Security
Senate Nears Approval Of PATRIOT Act Measures
     The Senate could clear a revamped USA PATRIOT Act in about two weeks, after members this week rejected a move to postpone the approval of several amendments to the 2001 anti-terrorism law. The Senate voted 96-3 to consider a bill, S. 2271, that would amend the law to provide the subjects of customer record requests more leeway in dealing with law enforcers. The action clears the way for another vote to limit debate on the bill Feb. 28, when the Senate returns from a weeklong break. Senators then could vote March 1 to approve the legislation with amendments, as well as a separate bill to renew and revise the law. The reauthorization bill, H.R. 3199, would make permanent most of the provisions of the anti-terrorism law. The provisions are now scheduled to expire in four years.

Broadband
Key Senators Favor Exemption For Video Franchises
     The push for legislation to exempt regional Bell telephone companies from local rules on video franchising gained momentum this week. Almost all senators at a Senate Commerce Committee hearing on the subject endorsed the goal. "I would note the unanimity that seems to be on this committee with the fact that we have to do something" to allow greater video competition, said Sen. Gordon Smith, R-Ore. He and Sen. John (Jay) Rockefeller, D-W.Va., have introduced legislation to let the Bells enter the cable market nationwide without having local franchises. Four other committee members joined them in a statement of principles on the subject. At the hearing, the leading Senate critic of the push to exempt Bells from local franchising was Conrad Burns, R-Mont. The panel was less receptive to a proposed requirement that the Bells be forced to offer region-wide video capabilities before they could win franchises.

Broadband
Franchise Rules May Prompt AT&T To Forgo Video
     AT&T warned federal regulators that it may abandon plans to offer video and high-speed Internet service in numerous markets if forced to obtain local franchises. The comments were made in a Feb. 13 FCC filing. "Absent commission action," the company said, AT&T and other potential competitors would "face the prospect of negotiating franchising demands town by town and abandoning plans to provide competitive video (and other broadband) services in hundreds, if not thousands, of towns and cities." Scott Cleland, CEO of the Precursor Group, said "AT&T has negotiating leverage to walk away." But he thinks the company is mostly "posturing" by sending localities the message that cooperative towns "will get their services first." He said the FCC appears to be sympathetic with the concerns of AT&T and Verizon Communications.

Civil Liberties
U.S. Internet Firms Defend Compliance In China
     U.S. Internet companies defended their compliance with the Chinese government to restrict online information and provide users' personal data, but they also condemned punishment related to that information. "We believe the Internet can positively transform lives, societies and economies," Yahoo official Michael Callahan told a House International Relations subcommittee. He added that Yahoo was not complicit when it provided personal e-mail account information for Shi Tao, a Chinese journalist who subsequently was sentenced to prison. Microsoft and Google also discussed their practices in China. Subcommittee Chairman Chris Smith, R-N.J., this week introduced legislation that would restrict U.S. companies from helping foreign governments repress information online -- and impose hefty fines on violators.

E-Commerce
New E-Gambling Bill Touted As Corruption Remedy
     A House lawmaker re-introduced legislation that would make Internet gambling illegal, and he said this time the cards might be in his favor. The bill, authored by Virginia Republican Bob Goodlatte, would amend wiretapping law to cover bets placed over the Internet or other modern communications technologies. Those caught placing illegal bets would face up to five years per violation, and Internet service providers could be forced to disable hyperlinks and block access to sites that violate the law. Goodlatte said aggressive and misleading lobbying efforts quashed any chances of House passage of his previous bills on the topic. He singled out a campaign led by lobbyist Jack Abramoff, whose clients included an online gambling site called eLottery. Goodlatte said a federal indictment of Abramoff last fall, and the renewed focus on lobbying ethics it spurred on Capitol Hill, have strengthened the bill's chances for passage.

Antitrust
Judge Lauds Microsoft Efforts, Urges More Resources
     A federal district judge praised Microsoft's decision to unveil some of its software's underpinnings to licensees under terms of its antitrust settlement. But she also told the company to throw more resources into complying with the settlement. "I do want to commend Microsoft for deciding to license its Windows source code," Judge Colleen Kollar-Kotelly said during a compliance status hearing. Her sentiments were echoed by attorneys representing the Justice Department and states that had sued Microsoft. "The people are appreciative of Microsoft's effort to take what we consider to be a very big step in licensing their source code," said Reneta Hesse, the chief of the networks and technology unit in Justice's antitrust division. Kollar-Kotelly also told Microsoft that it needs to do more to comply with protocol-licensing efforts mandated under the 2003 deal. And Stephen Houke, an attorney representing California and other states, blasted Microsoft for not taking its settlement obligations seriously.

Courts
AT&T Continues Fight Over Fees For Calling Cards
     An attorney for AT&T argued that the FCC improperly forced the company to pay millions of dollars in telecommunications fees and that a federal appeals court should require further adjudication at the agency. At issue is AT&T's obligation to pay $180 million into the universal service fund for fees associated with one of its pre-paid services for long-distance calling cards. The fund aims to ensure telecommunications services to low-income customers, schools, libraries and others. AT&T attorney David Carpenter told the federal D.C. Circuit Court of Appeals that the FCC had arbitrarily decided that AT&T's service qualified as a "telecommunications service" instead of a less regulated "information service." Carpenter said AT&T is withdrawing its appeal as it applies to the future because the service has been discontinued. But AT&T still maintains that the commission's decision to apply its ruling retroactively was improper.

Intellectual Property
Global Group Slams Nations Over Anti-Piracy Work
     About 25 percent of the world's 192 nations are lax in combating piracy, according to comments submitted to the Office of the U.S. Trade Representative. Russia was placed at the top of an International Intellectual Property Alliance list as the world's worst copyright infringer. The Business Software Alliance estimated $1.7 billion in losses to piracy in Russia in 2005. Nations designated as priorities could be subject to "special 301" investigations by USTR. The trade office each year solicits public comment to determine what nations should undergo the special review. IIPA recommended that China be placed on the "priority watch list" for bad but less egregious behavior. The group recommended that USTR place 46 nations on a watch list for rampant violations of copyright infringement. China is among 16 nations picked for the priority watch list. IIPA added Costa Rica, Israel, Turkey, the Ukraine and Venezuela this year.