Porn
Federal Court Kills Law Aimed At Adult Web Content
     A Philadelphia court this week overturned a 1998 federal law against Internet pornography that critics said would impose draconian criminal sanctions for people who post online material deemed "harmful to minors." The Supreme Court blocked the Child Online Protection Act three years ago and ordered the case's court of origin to review the statute. U.S. District Judge Lowell Reed presided late last year over the month-long court battle between the American Civil Liberties Union and the Justice Department. COPA would criminalize Web sites that give open access to adult content. Sites would have to require a credit-card number or other age-verification method. Reed called COPA "impermissibly vague and overbroad," and said children can be protected by filtering technologies that do not impinge on others' free-speech rights. Government lawyers were unable to show that the law would be "the least restrictive, most effective" method of safeguarding children, he wrote.

Telecom
Court Backs FCC In Barring State Internet Phone Rules
     A federal appeals court upheld an FCC ruling that bars states from imposing telecommunications regulations on Vonage and similar Internet telephone services. The 3-0 decision by the U.S. 8th Circuit Court of Appeals affects "nomadic" voice-over-Internet protocol offerings that enable customers to place Web-based calls from various locations. "It's clearly a victory for Vonage," one telecom analyst said, though he noted that impacted carriers still would be subject to some state laws, such as regulations directed at fraudulent or criminal activity. Vonage spokeswoman Brooke Schulz noted that Vonage now can grow larger without being "stymied" by state regulations designed for entrenched companies with extensive infrastructures. State regulators who fought to overturn the FCC's ruling noted that new facts in the Internet phone market could require re-examination of the decision.

Broadband
A Divided FCC Opens Inquiry Into Net Neutrality
     The FCC opened a new front in the battle over whether the government should regulate communications firms that dominate the high-speed Internet business. At a public meeting, the agency unanimously approved an inquiry exploring how broadband companies manage Web traffic and whether consumers are adversely affected. Supporters of a concept called network neutrality insist that safeguards are needed to prevent Internet providers from acting as content gatekeepers, but critics say regulation would deter investment and is unnecessary. Republican FCC Chairman Kevin Martin said the FCC has been "vigilant" in responding to concerns about anti-competitive behavior, has shown a willingness to act and is committed to hearing all sides. But Democratic FCC member Michael Copps called for stringent safeguards, emphasizing: "I want an FCC that unconditionally states its preference for non-discrimination on the Internet." The FCC also is divided over what, if anything, to do about television violence.

Intellectual Property
Digital Music Providers Challenge Higher Royalty Rates
     Digital music providers, public radio stations and others who are unhappy with a recent decision to hike royalty rates for Internet radio filed petitions for reconsideration with the Copyright Royalty Board, and the board agreed to reconsider. The three-judge panel decided earlier this month to set per-performance rates for online radio through 2010. In establishing the fees, retroactive to 2006, the board rejected a proposal by some stakeholders who sought royalties based on a percentage of revenue. The board set the minimum fee at $500 per channel, per year. Larger, noncommercial webcasters, which exceed the usage limitation covered by a flat $500 fee, also would face substantially higher royalties. The Digital Media Association asked the board to clarify the $500 minimum. National Public Radio considers the rate change a "stunning, damaging decision for public radio," spokeswoman Andi Sporkin said.

Intellectual Property
Two Lawmakers Testify In Wireless Patent Case
     Two lawmakers testified in a patent dispute between Broadcom and Qualcomm over wireless communications technology. They were participants in a rare, two-day hearing before the International Trade Commission over a Broadcom patent on technology that helps cellular telephones conserve battery power when outside network range. The commission could decide that a Qualcomm product made abroad that infringes on Broadcom's patent should not be allowed into the United States. Testifying at the hearing was Rep. Darrell Issa, R-Calif., who received $7,500 in contributions from San Diego-based Qualcomm in 2005-2006, according to the Center for Responsive Politics. He said the question is "whether to limit the exclusion order to stand-alone chips ... or to extend the exclusion order to cover handsets incorporating those chips." Rep. Adam Schiff, D-Calif., said the proposed exclusion of mobile handsets with certain technology could limit competition for mobile, high-speed Internet services.

Civil Liberties
House Democrats Criticize FBI's Subpoena Power
     Democratic members of the House Judiciary Committee slammed the FBI's use of a special subpoena power to obtain U.S. citizens' telephone, e-mail and financial records without prior judicial approval. The hearing came after a report by the Justice Department's inspector general that found 20-plus possible breaches of FBI and Justice rules in issuing "national security letters," some of which were potentially illegal. An FBI official said reforms to the program, including a new tracking system for the letters, already have begun. But House Judiciary Committee Chairman John Conyers, D-Mich., said Justice "consistently provided inaccurate information to Congress," and the FBI routinely issued the letters "without proper authority, and outside statutory and regulatory requirements." Rep. Jerrold Nadler, D-N.Y., who heads the panel's Constitution Subcommittee, said people's "worst fears have been realized" with documented instances of "rampant abuse." Senators likewise scolded the FBI at a committee hearing the next day.

Television
Interests Air Concerns About Digital TV Converters
     The Commerce Department agency responsible for implementing a $1.5 billion coupon program to assist Americans with the switch to digital television held the first in a series of public forums to discuss the guidelines. Stakeholders at the National Telecommunications and Information Administration hearing inquired about a range of issues, from outreach to disabled, minority and rural populations to technical specifications and retailer requirements. The initiative seeks to ensure that Americans who watch over-the-air television via analog signals can continue watching after the Feb. 17, 2009, transition to digital signals occurs. But critics of the coupon program, including some prominent Democrats, have complained that the funding is insufficient and the eligibility requirements are confusing. "We are very concerned about this transition," said Mark Lloyd, a senior fellow at the Center for American Progress and a professor at Georgetown University's Public Policy Institute.

Antitrust
Definition Of Radio Market Is Key To Satellite Deal
     Defining the relevant product market likely will be the central issue in the government's competitive analysis of the proposed merger between satellite radio operators Sirius and XM, witnesses told the Senate Judiciary Committee. The companies have suggested that the market should be viewed broadly to include terrestrial radio, music stored on portable digital devices, Internet radio and other music services. If the field is defined narrowly to Web radio, however, the merger of the only two companies in that arena could be seen as having a monopolistic flavor, lawmakers heard. Antitrust attorney David Balto could not identify "a single new initiative" adopted by Sirius or XM in response to digital music players, high-definition radio, digital media or other music alternatives. Sirius Satellite Radio CEO Mel Karmazin delivered familiar remarks in support of the merger. He previously appeared before two House panels.