Intellectual Property
Supreme Court Says Error Made In KSR Patent Ruling
     The Supreme Court this week unanimously ruled that the U.S. Federal Circuit Court of Appeals erred in its view of when an invention is "obvious" and thus cannot be patented. The appeals court rejected a claim than an automobile gas pedal was too simple to warrant an original patent. Under the standard test, a patent can be found obvious if there was a "teaching," "suggestion" or "motivation" to combine pieces of "prior art" into the claimed invention. But the Supreme Court said the federal circuit was incorrect in holding that "courts and patent examiners should look only to the problem the patentee was trying to solve." It added that any need or problem known in the field and addressed by the patent can provide a reason for combining the elements." The court also handed Microsoft a major victory against AT&T in a 7-1 patent ruling about creating copies of digital code for computers made and sold abroad.

Budget
House Passes Two Research Bills For Science Agencies
     It was back to basics in the House -- basic research funding, that is. The chamber passed two bills to boost such funding. One measure, passed on a 399-17 vote, would authorize funding for the National Science Foundation, and the other would authorize funding increases for the National Institute of Standards and Technology. The vote for the NIST bill was 385-23. The NSF measure would authorize funding increases through fiscal 2010 and keep NSF on track to double its budget in 10 years, a goal of broader pending competitiveness initiatives. The NIST bill would authorize more than $1.5 billion between fiscal 2008 and fiscal 2010 for laboratory research. Phil Bond, the head of the Information Technology Association of America, praised the legislation, but the White House issued a statement opposing the NIST bill in its current form.

Privacy
Panel OKs Amended Version Of Data-Protection Bill
     The Senate Judiciary Committee approved legislation that would establish a national standard for the protection of personal data in order to prevent identity theft. The legislation would require companies to report data breaches when they "reasonably" believe that sensitive information of consumers has been accessed or acquired. The measure, approved by voice vote, also would regulate data brokers -- who sell a wide range of information about consumers, such as arrest, health and employment records -- so consumers could access and correct mistakes in such data. Supporters of the bill include the Center for Democracy and Technology, Consumers Union and Microsoft. The panel made some changes, such as defining the use of encryption standards and exempting companies from notifying consumers about breaches that pose "no significant risk" from breaches because the information in question is encrypted. Jeff Sessions, R-Ala., voiced concerns about the bill despite the changes.

Crime
House Panel Backs Second Bill Aimed At Spyware
     Both a House Judiciary subcommittee and the full committee approved a bill aimed at fighting secretly installed computer spyware. The legislation aims to target bad behavior without restricting technological innovation, said California Democrat Zoe Lofgren, who sponsored the legislation. The measure would combat both spyware and "phishing" scams that use fake e-mails and Internet sites to trick consumers into revealing personal information. The bill would impose criminal penalties on spyware purveyors, punishing offenders with up to five years behind bars. A House Energy and Commerce subcommittee approved a competing bill in April. Full committee approval is expected this month. That bill would bar Internet companies from deceptively installing programs and create an "opt in" regime that would require firms to provide notice and get consent from users before installing software on their computers.

E-Government
Panel Casts A Partisan Vote To Probe Fla. Election
     A House task force voted to move forward with a probe into last year's disputed electoral race in Florida's 13th District. A special panel commissioned by the House Administration Committee voted 2-1 to continue its investigation into the contest, which Republican Vern Buchanan won by only 369 votes. Democrat Christine Jennings blames e-voting glitches for her loss. Lawmakers had been waiting for her case to run its course in Florida courts, but Texas Democrat Charles Gonzalez, the task force's chairman, said he does not believe anything would be gained by delaying the investigation further. The task force said it hopes to complete the probe in 45 days. California Democrat Zoe Lofgren also voted to move forward with the probe. Kevin McCarthy, R-Calif., cast the dissenting vote. Later in the week, the panel delayed debate on a bill to require paper receipts for electronic votes because of Republican concerns.

Trade
USTR Releases Annual IP Review Of Trading Partners
     The Office of the U.S. Trade Representative released its annual Special 301 report, which acknowledges improvements by some foreign trading partners to better protect intellectual property rights. USTR noted improvements in the Bahamas, Belize, Brazil, Bulgaria, Croatia, the European Union and Latvia. All of the countries -- aside from Belize and Brazil -- were removed from the watch list this year. However, the USTR found that "rampant counterfeiting and piracy problems have continued to plague China and Russia." Those countries -- along with Argentina, Chile, Egypt, India, Israel, Lebanon, Thailand, Turkey, Ukraine, and Venezuela -- were put on the "priority watch list," which puts them at risk losing trade privileges. While the Recording Industry Association of America had proposed that Canada be elevated to the priority watch list, USTR decided to leave the country on the regular watch list.

E-Commerce
Lack Of Radio Airplay Has Musicians Turning To Web
     Up-and-coming artists are making inroads in American culture by furnishing tracks for hit television shows like ABC's "Grey's Anatomy" and attracting fans on the Internet, but "the one place they're not getting exposure is through mainstream radio," Rep. Mike Doyle, D-Pa., told a music policy conference. One factor that could hamper musicians' exposure is a recent ruling by the Copyright Royalty Board that would boost the royalties webcasters must pay to recording labels. The board chose a uniform fee structure over a percentage-of-revenue model. Doyle said musicians should be paid for their work but worries that the policy shift "might cause some webcasters to turn off their music streams," silencing new and undiscovered artists. He said Congress must ensure compensation for everyone in the music creation and distribution chain without "killing the goose that lays the gold records."

Civil Liberties
It's A Dangerous World For Journalists, Experts Say
     Journalists are at a greater threat than ever for being killed around the world, Undersecretary of State for Public Diplomacy and Public Affairs Karen Hughes said, and the trend should trigger alarm bells and cultivate greater international attention than it has so far. "In every region of the world journalists are under siege" and worldwide threats to press freedoms threaten civil society itself, Hughes said, also noting that the U.S. government is committed to fostering transparency and combating Internet censorship. Earlier in the morning, House Foreign Affairs Committee Chairman Tom Lantos, D-Calif., spoke of recent threats to media freedom. "[Thomas] Jefferson would be appalled to learn how many repressive governments now place immense pressure on independent voices in print, on the air and online," he said.