September 7, 2008
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Friday, May 25, 2007
Executive Summary
Week of May 21, 2007
by K. Daniel Glover

Antitrust
High Court Rejects Claim Against Big Telecom Firms
     The Supreme Court this week dismissed an antitrust case against a handful of dominant telecommunications firms accused of conspiring against competitors in local telephone markets. The 2002 class-action case against BellSouth, Qwest Communications International, the former SBC, and Verizon Communications was characterized by some as the most important antitrust matter before the court since a 1986 feud between Japanese television makers and U.S.-based rivals. The complaint, Bell Atlantic v. Twombly, alleged that the companies refused to provide sufficient assistance to new competitors under FCC regulations. Justice David Souter wrote the high court's 7-2 majority opinion, concluding that an appeals court had distorted basic antitrust policies by ruling that allegations of companies acting similarly, combined with a conclusory allegation of conspiracy, is almost always enough to justify an antitrust claim. Justice John Paul Stevens filed a dissenting opinion, which Ruth Bader Ginsburg supported in part.

Crime
House Passes Bills Against Spyware, Laser Pointers
     The House passed legislation that would impose criminal sanctions on purveyors of secretly installed computer spyware, punishing offenders with up to five years behind bars. The bill would impose a two-year prison term for anyone who uses spyware to intentionally hack into a computer and alter its security settings or obtain personal information to defraud the user. Those who use spyware to further another federal crime would get three more years. A competing Energy and Commerce Committee bill still awaits a vote. It would prevent Internet companies from deceptively installing software and would require firms to provide notice and get consent from users before putting programs on their computers. Violators would face up to $3 million in fines per illegal action. Jerry Cerasale of the Direct Marketing Association said he does not expect the Senate, where past anti-spyware bills have stalled, to move quickly on the issue.

Labor
Tech Industry Balks At Immigration Point System
     A proposed point system in the Senate immigration bill is designed to shift priority away from reuniting families and toward bringing more skilled workers into the United States. But some technology industry groups, which senators are counting on for support, are balking at the idea and hope to eliminate or at least alter the proposal. Under the current system, companies pick the workers they want to hire and initiate green-card applications. Robert Hoffman, a lobbyist for Oracle and co-chairman of the Compete America coalition, said having the government develop a pool of hirable workers is like asking the San Antonio Spurs basketball team to pick their players from a government draft pool. But James Carfano, a senior fellow at the Heritage Foundation, sees a need for a point system. "Otherwise we'll be stuck with chain migration forever," he said. He urged a general emphasis on science, technology, engineering and mathematics.

Taxes
Senators Seek To Close Loophole In Net Taxes Ban
     Two senators introduced legislation that would extend the moratorium on Internet access taxes while also closing what the lawmakers say is a loophole harmful to state and local tax revenues. The legislation -- offered by Lamar Alexander, R-Tenn., and Tom Carper, D-Del. -- would extend the ban on taxing Internet access for another four years. The bill also would change the definition of Internet access and "close a loophole in the original 1998 moratorium that could allow an Internet service provider to bundle access with other services and make them all tax free," according to a statement from Carper. Both Alexander and Carper are former governors who have expressed concern about the potential loss in state and local revenues from the moratorium. The legislation was introduced on the day of a Senate Commerce Committee hearing on the ban. The House Judiciary Committee held a hearing a day earlier.

Crime
MySpace Agrees To Relinquish Data On Sex Offenders
     MySpace agreed to give a group of state attorneys general information on thousands of convicted sex offenders who have created profiles at the online social network. The agreement ended a spat between MySpace and the top law enforcers from Connecticut, Georgia, Idaho, Mississippi, New Hampshire, North Carolina, Ohio and Pennsylvania that erupted when the site refused to comply with a request for the records. MySpace deleted thousands of profiles created by sex offenders but hesitated to provide their names and personal information. The parties reached a deal that would let MySpace provide the records without breaking federal law. In a statement, Connecticut Attorney General Richard Blumenthal said the information would include the e-mail and Internet protocol addresses of sex offenders. In other state news, Nebraska's governor vetoed a bill that would have banned automated political "robocalls."

Budget
Senators Vow To Push Intelligence Budget Into Law
     The Senate Intelligence Committee approved its fiscal 2008 authorization bill, which would grant more flexibility and authority to the national intelligence director while requiring greater accountability from the intelligence community. Congress has failed to reauthorize funding for intelligence agencies for two years, but committee Chairman John (Jay) Rockefeller, D-W.Va., said he and ranking Republican Christopher (Kit) Bond of Missouri are "committed to making sure that it doesn't happen again." The House earlier this month passed its own intelligence bill, with Democrats hailing it as the largest measure of its kind. The total amount of authorized funding is classified, as are much of its contents, but it is estimated to be about $44 billion.

Privacy
A Year After Major Breach, Data-Security Bills Stalled
     Tuesday was the one-year mark since Congress learned of a stolen laptop computer that contained personal data on 26.5 million veterans and active-duty military personnel. But while Congress last year cleared data-protection measures aimed specifically at the Veterans Affairs Department, whose employee lost that computer, it has not passed broader legislation. Larry Clinton of the Internet Security Alliance said he is encouraged that recent security breaches have made lawmakers aware of cyber-security problems but lamented the limited activity to correct the problems. The Senate has been active in recent weeks, with the Judiciary and Commerce committees approving data-security measures and key Banking Committee members filing legislation. Senate Majority Leader Harry Reid, D-Nev., has been pushing committee chairmen to reach a consensus. The House, where the legislation touches on the jurisdiction of four major panels, may face a tougher battle.

Health
Push For Patient E-Records Gets Some Hill Attention
     House and Senate lawmakers introduced various approaches to standardizing health information technology and electronic health records. Sen. Sheldon Whitehouse, D-R.I, said a consolidation of efforts is necessary. "That effort is best placed in the hands of a non-governmental organization headed by technology and business leaders who understand the dire need for health IT," said Whitehouse, who announced a package of health-related legislation. Whitehouse noted that the "limited financial and statutory weight" of the nation's health IT office has kept it from establishing a national infrastructure, so "a more powerful entity is required to motivate this enterprise." House Science and Technology Committee Chairman Bart Gordon, D-Tenn., also introduced a measure that would direct the National Institute of Standards and Technology to standardize health IT records and tools. And his committee approved a bill designed to help universities educate and train healthcare professionals in using technology.

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