUS), as an element of his broadband plan. The $260 million in loans "is money in the last 12 months, and that is probably $260 million or at least $200 million over the private-sector" investment, RUS Administrator Hilda Gay Legg said. Out of 94 applicants, the agency has funded 23, and the recipients span various technologies, with wireless broadband plans getting the most approvals.

Lobbying
Movie Group Picks Former Agriculture Secretary As CEO
     The movie industry's top lobbying group named Dan Glickman, a former Democratic congressman and agriculture secretary in the Clinton administration, as its new CEO. Jack Valenti , who led the association for 38 years and has become one of the best-known and well-paid lobbyists in Washington, announced his resignation effective Sept. 1. Valenti will continue to supervise the film-rating system with the president of the National Association of Theater Owners, he said. Valenti and Glickman said stopping digital piracy of movies and adapting to the availability of high-speed Internet connections remain the top priorities of the Motion Picture Association of America. Glickman currently is director of the Institute of Politics at Harvard University and is affiliated with Akin Gump law firm.