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Friday, October 20, 2006
Executive Summary
Week Of October 16, 2006
by K. Daniel Glover
Intellectual Property
Royalties Apply To Mobile Ring Tones, Office Says
Musical ring tones for cellular telephones could make the recording industry bundles of money under a Copyright Office ruling issued this week. The office decided that most such ring tones are subject to royalties under the compulsory licensing system of copyright law. The ruling stemmed from a September inquiry by the Recording Industry Association of America, which said the decision helps inject clarity into the music marketplace. Lewis Ward, a communications analyst for IDC, noted that had people been able to use existing digital content as ring tones and to swap them legally online, the market could have bottomed out. But groups that represent songwriters and music publishers said royalties on ring tones could hurt an important new technology income stream for them. The head of a group that represents songwriters said the ring-tone issue will not be settled "until songwriters receive fair and equitable compensation."
Civil Liberties
ACLU To Pressure Congress Over Warrantless Spying
The head of the nation's most prominent civil-liberties group vowed to make sure that a bill to embolden a domestic wiretapping program "stays dead" next year. The House last month passed a bill to overhaul rules for wiretaps without warrants; the Senate companion measure did not get a floor vote. Civil libertarians do not think the legislation has strong enough privacy protections. American Civil Liberties Union Executive Director Anthony Romero said his group will pressure the 110th Congress to "accept responsibility for their oversight of the executive branch" and an "arrogant and unresponsive administration." Romero spoke to more than 1,500 ACLU members at the group's national conference. ACLU state delegations lobbied on Capitol Hill, too. Romero called his group the "first responder in the defense of the First Amendment" and the "first line in the defense of the Constitution."
Security
Chertoff Urges Latin America To Back Passport Rules
Homeland Security Secretary Michael Chertoff pleaded with Latin American business leaders to support increased security measures and not to block U.S. efforts to issue new passports, strengthen border controls and otherwise bolster protections. Chertoff said industry and government must "come to grips" with building a process for worldwide trade and travel that includes increased security measures. "We cannot kick the can down the road indefinitely," he told the Association of American Chambers of Commerce in Latin America. Chertoff said the U.S. government is moving forward with efforts such as issuing new passports, requiring more information from the private sector on the shipment of cargo containers, and requiring travelers to give 10 fingerprints as part of the US-VISIT program for foreigners. This week, the Homeland Security and State departments announced proposed rules for technology-based border-crossing cards for U.S. citizens traveling between the United States and select countries.
Antitrust
Studies Note Media Consolidation As Debate Intensifies
The FCC "ignored the voice of the people and the weight of the evidence" the last time it relaxed limits on media ownership, a consumer advocate said. Mark Cooper of the Consumer Federation of America made the comment when his group and other watchdogs released new studies that show heavy media consolidation in a dozen states: Arkansas, California, Florida, Maine, Michigan, Montana, Ohio, Oregon, Pennsylvania, Texas, Virginia and Washington. The Media and Democracy Coalition, an umbrella group of 25 nonprofits, compiled the data. The coalition concluded that increased consolidation in all of the states would result in homogenized news, monopolistic practices and fewer independent voices. The reports were issued as the FCC embarks on a court-ordered review of the restrictions. But in an indication of the battle ahead, the Media Institute filed comments calling for the FCC to ease guidelines that it said are outdated.
Spectrum
FCC's McDowell Eyes Public-Private Wireless Deals
Republican FCC Commissioner Robert McDowell encouraged the commercial wireless industry and emergency responders to pursue technology partnerships. "Public-safety agencies may find it useful to employ commercial systems or to partner with commercial entities to fulfill their critical role in securing the homeland," he said. A law enacted this year sets a 2009 deadline for the transition of television broadcasters from analog to digital signals, freeing their existing airwaves for public safety and commercial use. Twenty-four megahertz in the 700-MHz band of spectrum will be reserved for emergency responders. McDowell noted that dialogue between emergency personnel and commercial entities is crucial because both will be spectrum "neighbors" after the DTV transition. "The 700-megahertz band holds great promise," McDowell said. "If location, location, location is the rule in the real-estate business, the 700-MHz band is Park Avenue."
Health
Intel's Barrett Prescribes 'Huge Dose Of Technology'
Intel CEO Craig Barrett said there is "no magic pill to cure the healthcare ills of this country," but part of the solution to skyrocketing health costs will be "a huge dose of technology." Barrett lamented the slow progress toward health IT. "Technology goes at lightning speed, except in this area," he said, adding that healthcare costs are growing twice as fast as the gross domestic product. Barrett said providing health care for a family of four costs his company $28,000 a year, the cost of hiring an engineer in China. "Every job that can be exported will be exported -- not because of wages but healthcare costs," he said. Just as with debit cards and cellular telephones, Barrett said people should be able to choose their health IT software. But he added that as with banks, the health industry must agree on collaborative tools to manage the data.
Domains
Address Disputes Increase With Internet Growth
Disputes over Internet addresses are on the rise as Web visibility becomes more lucrative, Web and legal experts said. Kristine Dorrain, the Internet legal counsel for the National Arbitration Forum, said her group has handled more than 7,000 cases involving about 17,000 domains, and "the business is growing." The forum saw 937 cases in 2003, 1,027 in 2004 and 1,370 in 2005, and anticipates 1,560 this year. All major providers of arbitration in domain controversies have seen a surge of disputes in recent years, Dorrain added.
Campaigns
Democratic Fundraising Sites See Burst Of Donations
A sudden surge in competitive congressional races is boosting the minority party's online fundraisers. "There's a big jump for MoveOn members because winning seems even more in reach now," said Tom Matzzie, Washington director for MoveOn, a liberal group with 3.2 million online members. Matzzie said that before the cyber-sex scandal involving former Rep. Mark Foley, R-Fla., MoveOn raised $1 million during a two-day online fundraiser for six House races. He added that a two-day fundraiser last week, post-Foley, raised $1.5 million. ActBlue, a Web site that bundles small donations and sends them to candidates, also reported an increase in donations in recent weeks. ActBlue President Benjamin Rahn said the site raised $1 million in August, $2.8 million in September and $1.8 million so far in October. One ActBlue user has created a page designed specifically to defeat five lawmakers tied to the Foley scandal.

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