Intellectual Property
Copyright Board Proposes Royalties For Web Radio
     Smaller Internet radio stations don't appear likely to get their wish when it comes to royalties. The Copyright Royalty Board this week released to stakeholders its proposed per-performance rates for Internet radio stations through 2010, and it rejected the requests of smaller providers that sought rates based on a percentage of revenue. The three-judge panel said those stations now will pay what larger webcasters and broadcasters do. The minimum fee will be $500 per channel, per year. Larger, noncommercial webcasters, which exceed the usage limitation covered by a flat $500 fee, also would face higher royalties. Under the new rates, webcasters would pay $0.0008 to stream one song to one listener in 2006, and the cost would increase to $.0011 in 2007, $.0014 in 2008, $.0018 in 2009 and $.0019 in 2010. One key lawmaker said the ruling "represents a body blow to many nascent Internet broadcasters."

Competitiveness
Senate Leaders Join Forces In Pushing Innovation Bill
     Senate leaders have found an international battle they agree on: American competitiveness. They introduced a bill called the America Competes Act to increase funding for basic research by doubling the National Science Foundation's budget over five years -- faster than earlier proposals by President Bush and House Speaker Nancy Pelosi, D-Calif. The measure also would keep the Energy Department's science office on track to double its funding over 10 years by increasing funding from $3.6 billion in fiscal 2006 to $5.2 billion by fiscal 2011. And the National Institute of Standards and Technology would have to reserve 8 percent of its yearly funding for "high-risk, high-reward" research. "The America Competes Act of 2007 will ensure that our nation's citizens are armed with the critical math and science resources and skills they need to succeed in the areas of science, technology and research," said Senate Majority Leader Harry Reid, D-Nev.

Competitiveness
Tech, Telecom Executives Eye U.S. Competitiveness
     Innovation was all the rage on Capitol Hill, as three different panels addressed the topic from different perspectives. Technology and telecommunications executives urged the House Small Business Committee to take sweeping steps to help U.S. companies compete. The requests would require changes to multiple policies and action by several congressional panels and federal agencies. Microsoft Chairman Bill Gatestold a Senate panel that the government should have no limit on the number of highly skilled workers it allows into the country. And members of a House Science and Technology subcommittee appeared enthusiastic about the president's proposed funding for research and development initiatives aimed at energy independence, even as they expressed concern over how that money would be divided. A new technology industry coalition, meanwhile, outlined its push for changes to export controls in order "to maintain our global technological leadership and industrial competitiveness."

Lobbying
Tech Executives Seek Patent Reform, Research Dollars
     Chief technology executives from a dozen software and hardware companies sent a letter that urges lawmakers to pursue legislation to promote American innovation and continued economic growth. In the letter to House and Senate leadership, chief technology officers from Adobe Systems, Apple Inc., IBM, Microsoft, Symantec and other prominent firms said Congress should fix what they believe is an outdated and unfair patent system, and boost the federal government's commitment to basic research. The CTOs asked lawmakers to modernize the U.S. patent system by curbing questionable patents and frivolous litigation, improving patent quality, and harmonizing the patent-granting process with those in other countries. The correspondence began the Business Software Alliance's annual CTO forum in Washington, which gives tech officers the chance to meet with senior Bush administration officials and lawmakers about pet policy issues.

Antitrust
Sirius, XM Continue Push On The Hill For Merger
     Sirius Satellite Radio CEO Mel Karmazin defended his company's proposed $13 billion union with rival XM Satellite Radio. Appearing before a House Energy and Commerce panel, Karmazin testified alongside critics of the merger from the terrestrial broadcasting sector and the consumer advocacy community. It was his second trip to the Hill in as many weeks. The consolidation would benefit consumers by offering "the best of each service on one radio at a price well below the cost of the two services today," Karmazin said. Currently, about 14 million subscribers to either Sirius or XM pay $12.95 per month. But Peter Smyth, the CEO of Greater Media, argued that Sirius and XM are "asking for a government-sanctioned monopoly" that would control nearly 300 channels "without any realistic check on its ability to assert market power."

Broadband
FCC's Adelstein Decries Policy For High-Speed Web
     Democratic FCC regulator Jonathan Adelstein leveled fresh accusations at the Bush administration over what he says is a failed policy on high-speed Internet deployment. "I really believe we lack a coordinated vision for success," he said at the Freedom to Connect technology conference. "This has got to be a greater national priority than it is now." In 2004, the administration set a goal of affordable, universal broadband access by 2007. Critics say the goal will not be met by the end of this year in many rural areas, though administration officials insist the plan is on track. Noting that the U.S. continues to slip in worldwide broadband rankings, Adelstein emphasized that citizens in Europe and Asia are surfing the Web faster while paying lower prices. Adelstein called for a national broadband strategy that includes benchmarks, deployment timetables and measurable thresholds to gauge its success.

Intellectual Property
Tool To Fight Global IP Infringement Faces Criticism
     The Bush administration last week called its annual review of other countries' success in protecting intellectual property an "essential element" in engaging U.S. trading partners. But some public-interest advocates do not share that view. The list, known as Special 301, is published in April. "Special 301 has been a very effective tool for strong-arming U.S. trading partners into adopting American IP laws and conforming their laws to the wishes of U.S. content industry groups," said Jason Schultz of the Electronic Frontier Foundation. Michael Geist, an e-commerce legal expert, said Special 301 "frequently boils down to 'do what I say, not what I do.'" Senate Finance Committee Chairman Max Baucus, D-Mont., is considering a review of Special 301 and other trade tools to see if they are still effective. In related news, a new index grades 70 countries on their intellectual property protections.

Budget
Supercomputers Viewed As Tool To Save Energy
     Super-fast computers are one weapon in the nation's arsenal for fending off rising energy costs, according to many experts. Since 2004, the Oak Ridge National Laboratory has provided industry and academic researchers millions of hours of supercomputing time to solve problems in physics, chemistry, genetics and energy. Thom Dunning, director of the National Center for Supercomputing Applications, said supercomputing is "not a technology that will push just one activity forward, but it will push many activities forward," from tweaking the design of fusion devices to understanding the basic science of solar, hydrogen and geothermal power. Deborah Wince-Smith, president of the Council on Competitiveness, said "the greatest excitement" over supercomputing is the ability to view the economic costs and trade-offs of different energy portfolios. The Energy Department is requesting $340.2 million for its supercomputing programs in fiscal 2008, and observers do not foresee controversy over the funding.