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Friday, February 16, 2007
Executive Summary
Week Of February 12, 2007
by K. Daniel Glover
Budget
Bush's Cyber-Security Proposal Concerns Tech Industry
A week after the Bush administration released its budget proposal for fiscal 2008, the plan is taking hits on three different technology-related fronts. Industry experts are disappointed that President Bush did not include more money for the expanded role of the cyber-security czar in the Homeland Security Department. The proposed $92.7 million in funding is "close to flat compared to what it was last year," said Liesyl Franz of the Information Technology Association of America. "With [the office's] increased mission and increased expectations, that is insufficient." Proponents of educational technology, meanwhile, complained that for the third straight year, Bush has proposed eliminating the Enhancing Education through Technology grant program. And Bush's decision to slightly increase funding for a multi-agency task force responsible for enforcing U.S. intellectual property law may spark opposition from lawmakers who want more information on the task force's progress.
Budget
Lawmakers Frustrated By Annual Calls For Tech Cuts
Lawmakers voiced exasperation this week over the Bush administration's attempts -- year after year -- to cut two National Institute of Standards and Technology programs that supporters say are central to the country's competitiveness. One of the programs, the Advanced Technology Program, invests in early-stage technologies to accelerate the transition from laboratory to marketplace. NIST Director William Jeffrey said that while "the administration recognizes the benefits" of ATP, the issue is whether it is "appropriate for the federal government" to be involved. The other program, the Manufacturing Extension Partnership, consults with small and medium-sized manufacturers on how to expand their businesses. President Bush has proposed reducing MEP's funding 58 percent. "I hope that we can break this cycle where every year the administration proposes either eliminating or cutting these two programs and then Congress restores the funding," said Oregon Democrat David Wu, chairman of a House Science and Technology subcommittee that held a hearing on the issue.
Trade
Key Senator Vows Rewrite Of President's Trade Powers
Senate Finance Committee Chairman Max Baucus signaled that he will seek a broad rewrite of the president's powers to negotiate trade agreements, which is slated to expire June 30. The Montana Democrat excoriated U.S. Trade Representative Susan Schwab for the Bush administration's conduct of trade policy. Baucus criticized Schwab's characterization of trade-negotiating authority as a contract between the executive branch and Congress. "It's not a contract," he said. "It is the sole prerogative of Congress to delegate fast-track authority." He described the enforcement of existing agreements by Schwab's office as "lax," called the process that allows congressional committees to recommend changes to trade agreements "irrelevant," and blasted the administration's attempts to curb intellectual property theft in China as "embarrassing." The House Ways and Means Committee, meanwhile, fielded a host of complaints about China from U.S. traders.
Security
Rep. Allen Preps Bill To Challenge National ID Standard
A House Democrat whose home state last month ignited a nationwide rebellion against pending federal standards for driver's licenses is ready to fight the battle himself in Congress. Rep. Tom Allen of Maine is planning to file a bill to repeal the so-called REAL ID Act, which the Maine Legislature symbolically rejected in January with a non-binding resolution. "We're running up against a pretty hard deadline [for states to implement REAL ID], and something has to happen quickly," Allen said. States currently must comply with the law by May 2008. Allen said a proposal to delay the implementation of REAL ID would not satisfy his concerns. Allen's bill would reinstate a rulemaking process for driver's license and ID standards in an attempt to address privacy concerns. The measure also would direct about $300 million in federal funds over seven years to help states meet the new standards.
Broadband
FTC Wants More Facts, Less Rhetoric On Net Neutrality
The head of the government's chief consumer-protection agency said she wants to hear "more facts and less rhetoric" on the hot-button issue of network neutrality, the term for a mandate of equal treatment for high-speed Internet content. FTC Chairwoman Deborah Platt Majoras, who unveiled a task force in August to study the issue that engrossed high-tech lobbyists and lawmakers last year, said she has been "surprised at the lack of constructive meaningful debate." "What I found were too many sound bites, too much talking past one another and not enough acknowledgement that this is a tough issue that poses risks," Majoras said at an agency workshop aimed at cutting through the hype surrounding net neutrality. The two-day conference gathered experts from business, government, the technology sector, consumer advocates and academics to examine the topic "before going down the road to regulate the Internet," Majoras said.
Lobbying
EIA Weighs Options, Including New CEO Or Merger
Members of the Electronic Industries Alliance are evaluating the group's future now that CEO Dave McCurdy, a former congressman, has left. EIA Board Chairman Mike Kennedy, a vice president of Motorola, said the group discussed at its recent semi-annual meeting whether to continue as an alliance and if so what they want to see in a new CEO. "We want people to know we're replacing Dave, and we want to get this done as soon as possible," Kennedy said. He added that EIA needs a "visionary leader" but is open to whether that means an ex-politician or a businessman. Other tech lobbyists have said that former Sen. George Allen, R-Va., is talking to EIA about the job. While Kennedy did not confirm that, he did note "interest from some major figures" and said they have spoken to various board members.
Lobbying
New Group Challenges Tech Industry Patent Consensus
A new high-tech advocacy group launched in anticipation of the impending patent reform battle on Capitol Hill wants lawmakers to know that not all technology industry players are rallying behind the lobbying efforts of the Coalition for Patent Fairness. That coalition, financed by Apple Inc., Cisco Systems, Dell, Intel, Microsoft, Time Warner and others, is pushing for sweeping changes to a patent process that it argues is out of sync with the 21st-century global marketplace. But the Innovation Alliance, led by the cellular telephone chip maker Qualcomm, favors "targeted, balanced reform, as opposed to the massive restructuring sought by others," the group said in a statement. The current system has "largely served us well for decades," officials said. AmberWave Systems, which develops strained silicon for semiconductors; the wireless technology firm InterDigital; and Tessera Technologies, which provides miniaturization devices for the electronics industry, also are part of the growing alliance.
On The Hill
Tech Companies Make The Case For Energy Efficiency
Energy efficiency is an important financial and environmental issue for information technology companies, industry representatives said during a Capitol Hill conference. The cost of IT ownership is increasing as energy costs do, said Bryant Hilton of Dell. Energy efficiency is an issue for companies like his both in terms of helping consumers and lowering emissions from power plants, Hilton said. These are the early days for Dell in terms of policy development on energy efficiency, he said, but companies are interested in harmonizing laws or regulations across country borders. Dave Douglas of Sun Microsystems also noted that energy-efficient solutions are needed because computers are using more energy. A standard definition for measuring the energy efficiency of technology equipment is needed, added Bernard Meyerson, an IBM fellow.

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