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Friday, February 23, 2007
Executive Summary
Week of February 19, 2007
by K. Daniel Glover

Intellectual Property
High Court Weighs Right To Patent 'Intangible' Code
     The Supreme Court this week heard a transnational patent-infringement case involving Microsoft and AT&T. At issue is a provision of U.S. law that permits damages for global sales of a patented product based on the export of its components. In this instance, Microsoft components created domestically were shipped overseas, where copies were made and disseminated. AT&T claims that the code violates a company patent and wants to be awarded damages for Microsoft's foreign sales. A lower court held that "software code alone qualifies as an invention eligible for patenting." Supreme Court Justice Ruth Bader Ginsburg and Microsoft attorney Theodore Olson both called the circuit court's ruling "ambiguous." Olson said AT&T has wrongfully claimed that "intangible" elements like "ones and zeros" of computer code should be protected. But AT&T attorney Seth Waxman said courts have held that software can be part of a patented invention.

Antitrust
Observers Hedge Bets On Satellite Radio Merger
     Communications policy watchers sounded off on the news that the satellite radio companies Sirius and XM plan to merge. Regulatory obstacles at the FCC and Justice Department may prove onerous, so experts were careful to hedge their bets on the likelihood for approval. Analysts with the investment firm Stifel Nicolaus said the merger is "more likely than not to receive government approval." They said Justice ultimately may be swayed by arguments that the combination would face competition from portable music devices, emerging wireless services and other services. But Dennis Wharton of the National Association of Broadcasters called the merger proposal "anti-consumer" and said he would be "shocked" if it is approved. "When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems," he said. A new antitrust task force of the House Judiciary Committee will hold a hearing Wednesday on satellite radio.

Cyber Security
Administration's Cyber Czar Sees Challenges Ahead
     Cyber criminals are getting more organized, but so are those fighting against them, according to the Homeland Security Department's new secretary for cyber security and telecommunications. In an interview with Technology Daily, Greg Garcia outlined his goals after four months on the job as the nation's first cyber-security czar. Garcia acknowledged that technology improvements will create bigger security challenges as much of the world's communications move through a single, integrated Internet protocol over the next 10 years. Also, globalization of the information technology industry means more opportunities to exploit vulnerabilities along the supply chain. "There are cost savings, productivity enhancements, but it also introduces a new level of vulnerability into our networks," Garcia said. Add those concerns to the current picture, where the Cyber Security Industry Alliance gives government agency cyber-security efforts a D grade, and cyber threats are growing exponentially, he said.

Security
New Policy Announced For Appeals Of 'No Fly' List
     The Department of Homeland Security announced a new program to help clear air travelers who have been wrongly placed on federal watch lists of suspected terrorists or criminals. The new "DHS TRIP" program is intended for people who are prevented or delayed from entering the United States or flying on commercial aircraft because their names appear on the department's "no fly" or "selectee" watch lists. The program also is part of the department's effort to limit the number of names on the lists to only those who pose threats. Travelers who believe they have been wrongly added to the lists can file complaints on a secure Web site. "Real security involves more than just protecting physical infrastructure; it also means protecting our freedoms," said House Homeland Security Committee Chairman Bennie Thompson, D-Miss. "I've long called for the creation of a one-stop shop for travelers to resolve watch-list misidentification problems."

Privacy
Security Entities Lack Trust For Protecting Privacy
     The CIA, Homeland Security Department and National Security Agency are the least trusted federal agencies for protecting privacy, according to a new study by the Ponemon Institute. The annual survey asked more than 7,000 citizens whether they believe the government takes appropriate steps to safeguard personal information. The overall trend suggested a decline in public trust since the think tank first studied the issue in 2004. The NSA has been criticized over its domestic spying in search of terrorists, and the CIA has been utilizing a special subpoena power to comb bank and credit-card records. The Homeland Security Department and its Transportation Security Administration, which were evaluated separately, have experienced their fair share of controversy over the mining of information from government and commercial databases and a program that screens travelers entering the United States. "There's a clear correlation between bad publicity and poor privacy trust performance," survey author Larry Ponemon said.

Education
Most Students Not Proficient In Math, Study Says
     Less than one-quarter of the U.S. high-school population is proficient in mathematics, according to a national education report released Thursday. Another report published simultaneously found that students' highest grade-point average was in social studies rather than science and math. The studies are part of an Education Department initiative dubbed the Nation's Report Card. In reaction to the science and math results, a Republican aide for the House Education and Labor Committee said, "We have a lot of work to do." High-tech industry groups say the results back their long-held argument that the U.S. education system is not producing the skill levels needed in the globally competitive workplace. "There's nothing here that our companies weren't experiencing firsthand," added John Palafoutas of the tech group AeA. "In some cases, companies are not being able to stay competitive with companies around the world with qualified workers."

E-Government
Government's Global News Is Pulled From USA.gov
     The Internet home for government information has been stripped of Voice of America content and other international news after federal lawyers determined that the material should not be on a domestic news site. VOA and the Radio Free broadcasting programs produce official American information aimed at foreign audiences. A 1948 law bars domestic dissemination of their programs, but before this week, Internet users who typed the word "Bush" into the search box under the news tab at USA.gov received VOA news articles as the top results. Stories from Radio Free Asia and Radio Free Europe also were appearing. After requesting a legal opinion on the matter, the General Services Administration pulled the content. The review "indicated we are not permitted to use VOA or Radio Free-anything data in our news search," a GSA official said. Some government watchdog groups said they are pleased that GSA is now complying with federal law on its public Web site.

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