Courts
Entertainment Industry Scores Win In File-Sharing Case
     A unanimous Supreme Court this week ruled in favor of the entertainment industry in its multimillion-dollar fight against piracy on the Internet. The court found that certain file-sharing networks actively promoted such piracy, as evidenced through a trail of e-mails and advertising campaigns. The court rejected the networks' arguments that file-sharing software companies should not be liable for copyright infringement under a 1984 precedent that said technology manufacturers are not be liable for their users' infringing activities if products have commercially significant, non-infringing uses. The justices looked to doctrines in patent law for guidance in the case and applied an "active inducement" theory. They said companies can be liable if they actively advertise or take any actions to spur people to violate copyrights.

Courts
Ruling On Cable Broadband Paves Way For Deregulation
     The Supreme Court affirmed the right of the FCC to decide the level of regulation for high-speed, cable-based Internet service, paving the way for further deregulatory action by the agency. In a 6-3 decision authored by Justice Clarence Thomas, the court sustained the FCC's authority to classify cable broadband offered as an "information service" and not a "telecommunications service." The former category is largely unregulated, while the latter is subject to extensive regulation. The decision, National Cable and Telecommunications Association v. Brand X Internet Service, relied principally on the doctrine that federal agencies are owed deference in making regulatory decisions, even when agencies reverse themselves on key matters.

Trade
Senate Passes Bill To Implement Central America Pact
     The Senate passed legislation to implement the Central America Free Trade Agreement (CAFTA). The vote was 54-45. Both the Senate Finance and House Ways and Means committees also approved the bill this week. The House still must pass the measure, which faces overwhelming opposition from Democrats and enough Republicans in that chamber to make the outcome uncertain. CAFTA has generated growing bipartisan support in recent days, and Ways and Means Chairman Bill Thomas, R-Calif., said he expects the House to act on a legislative package addressing China trade before it votes on CAFTA next month, as a way to bolster CAFTA support. Asked whether the House would consider a China bill before CAFTA, Thomas said, "I don't know that for sure, but my guess is yes."

E-Commerce
Canada Plans To Monitor Drug Exports To United States
     The Canadian government plans to monitor cross-border, bulk and online pharmaceutical exports through a series of regulatory and legislative initiatives to protect its drug supply, the Canadian health minister announced. "Canada cannot be a drug store for the United States," Minister Ujjal Dosanjih said during a conference call. He began publicly targeting the issue of bulk sales and Internet pharmacies in January. Dosanjih said he intends to introduce draft legislation this fall that would allow for a temporary ban of sales when the Canadian drug supply is at risk. He also will propose legislation that would block Internet pharmacies from selling drugs when doctors do not have established relationships with patients.

On The Hill
Some Wary Of Sen. Stevens' 'Listening Session' Approach
     Six months into the first session of the 109th Congress, the chairman of the Senate Commerce Committee has held a few hearings on communications issues. Much of the telecommunications work of the chairman, Republican Ted Stevens of Alaska, has occurred behind-the-scenes through private "listening sessions," usually with lobbyists and top industry executives, such as Microsoft chief Bill Gates. But some public-interest advocates are crying foul, insisting that Stevens' approach lacks transparency on matters important to everyday citizens. "We've been instructed not to give any details on those meetings," a Commerce spokesman said. Stevens said the sessions are educational and enable him to build a framework for public hearings.

Crime
Tech Industry Urges Senate To Ratify Cyber-crime Treaty
     A collection of business and technology associations urged the Senate to ratify an international cyber-crime treaty. In a letter to Senate Foreign Relations Committee Chairman Richard Lugar, R-Ind., 15 organizations, including the American Bankers Association, Business Software Alliance, Cyber Security Industry Alliance, and Information Technology Association of America, said the treaty would help the United States battle computer-based crime. The United States and 40 other countries signed the treaty in 2001, but the Senate must ratify it to make it binding. The treaty would require signatories to outlaw computer crimes and codify how they must assist each other in investigations. In other news, the Bush administration said it will ensure that control of the Internet-addressing system stays in the United States.

Health
Official Says Legislation Could Slow Health IT Progress
     With Congress focused on reaping the benefits of health information technology, the Bush administration's top health IT officer warned that too much legislation could stifle progress. "There is a concern that legislation could slow us down," David Brailer, national coordinator of health IT at the Health and Human Services Department (HHS), told the Senate Commerce Technology Subcommittee. While the administration welcomes congressional interest to help facilitate the development of national standards and the adoption of universal e-health records, the problem of systems being unable to communicate with each other should be solved before major procurement investments are made, he said.

Intellectual Property
Multinational 'Operation Site Down' Nets Suspects, Goods
     The Justice Department announced four arrests for intellectual property theft and the dismantling of at least eight illegal, online distribution sites. The FBI, along with law enforcement from 10 other countries, conducted more than 90 searches in a 24-hour period as part of "Operation Site Down," which led to arrests in California, Colorado and Connecticut. "By penetrating this illegal world of high technology and intellectual property theft, we have shown that law enforcement can and will find -- and we will prosecute -- those who try to use the Internet to create networks beyond the reach of law enforcement," Attorney General Alberto Gonzales said. The operation consolidated three separate FBI undercover investigations run by field divisions in Charlotte, N.C., Chicago and San Francisco. Australia, Belgium, Canada, Denmark, France, Germany, Israel, the Netherlands, Portugal and the United Kingdom participated in the probe.

E-Government
OMB: Agencies Must Use Advanced Internet By 2008
     Federal agencies must use the next-generation Internet service known as Internet protocol version 6 (IPv6) by June 2008, the White House Office of Management and Budget announced. The office said it would issue a policy memorandum dictating full federal "IPv6" compliance in an effort to spur its deployment throughout government agencies. The Defense Department currently is the only federal body to have made strides in implementing IPv6. Due to this "lack of government-wide progress" and concerns about the "complexities of transition," OMB will release a "comprehensive transition planning guide," OMB Administrator Karen Evans said in written testimony for the House Government Reform Committee. The five-point compliance guide will require agencies to familiarize themselves with transition issues, an effort Evans described as the "overarching challenge" of moving from the current IPv4 to IPv6.